For most brewing companies, production of beer is the first and—until the advent of hard seltzer and other alternative offerings—the only step to entering the beverage industry. But in the case of Two Roots Brewing, it will be the last of a three-phase entry plan, which began when the Nevada-based operation began distribution of its cannabis-infused, dealcoholized beers last year. Phase two will see six-packs of its non-alcoholic beer debut on shelves of California BevMo! stores next month.
“Non-alcoholic beer is one of the fastest growing segments and we are expanding the category by offering our consumers various options within the category,” says BevMo! category manager Amy Gutierrez.
Two Roots’ non-alcoholic portfolio will include a lager, wheat beer and IPA as well as additional seasonal offerings. Next up for the company, which acquired Kearny Mesa-based Helm’s Brewing in 2018, will be traditional beer, which will debut at retail in the coming months.
“The demand for high-quality, healthier, low-calorie products continues to grow,” says Michael Hayford, CEO of Two Roots’ parent company, Lighthouse Strategies. “With our goal of reaching all consumers, Two Roots is the first cannabis brand to enter traditional retail, and in doing [so], tackling three key beverage segments—craft beer, non-alcoholic craft beer and cannabis-infused, non-alcoholic craft beer—and two of the fastest-growing global trends.”
Diversification may prove a smart move for Two Roots. Earlier this week, news surfaced that Constellation Brands (parent company of San Diego’s Ballast Point Brewing) expects $54.8 million in quarterly losses from Canopy Growth Corporation, the marijuana producer it invested $4 billion in last year. Constellation Brands maintains a 56% stake in the Canada-based business, which has failed to yield a profit since the investment due in part to increased competition and the advancing capabilities of industry rivals in the evolving recreational-marijuana space.
