WORKWEEK

Breaking down the company powering some of the biggest names in cannabis beverages…

I have a confession to make.

I much prefer the cannabis beverages that are available in the United States vs the cannabis beverages that are available in Canada.

I personally found this surprising given the amount of capital that has been invested in this category in Canada to date, however, the products in California such as Cann & Wunder are streets ahead when it comes to producing cannabis beverages.

The success of Cann 

California-based Cann has been wildly successful.

The products, the founders, the celebrity endorsements and investors & the company’s mission altogether make it hard not to be attracted to a brand like Cann. 

But, we rarely stop to think about who is behind the formulation of the products they produce, and how the recipes & final product came to be. 

The science of beverages

Bringing a product to market goes beyond crafting a recipe that tastes good and creating a brand people love, there’s mad science behind it. 

This rings true for all consumer packaged goods.

The opportunity for challenges in cannabis is much greater though, and it becomes even more nuanced with drinks and edibles. Creating a shelf-stable, cannabinoid-based product is challenging, and nobody knows that better than SōRSE Technology. 

Who is SōRSE Technology? 

Founded by Howard Lee in November 2016, SōRSE is behind some of the biggest names in cannabis; Cann, CENTR, APRCH, Mad Tasty, and Copa are just a few.

While cannabis is SōRSE Technology’s primary focus, SōRSE also works with functional ingredients, like nootropics. 

Consistency in cannabis

A decade from now, all of the most successful cannabis brands in the world will have mastered the art of producing cannabis products that consistently yield the same experience – every single time a consumer purchases it.

Based on our understanding of SōRSE’s value proposition — a key component of their success in this space has been through enabling cannabis beverage companies to sell products that provide that sought-after, consistent experience every single time. 

There are additional key factors that have allowed SōRSE Technology to succeed, beyond providing a consistent experience:

Increasing bioavailability

Bioavailability, in this case, refers to the amount of cannabinoids our body absorbs.

The rate of absorption directly translates to the experience felt by the consumer.

Cannabinoids are fat-soluble, which is why we don’t absorb every bit of cannabinoid content in the product. If you paid attention in science class, you might remember up to 60% of our body is made of water. Water and fat don’t mix.

This means our body has a hard time absorbing the full cannabinoid content in edibles, drinks, tinctures, and even inhalation. 

How much can we absorb?

Our body can only absorb 13-19% of the total cannabinoid content in a traditionally manufactured drink or edible. So if you ingest a 100 milligram edible, you’re typically only absorbing between 13 and 19 total milligrams. 

All of SōRSE’s cannabinoid technology is water-soluble, which means you’re getting more than just 19% of the total cannabinoid content. A team of Colorado State University researchers found water-soluble CBD is up to 4.5x more bioavailable than fat-soluble CBD. 

Water-soluble solutions increase bioavailability in the body, and the onset is usually a lot faster than traditional edibles. 

Minimizing Scalping

Scalping is when compounds are absorbed into the food or drink packaging. In the traditional food and beverage space, scalping minimizes the flavor and taste of these products. 

In this case, scalping refers to cannabinoids being absorbed into drink liners, which is absolutely costing consumers money. U.S. cannabis beverage producer, Tinley, lost 97% of cannabinoids in their drinks, after a few months of sitting in the can liner. 

“When I say there is less cannabis, there is no cannabis left. It’s literally 97% absorption into the can after a few months,” Tinley’s CEO told Yahoo Finance. 

SōRSE is working behind the scenes to determine which packaging and can liners will serve the cannabis industry best, minimizing cannabinoid loss for consumers and financial loss for brands. 

Looking Forward

For brands, the easiest way to fix these problems is to partner with companies such as SōRSE Technology, however, certain companies such as Canopy Growth & Truss Beverages also have teams working on these problems.

Companies like SōRSE are making it easier to succeed in the cannabis industry today by minimizing the startup costs to build a cannabis beverage or cannabis edibles company, while also working to solve real issues the average consumer or brand may not even know about. 

Our Take

SōRSE Technology is a company worth paying attention to as the demand for cannabis beverages continues to increase.

Granted it will take them longer to become a big company as the current market for cannabis beverages is so small, however, I wouldn’t be surprised if SōRSE Technology is worth $1 billion USD some day, should they remain the market leader.