781 Pete Olander: Founder & CEO of Happie

0:00Kara Goldin:I am unwilling to give up, but I will start over from scratch as many times as it takes to get where I want to be. You just want to make sure you will get knocked down, but just make sure you don't get knocked out. So your only choice should be, go focus on what you can control. Hi everyone and welcome to the Kara Goldin show. Join me each week for inspiring conversations with some of the world's greatest leaders. We'll talk with founders, entrepreneurs, CEOs, and really some of the most interesting people of our time. Can't wait to get started. Let's go. Hi, everyone, and welcome back to the Kara Golden Show.

0:44Kara Goldin:Today, I'm joined by Pete Olander, who is the founder and CEO of an incredible beverage called Happy. It is a wellness-forward cannabis brand helping redefine what plant-based health and vitality can really look like. I cannot wait to jump into Pete's full story. A little bit of the backstory seems anything but typical from private banker at J.P. Morgan to making that bold leap into the cannabis space, the beverage space, building Happy from the ground up into a vertically integrated brand with sparkling CBD-infused drinks, top-shelf flour, and Keefe-infused pre-rolls sold across multiple states.

1:35Kara Goldin:And this isn't just another cannabis brand, and that is why we have brought Pete in to talk a lot more about it. We're also going to dive into some of the regulatory issues that are going on right now around the industry that PEAT is living. So I think that that will be definitely enlightening for many of us who are curious or sort of on the outskirts of some of this, but have heard it definitely going on in the news. But HAPI is meeting a new wave of consumers who are demanding more from what they put in their bodies and I'll leave it at that. A happy, happy founder and CEO, Pete Olander. Welcome, super excited to finally meet you and have you here.

2:23No, I'm super excited to be here, Kara. I can't wait to share the story and hopefully we got some good feedback out there.

2:32Kara Goldin:Awesome. Let's get into the definition of the brand. So what is happy and what makes it different from some of the other cannabis or wellness brands that are out there? Yeah, I mean, happy, it stems from function, right? No magic claims or promises. We want to be very transparent about what we do. We're not offering some magic solution. And it really comes from the foundation of, hey, is this good for you? And can you feel it? And prior to joining or prior to kind of joining this industry and getting in and creating happy, I worked in the nutrition industry. And, you know, we worked, we were, I was very fortunate to work with a lot of, you know, high profile athletes, nutritionists, neuroscientists.

3:21And it was there I really got an understanding of, all right, hey, these functional ingredients can really, you know, people can feel them. They've got a positive impact. Now, how do we make them taste good so people actually consume them? right um so it's it's really a foundation of wellness first and it's making it accessible and normalized for everybody when people talk about plant medicine um you know whether that's you know hemp cannabis uh or you know our latest product line is is functional mushrooms just lion's mane cordyceps and reishi you know it's all falls under the the umbrella of plant medicine um and it's they're functional i mean these these have been used these ingredients have been used for centuries.

4:06And, you know, people use them, you know, very regularly and get great results. And it's just a matter of, hey, can we get this in, you know, a convenient way to get it in someone's hand where they can consume it, have a functional good benefit, you know, and have it taste good. Because that's one of the things with nutrition too, nutrition products, like, hey, it could have the best stats and everything in it. But if it doesn't taste good, no one's going to to drink it. Yeah.

4:35Kara Goldin:And Happy does taste really good. And you guys have done an awesome job in getting the taste profile down as well. So you've done, because that isn't, it's not easy. It's not easy in a product that doesn't have cannabis or some sort of added benefit to it. But you guys have really, really nailed it, I think. So what was the light bulb moment that led you to decide, I need to just go do this? The light bulb moment was, it was when I was in the nutrition industry, right? We were working on actually greens powders. We were looking at like, before athletic greens was like a really a thing, we were looking at, all right, what are the plant compounds that we can get benefits from and figure out, you know, how this can help people and how people can consume it.

5:30We were also working on some energy drinks at the same point in time. And it was just such a dichotomy of, Hey, what goes into an energy drink with all these stimulants and sugar and this, how clean can we make this? So I was like, all right, well, you know, people obviously like these energy drinks and they like it, but not everyone wants, uh, yeah, they want energy, but they want what they really want being seeing like the nutrition world is like they want clean energy. They want stable, like something They can ride instead of these sugar caffeine crashes. And there's got to be a way to do it in a natural way.

6:04And can we make them taste good? Right. And can we make it where it's palatable? Because I think there is, especially with, you know, there's a lot of anxiety out there. You know, there's a lot of things happening. Like if you can have a good energy level with some mental clarity, or there's some way you can do it naturally that your body can really, you know, consume and use it. I just, I never saw that that need wasn't met in the market. It was quick fixes, sugar, caffeine, whatever other adaptogens, right? Like, okay, well, you can do it, you can do it a different way. And I just want to show people they can do it.

