The THC beverage market is still defining itself. Some brands are positioning THC drinks as mainstream non-alcoholic beverages, chasing mass retail chains like Target and Circle K. Others are leaning into liquor stores and the traditional alcohol distribution system. For brands entering the category, each path differs from distribution strategy to long-term scale and can play out very differently depending on your distribution network. Mass retail versus liquor retail—the Targets versus the liquor stores.

Rick Schepp, General Manager of Señorita and RYTHM beverages at Green Thumb Industries, said in an interview that for now, they are aligning with the more regulated three-tier system used in the alcohol industry while also adapting to THC’s evolving retail and legal landscape.

Big vs. Small?

Most emerging brands assume they need the biggest distributor they can land. Schepp disagrees and works with both large and small distributors, depending on the type of store (c-store, mass retail, or liquor), the region they are targeting, and who is best equipped to serve that market.

“Don’t just try and go for the biggest name. They might not be the best fit for your brand, and you don’t want to get lost in the sea of brands,” he advised.

Schepp says choosing the right distributor is less about scale and more about fit. A major distributor may open doors, but the wrong one can bury a smaller brand inside an overcrowded portfolio. The right partner understands your category, your target accounts, and what kind of support your product actually needs to move.

Building the Brand

For brands trying to break through, Schepp believes companies need a vision of what their product delivers and make that their north star. For Señorita, that has meant standing out for flavor first.

Señorita was originally conceived by Joel Gott and Charles Bieler, both from generations of winemakers, so flavor is at the heart of their work. They launched with a spicy margarita as their flagship, then expanded into a mango margarita and a grapefruit Paloma. By the time Green Thumb Industries acquired Señorita, the Paloma had already launched in Canada. Schepp’s team brought it into the U.S. market and extended the line further with ranch water.

Most recently, they stepped into 750ml spirits with the launch of 1777, a tequila-forward spirit built for sipping, mixing, or taking straight. The move into spirits was driven directly by consumer insights. Not everyone wants a canned drink. Some consumers want less volume. Others want to customize their own cocktails and control flavor more directly.

Schepp credits the founders’ continued involvement in both branding and formulation as a major advantage to its standout features.

“They think about the balance of every flavor, how does the nose compare to the taste, compared to the effect, and how do all those things tie together,” said Schepp. “They’re really intentional about every ingredient that goes in, and what it adds or subtracts from that experience. That’s really where we are focused with Señorita: flavor first.”

While there are many possible innovation lanes, including functional ingredients or energy drinks, they are focused first on developing what they already do well before branching out.

“It’s about following the consumer, and where’s that demand and interest, and then trying to create the most compelling offering for that demand,” said Schepp.

Deep Not Wide

Before joining Green Thumb Industries, Schepp came from the alcohol industry, where brands often focus on owning their home market first before scaling nationally. He is taking the same approach to Señorita.

The strategy is to prove your product can compete in one market, establish strong sales velocity, and build a compelling commercial story that can then be used to gain more distribution. Prove velocity in one market, use that data to secure the next, and scale strategically without trying to go everywhere at once.

That said, Schepp acknowledged that the rise of national chains entering the THC beverage market has forced brands to adapt more quickly than originally planned.

“You want to adapt to the chain landscape to continue that relationship, especially since they’re creating access across markets,” said Schepp.

For larger beverage companies, this often means strategically placing co-manufacturing facilities across the country to reduce freight costs for heavy, bulky beverages. But for THC drinks, that strategy is more complicated because legality, compliance, and market access still vary dramatically from state to state.

Schepp believes the market is still too early to know exactly which consumer demographic or occasion will ultimately define THC beverage dominance.

“I think people are learning and adapting to what’s happening right now, but nobody truly knows,” he said.

Packaging as a Billboard

Señorita chose the 12-ounce sleek slim can as part of their logo design and made it function like a billboard. That vision came from Gott and Bieler from the start, and the branding was part of what attracted Schepp’s team to them. ‘For our branding, we really want our name to be the hero,’ said Schepp.” The taller profile allows the Señorita name to run vertically down the can, making it more visible from across a room, inside a cooler, or on crowded retail shelves.

Pricing and Dosing

Señorita currently offers both 5- and 10-milligram options, but Schepp said 10 milligrams dominates in most markets, often accounting for 80% or more of sales.

For many operators, a 5-milligram can cost nearly as much to manufacture as a 10-milligram can. That leaves brands with little room to create meaningful pricing separation, which may unintentionally train consumers toward higher-dose products simply because of perceived value in pricing.

Over time, Schepp believes THC beverage pricing may align more closely with RTD alcoholic beverages, becoming a more natural substitute for beer, hard seltzer, or premium social cocktails, regardless of dosing amounts.

Retail Relationships

Discounting is a slippery slope that leaves brands with nowhere to go once they reach the bottom of the pricing ladder, with fewer strategic options and shrinking margins. A brand’s promotional strategy should be well-thought-out and intentional. Rather than relying heavily on BOGOs or constant price slashing, Schepp favors strategic promotions tied to retail calendars, cultural moments, or natural product occasions. For Señorita, Cinco de Mayo is an obvious window to push displays and drive trial with a compelling price point. Done well, it serves the consumer and strengthens the retailer relationship at the same time.

Advice for Emerging Brands

For brands trying to get distributor attention, Schepp’s advice is to lead with whatever evidence you have. Showing sales history from retailers or other distributors carries the most weight because it is hard data that shows what the product can actually do. If you are just launching and do not have that yet, be concrete and honest about what you can and cannot offer. Distributors know you are not Anheuser-Busch, but they want to know what support looks like, whether that is feet on the street, promotional dollars, or just a reliable point of contact. “If they see it as, great, you gave me this brand, I’m not going to hear from you again, and now I need to go sell it, that’s not very compelling to them,” said Schepp.

Just as retailers do, distributors also want partners they can call when needed. Getting your own people into the market, talking to customers and distributor reps directly, is what separates brands that break through from those that get lost in the portfolio.