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2024 WINNER: RETAIL BEVERAGE

To talk to food and beverage entrepreneurs is to hear stories of problem solving and personal, impassioned new product development. These themes run through the life and career of Jonny Locarni. Yet you also learn that he went through pain before founding an alcohol-alternative beverage company, Magic Cactus, in Scottsdale, Ariz.

Professionally, Locarni first worked in financial services for five years, from 2014 through 2019. It was during the latter part of that period however, when his personal life took a challenging turn. Living in Los Angeles, Locarni took in his father who struggled with alcoholism. Determined to find an alternative, Locarni turned to homemade mocktails—and found success—with a small amount of cannabis-derived tetrahydrocannabinol (THC) as an alcohol replacement.

Locarni’s father eventually moved back to his Omaha, Neb., hometown and unfortunately it wasn’t much longer, in 2020, that he died at age 58. By this point, Locarni believed in cannabis-derived alternatives and he embraced a wholesale career shift to join the industry. Haunted by something his dad said, (“If I could have one of these every day by three o-clock I wouldn’t even need a cocktail. These things are like magic”), Locarni soon started experimenting in his own kitchen with a soda machine and liquid cannabis emulsions.

Those experiments would become the start of a business. Working with a Southern California flavoring house, Locarni developed a finished formulation in 2022 and launched Magic Cactus (the name echoing this dad’s words) in 2023. It debuted with online, direct-to-consumer sales (to select states) in three flavors: Spiced Peach, Watermelon Hibiscus, and Lavender Raspberry.

Locarni shares more formulation details on the company’s website and notes Magic Cactus combines three hemp-derived cannabinoids—including THC and the non-psychoactive compounds cannabigerol (CBG), and cannabidiol (CBD). Magic Cactus’ formulation features 2mg of THC, 4mg of CBG, and 6mg of CBD; a “2-4-6” ratio for what Locarni describes as an “approachable, session-able ‘buzz’” where consumers control the consumption experience. He says the three cannabinoids create a synergistic benefit known as the entourage effect.

Magic Cactus notes that because it uses cannabinoids derived from hemp and contains less than 0.3% THC, its drinks comply with federal regulations and can ship to a wide network of states nationwide.

In a Prepared Foods interview, Locarni shares more of the R&D journey.

“Our biggest challenge during R&D was creating a product that could deliver on three critical fronts: effects, taste, and sugar-calorie count. We were committed to replicating the enjoyable effects of an alcoholic beverage—while innovating around our own unique taste and flavor concepts, rather than relying too heavily on traditional alcoholic cocktails for inspiration,” he said. “The key goal was to meet every requirement without compromise. We aimed for approachable, clear-headed effects, 100% real ingredients and real juices, delivering more flavor and depth than ordinary sparkling water. All the while, we wanted to avoid adding agave or other sugars.”

Locarni shares even more beverage formulation strategy on the website.

“… We learned early on that the primary reason for brain fog from both alcohol and cannabis is their tendency to deplete key electrolytes in the body,” he wrote. “Coconut water is rich in electrolytes—but is also rich in sugar and calories, two elements we were determined to avoid. Then we discovered prickly pear cactus water, which has only a fraction of the sugar that coconut water does. Cactus water is rich in electrolytes, antioxidants, and even has anti-inflammatory properties.”

Completing the formula, Locarni and developers also chose to add the natural adaptogen L-Theanine (for relaxation without fatigue), magnesium and potassium (for additional electrolytes).

As of October 1, 2024, Magic Cactus was approved to ship product to 22 states. And as it prepares for its second full year of growth, Locarni remains highly optimistic.

“We’re incredibly proud that Magic Cactus is more than just another non-alcoholic drink—it’s a complete reimagining of what a functional social beverage can be,” he says. “The feedback and messages from our customers—who appreciate having a genuinely enjoyable alternative to alcohol—has been immensely gratifying. We’ve managed to create something that doesn’t just replace alcohol but offers its own unique benefits, and that’s something we’re really proud of.”