6:40Kara Goldin:So how difficult is this to work in an industry as you've chosen to do that is regulated? Very challenging. I mean, I guess I didn't realize, I didn't realize how challenging it would be when I got into it because, you know, when we, when we first started doing the CBD waters, that was 2018 and that was still kind of, well, I don't, you know, it's still kind of in the, you know, people looking at it side-eyed. And then when, you know, it started to catch some steam and then in 2020, when COVID hit, you know, a lot of our accounts shut down And we're like, okay, we got to make a pivot. We got like, if I know is one thing about one thing I learned in the nutrition, you know, industry is like, hey, I got to know my supply chain.

7:23I got to really understand this ingredient. I got to understand what it is, what the quality is. So it was at that point in time, you know, I made the decision, like we got to get closer to the plant. So we went out to California, purchased a license and then continue to work on happy. But we're working on happy with keeping in mind of a look, let's just look at all plant medicine. Right. So we're up in Sonoma. we're you know some of the best growing country in the world up there you know with the vineyards and the grapes and just the knowledge in general so it's been a good experience i mean it's painful because you have to you know the taxes you know the you know the safety checks i mean we are we are as highly regulated or i don't know if as but close to pharmaceutical grades because uh of of all our ingredients because, you know, they test for everything in cannabis, right?

8:13So we're just, as a company, we're used to that. And that's what we look for in all our suppliers, whether that's functional mushrooms, whether that's hemp. Because if I wouldn't consume it or I wouldn't give it to my family, I'm not going to be wanting to offer it to the rest of the world.

8:28Kara Goldin:Yeah, definitely. So how has your product changed since Happy first began, I guess, because it's a moving target. And we talked a little bit about this in the introduction. But how, I guess, has the industry forced you to change as well? Oh, my God. Every day. So it's like it's being small, I think, has helped us. Right. Because we've been able to be nimble enough without too much baggage because turning a Titanic is very hard to do. But in this industry, the laws change so frequently even two weeks ago. But we started as a CBD company. And that was strictly, hey, we did a greens powder with CBD.

9:16We saw the anti-inflammatory results of it. People were feeling good. Like, okay, let's make it palatable. Put it in a drink. People started to understand the CBD movement. then that just got killed when COVID kind of swept through people lost interest but you know cannabis was still going up okay well cannabis is a little more highly regulated it's more expensive to produce beverages you know but you know there is a need for this and I think this is the future of you know of of consumption because it's a great alcohol alternative if used appropriately right Right. So we pivoted then and then we just couldn't we couldn't produce costs effectively.

9:56Our THC version in California because and it wasn't I mean, yeah, it was a little more expensive than production, but it was the logistics, you know, because a lot of we could only your landlock to distribute to only dispensaries with these products. Right. And a lot of the dispensaries, they don't have the logistical infrastructure like alcohol companies do. so it just it made it you know whatever but you know i just i believe that the the it was the industry was going that way and we were going to be able to sell thc drinks uh or other functional you know drinks you know in the marketplace and i thought it was really cool like hey while we're in california we have this license let's just do flour right now let's do some pre-rolls it's you know but really get ingrained in the market understand the farmers understand what high quality growing looks like like understand the community the vibe like and do that and build out from there so it you know it's got that norcal you know vibe to it and um then in 2000 you know we we've been growing there and we're sold out there um and then last year um that the delta 9 hemp uh thc market started to pop and we had already had our flavors done um we had already you know, had the product ready to go.

11:13So we launched it and, you know, then we start hearing from states, Hey, we want, we'll only allow five milligram caps. And then some states will be like, Oh, now, now we only, now we want to do 10. Some states are doing 50 to a hundred, which is bonkers. Right. So it's like, okay, what, where, what are we trying to go? We're doing a, we're going for a responsible consumer who wants to have a good time without, you know, staring at a wall all night, right? That's kind of what we're into. And they, so we picked our target and we picked some states that work for us, but then now there's laws and regulations.

11:46So it's, it's a very challenging, interesting dynamic. You got to be adaptable because, you know, you'll get a, you know, a distributor will want to take you in and then, oh, well now I'm worried about these legal changes that could possibly happen. So it just puts so much uncertainty in there, but you can't stop, you know, a train that's already moving. So, all right, how do we, how do we keep moving this train? Because, you know, we've been fortunate enough because we've kept going, things have started to open up. We, we have credibility. We're still here. We're still doing our thing. So it's, it's been, you know, headaches, but, you know, I think overall we've gotten better.

12:23We've gotten smarter at it. We really, you know, understand what we're doing on a production level. So, but legal and compliance.

