Sunstone Winery President Teddy Cabugos is thinking outside the bottle.
At a time when alcohol and wine sales are on the decline nationwide, Sunstone has launched a functional mushroom beverage called Solis, which is designed to bring mental clarity and cognitive precision, in a 12-ounce lemon blueberry flavor can.
It’s more than a drink, Cabugos says; it’s about creating a health and wellness brand with an array of products that meet consumers where they are at.
Gen Z is drinking less and placing more of a focus on healthier lifestyles.
Solis offers that healthier alternative, Cabugos says.
“We believe beverages like Solis represent the future of consumption — where
enjoyment and wellness go hand-in-hand,” Cabugos said.
Solis formulator Kalon Baird of Splash Nano added: “This is the shining star of the future, and those who don’t innovate will be left in the dust.”
The functional beverage is legal everywhere and includes ingredients such as Lion’s Mane, Cordyceps, Yerba Mate, L-Theanine, and Alpha GPC. The ingredients are already available in supplement form, but Baird has fused them into “one refreshing elixir that delivers clarity, calm energy, and enjoyment without alcohol, added sugar, or compromise.”
Cabugos and his team are now selling at a variety of locations, including The Ritz-Carlton Bacara, Brass Bear, Santa Barbara Airport, Santa Barbara Public Market, and dozens of other places.
It’s the latest strategic business move for the Sunstone brand, as they expand their offerings beyond just wine to respond to market shifts.
The percentage of U.S. adults who say they consume alcohol has fallen to 54%, according to Gallup.
From 1997 to 2023, at least 60% of Americans reported drinking alcohol. The figure fell to 62% in 2023 and to 58% in 2024, before reaching 54% today.
According to Sunstone, the wine industry has not been immune — and tasting room visits and wine sales have softened everywhere, forcing many to adapt or “risk irrelevance.”
Sunstone is the first winery in the world, Cabugos said, to respond to this shift by creating a functional mushroom beverage, embracing both younger and older generations choosing healthier alternatives.
“We call it a cognitive-enhancing social lubricant,” Baird said.
The idea is to build on Sunstone’s existing brand as a destination winery in the Santa Ynez Valley. The property sports picturesque views and an interactive experience for wine tasters.
Sunstone began in 1989 when the Rice family acquired 52 acres of land. In 1990, Sunstone planted 20 acres of Merlot, Cabernet Franc, Cabernet Sauvignon, Syrah, Mourvèdre, and Viognier. The 8,500-square-foot Villa was built in 2004 all from reclaimed French materials.
Fred and Linda Rice personally selected limestone from historic chateaus in Provence, Normandy, and Loire Valley, along with wood beams and roof tiles from a 19th-century Victorian lavender factory in Avignon. It’s a world destination for weddings and events and has been featured on Netflix.
Cabugos believes the functional beverages can be another attraction for Sunstone and its international clientele.
The beverage is the latest shift for Sunstone, which most recently envisioned selling a 5-milligram hemp beverage that they believe will one day replace beer at sports venues and in everyday life as a healthier alternative.
Gov. Gavin Newsom implemented an emergency ban against hemp beverages in September 2024. But Cabugos says that the ban was targeted at bad actors who were trying to sell large doses. Hemp beverages are legal in several other states. The cannabis industry has also been largely against hemp-derived products out of concerns about competition, says Cabugos.
The Solis beverage is his latest effort, and is already on the market, available at the winery and in restaurants, hotels and several locations.
Baird is the scientist behind the concoction. As co-founder of Splash Nano, he works out of an industrial warehouse in Goleta. Baird has clients all over the world, and he makes a variety of THC products, including edibles, gummies and beverages. Baird fits the scientist stereotype, often referred to as “Willy Wonka,” because of his similar hair and creative attitude.
But he is passionate about the health benefits of the product, and he says it is what the customers want.
“It’s all about meeting the consumers where they are at,” Baird said.
Cabugos was recently at the State of Santa Barbara County event, where Sunstone offered the drink. He sees it as a one-stop beverage that includes many of the supplements people are already taking on a daily basis.
These types of drinks are available already in Costco, Baird said, but Solis tastes better and, under the Sunstone brand, comes with a sense of trust and connection.
“It’s all culture,” Baird said. “You are exporting the culture of health, wellness and expanding the mind.”
Just like there was a cannabis rush in 2014, functional beverages are emerging with the same energy but are legal.
“A lot of the cannabis people are actually switching over to mushroom beverages,” Baird said.
Cabugos said the drink is healthier than the Monster or Red Bull energy drinks, and it’s something you can drink daily.
“We are witnessing a cultural shift that only comes once in a generation,” Cabugos said. “People are moving away from alcohol and seeking healthier alternatives. Solis is that solution: a beverage designed for those who choose to drink less or not at all, yet still want to experience an elevated mood and sense of connection. It’s the perfect option for the modern day lifestyle.”
Djamila Cabugos, CEO of Sunstone, said Sunstone will always remain a boutique destination winery.
“By contrast, Solis represents our scalable vision — destined for international reach
and designed to be in every hotel minibar, every airport, every grocery store, and ultimately in every refrigerator. It is the bridge between our heritage as a timeless estate winery and our future as a global lifestyle brand.”