In recent years, we’ve seen a lot of booze-related products containing CBD but no THC. For the unaware, THC (or tetrahydrocannabinol) is the psychoactive part of cannabis. Most of the alcohol and marijuana based products in the past left out THC because of the obvious reason that they won’t be able to sell it in most stores. But, Maryland’s Flying Dog Brewery decided that didn’t matter and went on to create the first THC-infused beers.
Set to be released this year, the non-alcoholic IPA called Hop Chronic is a partnership with Green Leaf Medical Cannabis. Normally, we stop by our local convenience store and grab a six-pack of beer in the hopes of enjoying some suds and getting a little buzz on in the process. The intent of Hop Chronic isn’t necessarily to get its drinker high.
Since it’s going to be sold at cannabis dispensaries, it’s going to be used as a medical delivery system for medical cannabis patients.
“We see a lot of interest in cannabis from the craft beer community, and we jumped at the opportunity to partner with Green Leaf on a product that captures the passion and energy you see in fans of both craft beer and cannabis,” Flying Dog CMO Ben Savage said in a press release. “There are definitely similarities between the natural flavor profiles we extract from hops and the terpenes and cannabinoids found in Cannabis.”
“For people who don’t want to smoke, don’t want to vape, there’s no path of experiencing the therapeutic benefits,” Flying Dog CEO Jim Caruso told Brewbound. “It feels good to be a part of creating a delicious IPA where people who want to experience cannabis that way can do that.”
However, Flying Dog and Green Leaf face a potential regulatory roadblock as the Maryland Medical Cannabis Commission has yet to allow companies to produce or sell edible cannabis products. You can apply on Veriheal.com for getting medical marijuana card in Maryland.
Caruso explained that since Flying Dog is not licensed to produce or sell cannabis products in the state, Green Leaf will need to receive regulatory and legal approval for the product. Caruso said his company’s involvement in the project is limited to brewing the non-alcoholic IPA, which Green Leaf would then infuse with cannabis at its own facility and distribute to dispensaries.
Nevertheless, Caruso told Brewbound that he’s optimistic the product will be approved since similar offerings have already received the go ahead in other states, like Colorado, where Ceria, Inc. founder and Blue Moon creator Keith Villa launched a similar product in December.
“When you have other states doing it, I think it’s a lot easier to start that regulatory approval process,” he said.
If the state were to greenlight Hop Chronic, the non-alcoholic beer would be sold in 6-packs and 12 oz. single-serve cans containing varying THC and CBD dosages at licensed dispensaries throughout Maryland. Caruso added that the recipe for Hop Chronic would not be a carbon copy of any existing Flying Dog brands. However, the beer will be “more hop forward,” he said.
“We’re very familiar with how to get the hop character into a very low-alcohol beer,” he said. “We’re very confident that we can come up with a terrific base beer that will make a delicious infused product.”
If approved, Flying Dog would join a number of beer manufacturers that have already entered the cannabis space. Large beer companies such as Anheuser-Busch InBev (Tilray), Constellation Brands (Canopy Growth) and Molson Coors (Hexo) have each struck partnerships with Canadian cannabis companies. Other U.S. beer manufacturers, including Heineken-owned Lagunitas and Craft Brew Alliance, have experimented or explored the possibility of THC- and CBD-infused beverages.
Recreational use of cannabis in the U.S. is not legal at the federal level. However, recreational and medical cannabis sales are legal in 10 states (Alaska, California, Colorado, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont, Washington) and Washington, D.C. Caruso said Flying Dog’s partnership with Green Leaf is a “foot in the door” to a potentially bigger marketplace.
The Flying Dog and Green Leaf partnership won’t end at Hop Chronic either. The two companies are discussing additional products, including beer-inspired proprietary cannabis strains and cannabis strain-inspired beer recipes, among other products.
Caruso told Brewbound that Flying Dog has not invested in the 4-year-old Green Leaf. However, he personally is considering an investment in the marijuana company’s current Series E fundraising round.
Although Hop Chronic would be the first non-alcoholic beer brewed by Flying Dog, it may not be the last. Caruso said he witnessed the popularity of non-alcoholic offerings during a trip to Europe, and Flying Dog will begin exploring its own non-alcoholic — and non-infused — offerings.
“I’m quite intrigued with how the 0.0 phenomenon is catching on,” he said.
Flying Dog is also exploring another growing trend among craft brewers: hard seltzer. According to Caruso, Flying Dog could release a regional hard seltzer brand in the latter part of the year.
As for Flying Dog’s core beer business, Caruso told Brewbound that the company finished 2018 up 5.5 percent, to more than 106,000 barrels. For 2019, he said he expects “high single-digit growth” as the company continues to focus on and invest in the Mid-Atlantic market, which accounts for 80 percent of its sales (40 percent of which are in its home state of Maryland). In an effort to drive growth outside of its home market, Caruso said the company has invested in additional sales and marketing personnel in New York’s five boroughs.
“We’re tripling our investment there in terms of people on the street and sales and marketing investment in that territory,” he said.