Cannabis beverages overview, with Matt Melander, Managing Partner, 8X LLC

Episode Summary

In this episode of the Signals podcast, host Nick Mazing from AlphaSense welcomes guest Matt Melander, a successful entrepreneur in the burgeoning cannabis industry. Together, they delve into the challenges and opportunities of creating and distributing cannabis-infused beverages and edibles, highlighting Matt's journey in developing the popular LEVIA beverage line.

Matt shares his experiences navigating the uncharted territory of the cannabis market, emphasizing the importance of strong relationships and integrity in an industry that lacks the infrastructure and support of more mature sectors. He also discusses the potential landscape of cannabis consumer packaged goods (CPGs) and whether the industry will ultimately consolidate or fragment.

Finally, the conversation touches on the creative process of crafting palatable cannabis beverages and Matt’s humble beginnings with a SodaStream in a garage to sophisticated collaborations with flavor houses and experts today. This episode offers valuable insights into the dynamic world of cannabis entrepreneurship and product development.

Guest-at-a-Glance

💡Name: Matt Melander

💡What he does: Entrepreneur, Co-founder

💡Company: LEVIA Cannabis Beverages (now a part of AYR)

💡Noteworthy: Matt is a successful pioneer in the cannabis-infused beverage market.

💡Where to find him: LinkedIn

Key Insights

Building a Brand in the Emerging Cannabis Industry 
Matt Melander, the co-founder of LEVIA Cannabis Beverages, discusses the challenges and opportunities of building a brand in the cannabis industry. Due to the lack of established infrastructure, businesses need to rely on small-time relationship-based selling and one-on-one conversations with retailers. Matt highlights the importance of integrity and collaboration in the industry, with contributors working together to build a viable future enterprise.

The Evolution of Cannabis CPGs and the Potential for National Brands 
Matt shares his thoughts on the future of cannabis CPGs and the possibility of national brands emerging in the industry. While he believes there is a chance for a Coca-Cola or Budweiser equivalent, he also sees value in regional players thriving and creating jobs. He compares the growth of the market to the rise of the craft beer industry, with a focus on product quality and consistency.

The Art and Science of Cannabis Beverage Formulation 
From its humble beginnings as a fun experiment with a SodaStream, cannabis beverage formulation has evolved into a sophisticated process. Matt explains how flavor experts from the wine and craft cocktail industries have entered the cannabis space and elevated product development. The process has shifted from being an art to incorporating rigorous engineering and testing for quality control.