COWEN
COLLABORATIVE INSIGHTS
February 25, 2019
There are a solid amount of beverage companies currently playing within the space, largely price positioned within the mainstream and value segments of the market. We would highlight that on a price per mg basis, beverages skew higher across the board,
relative to tinctures, capsules and gummies.
Figure 70 Beverage Price Points Are Premium Relative To Tinctures, Capsules, Gummies, And Topicals
OOCOREF ONUNON OududM
$110 e109 §1.00
CBD Living Root Origins
Super Premium
(> $0.83)
CBD Beverages by Price Segment
$0.80
90.63 6953 §053 $0.50 $0.50 $046 $0.42 ¢0.40 $0.35 $034
Aurora Elixers Endo Brands Mountjoy Diamond CBD Kickback Canmnabinoid Creations
Main ($0.29-50.56)
EVERx Nutrition
$025 $021 $020 $0.16 0,12
Hemp Bombs Rocky Mountain
Source: Company Websites and Cowen and Company Note: Reflects price per mg of CBD; For companies with multiple SKUs, we used a straight line average
Based on our survey, of respondents that use CBD, 19.2% use beverages as a form factor, which is admittedly higher than we would’ve expected given the nascent stage of the category. Similar to both capsules and topicals, beverage use is a more popular choice among younger, lower income consumers (by a wider margin relative to other age cohorts compared to the other categories). This leaves us optimistic on the future prospects of the category as a waterfall effect can result in an increase in category mix.
Figure 71 Popularity Among Younger Consumers Can Result In A Waterfall Effect Over Time
35.0% 30.0% 25.0% 20.0% 15.0% 10.0%
5.0%
0.0%
CBD Beverage Use 28.8%
Male Female <S50K
Gender
$50K-$100K >$100K
Income
Source: Cowen Survey, n=~2500, January 2019
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