The Dime Keef Brands' Strategy for Navigating Hemp vs Regulated Cannabis Beverages ft. Erik Knutson
Hemp beverages have exploded over the last 24 months, and they are likely the tip of the spear for broader cannabis reform, helping to normalize cannabis through a familiar form factor.
The opportunity to produce hemp-based products in a single facility and distribute them across state lines offers benefits throughout the supply chain, providing consumers with more cost-effective products—much like how global giants like Coca-Cola operate. However, the rules governing this are still very grey.
In contrast, regulated markets require brands like Keef to establish individual operations in each state, leading to massive capital expenditures and challenging returns, especially when confined to a single state's population. Now, Keef sometimes finds itself competing with others—or even itself—as those who can distribute more broadly enjoy better unit economics without the burden of regulatory headaches and infrastructure costs.
Balancing these two models—considering the investments, the state of the market, and the opportunities at hand—is far from simple. Especially when you consider that Keef has been pioneering cannabis beverages for the past 14 years.
This week, we sit down with Erik Knutson to discuss:
- Building a beverage brand in 2010
- The differences between the regulated cannabis market and the hemp-derived market
- Key manufacturing and strategy decisions
- And much more
Chapters:
- Introduction and Background (00:00:00) - The hosts introduce their guest, Eric Knutson, co-founder of Keef Brands, and discuss his early introduction to the cannabis industry in Colorado.
- Keef Brands Origin Story (00:01:28) - Eric shares the story of how Keef Brands was founded, starting with their initial focus on cannabis-infused beverages and the challenges they faced in developing the manufacturing process.
- Navigating Expansion and Licensing (00:07:46) - Eric discusses Keef Brands' expansion efforts, the challenges of licensing their brand in different states, and the importance of vetting partnerships.
- Regulated vs. Hemp-Derived Markets (00:27:26) - Eric explains the differences between the regulated cannabis market and the hemp-derived market, including the regulatory landscape, supply chain considerations, and Keef Brands' approach to each.
- Planning and Forecasting in a Rapidly Changing Industry (00:42:32) - Eric shares insights on the challenges of planning and forecasting in the cannabis industry, emphasizing the need for flexibility and caution when it comes to investments and production.
- Advice and Closing (00:46:01) - Eric provides advice for first-time cannabis beverage consumers and shares where listeners can find more information about Keef Brands.
Guest Links:
- https://keefbrands.com/
- https://x.com/keefbrands
About Keef Brands:
Born in Boulder, Colorado in 2010, Keef Brands is a leader in the cannabis beverage space with a suite of products that offer a new generation of consumers an alternative to alcohol and an innovative new way to celebrate, have fun and enjoy life.
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