Retail giant Target has begun testing sales of hemp-derived THC beverages in select stores throughout Minnesota, making them the first major national retailer to sell these beverages in their stores.
This marks a pivotal moment for both big box retail and the adult beverage industry.
Sales for the hemp-derived THC drinks started in early October, with brands such as Cann, Wynk, Señorita and Wyld, among others, available at select Target locations in the state. The potency is capped at 5mg of THC per serving.
“This is a big moment. When a national retailer like Target starts selling THC-infused beverages — even in a limited rollout — it sends a clear signal: infused and functional beverages are moving from novelty to mainstream,” says Brian Rosen, CEO and general partner at InvestBev.
“This isn’t just about Minnesota,” he continues. “It’s about the broader shift in how consumers think about social beverages. We’re watching the rise of a new ‘non-alcohol intoxication’ category — one that offers consumers a choice outside of traditional beer, wine or spirits. When Target puts it on shelves, it legitimizes the entire segment overnight.”
Target has added the drinks just before Minnesota is set to close a loophole governing “low potency” THC products, with companies now required to apply for a new license before October 31 to continue to sell their products in the state.
Alongside the new license, hemp THC edibles and drinks will be subject to more rigorous testing requirements, beginning next year.
As alcohol consumption trends soften in some categories, this new lane has real growth potential. Analysis by Whitney Economics, as reported by CBS News, projects the THC beverage market could grow from $1.1 billion today to over $5.5 billion by 2035.
“It also puts pressure on established players,” Rosen says. “Spirits and RTD brands will need to innovate — whether through hybrid products, co-branding or infused line extensions — to protect share of wallet and consumer attention.”
For local Minnesota liquor stores that already sell hemp-derived THC beverages, Rosen says this could be both a challenge and a catalyst for them.
“The challenge is obvious: Target has scale, visibility and pricing power,” he says. “Some consumers will prefer the convenience of adding a THC seltzer to their weekly grocery run. That may pull some casual buyers away from independents.”
But the opportunity is bigger, according to Rosen. Target’s entry legitimizes the entire category. More visibility means more curiosity, and curiosity drives category growth. Liquor stores can lean into their strengths — premium offerings, higher-dose products (where legal), education and personal service.
“In many cases, consumers will try a low-dose Target drink, enjoy it, and then graduate to more premium or specialized options available only at local retailers,” Rosen explains. “If I ran a liquor store, I’d welcome the rising tide. Just make sure you’re differentiated — be the educator, the curator, the category expert. Big box can sell the beverage, but they can’t sell the story.”
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