Cannabis Beverages are the New Happy Hour

The global beverage alcohol industry is currently undergoing a significant transformation, driven by an expanding consumer demand for alternatives to traditional alcohol. At the forefront of this shift is the explosive rise of cannabis beverages.

Once a niche novelty limited to state-regulated cannabis dispensaries, these drinks—ranging from sparkling seltzers and non-alcoholic beers to craft tonics infused with CBD and THC—are rapidly becoming a mainstream category. And beverage alcohol innovators are taking note.

Conversations of the infused beverage market have been filtering through conferences such as the National Beer Wholesalers Association’s 88th Annual Convention and the National Alcohol Beverage Control Association’s Administrator’s Conference, among others. Cannabis beverages aren’t going anywhere anytime soon, and beverage alcohol companies and organizations are working hard to make sure both industries can work together seamlessly.

Rebecca Maisel, outgoing chairwoman for NBWA, shared during a General Session just how hard wholesalers are working to adapt to this new market during the organization’s 88th Annual Convention.

“We’ve seen growth in RTDs, non alc’s and hemp-based THC beverages,” she said. “We’ve also seen newer entrants to the beverage arena, like wellness-focused functional beverages containing nootropics and adaptogens. The good news is that wholesalers are adapting, diversifying and expanding our capabilities to offer retailers the best and safest products.”

Cannabis Beverages Bringing Consumers In-Store

While many beverage alcohol companies were uneasy about cannabis drinks when they first started becoming mainstream, they now see the advantages that these products can offer the industry.

Consumers want cannabis beverages, and they’re going to liquor stores in legal states to buy them.

Minnesota has become a hotbed for THC innovation in beverage alcohol retail stores, led by the Minnesota Municipal Beverage Association. Executive Director Paul Kaspszak said during a panel at the NABCA Administrator’s Conference in October that some liquor stores have begun selling edibles as well, everything from gummies to cookies. Edibles now represent about 27% of THC sales for Minnesota beverage alcohol stores that carry them. But the big draw remains drinks. 

“Liquor stores have become the largest seller of THC drinks,” Kaspszak said. “You can still buy them at dispensaries, but people gravitate towards the liquor stores because you have the larger selection there.” 

The category has proven so successful that the Minnesota Municipal Beverage Association has even canned their own house brand, Muni Sota. Additionally, consumers can now buy THC beverages at certain on-premise businesses. 

“It’s not widespread yet, but it has saved numerous craft breweries,” Kaspszak said. “A lot of them have started to produce THC drinks. It’s keeping them afloat.” 

Target stores in Minnesota have even begun testing sales of hemp-derived THC drinks. Sales began in early October, with brands such as Cann, Wynk, Señorita and Wyld, among others, available in select Target locations in the state. The beverages are capped at 5mg per serving.

“There are some studies out there that suggest that THC is not necessarily a replacement for alcohol. It can be a supplement and a compliment to consumers’ alcohol choices,” says Jim Higdon, CCO and co-founder at Cornbread Hemp. “Consumers are just adding THC beverages to their menu of options.”

The reality is that consumers are purchasing these infused beverages, and by selling them at on- or off-premise beverage alcohol locations, it can greatly enhance your bottom line.

Skyrocketing in Popularity

The rising popularity of cannabis-infused beverages can be largely attributed to the “sober curious” movement among younger consumers (Millennials and Gen Z), a growing preference for wellness and low-calorie options and game-changing advancements in nanoemulsion technology that deliver a fast, predictable onset time.

The Cannabis Policy Institute at the University of Nevada, Las Vegas released a report looking into the popularity of cannabis-infused beverages, titled, A Review of the Present THC Beverage Market. Report author Tyler Klimas says the most surprising aspect of the report is just how much these beverages continue to grow in popularity.

“From the very beginning, my question was always ‘After consumers initially flock to stores to purchase these beverages, will they keep coming back?’ And the answer is they do,” he says. “Shoppers are now seeing cannabis beverages in a familiar spot next to the traditional adult beverages they buy, so they can easily pick up a 4-pack or 6-pack.”

