Benzinga
Have ‘Wunder’ about weed drinks? How a former vice president of Zynga is changing the THC game
Now that recreational cannabis has become legal in more states, THC-infused drinks have emerged as an alternative to drinking – and as a complement to cocktails. Wunder is a brand that is shaking things up in this corner of the cannabis market. The brand calls itself “low dosage, low calorie and totally natural” for those concerned with health. It is also an option for those who want to explore THC to relax, but avoid the traditional ways of taking drugs, such as joints and foods. “We believe that cannabis-infused drinks are the future because of the innovation that is occurring with functional drinks and because of the way people relate culturally through drinking,” said Wunder co-founder and CEO Alexi Chialtas, to Benzinga. The company launched its first product line last year exclusively with the San Francisco-based The Apothecarium dispensary. And, since then, there has been no lack of competition. Pabst Blue Ribbon – the 19th century beer that is now America’s largest brewery – debuted its cannabis-infused sparkling water at some cannabis stores in California. The drink does not contain beer or alcohol, but – like Wunder – a few milligrams of THC. And one of the biggest deals ever made in the cannabis space was between the distillation giant Constellation Brands (NYSE: STZ), maker of Modelo Special beer and Svedka vodka, and Canopy Growth (NYSE: CGC). Constellation has a 39% stake in the cannabis company and has big plans for launching drinks. There are also SHOKi, Calexo, House of Saka, Artet and Cann supported by celebrities. Despite the long list of rivals, Wunder’s timing is certain: Grand View Research projects that the CBD-infused beverage space will reach $ 2.8 billion in 2025. And in 2029, the global cannabis market may inflate to $ 130 billion, with CBD drinks representing a piece of business. Read on to hear Chialtas’s thoughts on this growing trend, how his previous life in technology and games set the stage for his cannabis work and what the future holds for Wunder now that recreational marijuana is becoming legal in more states ( for example, New York). BZ: What inspired you to launch a THC drink as opposed to traditional foods (gums, cookies etc.)? AC: We were quick to identify the national trend towards people who drink less alcohol, so our challenge was to create a drink that would mimic the positive aspects of alcohol without the negative effects. We achieved this with Wunder Sessions, which is our line of low-dose infused drinks that have a unique combination of 2mg Delta-9 THC, 2mg Delta-8 THC and 4mg CBD cannabinoids. Delta-9 is the THC that we are all familiar with. It gets you off the ground, so to speak. Delta-8 has about half the psychotropic potency of Delta-9 and has an effect on the body. CBD completes the experience, ensuring that the overall effects are exciting. Our culture encourages drinking to socialize and celebrate. The WunderR Sessions turns this family ritual into something more lucid and positive. My colleague Jelena Martinovic wrote about how cannabis companies are starting to hire beverage professionals. What’s your opinion? My opinion is that it further proves that cannabis-infused drinks are the future. The legal cannabis industry is maturing and the same goes for the category of infused drinks. As this evolution occurs, we will continue to see professionals entering the space from the main industries, including beverages. The fact that these cannabis companies are able to recruit these individuals demonstrates how hot the category is, how well funded the business must be to meet their salary requirements and how the stigma around cannabis continues to diminish. What is interesting to me is how the experience of a variety of industries will lead to cannabis and the category of beverages we think it can reach. For example, my experience before Wunder was in consumer technology and social games, specifically with Zynga (NASDAQ: ZNGA) and Warner Brothers. It was my previous life in technology and games that set the stage for my work with cannabis. The culture of startup really prepared me to deal with fast-paced environments where it is essential not only to think on the spot, but also to build structures where they didn’t exist before. My time at Zynga has focused on creating experiences for people, and that is exactly what cannabis is for me – creating meaningful moments. Drinks taste like flavored gas. Any clues that you can provide about the manufacturing process or goal you had at the beginning of ensuring that Wunder had a feeling of sparkling water? We created functional drinks that provide a conscious alternative to alcohol, so we set out to develop our first line of low-dose drinks, Sessions, to be lightly carbonated for a festive atmosphere that promotes socialization. Our bold flavors – Blood Orange Bitters, Lemon Ginger and Grapefruit Hibiscus – are delicious and widely attractive, showing how cannabis drinks have evolved and now have the sophisticated flavor profiles of handcrafted cocktails. Is Wunder VC supported or bootstrapped? From day one, Wunder was decidedly raised at home. Working with investors and consultants from our own network, we remain agile and focused on developing an attractive brand with products that meet the needs of consumers in the long term. Our expert partners have years of experience in building brands and drinks, so we are fortunate to move quickly from concept to execution while navigating a regulated market. The New York legislature recently agreed to legalize adult use. How will this change the game for a West Coast beverage company like WUNDER? The legal cannabis market in New York is imminent and exciting. This will obviously open up a new market and trigger a flood of new brands that will bring a distinctly experienced brand point of view in New York. For Wunder, we are always looking at what’s next, which is why we just launched our line of high-dose drinks called Higher Vibes, which are the first drinks on the market with 10 mg Delta-9 THC and 10 mg of Delta-8 THC. These drinks are aimed at experienced cannabis users looking for unique cannabinoid experiences. When it comes to expansion, New York and the East Coast are absolutely on the horizon and we have enjoyed meeting operators from one and several states as we look for the right partners to join us in this next chapter of WUNDER. It is an exciting time for cannabis and infused drinks. And that excise tax of 3 cents per milligram of THC? Will this make it more difficult for companies to compete with the illicit market? We are not in the business of competing with the illicit market because it will always exist. Instead, our business is to educate consumers to know what they are buying and how it will make them feel and, hopefully, improve their lives. If there is one thing I have learned about an emerging industry, it is that excessive taxation and regulation slows down innovation and makes it difficult for small businesses to compete. For those who are interested in going deeper, I think it is revealing to see how much consumers pay in taxes for products like alcohol compared to cannabis. See more of BenzingaClick here for options negotiations the BenzingaSaucey founder is praised for cannabis legalization in New York, but what about the THC tax? with. Benzinga does not provide investment advice. All rights reserved.