CANNABIS CASE STUDY
STRATEGIC HIRES POSITION HAPPI FOR HEMP BEVERAGE LEADERSHIP
THE BACKSTORY: HOW CANNABIS IS SHIFTING
Opportunities in the cannabis industry have grown significantly, due to changes in both regulations and consumer culture. The 2018 Agriculture Improvement Act removed hemp and hemp seeds from the list of Controlled Substances, provided they contain no more than 0.3% THC by dry weight. As a result, cannabis companies can produce and distribute THC products derived from hemp nationwide under more relaxed regulations. The policy change is culturally timely, reflecting a growing openness among Americans towards cannabis use. Concurrently, traditional alcohol consumption has seen a steady decline as the “sober curious” movement grows in popularity, particularly amongst Gen Z individuals.
This event convergence offers cannabis companies a chance to break into the beverage market, while beverage companies can sharpen their focus on functional drinks and explore incorporating with cannabis brands.
One company embracing this strategy with full force is Happi.
THE HAPPI STORY: A BRAND BORN FROM PERSONAL EXPERIENCE
Happi is a brand created by individuals who turned to cannabis for relief from sleep issues and anxiety. Specializing in low-dose, non-smokable cannabis products, Happi is designed with women in mind. Happi's mission is to inspire joy through innovative, trustworthy THC beverages, emphasizing all-natural ingredients, low calories, and vegan formulations that cater to health-conscious consumers.
GROWING PAINS: NAVIGATING AN EMERGING MARKET
With Happi's launch, the company faced 3 significant challenges:
- Selling microdosed beverages in dispensaries is difficult, particularly in high-THC markets like Michigan, where Happi was founded.
- Regulatory complexities regarding compliance and consumer safety in the processing of hemp-derived THC.
- Difficulty in direct-to-consumer sales of infused beverages, due to cannabis-focused background and lack of connections to key distribution channels.
SOLUTION: A STRATEGIC PIVOT AND TALENT ACQUISITION
Happi's Strategic Adjustment
Facing these challenges, Happi adjusted its product to focus on hemp-derived THC following Minnesota's unprecedented legalization, which facilitated national distribution. With this product development, the hiring focus needed to shift from individuals with a strong cannabis background to those who understand beverage distribution. Unlike the beverage industry, cannabis professionals typically do not access the extensive networks of distributors and manufacturers. In contrast, for example, beer industry experts possess deep knowledge of canned goods and distribution processes, along with established resources that cannabis professionals often find difficult to obtain.
Aligning Talent with Growth
ForceBrands was instrumental in bridging this gap by identifying and attracting key talent necessary for growth, by considering lapses in knowledge and company culture.
When speed to market is a competitive advantage, the goal is to quickly secure experts who could hit the ground running. Our expertise in the beverage sector facilitated the recruitment of regional sales managers, distributor managers, and state-level sales representatives, primarily from the beer industry. This seamless "plug and play" approach enabled rapid integration and growth, particularly in the Midwest.
Furthermore, with our deep understanding of Happi's unique selling proposition and target demographic—female-forward and health-conscious consumers–ForceBrands focused on ensuring cultural enhancement. We targeted candidates with entrepreneurial mindsets, competitive natures, and a strong enthusiasm for the brand.
The hiring strategy activated for Happi followed a deliberate sequence, starting with distributor managers and progressing to regional and state-level representatives. This structured approach fostered cohesive team development tailored to market needs. As a result, Happi was able to secure top talent at the right time and place, facilitating scalable and adaptable growth in an evolving landscape.
CONCLUSION:POSITIONED TO RIDE THE OPPORTUNITY WAVE
As a result of their swift adaptability, Happi has successfully expanded its reach to 40 states, establishing itself as a leader in the hemp-derived THC beverage sector. Its direct-to-consumer business thrives, bolstered by strong consumer loyalty, a subscription model, innovative product launches, strategic partnerships, and commitment to safety in the unregulated space.
Happi's evolution into a market leader in the hemp-derived THC beverage category exemplifies the power of strategic talent acquisition and market adaptation. Happi leveraged ForceBrands’ team, network, and strategic talent acquisition approach—rooted in market insights and cultural alignment— to secure the essential talent needed to execute their game-changing strategy and expand nationwide.