According to the report, a major driver of the hemp-derived THC beverage market growth is the broad consumer base that it attracts. These ingestible products appeal to cannabis users looking for more options, but more importantly, they have demonstrated an extensive reach outside of the narrow demographic typically observed in traditional marijuana markets.

“Nineteen percent of cannabis consumers ages 18-34 report cannabis beverages as their preferred product type. This is the largest share among all age groups. Overall, younger users tend to be naive in consumption and are receptive to novelty. This is particularly true if that novelty is conducive to social norms,” the report states.

Who’s Drinking Cannabis Beverages?

Aside from The Cannabis Policy Institute’s report, other studies also show a growing interest in cannabis beverages among younger consumers, especially women.

For example, Tilray recently shared their increased investment into their brands favored by their female consumer base, such as Solei Cannabis. One of the reasons why women may be more amenable to the hemp-derived THC beverage markets could be the concept of wellness, especially when compared to traditional consumption methods which require inhalation.

Similarly, Headset data suggests that male consumers make up around 60-66% of total cannabis sales in the U.S and Canada. Women, however, make up 80% of the purchasing decisions in the U.S.

And those who are drinking cannabis beverages are choosing lower doses.

According to Sam Garfinkel, SVP of commercial operations & strategy at Tilray, these lower-dose products appeal to consumers seeking a new way to experience a buzz. They’ve destigmatized the category and introduced hemp-derived THC beverages into the mainstream.

“Our research shows that 41% of consumers enjoy these beverages in social occasions, so control and sessionability become critically important,” he says. “That’s why we lead with 5mg and 10mg formats, which encourage a controlled experience and even allow for multi-drink occasions. Happy Flower non-alc THC cocktails and Fizzy Jane’s low-calorie, fruit-forward seltzers feel familiar and approachable for many consumers.”

Ben Larson, CEO of infused ingredients provider Vertosa, has taken notice of this trend. “People are still learning their preferred dosage, and the fact is that we need to give consumers the building blocks to find that right dosage. People’s tolerances can vary greatly with THC, and those trying a cannabis beverage for the first time want to take it slow to see how it impacts them,” he says.

Mike Hennesy, VP of innovation at cannabis beverage brand Wana, suggests the reason that lower-dosed beverages may be more popular is because of heavily shaped state-by-state regulations, which often cap THC per serving or per container.

“That regulatory framework has created a strong presence for lower-dose formats in many markets,” he says. “But it’s important to note that high-potency products remain very popular, especially in markets with high potency per serving limits where experienced consumers drive strong demand for higher-dose options.”

Regulatory Challenges

Since cannabis is not federally legal, these infused beverages bring forward a myriad of regulatory challenges as they continue to grow in popularity.

Among the challenges is the 2018 Farm Bill, which legalized hemp and its derivatives, provided they contain no more than 0.3% Delta-9 THC by dry weight. However, this has created a legal “gray area” where psychoactive beverages made from hemp, often with low THC content per serving, are being sold across state lines.

“I think it’s good for the hemp beverage industry to look at beverage alcohol as a framework model,” says Cannabis Policy Institute director Riana Durrett. “Of course, there will be some difficulties with the patchwork among the states, but more uniformity will benefit the industry.”

Wana’s Hennesy notes that while the regulatory landscape remains fragmented, the direction is clearly toward greater alignment and normalization. “Federal rescheduling or reform could bring long-awaited clarity around interstate commerce, testing and labeling standards,” he says.

“The biggest risk remains regulatory inconsistency between states and between hemp and marijuana classifications,” Hennesy continues. “However, there’s also a powerful opportunity in this moment: to come together as an industry around a ‘one plant’ framework that recognizes cannabis as a single species and establishes consistent consumer protection and safety standards.”

Achieving that kind of unified understanding would not only simplify compliance, but it would also unlock innovation, research and investment across the entire infused beverage ecosystem.

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