Brand Breakdown

How Cann is Creating an Entirely New Category

Cann has raised over $27M, sold over 10M+ units, and constantly adapts to changing legislation around cannabis. How did they do all of this?


Cann stands as one of the most innovative—and best-selling—cannabis beverages in the industry. With its refreshing, bubbly flavors and commitment to redefining adult drinking culture, Cann has emerged as a category-creating brand that has captured the attention of consumers, investors, and retailers alike.

Here’s how founders Jake Bullock and Luke Anderson transformed a bold idea into a thriving business, and what other founders and marketers can learn from their journey.

Positioning a New Category

Positioned as a cannabis-infused alternative to traditional alcohol, Cann offers sophisticated, low-calorie cocktail-like flavors like Blood Orange Cardamom and Lemon Lavender—flavors many wouldn’t have imagined in a mainstream product. By embracing these bold profiles, the brand carved out a unique space in the adult beverage market, appealing to a customer base eager for something different.

Cann’s name itself, intentionally crafted as a four-letter word to sit alongside “beer” and “wine,” reflects their vision to normalize cannabis as part of everyday social occasions.

The Research Phase: From Erewhon Aisles to The Shelves

Before launching Cann in 2019, Jake and Luke did competitive research. They spent hours at Erewhon, reading labels, studying ingredients, and analyzing how other beverages marketed themselves.

This curiosity led them to the kitchen, where they experimented tirelessly with formulations, even using pipettes to perfect each drop of flavor. Listening to early testers, they tweaked recipes to ensure their beverage was as appealing as it was innovative.

For a category-defining product, Jake and Luke knew they had to educate both consumers and retailers. This added complexity to sales conversations, but their willingness to listen to feedback and refine their approach ultimately set them apart.

Early Success Through Bold Marketing

Long before hitting the shelves, Cann tested its product with friends and debuted at Expo West as a pre-launch marketing stunt. They shared the non-infused THC version of Cann and showcased their sleek packaging—garnering an overwhelmingly positive response. Attendees were so drawn to the brand’s aesthetic that many filmed the packaging, proving Cann’s visual appeal was a key differentiator.

Raising Capital: A Key to Scaling Quickly

Building a beverage brand is notoriously capital-intensive. Jake, who had just finished business school at the time, understood that bootstrapping wasn’t an option. The team raised $1.5M in initial funding, followed by a $5M seed round, which they used for branding, formulation, and go-to-market execution.

By 2022, Cann had raised a $27M Series A, fueling further growth and expansion.

Distribution: Navigating State-by-State Challenges

As a cannabis beverage, Cann faced unique distribution hurdles. The product had to be manufactured and sold through licensed supply chains, limiting sales to dispensaries and delivery platforms like Eaze. Expansion across state lines was impossible without federal legalization, making growth a long-term challenge.

Breaking Barriers with Hemp-Derived THC

Cann found a breakthrough opportunity in Minnesota, where regulations allowed THC and CBD derived from hemp (rather than marijuana) to be sold in liquor stores. This opened up a massive new market, with Minnesota generating more tax revenue from THC beverages than California in just one year.

Eventually they expanded into other states with similar laws - approximately 20 states - marking a significant step toward their goal of nationwide availability.

TikTok and the Power of Creator Marketing

Despite cannabis advertising restrictions, Cann has leaned heavily into TikTok to drive awareness. By working with notable creators like @jazmelodyy, the brand attracted 9,000 new customers and clocked over 70,000 hours of watch time.

Cann creatively navigates platform challenges by using playful language like calling cannabis use “gardening” and providing creators with brand lingo to avoid censorship. This approach has made TikTok one of the brand’s most effective channels for reaching a younger, engaged audience.

Key Growth Moments

  1. Dry January Campaign: Cann reframed Dry January as “Cannuary,” positioning its low-dose THC drinks as an alternative for those taking a break from alcohol. This drove a 75% year-over-year increase in online sales during the first week of January according to Jake Bullock.
  2. Retail Success: Cann’s biggest retail partner, Total Wine, has helped the brand scale across the U.S., cementing its presence as a go-to cannabis beverage.
  3. 10M+ Units Sold: According to Harvard Business School, Cann has sold over 10 million cans of its low-calorie flavored seltzer.

Lessons for Founders and Marketers

  • Create Your Own Category: Cann’s bold flavors and cannabis-infused focus positioned it as a pioneer in a market that didn’t yet exist.
  • Invest in Design: Packaging isn’t just about aesthetics; it’s a critical part of the customer experience. Cann’s early success at Expo West highlights the power of great design.
  • Adapt to Regulation: By leveraging hemp-derived THC, Cann unlocked new markets and turned legislative challenges into opportunities.
  • Leverage Social Media Creatively: Cann’s TikTok strategy proves that innovative, compliant approaches to advertising can work—even in highly regulated industries.

Cann’s journey is a masterclass in category creation, adaptability, and consumer connection.

Similar posts

Get notified on new S&OP insights

Be the first to know about new sales and ops communication insights to grow your brand faster with higher margins. 

Subscribe