Marijuana Business Magazine May-June 2019

May-June 2019 | mjbizdaily.com 51 • Targeted marketing for products that meet consumers’ needs, such as pain relief or relaxation. • More cannabis companies creating and distributing hemp-derived CBD products nationwide. • A wider variety of THC and CBD doses that aim to deliver a particular effect, such as “calm,” and stray from typical 2.5-, 5- and 10-milligram serving sizes. • A greater emphasis on natural and/or organic ingredients. What follows is a detailed look at the current landscape and business opportunities in the ingestible infused products sector and the trends that will shape the future of this growing category. Need for Speed Bioavailability is a buzzword in the ingestible cannabis-infused product sector. Products with higher bioavailability are more rapidly absorbed into the body’s circulatory system—and infused product manufacturers see mass-market appeal in goods that provide desired effects faster. New product development should emphasize bioavailability and leverage nanotechnology or innovations in food science, according to industry executives. Those products will appeal to a wider group of consumers. For years, a number of award-winning and deeply experienced chefs have been curating private, cannabis- infused meals for high- rolling clients. Now, more of these trained chefs are leveraging their know- how to craft branded lines of infused edibles and beverages, either on their own or in partnership with large cannabis businesses. Their entrance into the industry is likely to elevate infused products, said Mindy Segal, a James Beard Award- winning chef and the creative force behind Mindy’s Artisanal Edibles and Mindy’s Kitchen-branded products for Chicago-based Cresco Labs, a vertically integrated multistate cannabis operator. Experienced chefs lend credibility and brand-name recognition to their products, said Segal, who has the best-selling gummy product in Nevada, according to Seattle-based Headset, a data analytics firm. She likened branded cannabis-infused, ingestible products to well-known consumer packaged goods, such as Orville Redenbacher’s popcorn and Newman’s Own salad dressings. That brand recognition is important to consumers, she noted. Trained chefs also bring to the cannabis industry years of experience in culinary science and know-how about trends in traditional food and beverage markets, said Ezra Malmuth, the founder and CEO of Atlas Edibles in Berkeley, California. Malmuth studied culinary nutrition at Johnson &Wales University and worked in Michelin-rated restaurants, including Chez Panisse in Berkeley. He said experienced chefs are poised to bring “thoughtful interpretations,” inventive flavor profiles and innovative ways of crafting ingestible products to the industry. Segal predicts other accomplished chefs will lend their names and expertise to ingestible products. She’s also eager to craft edibles with savory flavors, further explore microdose and CBD products and continue to expand her brands to new markets. “We’re always looking ahead and always working on new products. And I really believe that the future of these products is going to be more mainstream,” she said. – Joey Peña ON THE COVER Elevating Edibles Cresco Labs collaborates with Mindy Segal to produce Mindyʼs Kitchen infused products. Photo by Jeff Haynes To maximize sales and stay ahead of competitors, infused product manufacturers should be in tune to the following trends: • Products that allow consumers to more rapidly absorb THC and CBD. • Water-soluble mix-and-serve beverage powders. • The marketing of “moods” such as relaxation or bliss rather than strain names. • Hemp-derived CBD products that can be sold through e-commerce sites. • A wider array of THC and CBD doses that stray from 2.5-, 5- and 10-milligram serving sizes. • Greater emphasis on natural or organic ingredients.