*By Lillie Carlson* Trendy beverage maker Dirty Lemon may have halted production of its CBD-infused drink due to legal concerns, but CEO Zak Normandin insisted the company isn't otherwise slowing down or playing it safe. Rather, it is working to expand the brand's physical presence and develop new products. When Dirty Lemon launched its CBD-infused elixir a few months ago, it sold out in under two days, according to Normandin. But earlier this month, the company announced it was discontinuing the line ー determining the brand was “not in a position to take that risk right now.” "The innovation that Dirty Lemon is offering to consumers is not dependent upon one single ingredient. There's no less appeal to the brand. I think it puts us in a strong position, taking a stand for something that potentially puts the company at risk," Normandin told Cheddar Tuesday. Since the regulation of CBD-infused drinks is somewhat amorphous, the ingredient is a gamble for beverage makers ー despite high demand from consumers. “There is a lot of legislation that needs to happen before businesses are truly able to take advantage of the ingredients," Normandin said. "A lot of the uncertainty is driving our decision to pause on the sales of the ingredients.” The market for marijuana-infused beverages could reach $600 million by 2020, according to a note from Canaddord Genuity. Many big-name brands, like Coca-Cola ($KO) and Molson Coors ($TAP), are plotting their entries. Dirty Lemon's latest non-CBD product is a turmeric-infused beverage that is anti-inflammatory and "perfect for fall." Despite the steep $10 price point, Normandin said his brand primarily markets its products to trend-setting communities, ー like Miami, L.A., and San Francisco, where there is little price sensitivity. "The service that you're getting, the quality of the product and the ingredients, justifies the price point easily," he added. As part of the company's effort to expand, it opened a walk-in "Drug Store" in September for customers ー essentially brick-and-mortar the Dirty Lemon way. The store, located in Manhattan’s Tribeca neighborhood, is reminiscent of a walk-in vending machine. Customers purchase products in the cashier-less space by texting a customer service line on the honor system. This concept has been so popular that the company plans to apply it in four cities by 2019. Normandin attributes the success to the “really loyal, passionate customer group” that Dirty Lemon has been cultivating online since its founding in 2015. For full interview [click here](https://cheddar.com/videos/dirty-lemon-discontinues-cbd-infused-beverage).

Share:
More In Business
Watchdog Slams IRS Identity Theft Case Delays as “Unconscionable”
An independent watchdog within the IRS reports that while taxpayer services have vastly improved, the agency is still too slow to resolve identity theft cases. And National Taxpayer Advocate Erin Collins says those delays are “unconscionable.” Erin M. Collins said in the report released Wednesday that overall the 2024 filing season went smoothly, though IRS delays in resolving identity theft victim assistance cases are worsening. It took nearly 19 months to resolve self-reported identity theft cases as of January, and Wednesday's report states that now it takes 22 months to resolve these cases.
A.I. Investments Carry Amazon Over $2 Trillion Valuation Threshold
Amazon.com Inc. surpassed $2 trillion in market value for the first time in afternoon trading on Wednesday. The push higher for Amazon’s stock market valuation comes a little more than a week after Nvidia hit $3 trillion and briefly became the most valuable company on Wall Street. Nvidia’s chips are used to power many AI application and its valuation has soared as a result. Amazon has also been making big investments in AI as global interest has grown in the technology. Most of the company’s focus has been on business-focused products.
Load More