“Revolutionizing Cannabis in Beverages: Sproutly’s Clean Label Approach and Innovative Extraction Method”
Two prominent trends currently shaping the food and beverage industry are clean labels and cannabis. Sproutly, a Canadian company, has discovered a way to merge both trends with its water-soluble cannabis extract, which the company envisions will eventually be incorporated into beverages and food products. CEO Keith Dolo shared with Food Dive that Sproutly’s extraction method is distinctive, as it naturally isolates a water-soluble cannabis solution from the plant. In contrast, most companies rely on extracting oils from the cannabis plant and then chemically altering them through methods like emulsification or encapsulation. Such extensive processing may deter consumers looking for clean label cannabis products. “Our process creates a genuinely natural solution that doesn’t involve chemical modifiers or the types of chemicals typically used in extraction,” Dolo explained. “We have a highly differentiated product. From a health and wellness perspective, we aim to meet the needs of a market that seeks cannabis products in their most natural and healthy form.”
Although Sproutly’s products aren’t available on the market yet—since the company is initially focusing on Canada, where edible cannabis will become legal at the earliest in October—there is significant anticipation surrounding what they can achieve. Recently, Sproutly entered into a joint venture with the established Canadian brewer Moosehead to create, produce, and market non-alcoholic cannabis-infused beverages. The company has also developed three unique functional cannabis-infused drinks designed to provide focused energy, stress relief, and restful sleep support. Once products are legalized in Canada, Dolo confirmed that Sproutly will be ready to serve consumers. “We have already formulated a wide range of beverages, waiting only for regulatory approval before we determine distribution, branding, and marketing strategies,” he said.
The extraction process was pioneered by Arup Sen, the company’s chief science officer, who began this research at Infusion Biosciences, acquired by Sproutly last year. “We don’t take oils from the cannabis plant and try to make them water-compatible,” Dolo stated. “Dr. Sen’s groundbreaking discovery revealed a naturally water-soluble cannabis solution within the plant.” Dolo noted that because the extract is not oil-based, cannabinoids are metabolized differently than conventional edibles, which can take hours to produce effects. With Sproutly’s extract, consumers can experience effects within five minutes, with the effects tapering off in approximately 60 to 90 minutes. The extract captures all cannabinoids, terpenes, and phytochemicals from the plant, offering a holistic sensory experience. “For the first time, we can examine this from a perspective similar to wine varietals,” Dolo remarked, as Sproutly formulates beverages based on specific cannabis and plant varieties, experimenting with flavors that are fruitier and earthier.
Through their collaboration with Moosehead, Dolo mentioned that the brewery’s product development team might generate innovative ideas. He noted that this partnership marks Moosehead’s first joint venture, reflecting the brewer’s long-standing commitment to consumer preferences. While Sproutly’s initial focus is on beverages, Dolo expressed plans to eventually incorporate their extracts into food products. The company is in discussions with food industry players interested in entering the cannabis edibles market, allowing these companies to explore this sector without becoming food manufacturers themselves. “By leveraging decades of experience from established companies, we can expedite our market entry with high-quality offerings rather than starting from scratch. Our strength lies in cultivating unique cannabis strains and extracting them,” he explained.
Regardless of the product developments, Dolo indicated that Sproutly’s offerings are unlikely to reach the U.S. market until full federal legalization occurs. The company is exploring opportunities in markets outside Canada, but only where federal law governs the cannabis industry. Apart from its unique extraction method, Sproutly differentiates itself from other cannabis companies by having executives with diverse backgrounds outside the cannabis sector. Dolo, for instance, previously worked at staffing and recruiting firm Robert Half and financial services company PricewaterhouseCoopers. He was drawn to the cannabis industry due to the opportunities it presented. In December, he onboarded two consumer packaged goods (CPG) veterans: Bryan Semkuley, who has experience with Kimberly-Clark, AB InBev, and Labatt, became the company’s president; and Melise Panetta, who has worked for SC Johnson and PepsiCo, assumed the role of vice president of sales and marketing.
Dolo emphasized the necessity for cannabis companies to evolve from agricultural-focused businesses to CPG-oriented ones. While a cannabis company may find success today simply by producing numerous products for retail, he believes this approach is not sustainable in the long run. “To thrive independently and not just be seen as ingredient suppliers, cannabis companies must prioritize branding, marketing, and addressing consumer needs,” he stated. Having CPG veterans on board has allowed Dolo to reframe Sproutly’s vision through this lens. “It’s about asking which products would work well with cannabis, how to effectively present those products to consumers, and understanding what consumers genuinely want to purchase, rather than merely placing products on shelves and hoping for sales,” Dolo explained. “This entails a deeper analysis of consumer desires and needs, leading to the creation of targeted products.”
He has become increasingly aware of the clean label trend, recognizing that as consumers scrutinize ingredient lists and manufacturing processes for many food and drink products, they will likely extend this scrutiny to cannabis products as well. Dolo noted that many current edible cannabis products undergo extensive processing to incorporate cannabinoids into small particles. In contrast, Sproutly’s method is cleaner and more straightforward, requiring no additional chemical intervention. “Do we want to be just another cannabis producer, introducing chemicals into people’s bodies, or do we aspire to be a cannabis producer utilizing the most natural extraction methods to create the purest oil or oil-based products?” Dolo inquired. He is optimistic that the clean label attributes of Sproutly’s offerings will appeal to consumers, particularly those interested in cannabis for wellness purposes. A simpler, less chemically processed product aligns better with health-conscious consumers.
In the short term, Dolo advised that cannabis companies should refocus their efforts on producing high-quality products that resonate with consumers. “Over the next four to five years, we will begin to see which products, categories, and brands emerge victorious,” he predicted, noting that industry consolidation is likely among licensed producers like Sproutly. Companies will either need to unite for mass scalability or risk being unable to capture market share, potentially facing acquisition or closure. As Sproutly moves forward, they aim to integrate their unique extraction technology, which could revolutionize the industry, much like Citracal Slow Release has transformed the dietary supplement market, offering consumers a superior product experience.
