Ambitious Hemp THC Drinks Players Build A New Category In The U.S.
November 19, 2024The cannabis drinks market is growing at a rapid rate. According to research firm Fortune Business Insights, it’s projected to top $117 billion in 2032, led by North America, which dominates the global market for cannabis drinks.
Much of the domestic growth for cannabis-infused drinks is being driven by the hemp THC segment, which is federally legal, although it’s being restricted in some states. Myriad off-premise spirits, wine, and beer retailers across the country now stock a full roster of cannabis drinks in their stores, with Minnesota, Texas, and Florida among the states leading the charge.
“The cannabis-infused beverage market has evolved rapidly, driven by expanding legalization, product innovation, and the emergence of the hemp-derived segment,” says Keef Brands chief revenue officer Blake Patterson. Keef is a market leader in cannabis drinks with a portfolio that includes a variety of sodas and sparkling waters containing 10-mg. of THC each ($5-$10 a 12-ounce can), as well as mocktails with 100-mg. of THC ($15-$20 a 12-ounce bottle).
Cann is another leading cannabis drinks brand, offering a range of RTD-style flavors. The core line includes Grapefruit-Rosemary, Blood Orange-Cardamom, and Lemon-Lavender, as well as seasonal flavors, each made with 2-mg. of THC and 4-mg. of CBD ($50 a 12-pack of 8-ounce cans). Cann is sold direct-to-consumer online with shipping to 33 states and is also available on- and off-premise in 16 states, with more markets coming.
“THC-infused drinks are meeting consumers where they are: in the alcohol aisle of their local store,” CEO and cofounder Jake Bullock explains. “Cann is now sold alongside beer, wine, and spirits in retailers across the U.S. This is a significant change from when THC beverages were only available to consumers at a small number of marijuana dispensaries. Currently, Cann is sold at more than 3,000 retail stores.”
Pamos is another cannabis drinks brand that evokes modern cocktail culture. Pamos offers two cannabis spirits—one with 2-mg. of THC and 2-mg. of CBD ($40 a 750-ml.) and another with 5-mg. of THC and 2-mg. of CBD ($45)—as well as a line of RTD-style Spritz cocktails that mimic popular alcohol drinks, including Strawberry Margarita, Peach and Guava Bellini, Mai Tai, and Long Island Ice Tea, each available with either 2-mg., 5-mg., or 10-mg. of THC plus 2-mg. of CBD ($24-$28 a 4-pack of 7.5-12-ounce cans). The products are available in more than 40 states through direct-to-consumer sales and in 18 states at traditional retailers.
CEO and founder David Mukpo says the 750-ml. cannabis spirits products are gaining traction on-premise, which is boosting overall brand awareness. “We believe Pamos belongs anywhere and everywhere alcohol is currently available for purchase,” he says. “The next year will drastically change the perception and availability of hemp-derived THC beverages.”
Bayou City Hemp Co. makes THC drinks that CEO Ben Meggs says are designed to be responsible and stackable, which is where he says the future of cannabis drinks is headed. Bayou City markets the 8th Wonder label, including the 8-mg. THC seltzer Wonder Water ($19 a 4-pack of 12-ounce cans) and the 2-mg. THC seltzer line Lil Bit ($16 a 4-pack of 7.5-ounce cans); the Howdy label, which spans 2.5-mg. THC seltzers ($17 a 4-pack of 12-ounce cans) and 5-mg. THC lemonades and teas ($18 a 4-pack of 12-ounce cans); and the Beach Break label, a portfolio of sparkling drinks with 5-mg. of THC ($18 a four-pack of 12-ounce cans).
Along with online retail, the drinks are sold in Texas, Louisiana, Tennessee, Florida, and Alabama, and the company plans to add six more states before the end of the year. In addition, because Bayou City offers most of its drinks in draft format for the on-premise, Meggs says that in Texas, on-premise sales make up 30% of the company’s business. “The category is exploding and we’re going to see all types of experimental products coming,” he notes. “We think people will like what we’re prepping for release.”
In a further vote of confidence for the hemp THC space, Michigan-based cannabis company Agrify—led by Green Thumb Industries’ Ben Kovler as interim CEO—recently agreed to acquire the Señorita hemp THC drinks brand from founders Charles Bieler and Joel Gott in exchange for 530,000 shares of Agrify common stock. “The data indicates a massive opportunity in the HDLT drink market, making this an attractive area to allocate capital,” said Kovler in a statement.—Laura Pelner
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