Today’s interview is with Judy Yee, the CEO of K-Zen Beverages. Founded in 2018, K-Zen is a maker of cannabis-infused drinks including S*SHOTS, Mad Lilly Tonics and Mad Lilly Spritzers, and is committed to normalizing cannabis and inspiring new ways for consumers to enjoy its benefits. Keep reading to find out what it was like going from NBA dancer to cannabis CEO and what Judy wants you to know if you’re interested in starting a business of your own.
Tell me a bit about your background and how you first got into the cannabis industry.
I have always maintained a very active and healthy lifestyle, even during my 20+ years in the healthy food and beverage space, where I held senior-level CPG positions at Earthbound Farm and Crystal Geyser. However, after taking a few years off from both work and a regimented active lifestyle to raise my daughter, I found my recovery to be longer and harder when I decided to jumpstart my fitness routine again. Remedies I’d used in the past such as acupuncture no longer worked, or weren’t as effective. I was encouraged by my fellow workout and former dancer friends to try incorporating low doses of cannabis into my daily routine, and quickly discovered a whole new outlook on self-care and well-being.
Leveraging my food and beverage background, I started researching and experimenting with cannabis and eventually partnered with a team of highly skilled food scientists to create great tasting cannabis beverages.
Before you got into the industry you were a dancer for the NBA. How did that shape or affect your opinions of cannabis and how did those views change over time, if at all?
When I danced for the Seattle Supersonics many years ago, I was in the best shape of my life. Back then — and over 20 years later — if you had told me I’d end up running my own cannabis beverage company, I would have laughed out loud!
Growing up, my parents were extremely strict. I was born in Taiwan, moved to the States at a young age, and grew up in a fairly conservative household. My dad was an ex-military officer and strong supporter of President Reagan and the “Say No to Drugs” efforts. So, I had a very negative, but false, perception of cannabis, its effect on people and the image it projected on those who used it.
Needless to say, I didn’t try cannabis until I was in my 40s after having my first child. As an entrepreneur and mom trying to balance work and life while staying active and healthy, I was finding it extremely difficult to successfully navigate both paths — cannabis has allowed me to return to a more active lifestyle, with much less pain and much more joy.
What types of products do you offer at K-Zen?
We’re a cannabis beverage company and offer a variety of cannabis-infused drinks. Whether you consider yourself a ‘cannasseur’ or are curious about trying cannabis for the first time, we are committed to inspiring new ways for different consumers to enjoy its benefits. Currently, we have several brands on the market — Mad Lilly Spritzers, Mad Lilly Tonic, and S*SHOTS:
- Mad Lilly Spritzers are our premium cannabis refreshment for the spirit. We infuse real fruit juices and playful effervescence with 5mg CBD | 5mg THC to inspire an uplifting mind + body buzz. It’s a simple and tasteful alternative to alcohol.
- Mad Lilly Tonic is the first of its kind — it’s the first cannabis drink made with CBN, a cannabinoid that promotes relaxation for your sleep routine. We infuse lemon balm and lavender extracts with real fruit juices with cannabinoids, like CBN and THC, to inspire calmness and serenity.
- S*SHOTS are for the more experienced cannabis user. With 10mg THC per serving (at 10 servings per bottle), this product is perfect for when you want to blaze to the moon (or your couch), and for those who know life is simply better with cannabis.
What made you want to create beverages over other types of products, such as smokeables or edibles?
The initial challenge for me was finding a healthy and more familiar form factor. While cannabis is available in more formats than ever before, due to lung health I didn’t want to smoke or vape – and I don’t frequently consume candies or sweets. I don’t really even eat edibles. I wanted something that not only tastes great, but I could feel really good about putting into my body. I wanted something I could enjoy with my friends or by myself to help unwind from another hectic week. A beverage seemed obvious to me — it’s an alternative to a glass of wine or cocktail and would leave me feeling refreshed instead of hungover and dehydrated.
My take is that beverages are going to be the consumption method that pushes cannabis into the mainstream. And there’s research to back that up. According to a report from last year, analytics predicts cannabis beverage sales in the regulated dispensary channel to reach $1 billion by 2022.
What do you consider the main appeal of THC/CBD beverages for consumers over other types of products?
I strongly feel that beverages will be the form factor that normalizes cannabis for the masses. People are used to celebrating, socializing, unwinding and even taking medicine in a drink format, so why not cannabis? And we’re familiar with trying new ingredients and adopting new habits in beverages. Take Kombucha, energy drinks and flavored sparkling waters, for example: Ten years ago they were either unknown or too small to be mentioned — cannabis could be another natural extension of the growth and innovation we often see in beverages.
