The Churn In Cannabis Beverages
Given the rapid regulatory oscillation in Texas around Delta-9, we thought it would be interesting to examine one of the biggest opportunities today with Delta-9 beverages: improving repeat purchase rates and reducing brand churn.
Right now, repeat purchase rates are... well, let's say they're a work in progress. They're trending up, but only about a third of what we see in the top energy drink or bev-alc brands. Unsurprisingly, the category's still young, and consumers are just starting to dip their toes.
Want a peek at how wobbly brand loyalty can be? Let's head north, where they have had legal beverages for many years.
In Canada, it's common to see only 2 or 3 of the top 5 brands hang onto their spots year over year in the top provinces. That's highly unusual in CPG, a sign that consumers are still shopping around for brands to love, not just try.
Author
Matt is an experienced Beverage Alcohol Consultant who helps emerging beverage alcohol brands with growth strategy, M&A diligence, consumer insights, and fundraising. He is also an active CPG angel investor.