12:33Kara Goldin:It's real. Yeah, oh my God. And the functional mushroom beverage has been, it's been like night and day and been like eye-opening because, you know, we're on Amazon, you know, we're completely compliant and everything. I mean, it's great. But I appreciate that so much more because of everything I went through on the compliance side of it. So for those who aren't familiar with the benefits of functional mushrooms, I guess how is it similar to the CBD side of things and how is it very different outside of the regulations? um as far as effects like the cbd and um and the thc they have they have a calming effect right the the thc and cbd um the the functional mushrooms when you start getting into lion's mane that's really good for mental clarity and focus um cordyceps are great for energy level and immune health and you know reishi it is kind of a zen calming uh so that's kind of where we get in the thing where it's like, hey, it's, you got a little, a little boost of energy without the jitters, but you're actually kind of level-headed with it so you can use it right.

13:44You know, it's a good balance, if you will. And then in both of our lines, we infuse them with ocean-derived minerals like magnesium just for that added boost of hydration and muscle support. So, you know, we try and put a little extra in there for people.

14:01Kara Goldin:That's awesome. What has surprised you the most about this building your brand happy? I guess as you think about, you know, there's obviously a lot of challenges that go on and things are changing constantly. But what has surprised you most about the journey of the build? I guess, you know, you launch, you have this great idea, you go and launch and I don't know, maybe you're hearing something back from consumers. I I remember when we were first launching Hint that I heard from tons of consumers, but I remember hearing from one consumer in particular that was really angry at us because we had a cucumber water.

14:48Kara Goldin:And I'm like, well, just don't drink the cucumber water. No, but this is like, I can't forget about the cucumber water. And I mean, it was just like obsessed with the fact that you know, you could have all these other flavors, but the fact that you have a cucumber water is just so jarring to me. And I think that it's, anyway, I think that there's just interesting things that consumers pick up on that you think when you're building something is just maybe not that big of a deal or you're offering choice, but maybe it's going to kind of skew the brand for certain people and do you care? Do you not care?

15:26Kara Goldin:All of that kind of feedback. The feedback is huge for us. I love it. I love it. I hate it at the same time because you make and I learned this. We started sending some beverages down to Georgia, right? And in California, it's just a different taste profile where people want it. It's sweeter. They like this. And I'm like, oh, I don't want to load this thing up with sugar, but, you know, maybe I can make it sweeter with agave nectar or something. So like we started to play with like, okay, how can I, you know, balance this out a bit, but at the end of the day, you're never going to please everybody.

16:06So it's like, all right, guys, like, this is what we do. We're pretty good at it. Try it. If you like it, awesome. If not, you know, there's, there's plenty of other functional beverage companies out there and some are doing a really good job out there. Right. But, you know, we all fill a different space. I can't be everything to everybody. And, you know, that just gets you way too spread out.

16:24Kara Goldin:Yeah, definitely. So the conversation around the regulatory issues that are going on right now, is there any way to kind of clarify it for us and sort of, you know, put it in plain talk for the consumer who's not as in touch with what's going on with the CBD market right now. Yeah. So what has happened in the last government reopening bill, they put some legislative verbiage in there that would effectively ban the sale of any cannabinoids, hemp cannabinoids over a certain percent over the next year. So they basically said it's a a gradual rollout over a year. So that's, you know, has a lot of people up in arms.

17:19I mean, it's since 2018 with the farm bill, it's grown the industry tremendously. I mean, there are now, you know, large distributors, beverage distributors involved in this. And kind of what's coming down the path is, you know, there was some probably bad marketing claims or, you know, some products out there that weren't, you know, doing things the right way and they got, you know, found out. So I do think it's going to be an issue for the industry in general. Now, on the side of that, I do think beverages are going to be the ones that survive, the product category that survives. And it really comes down to the safety and the consistency and the potency and the testing.

18:04and the beverages now you have to have them done at a, you know, a facility that's certified, you know, the, everything is tested before it goes in the ingrate in the can after the can stability testing. So there's three checkpoints, whereas other types of products don't really have that. And then in addition, there's already major distributors carrying this, there's liquor stores carrying this, you know, and a lot of these distributors, you know, they are seeing a decrease in alcohol sales, right? So it's making up a gap. So at some point, you know, they can get their arms around it, you know, as far as testing and, you know, if they're getting on board with it, they've, you know, mitigated the risk.

18:46But it is going to be an interesting year because it's going to, there's going to be give and take. It's going to be, all right, beverages are probably okay, but maybe not 0.4 milligrams, maybe it's 10 milligrams across the country because that feels like, you know, a little bit more than a beer, you know, like there's, there's reasonable ways to get about it. But in the meantime, it's got a bunch of people spun up.

