Cann, the cannabis-infused drink company, moves 150,000 units and raises $5 million

TechCrunch | 1/21/2020 | Staff
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Since its launch in May of last year, the cannabis-infused drink company Cann has sold 150,000 cans of its THC and CBD-infused, alcohol-free, intoxicants, in a sign of success that’s bucking current industry trends,.

On its way to that milestone, the company has sold out multiple times as it wrestled with manufacturing facilities that simply couldn’t keep up with demand, according to the company’s co-founders, Luke Anderson and Jake Bullock.

Thanks - Investment - Backers - Imaginary - Stage

Now, thanks to a $5 million investment from new backers led by Imaginary, an early stage investment firm launched by the founder of the Net-a-Porter group, and JM10, a leading cannabis company, Cann is hoping to break through the legal obstacles surrounding distribution of cannabis-derived intoxicants and overcome investors growing skepticism around the viability of cannabis as a business.

“Overall, the industry is hurting. They’re not meeting the growth expectations that they set out,” says Bullock. “What’s happening on delivery platforms is not connected with the mainstream. You have folks that are not going to smoke or are not going to inhale vapor… [and so] you’ve seen a much slower adoption of cannabis as a mainstream mild intoxicant.”

Problems - Existence - Cannabis - Industry - Startups

Those problems are threatening the existence of one of the cannabis industry’s most recognizable startups, Eaze. According to earlier TechCrunch reports, the company is running low on cash thanks to a perfect storm of working capital constraints, increased marketing spend and lower customer demand.

Cann’s co-founders think their drink offers something more appealing to a casual consumer than vaping or smoking — but the company chafes under the distribution constraints that tie it to the dispensary businesses.

Cann - Alcohol - Drinker - Cann - Consumer

Cann wants to transform the social alcohol drinker into a Cann consumer, but is hampered by its inability to appear next to beer and wine on grocery store shelves. In fact, the company’s products can’t appear in the grocery store at...
(Excerpt) Read more at: TechCrunch
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