CS

Cann Social Tonic Financial Model

• Product: Cann Social Tonic - a canned, cannabis-infused sparkling beverage.
• Dose: 2mg THC per can - the lowest in the beverage category vs. competitors at 5–100mg.
• Calories: 30 cals per can vs. 100–150 cals for comparable social drinks (gin & tonic ~100, White Claw ~110, Bud Light ~110, Magners ~150).
• Flavors: Blood Orange Cardamom, Grapefruit Rosemary, Lemon Lavender.
• Attributes: Non-GMO, no stevia, no artificial flavors, no gluten.
• Onset: Quick sublingual absorption - uses heuristics from alcohol (drink more than one, gradual controllable build).
• Target consumer: "Canna-Casual" and "Canna-Curious" segments - mainstream adults who currently use alcohol but are seeking healthier social alternatives.

• Low-dose cannabis (≤5mg) is the fastest-growing sub-segment: 2–3x growth vs. all cannabis products.
• Low-dose Colorado growth reached 83% by end of 2017 (source: RBC Capital Markets Equity Research, August 2018).
• 33% of today's cannabis market is low-dose; projected to be 70%+ by 2023 if growth trends continue.
• Addressable behaviour pool: 21 of 25 adult drinkers are trying to reduce or moderate alcohol consumption (source: Beverage Daily).

• Channel: Licensed cannabis retail dispensaries in California (regulated channel); digital/DTC social presence.
• SKU count: 3 flavors confirmed.
• Go-to-market: Digitally native brand - micro-influencer network → mainstream celebrity endorsements. Pop-up/experiential events.

• Instagram followers: 1,511 followers, 492 posts at time of deck.

Direct cannabis beverage competitors (shown in slide 8):

• Lagunitas Hi-Fi Hops: 5–10mg THC
• Hop & Cola, California Dreamin', Sprig, Legal: 10–20mg THC
• Cannabis Quencher, Dixie: 25–100mg THC
• Cann: 2mg THC (lowest dose - clear white space)

Indirect competitors (alcohol substitutes, slide 7):

• Gin & tonic (~100 cals), White Claw (~110 cals), Bud Light (~110 cals), Magners (~150 cals)
• Cann at 30 cals is positioned as materially healthier

Moat claims:

• Lowest dose in segment creates a distinct product category (approachable for non-users)
• Sublingual fast-onset format (not edible) differentiates from slow/unpredictable gummies
• Premium brand aesthetics targeting wellness-oriented mainstream consumer vs. "stoner" imagery
• First-mover in mainstream cannabis social beverage positioning

Notable competitors cited as validation:

• Kiva Confections (Terra Blueberries, 5mg, #1 edible 2017 ERRL Cup)
• Dosist (2.25mg/dose, Fast Company World's 50 most innovative companies 2018)

Founders:

• Jake Bullock (co-founder): PE, management consulting, IB background; cannabis venture investments; co-President Cannabis Business Club at Stanford GSB; worked at Besito (premium LA cannabis brand). Duke undergrad, Bain Capital, Stanford GSB.
• Luke Anderson (co-founder): 6 years Bain & Company (consumer experience design, product marketing for large CPG); Architecture background; Teach For America; Harvard Business School.

• Archetype + why: DTC/CPG Revenue & Gross Margin P&L model, with a volume-based unit economics layer. Cann is a physical product brand in a regulated channel - the model needs to track cases/units sold, revenue per case (wholesale + DTC blended), COGS (production, co-packing, cannabis input), gross margin, and operating expenses (marketing, events, G&A). Not a SaaS or marketplace - no recurring subscription or platform take-rate. Closest analogue: consumer beverage startup P&L (e.g., Liquid Death, Olipop early-stage).

• Forecast horizon & granularity: Monthly for Year 1–2 (pre-profitability, cash-sensitive), quarterly for Years 3–5. 5-year total horizon.

• Key drivers & assumptions:

• Scenarios (Base / Bull / Bear - which variables flex):
• Base: 50 retail doors by end of Year 1, 3 cases/door/month, 3 flavors, CA only; NM added Year 2
• Bull: Faster door growth (150+ by Year 1 end), celebrity endorsement accelerates brand velocity, expanded to 3+ states by Year 2
• Bear: Slow dispensary adoption, regulatory friction slows expansion, low-dose segment doesn't achieve projected 70% market share; company stays CA-only through Year 2

• Required sheets / outputs:

1. Assumptions - all unit economics, pricing, and door-count inputs
2. Revenue build - doors × velocity × price, by channel (wholesale vs. event/DTC) and SKU
3. COGS & gross margin - production cost per unit, contribution margin per can/case
4. Operating expenses - S&M (influencer, events, billboard), G&A, headcount
5. P&L (Income Statement) - monthly Year 1–2, quarterly Year 3–5
6. Cash flow & runway - burn rate, implied funding need (no raise stated in deck)
7. Market penetration - CA dispensary door count vs. total addressable doors
8. Sensitivity table - retail doors × cases/door/month → revenue and gross profit