Canadian company hopes to capitalize on psychedelic craze with new drink

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A Canadian beverage company is looking to capitalize on the popularity of psychedelics with a kava-based drink it touts as the first of its kind.

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Psychedelic Water claims its namesake drink is “the world’s first legal psychedelic blend of kava root, damiana leaf and green tea leaf extract for a smooth, mood-boosting experience.” The drink is not hallucinogenic, but the company claims it produces a calming sensation that gives people positive vibes.

The drink is supported by a pair of entrepreneurs, Pankaj Gogia and Keith Stein, lawyer at Dentons in Toronto, who met through a mutual friend and started talking about the potential of a drink made from psychedelic.

Stein said his previous involvement in the cannabis industry and his entrepreneurial instincts – he helped found Simmons Records with Gene Simmons, Belinda Stronach and Universal Music Canada and was also one of the founders of the team. Toronto Phantoms Arena Football – motivated him to lean on the psychedelic. space out. At first he says he thought it was magic mushrooms and bad trips, but he was amazed at what he learned.

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“I recognized that there was a real vacuum, that it was not developed and that it was untapped,” he said. “I also became aware of all the benefits, like cannabis, that could be reaped from this space in the shadows.”

He saw that other companies were working on psychedelic products, but was not sure that their business models, selling mushroom or psilocybin products in international markets, would be profitable. So he brought together a food science professor at New York University and a California company to create a formula for a psychoactive but non-hallucinogenic drink. They have tested the formula on hundreds of people and say they have received positive feedback.

We are creating a new category here. We have a real opportunity to be a pioneer here in Canada

Keith stein

“We are creating a new category here,” said Stein. “We have a real opportunity to be a pioneer here in Canada.

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Gogia, who is the managing director, said all of the ingredients came from US suppliers.

This includes kava, a plant whose extract is popular in the South Pacific (it’s Fiji’s national drink) for its calming effect but which has also raised health concerns.

Although the company claims that it is safe to consume, there may be side effects due to the active ingredients and it is not recommended for pregnant women and nursing mothers. All Psychedelic Water products say 18+ on them.

Currently, the product is only available for purchase online in the United States, but they will seek Health Canada approval for the drink here at home and also look to expand in Europe and Australia. in the next few days.

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Gogia said Psychedelic Water, which launched in February, has achieved $ 1 million in revenue over the past few months. He predicts $ 4 million to $ 5 million in revenue for the year, a figure that could increase as more channels are created.

The company already has a following on TikTok, the social media site popular with Millennials and Gen Zers, where its page has racked up around 24,000 followers. Gogia said the company has engaged with some influencers on the platform, but much of its success has come from random viewers.

Gogia hopes the drink is an alternative to alcohol-based drinks.

“It’s something that people can try to lead a healthier lifestyle without affecting what they do or creating the harmful effects of alcohol,” Gogia said. “I think it’s something people should be willing to try and hopefully something that is part of their lifestyle.”

Financial post