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CBD-infused Drinks Can Now Help Restaurants Offset Declining Alcohol Sales

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CBD-Infused drinks offer a way for restaurants to offset declining alcohol sales and West Coast Ventures Corp (OTC: WCVC) is leading the charge.

Restaurateurs are in for a hard time. Despite the fact that people have more disposable income to pay for a dinner out, their preferences are changing. Healthy lifestyles are trending and more restaurant guests are opting to skip the wine in favor of table water. With alcohol making up between 20-50% of the average restaurant’s revenue that’s a big gap to fill. West Coast Ventures Corp (OTC: WCVC) is taking a proactive step to solve the problem.

Mind the margins

Alcohol is facing an existential crisis. Rising awareness of health risks associated with drinking alcohol have helped to fuel a sustained decline in the sale of wine, beer and other alcoholic beverages. General sales fell 0.8% in 2018, continuing the decade-long trend with no end in sight.

Staying in became the new night out,” said Danny Brager, vice president of beverage alcohol at The Nielsen Co. (NLSN). As people decide to skip on liquor, restaurants’ revenues shrink, prompting them to look for alternatives that could fill the expanding vacuum.

Cannabis-infused dining

The Farm Bill put non-psychoactive hemp on the menu across the United States. Unlike the THC induced “high,” normally associated with marijuana hemp contains mostly cannabidiol or CBD. This cousin of THC is devoid of the usual psychoactive properties, thus giving it more of a mild and “medicinal” character.

Renowned for its ability to dull pain and soothe anxiety, CBD is gaining traction. 74% of consumers believe cannabis to be more healthy than alcohol. For the restaurant industry in particular the National Restaurant Association found that 3 in 4 chefs named CBD-infused food a hot trend in 2019.

Cannabis beverages represent the most interesting subsector of the industry, predicted to be worth as much as $1.4 billion by 2023. CBD infused beverages have the advantage of being legal at a federal level, and so long as nobody makes unfounded health claims, being tolerated by the FDA.

Partnering for power

CBD drinks don’t only represent an alternative to alcoholic beverages. Many big cannabis players are betting on the fact that those uninterested in recreational marijuana may still develop a taste for CBD. This has lead to a number of big JVs between cannabis and alcohol companies.

The number one Canadian grower, Canopy Growth Corp. (CGC) has struck a deal with Constellation Brands (STZ) to produce cannabis-infused drinks. Molson Coors Brewing Company (TAP), has announced an agreement with HEXO Corp. (HEXO) and Tilray, Inc. (TLRY), another top ten pot stock, has teamed up with AB InBev (BUD) – the maker of Budweiser beer.

Whilst most of these companies are still figuring out how to enter the CBD space one American restaurant stock has beaten them to the punch, no pun intended.

West Coast begins in Denver

West Coast Venture Group (OTC: WCVC) has made headlines with their Illegal Burger chain, which combines fast-casual dining with CBD infused burgers and their iconic Illegal Brands infused water. The company’s locations in Denver, one of the most cannabis-friendly cities in the country, have seen great success with the Illegal Burger in Writer Square, located in Downtown Denver on track to exceed $1 million in sales this year.

WCVC is America’s first CBD restaurant stock and the first one to supply their locations with Illegal Brands CBD Water. Containing 30mg of CBD per serving, the water comes in passionfruit and mango-bergamot flavors and contain no artificial flavorings and zero added sugars.

The company has tapped into the CBD and health trend and married it good local food and a cool aesthetic. They have started to replicate this success with Illegal Pizza in Florida and plan to open a number of new restaurants, as well as sell their products online.

Pleasures for the new generation

People will always want a bit of a buzz with their meal. While they may no longer reach for a glass of bubbly, and lighting up a joint in a crowded restaurant will likely remain a faux pas, CBD infused drinks offer an innovative way to adapt to the new reality. Companies like WCVC will lead the way but it won’t be long until you see CBD on a menu near you.

The idea of Bigtime Daily landed this engineer cum journalist from a multi-national company to the digital avenue. Matthew brought life to this idea and rendered all that was necessary to create an interactive and attractive platform for the readers. Apart from managing the platform, he also contributes his expertise in business niche.

