August 2018

that’s going to lead you to the pathway of least resistance.” Pike has a background in alcohol marketing and knows that CBD pro- ducers must be skilled at talking with grocers and other mainstream retailers, not dispensary owners or people with a background in cannabis. Mainstream retailers, he said, need education in how CBD works. But they’ll also want liability insurance on any new product, and they’ll want to see detailed plans in case it is recalled. CBD producers also need reputable legal advice assuring potential retailers that they’re not taking a risk by carrying the beverages. It’s a steep climb, Pike said, but one that offers cannabis entrepreneurs a tantalizing opportunity: to get out of dispensaries and into bigger stores, before enormous beverage companies with established retail relationships have CBD products of their own. The CBD isolate industry is getting big- ger every day, but it’s still too tiny to accom- modate beverage makers needing to supply roughly 38,000 grocery stores and 115,000 convenience stores in the United States. “The big companies are talking about CBD, but there’s only so many licensed grows out there that actually sell CBD,” Pike said. “So even if you wanted to go big right now, you can’t, because you’d run out of supply.” ◆ CBD BUZZ C affeinated relaxation? Sounds like an oxymoron, but some CBD producers are finding surprising opportunities combining coffee and CBD. For Andrew Aamot, president of Denver-based Strava Craft Cof- fee, the combination started as a way to make his craft coffee brand stand out. “We simply wanted to differentiate our product from the thousands of other roasters out there,” Aamot said. When CBD came up during a brainstorming session, Aamot’s team at first considered it unworkable. Coffee roasts at about 500 degrees – so hot that any CBD on the bean would burn off. “We looked at the idea and shook our heads and thought, ‘No way.’” But Aamot contacted a food scientist to explore the idea. What they settled on was a full-spectrum CBD oil that could be applied to roasted coffee beans and then ground and made into coffee. The result was just what he wanted for Strava Coffee – a distinct flavor and a product that would stand out in an ocean of craft coffee options. Cannabis terpenes are removed to allow the coffee’s choco- latey, nutty flavors to shine. “We chose the amount of (CBD) oil to add so that we’re not inundat- ing the beans with hemp flavor,” Aamot said. The company nowmakes four kinds of CBD coffee: three options for regular coffee infused with CBD oil (30, 60 or 240 milligrams of CBD per 12 ounces of roasted coffee) along with a decaffeinated option, which includes 30 milligrams of CBD per 12 ounces. The CBD coffees command a premium price. Strava Coffee retails from $19.95 to a whopping $54.95 for a 12-ounce bag of beans. A single cup of CBD coffee sells for almost $7 at some Denver coffee shops. And the taste? It can be a touch oily, but most folks don’t notice, said Kevin Piaskowski, manager of Denver’s Blue Sparrow Coffee, which has served cold-brew Strava Coffee for more than a year. “When we first started carrying it, we didn’t even have it as a menu option. It was all word of mouth,” Piaskowski said. “Now, it’s a menu staple, and we probably sell one CBD cold brew for every three regular cold brews. It’s gained a lot of traction.” Strava coffee beans are sold online to consumers nationwide, but you can buy a brewed cup only in Denver coffee shops. Coffee isn’t immune from CBD’s legal complications: A cafe in Seattle recently was ordered by health inspectors to stop serving CBD lattes, even though recreational marijuana is legal there. Still, Aamot sees more coffee brands exploring CBD infusions. “After drinking CBD coffee, people are feeling calm. They aren’t as jittery as they can be with some coffees,” Aamot said. “It’s a coffee with a calming and focusing effect.” – Kristen Nichols Scott Leshman of Cannabinoid Creations says taste is the top priority when creating a CBD-infused beverage. Photo courtesy of Scott Leshman 74 • Marijuana Business Magazine • August 2018