Vertical Wellness, the health and wellness company committed to “unleashing nature’s potential,” recently completed development of a diverse portfolio of CBD beverages which will be hitting shelves this year. The lineup will feature drinks made by two existing Vertical Wellness brands, Taos and Hemp-Moji, as well as “celebrity and athlete driven wellness and lifestyle brands yet to be announced.”

The wellness leader’s drink lineup will include sparkling beverages, waters, and iced teas all infused with CBD, as well as hemp shots. Vertical Wellness’ offerings will include the company’s patented technologies, such as its Fast-Absorption formulation, among others.

“We believe cannabis beverages will be one of the most important form factors for consumers,” stated J. Smoke Wallin, CEO of Vertical Wellness.

“My criteria is the liquid has to taste great and at the same time, the cannabinoids need to be effective,” Wallin explained. “Our team has worked with the world’s best flavor houses and scientists over the past three years developing these beverages to achieve exactly that. I can’t wait to get these to market!”

Wallin Brings Beverage Experience

Wallin is not new to the beverage industry. He is the former vice president and CFO of National Wine & Spirits. Wallin is credited with turning the liquor distribution powerhouse into a $1 billion company.

He was also the chairman of the Wine & Spirits Wholesalers of America in 2002. In addition to his position with Vertical, Wallin is also currently the chairman and CEO of Taliera, a beverage industry brand incubator. Early in his career, the entrepreneur even created a bottled water brand, which he later sold to Nestle.

National Distribution Planned

Wallin brings a wealth of beverage distribution knowledge to the table, which will be a key factor in the success of Vertical’s new products. The company already has partners lined up for the national distribution of its CBD beverages.

The drinks will launch later this year in 6 select markets and will expand nationally in 2022.

“Building new and existing CBD brands in the beverage space opens ourselves up to many more opportunities,” insisted Kevin Henry, VP of Brands at Vertical Wellness. “On-premise accounts like restaurants, bars and hotels give us a chance to really bring these brands to life and engage with consumers firsthand, which is especially important for a new category like CBD where education and advocacy are key.”

Canafarma Merger

In June of this year Vertical Wellness announced it would be merging with CanaFarma, a Vancouver-based company specializing in hemp products and services. The newly formed CBD brand conglomerate is now worth upwards of $50 million and will be the first of its kind to go public.

CanaFarma went public in March of 2020, during the height of the pandemic, but still managed an impressive stock launch. The company traded up to around $1.50 a share on the Canadian Securities Exchange.

Wallin said of the merger, “This is a platform for Vertical Wellness to fulfill its vision. To launch a portfolio of brands along a vast array of categories and segments requires resources, and the CanaFarma deal enables us to attract those resources at a scale we need.”

CBD Market Expands

By 2025 the CBD beverage market is projected to reach nearly $3 billion. Vertical Wellness will be competing against established brands like Canopy Growth Corporation’s Quatreau, a CBD-infused sparkling water brand which launched in the US this spring.

Quatreau debuted in the US after a successful year on the Canadian market, where it quickly became the best performing CBD beverage. Quatreau is available in four flavors including Passionfruit + Guava, Blueberry + Acai, Ginger + Lime, and Cucumber + Mint. Each 12 ounce can contains 20 milligrams of hemp-based CBD, zero sugar, and 25 calories.

A new competitor, Wynk Seltzer, launched in June. Wynk is infused with both CBD and THC and comes in three flavors including Lime Twist, Juicy Mango and Black Cherry Fizz. A can of the sparkling beverage contains 2.5 mg of THC and 2.5 mg of CBD.

Even the largest beverage companies recognize the potential of CBD beverages. Molson Coors entered the market earlier this year, with a joint venture releasing VeryWell, a canned sparkling water infused with 20 mg of hemp CBD. VeryWell comes in three flavors including strawberry hibiscus, grapefruit tarragon, and blueberry lavender.

Like Quatreau and Wynk, VeryWell contains no alcohol.

With Wallin’s industry experience and Vertical Wellness’ merger with CanaFarms, the company appears ready to enter into the CBD beverage market. We are excited to learn more about Vertical’s new portfolio of beverages.

Shirani Jayasuriya
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