Cannabiniers to Launch Two Roots Line of Non-Alcoholic, Non-Infused Craft Beers

Lighthouse Strategies — the maker of the Cannabiniers and Two Roots lines of cannabis-infused non-alcoholic craft beers – announced today plans to roll out a line of non-cannabis-infused, non-alcoholic craft beers.

Starting in September, Two Roots’ non-alcoholic beers will be available in 145 BevMo! stores throughout California.

BevMo! will sell five different Two Roots non-alc beers, starting with a lager, IPA and hefeweizen, as well as two seasonal offerings: a mango-flavored IPA and Straight Drank, a pale ale flavored with terpenes to give it the aroma and flavor of cannabis.

Speaking to Brewbound, Lighthouse Strategies founder and CEO Michael Hayford said Two Roots’ non-alcoholic beers will be priced between $12 and $13.99 per 6-pack. He added that the company hopes those low-calorie offerings that also contain vitamin B12 and electrolytes will attract health conscious and active lifestyle consumers.

Two Roots’ entry into the non-alcoholic beer market comes as off-premise dollar sales of non-alcoholic beer offerings are up 17.7%, to nearly $78.5 million, through August 11, according to market research firm IRI’s multi-outlet and convenience store channel. Hayford also noted n/a beer’s 8% compound annual growth rate (CAGR) in recent years.

Earlier this year, Heineken launched its 0.0 non-alcoholic beer into the U.S., while Pabst Brewing released a Pabst Blue Ribbon NA beer. Other non-alc offerings on the market include several craft breweries focused exclusively on the segment, including Athletic Brewing, Wellbeing Brewing, Surreal Brewing and Partake Brewing, among others.

Hayford said he views non-alcoholic beer as “a great way to expand the [Two Roots] brand” and build upon its existing market presence. The hope, he added, is consumers who sample Two Roots’ NA beer in BevMo! will seek out its cannabis-infused offerings sold in dispensaries.

“It’s an opportunity to brand build, and it’s an opportunity to lever almost three years of product development,” he said.

If the California launch is successful, Hayford said the company will look toward national expansion of the brand. He added that the company has already received interest from wholesalers across the country about carrying the non-alcoholic beer and an alcoholic version, which the company plans to release in the San Diego area.

“The thought process is, if there’s a market demand, then we feel good that our product will perform well in that market,” he said.

In other Lighthouse news, Hayford said the company is close to finally announcing the acquisition of a brewery in the Great Lakes region — which the company teased earlier this summer. According to Hayford, the company closed on the deal earlier this month and plans to announce it in the coming weeks. He declined to name the brewery, only saying the company is capable of producing between 60,000 and 100,000 barrels annually.

Hayford said closing the deal has moved “a little slower than” expected due to “the volatility in the cannabis market in and around valuations and capital.”

“We’re still moving forward,” he said.

Lighthouse has already acquired the Helm’s Brewery in San Diego, and contract brews at Green Flash, where it has up to 50,000 barrels of capacity. Hayford noted that the company has not yet closed on its acquisition of Dad & Dudes Breweria in Colorado, as the company is in discussions with the Alcohol and Tobacco Tax and Trade Bureau about changes to the law regarding CBD.

The strategy behind acquiring the brewery is to give the company a location to dealcoholize its beer to service states such as Michigan and Illinois, as well as Canada.

A press release is included after the jump.

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