The decline in alcohol consumption among younger generations has not gone unnoticed by craft brewers. Based in Des Moines, Lua Brewing co-founder Scott Selix and his team observed that more people are drinking less alcohol. Whether it be for health purposes or a change in lifestyle, the decline in alcohol consumed has boosted a market […]
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The decline in alcohol consumption among younger generations has not gone unnoticed by craft brewers.
Based in Des Moines, Lua Brewing co-founder Scott Selix and his team observed that more people are drinking less alcohol. Whether it be for health purposes or a change in lifestyle, the decline in alcohol consumed has boosted a market of people who don’t drink, but may partake in THC.
Climbing Kites, Iowa’s first cannabis-infused beverage, was released by Lua Brewing on April 28, 2023, with Big Grove Brewery brought on as a partner in September.
“Pretty quickly after we launched it, we saw how big the market for this type of product was,” Mr. Selix said.
The social beverage is a sparkling water that contains “a curated dose of the highest quality hemp-derived THC and CBD,” according to the Climbing Kites website. The drink does not contain any alcohol and is all natural, vegan, gluten free and calorie free.
But how is a cannabis-infused beverage legal in the state of Iowa?
Words like "cannabis," "marijuana" and "hemp" are often accompanied by misconceptions. Cannabis is the name of the plant, Mr. Selix explained, whereas marijuana and hemp are legal distinctions. Marijuana is cannabis that has more than 0.3% THC, which is illegal federally and in the state of Iowa. Hemp, however, is cannabis that has 0.3% THC or less, and is legal in federal and state law, he said.
According to the CDC, CBD is a chemical compound in marijuana that can be obtained from hemp and doesn’t contain the psychoactive compound THC has.
There's also a licensing process to go through — Climbing Kites has five different licenses with Iowa in order to produce and sell the product, Mr. Selix explained. Another task to complete before selling is submitting Climbing Kites to the state for review. Other legal requirements include having zero toxins in the drink, such as pathogens, heavy metals and pesticides.
“We do pretty extensive testing on every single batch — it’s pretty costly — to make sure that we’re meeting regulations and providing a safe product,” he said.
Mr. Selix graduated from the University of Iowa College of Law in 2014 and practiced law for several years before he and his wife, Whitney Selix, launched Lua Brewing together.
“Law definitely helped navigate the legal framework for this,” Mr. Selix said. “And then it also helps setting up new businesses — kind of figuring out how to structure things.”
Climbing Kites drinks can be delivered to customers’ homes and are sold in over 100 stores, bars and restaurants in Iowa, including Tin Roost and Field Day Brewing Co. in North Liberty, where Scott Selix’s brother, Joe Selix, is a partner at both establishments.
“I mean, obviously I’m slightly biased, but you know, he’s my brother,” Joe Selix said. “I like what he does, he makes good stuff, and he said 'hey, we’ve got this product out, would you like to sell it?'"
Scott Selix walked Joe Selix through the retail process of being able to sell Climbing Kites. Of the many steps it takes to sell a cannabis-infused beverage, the primary element requires a retail hemp license (or in technical terms, a consumable hemp registration) through the state of Iowa. Applying for the license is a specific process, and the review process takes about 45 days, Joe Selix said. Once a license is granted, businesses can buy such a product and sell it.
A retail hemp license is similar to a liquor license. Scott Selix and his team have helped several businesses obtain the license to sell the product.
When customers learn about Climbing Kites at Field Day Brewing and Tin Roost, their main reaction is realizing that a cannabis-infused drink is not only available in Iowa, but that they can buy it and take it home with them, Joe Selix said.
“Our establishments are very family friendly, and while we were a little nervous about the reaction in the beginning, the feedback has been overwhelmingly positive,” Joe Selix said.
Climbing Kites has seen success so far, so much so that the company is struggling to keep up with production. They started out with just the owners working, but have since hired eight employees.
There are several different consumer segments for Climbing Kites, one of which is for social purposes.
“Let’s say you’re at a pool party and you’re not drinking,” Scott Selix said. “You can either have a La Croix or a Sprite or you can have this, which still feels like you’re participating in our culture of having a drink in your hand while socializing, because that’s really how our culture has been built with alcohol.”
Others may indulge in Climbing Kites as a substitute for an “end of the day” treat.
“I still think by far our largest consumer segment is just people that are looking for the same sorts of escapism that you get from drinking a glass of wine at night,” Scott Selix said.
