The cannabis beverages market continues to be a highlight for the industry as a whole. According to Fortune Business Insights, the global cannabis beverages market size hit $2.04 billion in 2023 and is projected to grow from $3.09 billion in 2024 to $117.05 billion by 2032.
As more states legalize marijuana, the market will only continue to flourish. With most territories and provinces in Canada allowing the sale of adult-use cannabis, some U.S.-based beverage brands are even branching out into the country to tap into its growing market.
Lehua Brands, for example, just recently announced expansion into Canada’s cannabis market. The California-based cannabis beverage and vape company is now selling its Voila! Infused sparkling drinks in over 250 dispensaries across Ontario.
“We all know California is a challenging market, but up in Canada, there’s still a lot of hope and inspiration,” says Lehua Brands’ CEO Sierra Elaina. “They actually buy beverages by the case up there, which is something I haven’t experienced here in California.”
Diving Into the Canadian Market
Aside from buying cannabis beverages by the case, Elaina explains that she’s also noticed how Canada doses out at 10 mg, which is different from California.
“I think it’s an easier entry for many consumers,” she explains. “Since they’re a lower dose market, it makes drinking more of a social occasion.”
The Canadian shops have also been very welcoming to Elaina and her beverages. “I’ll go in as a supplier and they love to meet someone from California. They also can’t imagine what 100 mg is like, so we’ll share some stories back and forth. But they just like to hear what you’ve been through, both good and bad.”
Similarly to American consumer preferences, lower or no sugar options are a priority in the Canadian market, which is why Lehua Brands is expanding so rapidly in the country. The company’s success in both California and Canada, along with its ability to provide private label services for retail partners, continues to open up opportunities for Elaina and her team.
Getting Lehua Brands Into Canada
With more than two decades of experience in growing brands in regulated markets, Elaina was prepared for the work involved in getting her cannabis infused beverages into Canada.
The Ontario Cannabis Store is the governing body regarding all things marijuana in Ontario. “So you present your SKUs to OCS and then they’ll let you know about 60 days later if they intend to purchase them or not,” explains Elaina. “Then, if you’ve made the cut, you have about three or four months to get the manufacturing ready. So for me, coming from a spirits background where I was used to working with control states, it was actually pretty seamless.”
The entire process took Elaina almost a year to get her beverages on dispensary shelves. After visiting several Canadian shops and getting to know the trade, she ultimately ended up speaking with a category manager to build a relationship and introduce her brand.
“It was like a seven-to-eight month period before I sat down with her,” Elaina says. “I sent her non-infused samples just so she could get an idea of who we are and our commitment to the Canadian market.”
Now, Lehua Brands cannabis beverages are available in over 250 dispensaries across Ontario. Elaina says she is planning on pitching additional SKUs to OCS in October.
“We’ve just come off our California State Fair Gold + Silver Medal wins, so we’re going to be pitching those to the Canadian market. The gold medal was given to our REEFRESH Strawberry Lemonade and the silver medal was given to our Olala Root Beer,” she mentions. “But we’re not a brand that’s going to just come in and then leave. We’re going to be consistent in our efforts and our messaging.”
