London-headquartered Goodrays has witnessed doubling business revenue and profitability over the last three years through strong sales of its CBD drinks, oils and gummies.
“Our drinks are outselling the likes of Coca-Cola and Red Bull in some of premium retail outlets,” said Keenan. “If you had told me that would happen five years ago, I wouldn’t have believed you, but functional drinks are growing at around 18 times the rate of soft drinks growth.”
He added that the CBD drinks category allows retailers to fulfill the growing consumer demand for products that support mental well-being.
“Retailers knew they had an issue five years ago when they realized the soft drinks category was driven by high energy, high sugar products, and it wasn’t sustainable,” Kennan said. “I think CBD drinks are something consumers have been looking for, for a long time and it’s a category retailers have been crying out for.”
The funding will support product innovation, marketing acceleration and further retail listings.
But with no authorized health claims for CBD supplements and drinks, marketing is a challenge for a mental wellness focused product range, as exemplified by a recent ASA ruling on Trip CBD drinks.
Keenan noted that the brand’s strategy therefore focuses on partnerships with the likes of mental health charity MIND, national wellness events and ambassadors who champion mental well-being.
Regulatory tipping point
The funding, led by Guinness Ventures, comes at a pivotal moment, as full market authorization for CBD products in the UK is expected in early 2026.
Keenan is confident though that exception will be made for the CBD industry or that the Novel Foods process will reach its conclusion before new mandates interfere.
“The FSA is nearly at the finish line with the authorization process, so it just wouldn’t make sense to row back on that, particularly as it’s one of the fastest growing sectors in the UK and the whole point of the SPS draft is to stimulate trade,” he said.
FSA advice on CBD daily limit
The brand has proudly called-out the high CBD (30mg) content in its drinks in marketing and packaging but with the FSA now advising businesses to reformulate products that fall outside the newly reduced 10mg ADI, the business has a short- and long-term strategy.
With details yet to be officially announced, Kennan said the business is working with the FSA to be compliant on the ADI.
But in the long term, “the aim is to raise quality standards across the CBD industry” as the lowered ADI is “a result of lower quality CBD” dossiers causing safety concerns.
He acknowledged the complexity of reformulation—from quality testing and stock management to supplier and retailer alignment—butemphasized that taste remains the top purchase driver.
“Our USP is our low-calorie, no added sugar or artificial sweeteners and our refreshing exotic flavors,” he said.
A passion project
The Irish businessman discovered CBD after seeking support for his stress, anxiety and insomnia while at university.
After writing his dissertation on global CBD policy, he immersed himself in the space by taking on a range of roles at CBD companies across the United States and Canada, gaining experience in everything from cultivation, and manufacturing to quality control.
“When I came back to the UK in 2017, there wasn’t really a market here so I set up Prohibition Partners, a market intelligence and strategic consultancy firm focused on the global cannabis industry,” he said.
“I looked at the market and didn’t think the brands out there were creating high enough quality products, so I launched Goodrays in 2019.”
Former Liquid Death MD joins leadership
The funding also coincides with the appointment of Ben Dando, former international managing director of viral drinks brand Liquid Death, as the company’s new managing director.
“He brings a huge amount of experience with two decades in the drinks industry,” Keenan said. “For me, having a right-hand person is hugely valuable for our acceleration over this next stage in business growth.”
Dando added: “While others obsess over what to cut out, we’re focused on what benefits we can add in, especially when it comes to people’s mental well-being—something which we believe has long been overlooked in the drinks industry. We’re at a tipping point in how consumers engage with the drinks industry, and right now, the functional drinks category is the most exciting and fast-moving space in food and drink.”
