THC beverages bite into beer sales, alcohol giants plan counter
THC drinks—infused with the psychoactive compound found in marijuana—are being sold legally across many U.S. states when derived from hemp, a federally legal crop. These hemp-based beverages are increasingly available in liquor stores, convenience shops, and supermarkets, offering a legal workaround to traditional dispensary restrictions.
While leading alcohol companies have largely sat out this boom, a shift is underway. Founders of cannabis beverage brands, ingredient suppliers, and drink manufacturers told Reuters that some big players are now exploring entry points into the market, prompted by declining alcohol sales and growing consumer interest in alternatives.
Constellation Brands has been studying hemp-based cannabis drinks, according to a source familiar with its plans. Pernod Ricard recently met with Brez, a THC beverage brand, to discuss a possible investment. "They did not invest now but are circling," said Brez founder Aaron Nosbisch. Pernod declined to comment.
U.S. alcohol sales have cooled since their pandemic-era spike. Beer volumes dropped nearly 6 percent through May, while spirits and wine declined by 5.6 percent and 9 percent, respectively. Public health warnings linking alcohol to cancer have also pressured the industry.
Meanwhile, hemp-based THC drinks are booming. The market is expected to top US$1 billion in sales this year and quadruple by 2028, according to Euromonitor.
Companies like Tilray are already moving in. Its THC seltzers, sold through existing beer distributors, are now available in 13 states. "There's not a real leader... and that's what we look to do," said CEO Irwin Simon.
Legacy alcohol brands are cautiously experimenting. Boston Beer, known for Sam Adams, is testing a hemp-based version of its THC tea brand Teapot in the U.S., following its rollout in Canada. "This is a source of growth for our organization, flat out," said Paul Weaver, who leads the company's cannabis division.
But challenges remain. State regulations vary widely. California banned hemp-based drinks last year, while other states have imposed taxes or restrictions. Senator Mitch McConnell recently proposed federal limits on intoxicating hemp products to keep them away from children.
Big brewers have also faced past setbacks. In 2022, Anheuser-Busch exited its cannabis joint venture in Canada, and Molson Coors shut its CBD beverage division in the U.S. that same year.
Despite this, retail enthusiasm is strong. Liquor stores report that THC beverages are driving higher margins than beer or spirits. At Top Ten Liquors in Minnesota, they now account for 15 percent of business and could soon rival wine in sales. "The soccer mom has really embraced the category," said CEO Jon Halper.
Distributors, too, are seeing the shift. Southern Horizon Logistics now sells more hemp-based drinks than wine and spirits. Best Brands CEO Ryan Moses said growth in this segment helped avoid layoffs by reallocating staff.
For consumers like Josh Goldberg, who swapped beer for THC seltzers two years ago, the appeal is simple: "It replaces the physical act of drinking with drinking something else."
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CTV News
18 hours ago
- CTV News
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'While no toxic materials were detected and no significant environmental impact was reported, the incident prompted a reevaluation of our engagement with SpaceX,' Cooper, also the country's tourism chief, told Reuters through a spokesperson. SpaceX did not respond to questions for comment. Cooper and the prime minister's office did not respond to questions about how the rocket landing deal was arranged. SpaceX's setbacks in the Bahamas – detailed in this story for the first time – offer a rare glimpse into its fragile diplomacy with foreign governments. As the company races to expand its dominant space business, it must navigate the geopolitical complexities of a high-stakes, global operation involving advanced satellites and orbital-class rockets – some prone to explosive failure – flying over or near sovereign territories. These political risks were laid bare last month when Mexican President Claudia Sheinbaum said her government was considering taking legal action against SpaceX over 'contamination' related to Starship launches from Starbase, the company's rocket site in Texas, 2 miles north of the Mexican border. Her comments came after a Starship rocket exploded into a giant fireball earlier this month on a test stand at Starbase. Responding to Sheinbaum on X, SpaceX said its teams have been hindered from recovering Starship debris that landed in Mexican territory. Mission to Mars SpaceX is pursuing aggressive global expansion as Musk, its CEO, has become a polarizing figure on the world stage, especially following high-profile clashes with several governments during his time advising U.S. President Donald Trump. More recently he has fallen out with Trump himself. Starlink, SpaceX's fast-growing satellite internet venture, is a central source of revenue funding Musk's vision to send human missions to Mars aboard Starship. But to scale globally, SpaceX must continue to win the trust of foreign governments with which it wishes to operate the service, as rivals from China and companies like Jeff Bezos' Amazon ramp up competing satellite networks. The company's talks with Bahamian officials show how Starlink is also seen as a key negotiating tool for SpaceX that can help advance other parts of its business. According to SpaceX's orbital calculations, the Falcon 9 rocket can carry heavier payloads and more satellites to space if its booster is allowed to land in Bahamian territory. Meanwhile, Starship's trajectory from Texas to orbit requires it to pass over Caribbean airspaces, exposing the region to potential debris if the rocket fails, as it has in all three of its test flights this year. 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3 days ago
