California-based cannabis-infused beverage company Cann announced Tuesday it has acquired CBD drink maker Sweet Reason. Terms of the deal were not disclosed.
With this purchase, Cann is aiming to establish a non-CBD format of Sweet Reason to avoid regulatory challenges. Additionally, Sweet Reason’s founder and CEO joins Cann as SVP of Emerging Products in order to drive sales and distribution, innovation and product development for all portfolio brands.
While Cann is microdosed with 2mg of THC and 4mg of CBD, the brand is considering an ever further microdosed THC-infused drink under the Sweet Reason brand for anyone who finds Cann’s buzz overwhelming. Cann sees the “micro-microdose” as a huge untapped market within the cannabis space, and plans to build it out through this acquisition.
Cann’s is also famous for its growing list of celebrity investors, including Adam Devine, Gwyneth Paltrow, Rebel Wilson, Ruby Rose, Darren Criss, Baron Davis, Tove Lo, Casey Neistat and Bre-Z, who recognize the power of a better-for-you, alcohol alternative that still delivers a social buzz.
Earlier this year, Cann raised a $27 million Series A funding round coming from fresh institutional capital, existing investors like Imaginary Ventures doubling down, and a roster of celebrity investors including Nina Dobrev, Adam Devine, Zoey Deutch, Jordan Cooper, Sara Foster and Rosario Dawson.