In 2023, Minnesota enacted a law allowing hemp products to be sold in retail stores outside a dispensary through special licensing. Liquor stores in general must abide by a strict list of items they can sell, and when the law passed, it gave them a much-needed lifeline as alcohol sales continued to decline.
Cheech & Chong may be one of the most recognizable names in cannabis, but that doesn’t mean they can rely on nostalgia to sell beverages.
A wave of infused beverage brands flooded the market over the last few years. Now, the sector has entered a period of settling and reassessment, as operators pause to evaluate the real opportunity and determine the smartest path forward amid ongoing legal uncertainty.
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.
Sky High is one of many hemp beverage companies gaining traction in Iowa. While they sell D2C nationwide and retail in some states, they have focused on building within Iowa’s legal framework as they continue to expand.
Kevin Fennessey spent four decades in the alcohol industry, from Seagram’s to Pernod Ricard to Southern Glazer’s.
Many hemp beverage brands are choosing to launch through the three-tiered distribution system that alcohol companies follow.
Trade marketing is a common term you hear in the alcohol and beverage distribution industry. Big companies dedicate entire teams to each sales channel, whether that’s convenience stores, liquor stores, on-premise accounts, grocery, or mass retail. It’s a boots-on-the-ground function, built to generate sales velocity and get products moving off shelves.
For an emerging beverage brand, getting onto retail shelves is only half the battle. Keeping products properly merchandised across dozens or hundreds of accounts can quickly become an operational headache.
Target’s decision to start selling hemp-derived THC beverages marks a major milestone for the cannabis industry and a reality check for brands hoping to follow.