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We secured exclusive access to Kuon-ji Temple and invited expert instructors to lead hands-on experiences in samurai swordsmanship, ninja skills, geisha traditions, taiko drumming, and even ascetic training. It's personal, educational, and genuinely memorable. During the COVID-19 pandemic, our inbound tourism business was severely impacted by travel restrictions and a sharp decline in tourists. Anticipating a prolonged downturn, we decided to pivot and launch an outbound venture. We currently operate two Douyin accounts, TikTok's counterpart in China. One promotes popular destinations, restaurants, and businesses in Japan that cater to foreigners, while the other integrates an e-commerce system. A sushi chef displays a fillet from a 276-kilogram bluefin tuna sold for 207 million yen (about 1.3 million USD), jointly purchased by sushi chain Onodera Group and wholesaler Yamayuki, at an Onodera restaurant following Tokyo's first tuna auction of 2025, January 5. 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Canada News.Net
3 days ago
- Canada News.Net
THC beverages bite into beer sales, alcohol giants plan counter
NEW YORK CITY, New York: As cannabis-infused drinks grow in popularity and take over retail shelf space once dominated by beer and spirits, major alcohol companies are preparing for a potential pivot into the emerging category. THC drinks—infused with the psychoactive compound found in marijuana—are being sold legally across many U.S. states when derived from hemp, a federally legal crop. These hemp-based beverages are increasingly available in liquor stores, convenience shops, and supermarkets, offering a legal workaround to traditional dispensary restrictions. While leading alcohol companies have largely sat out this boom, a shift is underway. Founders of cannabis beverage brands, ingredient suppliers, and drink manufacturers told Reuters that some big players are now exploring entry points into the market, prompted by declining alcohol sales and growing consumer interest in alternatives. Constellation Brands has been studying hemp-based cannabis drinks, according to a source familiar with its plans. Pernod Ricard recently met with Brez, a THC beverage brand, to discuss a possible investment. "They did not invest now but are circling," said Brez founder Aaron Nosbisch. Pernod declined to comment. U.S. alcohol sales have cooled since their pandemic-era spike. Beer volumes dropped nearly 6 percent through May, while spirits and wine declined by 5.6 percent and 9 percent, respectively. Public health warnings linking alcohol to cancer have also pressured the industry. Meanwhile, hemp-based THC drinks are booming. The market is expected to top US$1 billion in sales this year and quadruple by 2028, according to Euromonitor. Companies like Tilray are already moving in. Its THC seltzers, sold through existing beer distributors, are now available in 13 states. "There's not a real leader... and that's what we look to do," said CEO Irwin Simon. Legacy alcohol brands are cautiously experimenting. Boston Beer, known for Sam Adams, is testing a hemp-based version of its THC tea brand Teapot in the U.S., following its rollout in Canada. "This is a source of growth for our organization, flat out," said Paul Weaver, who leads the company's cannabis division. But challenges remain. State regulations vary widely. California banned hemp-based drinks last year, while other states have imposed taxes or restrictions. Senator Mitch McConnell recently proposed federal limits on intoxicating hemp products to keep them away from children. Big brewers have also faced past setbacks. In 2022, Anheuser-Busch exited its cannabis joint venture in Canada, and Molson Coors shut its CBD beverage division in the U.S. that same year. Despite this, retail enthusiasm is strong. Liquor stores report that THC beverages are driving higher margins than beer or spirits. At Top Ten Liquors in Minnesota, they now account for 15 percent of business and could soon rival wine in sales. "The soccer mom has really embraced the category," said CEO Jon Halper. Distributors, too, are seeing the shift. Southern Horizon Logistics now sells more hemp-based drinks than wine and spirits. Best Brands CEO Ryan Moses said growth in this segment helped avoid layoffs by reallocating staff. For consumers like Josh Goldberg, who swapped beer for THC seltzers two years ago, the appeal is simple: "It replaces the physical act of drinking with drinking something else."
