Cannabis Beverage Brands Expand Presence in Liquor Stores

Cannabis beverage brands are increasingly partnering with liquor chains like Total Wine & More and ABC Fine Wine & Spirits to boost their visibility and sales. These brands are leveraging events such as Dry January and 4/20 to attract consumers, but they are also aiming for growth throughout the year. The recent availability of hemp-derived THC beverages has been facilitated by legal regulations allowing liquor stores to sell products containing 0.3% or less THC, as outlined in the 2018 U.S. Farm Bill. Since then, states like Minnesota have begun legalizing the sale of THC food and beverages.

The trend has led to liquor retailers creating dedicated sections for THC beverages in their stores. This shift has opened up new opportunities for brands, allowing them to diversify their offerings alongside traditional alcohol products. With the increasing competition in this market, alcohol retailers are now presented with a variety of cannabis alternatives to merchandise alongside their wines and spirits.

In September, entrepreneurs Josh Miller and Tyler Holland launched Daizy’s Social Soda, a line of Delta-9 THC-based beverages. The duo, who also run Owen’s Craft Mixers, identified a gap in the market for low-dose THC drinks that cater to consumers seeking healthier alternatives to alcohol. According to Miller, Daizy’s products are now available in hundreds of locations across 17 states, including prominent chains like Total Wine, Specs Texas, and ABC Wine & Spirits in Florida. He believes that this distribution network is crucial for growing the emerging category of low-dose THC beverages.

Retailers have recognized the demand for cannabis alternatives, leading to more space being allocated for these products. Holland noted that walking into a Total Wine now reveals an entire aisle dedicated to THC beverages, a significant change from just five years ago. He compared the current demand for cannabis beverages to the craft beer boom of the early 2010s, which similarly prompted retailers to increase shelf space for new products.

Miller highlighted the importance of prior relationships established through Owen’s Craft Mixers, stating that this has made retailers more receptive to Daizy’s Social Soda. However, he also acknowledged the challenges in scaling cannabis beverages nationally due to a complex supply chain. He emphasized that even with a high-quality product, inadequate distribution can hinder growth. To overcome this, Miller explained that cannabis beverage marketing relies heavily on in-store displays to attract customer attention rather than traditional advertising, which can vary significantly from state to state.