Beverages are also a healthy alternative to smoking, vaping, or sugary edibles. All of our products at K-Zen are low calorie and taste great. And our Mad Lilly products are made with all-natural fruit juices.
What are the biggest challenges you encountered when first breaking into the industry?
From a business standpoint, the cannabis beverage industry was virtually non-existent 2 to 3 years ago. To bring a beverage from concept to shelf that delivers on the value proposition (taste, effects, consistency) that I wasn’t willing to compromise on was extremely challenging. That’s one of the reasons it took us nearly a year to have a portfolio of brands / product lines that we felt would live up to the promise we are making to the world.
Personally, moving from the traditional, Fortune 500 CPG corporate companies to a public advocate for cannabis was not easy. It took awhile for me to get comfortable sharing my story publicly — especially as a mom to a young child who’s active in her school community. But “coming out” to my conservative parents was the most challenging. How do I explain that I left a thriving CPG career to start a cannabis beverage company? I worried about not only how I would be viewed by them, but also how they would be viewed by their friends and other family members of their daughter making this big change. I jokingly told them to tell others that I was having an “early mid-life” crisis. They didn’t laugh, but they’ve quickly come to terms with it and my mom has now incorporated cannabis topicals in her self care.
What kind of support do you think is most needed to help women and/or BIPOC succeed in the industry?
In addition to supporting our customers with delicious beverages you can feel good about drinking, we’re mindful of those we employ and partner with in the industry — we choose to work with an ecosystem of partners and advisors who share our same beliefs. As a female entrepreneur, who’s also a person of color, I firmly believe that women and people of color should have equal opportunities to succeed in the cannabis industry and that no one should be in prison for low-level cannabis crimes.
We’re committed to giving back and supporting where we can, as well as providing mentorship, access to capital and additional ongoing support. For example, last month, a portion of our Mad Lilly sales were donated to Supernova Women, a nonprofit organization empowering women of color to be self-sufficient shareholders in the cannabis industry. We support women and minorities in cannabis – and in life – and encourage you to do the same.
What advice would you give people who are considering getting involved in the industry?
- Be Clear and Unrelenting on Your Values. Assemble a strong team and partners that share and live by those values. And make sure to do your research and partner with people whom you trust and respect! When I set out to launch K-Zen, I had no idea what I was in for but was able to bring together a very experienced team with deep expertise and a proven track record across the food, beverage, pharmaceutical and cannabis industries.
- Have Persistence, Tenacity and Agility. Things will always take longer and cost more money. You should prepare to have multiple contingency plans to weather through any and all changes.
- Embrace Partnerships (Even with Competitors). This is a nascent industry where not one company or team can do it alone. I often tell my friends in other industries that running a business in cannabis feels like you are driving a car while changing the tires at the same time. There’s so much innovation and growth models created and tested everyday. Learning from each other and pooling resources to build infrastructure and capabilities is how an industry can scale and mature. Everybody wins.
What changes would you most like to see in the industry?
It’s crucial that we begin the de-stigmatization process in order to normalize cannabis consumption. Through our marketing efforts and the imagery we choose, people need to feel that cannabis is available to them no matter their age, gender, race, etc. As a woman of color, it’s so important for me to have an open, active dialogue with my peers which I’m hoping will ultimately help change this narrative — I’m actively doing my part to help break the stereotype of the people in the cannabis industry.
Whether it’s the elderly using tinctures or moms drinking cannabis beverages, we need to show the reality of today’s cannabis consumer which goes way beyond the out-dated images that include ripping bongs and pot leaves. At K-Zen, one of the ways we are doing this is through form factor. We were very deliberate in choosing to focus our product portfolio on cannabis beverages.
Any big plans or goals for the future of your company?
I co-founded K-Zen just under two years ago so we’re a relatively new company, but we’ve already grown exponentially. In fact, we’re gearing up to launch a third flavor of Mad Lilly Spritzers in mid-November — Ginger Pear.
Over the next 2-3 years, our goal is to become the leading cannabis beverage company. We plan on achieving that through adding to our portfolio of brands and products and distribution channels, becoming more vertically integrated and expanding across multiple states.
If you consume, what are your favorite cannabis products?
I don’t really smoke or vape vape, so beverages are my preferred method of consumption. However, I do enjoy topicals and use them often for inflammation. Not to sound biased, but there’s nothing better than relaxing at home and drinking a Mad Lilly Spritzer after a long day!
Where can people find you?
You can connect with me on LinkedIn, or follow K-Zen and our products on Instagram at @drink.sshots, @drinkmadlilly, and @kzenbev.