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Business

Business Strategies of Michael Gastauer

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Michael Gastauer, a German billionaire and entrepreneur, has led Black Banx to remarkable heights with his innovative strategies in the digital banking sector. As the founder and CEO, his vision has transformed Black Banx into a significant player in the global financial industry, serving millions and revolutionizing banking practices. 

Gastauer’s approach has been distinctly customer-centric, focusing on solving real-world problems through accessible financial services. This strategy has not only captured a vast market share but also established Black Banx as a model of innovative fintech success.

Innovate Early and Often, Invest Strategically

Gastauer’s journey began with a robust foundation in the fintech sector, where he initially created and later sold a payment services company for US$480 million. 

This significant capital boost allowed him to invest in his next venture: Black Banx. Launched in 2014, Black Banx differentiated itself by offering real-time account opening and cross-border payment solutions to a global audience, addressing major inefficiencies in traditional banking. 

Gastauer’s foresight in identifying and investing in these key areas early on allowed Black Banx to scale quickly and efficiently. His strategy was clear: leverage high initial investment to accelerate growth and secure a substantial market presence before competitors could catch up.

Within a year of its inception, Black Banx expanded rapidly, reaching over 1 million customers. This was just the beginning, as the platform soon integrated cryptocurrency options, enhancing its appeal and utility for a broader client base. By the end of 2018, Black Banx was valued at US$9.8 billion, a testament to its rapid growth and the successful implementation of its business model. 

Gastauer’s bold move to integrate cryptocurrencies early in the game positioned Black Banx as a pioneering force in fintech, well ahead of traditional banks.

Pinpoint Problems and/or Challenges

One of the core components of Gastauer’s strategy was to tackle financial exclusion head-on. Black Banx made significant strides in offering banking solutions to the unbanked and underbanked, particularly in regions with limited access to traditional banking services. 

By leveraging technology and strategic partnerships with mobile network operators, Black Banx has been able to extend its reach and offer innovative banking solutions to millions worldwide. This strategic alignment with mobile operators has been crucial, as it taps into an existing infrastructure to reach remote areas, significantly lowering the cost of expansion.

The platform’s ability to facilitate quick, cost-effective international money transfers has been a game-changer, particularly in markets like the Middle East, Asia, and Africa. This not only supports individuals and businesses in these regions but also contributes to the overall growth and stability of the global economy. 

Gastauer’s focus on simplifying and reducing the cost of these transactions demonstrates a deep understanding of the core needs of his customers, thereby enhancing customer loyalty and trust in the brand.

Take a Tech-Driven Approach

Under Gastauer’s leadership, Black Banx has remained at the forefront of technological integration within the banking sector. The adoption of blockchain, AI, and data analytics has enabled the platform to offer personalized financial services, enhancing customer experience and satisfaction. 

This technology-driven approach ensures that Black Banx stays ahead of industry trends and continues to offer relevant and secure banking options. Gastauer’s commitment to integrating advanced technology not only streamlines operations but also provides a scalable model that supports continuous growth and adaptation in a rapidly evolving market.

Leave No Market Unturned

Gastauer’s vision for Black Banx was never limited to a single region. By 2023, the company had expanded its services to include 28 FIAT and two cryptocurrencies, with a robust presence in over 180 countries. This global approach has not only diversified the company’s customer base but also minimized regional economic risks, allowing Black Banx to thrive in a competitive and fast-changing financial landscape. 

The strategic decision to operate across diverse markets also mitigates the risk of localized economic downturns affecting the overall health of the company.

Set Milestones

The year 2023 was a landmark year for Black Banx, as it reached 39 million customers and reported revenues of US$2.3 billion. The company’s ability to maintain a high rate of customer acquisition and satisfaction speaks volumes about its effective strategies and customer-focused approach. 

The first quarter of 2024 continued this trend, with Black Banx announcing a pre-tax profit of US$639 million and revenues of US$2.1 billion, driven by strategic implementations like fixed monthly account maintenance fees. Gastauer’s strategy to introduce fixed fees was a calculated risk that paid off, providing stable revenue streams and further solidifying Black Banx’s financial foundation.

Michael Gastauer’s strategic foresight and relentless innovation have propelled Black Banx to new heights, making it a leader in the digital banking sector. His commitment to financial inclusion, coupled with an aggressive expansion strategy and technological integration, has not only shaped the future of Black Banx but has also set a new standard in the industry. 

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