Milonga, the California-based yerba mate brand that made its name with cannabis-infused ready-to-drink beverages, has unveiled a comprehensive brand overhaul alongside the launch of its first non-THC product line. The dual announcement, reported by industry publication BevNET in January 2026, positions the company at a strategic crossroads: maintaining its identity as a pioneer in THC-infused functional beverages while simultaneously pursuing the far larger mainstream energy drink market.
A Jungle Rebrand
The redesign replaces Milonga's previous packaging with a simplified can aesthetic that depicts the jungles of South America — a visual nod to yerba mate's origins as a subtropical understory plant indigenous to the Paraná Plateau region of Argentina, Brazil, and Paraguay. The new artwork is intended to broaden the brand's appeal beyond cannabis-specific retail channels, where the existing packaging was optimized for dispensary shelves. According to BevNET, the refresh reflects Milonga's ambition to reach a broader, mainstream audience without abandoning its cannabis heritage.
From Dispensary to Grocery Aisle
Milonga was founded in 2020 by Shadi Atassi and his father Samer Atassi, initially launching with loose-leaf yerba mate products before introducing RTD (ready-to-drink) cannabis-infused beverages in California in April 2023. The THC-infused line combines natural caffeine from Ilex paraguariensis with varying doses of THC (5mg and 10mg options) and CBD, alongside L-theanine — an amino acid commonly associated with promoting calm alertness. Flavors in the existing portfolio include a sparkling citrus basil 'Energy Brew.'
The new non-THC line represents a fundamentally different go-to-market strategy. Without the regulatory constraints that limit cannabis beverages to state-licensed retailers, Milonga's non-cannabis products can access conventional grocery, convenience, and natural food channels nationwide. The non-THC offerings retain the brand's core identity — organic ingredients, natural caffeine from yerba mate, and L-theanine — while adding functional ingredients such as Lion's Mane mushroom extract, reflecting the broader functional beverage trend that has reshaped the category since 2023.
Market Context
Milonga's dual-track approach mirrors a pattern emerging across the cannabis beverage sector, where brands that initially targeted dispensary-only distribution are increasingly developing THC-free companion lines to capture mainstream market share. The US yerba mate market, projected to reach $1.3 billion by 2035, is currently dominated by established players including Yerba Madre (formerly Guayakí), CLEAN Cause, and Drink Weird. Whether a brand with cannabis roots can successfully cross over into conventional retail — where buyer skepticism toward cannabis-adjacent products remains — is an open question that Milonga's expanded portfolio will help answer.