19:10Kara Goldin:Yeah, definitely. When are they supposed to give the final say on all of this? Well, right now it's put in there and they gave it, you know, one year. So that's this kind of November of next year that they have to make a decision, but there's already people working on, you know, Hey, how do we make this work? So I would assume something would happen. in the next six months, or maybe it'll be the last minute like it always is. But I know there's a lot of talk. So how do you manage that in terms of, you know, being the CEO of a company? Here you are trying to, I mean, you own the vertical integration as well as, so, you know, the actual processing of it plus the growth of the company.

19:54Kara Goldin:And then you've got this uncertainty out there. I mean, it's like one more massive, massive arm to an already complicated, overwhelming position that you're in. How do you manage that? It's a lot. With positive distractions, maybe. I mean, I think the way we're set up is very interesting because say, you know, we have the cannabis division in California, which is strictly in California, that's all we operate, right? That would not be affected at all by this hemp ban. If anything, it could help it, because we're already operating in California compliantly in that market. The hemp side of the business right now, we're currently distributed in states, selling online.

20:46So So if anything, maybe that could get affected or, you know, they would adopt the regulatory framework of California Department of Cannabis Control, which we're already operating under. So if anything, that could be, you know, you know, I think we could work with it. I mean, I'm not saying it wouldn't be a challenge. And then the third leg of the business is the functional mushroom, which we have no regulatory compliance at. So is it chaos? Yeah. But, you know, it's all kind of building for the vision of, hey, this is plant medicine in general. You know, pick what fits you, what's right for you.

21:24They're all not for everybody. But if you're looking for this kind of effect or this kind of product, I think we can give you a good one.

21:32Kara Goldin:So when you think about scale and what does success look like for you? And, you know, when you think about everything that you've been doing is incredible. I mean, you're building a great product. You're taking on these challenges. But, you know, it's hard. And I know as a founder, you're sitting there, you know, every day. It's like some new fire that you've got to put out, hill that you've got to climb, however you view it. But what does success look like for Happy? success looks like, you know, a company that we, I mean, I want to build a great team. I don't know where we're capable of going yet.

22:22I know we're capable of, you know, selling a lot of drinks and, you know, but it's, I think we're, we're capable of maybe doing, growing more of a movement. I want to see, like, there's so many ways that we can, you know, you know, affect people or touch people with happy. Maybe it's, you know, other nutritional products other than this, maybe it doesn't have to be in a compliant, heavy, um, industry or something like that. But I do think people are looking for more ways to be able to be, you know, better alternatives to have a good time, better alternatives to feel good about themselves, better alternatives.

22:57Like if we can find some niche that we can fill, like I'd like to find out other ways to grow happy and have a heck of a team that gives me good ideas. Like that's, that's fun for me finding, you know, people who are like-minded who like, Hey, try this. Or, you know, I saw this new program and I think we could do this. Like I'm having fun with, you know, my team right now, you know, promoting happy and growing it. So I want that to stay.

23:22Kara Goldin:I love it. When you look at trends for, uh, 2026 around, uh, this industry, obviously you guys jumped into, I guess, beyond, uh, the CBD into the mushroom category. But what do you see as kind of the bigger trends around either of those industries that I think maybe keep you up at night thinking that there's a lot of room for growth there? Yeah, well, the mushroom drink, especially, I've been look focused on that and i think in i read a statistic it's like supposed to 4x by 2033 and it's at 500 million for 2026 um and people are looking and that's just the the mushroom beverage industry right so i think this type of product too it just gives people instead of a like a mushroom coffee or something it gives them another alternative nice beverage rtd that they can drink.

24:23So, you know, people aren't going, people are looking for functional beverages. They're, they're looking for low calorie, low sugar, low crash, you know, low caffeine options and clean label. Right. So I think we can, we can fill that. And I think, you know, people are getting more interested in just plant medicine and adaptogens and mushrooms in general. It's, become a buzzword. So there it's, it's kind of, it's been a good, we're hitting the window real sweet right now on that. And then as far as cannabis, I think it's just getting more normalized, which is even better, right? Like I, I want people to consume, you know, cannabis for a purpose, not for just partying, right?

25:06Like, Hey, what are you, are you intentional with this? Can it make your life better? And like, that's why low dose. And when people look at it that way, use it in that daily life, you know, you can look at it as a nutritional kind of thing because you do have an endocannabinoid system. Like most people just don't have the other cannabinoids to give them that piece.

25:25Kara Goldin:Yeah, definitely. Well, Pete, thank you so much for joining today. Happy is a great, great product and you guys are doing awesome stuff over there. So I really appreciate you coming on and sharing the journey of building this incredible brand and also just the process of everything going on in the industry. Really appreciate you sharing a little bit more with everyone about that. And for everyone listening, check out drinkhappy.com and follow... Drink Happy at Instagram. And there's happy at happy fusion, which is our mushroom one. So we Thank you so much for listening and definitely shared this great interview that we've had with Pete.