The cannabis industry is booming across North America, with legalization continuing to expand in the US and Canada. While smoking remains the most popular method of consumption, new product innovations like vapes, edibles, and infused beverages are rising in popularity. This is especially true in states like Texas, where new laws have opened the door to an influx of cannabis-infused drinks with THC derived explicitly from hemp.
Early Days For THC Beverages
THC, the psychoactive compound in cannabis, is derived from hemp plants, which were legalized in Texas through the passing of the Texas Hemp Bill (House Bill 1325) in 2019. This legislation opened the door for hemp-derived products like CBD to enter the mainstream market.
Now, THC is following suit via microdosed beverages. “Since the bill passed, it is legal for us to buy a drinking beverage that has THC in it. You can now get low-dose THC beverages in stores,” Lamar explained.
While public perception is gradually shifting, THC beverages are still taboo to many Texans. “There’s a whole general “mind opening” movement happening, especially with old timers – Generation X and the generation above us, the Boomers – where they think weed’s evil. Fifteen years ago, I would never have even considered putting that substance in my body. However, my mind has considerably changed on the subject, and you see huge acceptance among younger generations who are vastly driving acceptance of cannabis-related products.”
Lamar noticed THC drinks popping up at recent industry events and trade shows. “At the TPSA, there were 10 to 12 new entrants with THC beverages because these companies want to use the traditional liquor chains to sell and distribute their products.” This way, THC drinks can sit on shelves alongside alcoholic beverages in liquor stores.
Changing Retail Landscape for THC Products
In order to get their emerging products in front of consumers, THC beverage brands are utilizing existing alcohol distribution channels. Lamar observed that liquor stores themselves want a piece of the action.
“Here in Texas, liquor stores have seen this opportunity. Instead of having to go through a distributor, they can own more of the deal and get a bigger piece of the pie with THC companies,” Lamar noted. Some liquor chains have even acquired ownership stakes in fledgling THC drink makers. In return, they provide prime shelf space in their retail outlets.
Lamar named Brio and Flyers as two THC brands he is already working with to run in-store tastings and elevate their presence.
Understanding The Effects
THC provides a noticeable yet different buzz compared to alcohol consumption. According to Lamar, “It feels different. But I’ve only gotten high a very few times in my life. If I drink one of these THC beverages, as a 265-pound guy, I don’t need a lot for an altering effect, just a feeling of calmness.”
He added, “It’s almost the same feeling you get from alcohol but more calming and happier.” The big advantage Lamar sees is avoiding the dreaded hangover the next day. “For a guy like me who enjoys health and working out, I enjoy having THC drinks rather than alcohol because the next day, I can wake up sharp and run my business,” he said.
As ABV percentages are clearly labeled on alcoholic beverages, THC dosages are labeled as well. Right now, the most common form factors are 2, 5, and 10 mg per can. “With 10 milligrams in a can, 2 of those, and that’s game over for me – I’m ready to go to bed!” Lamar chuckled. But he warned that downing a six-pack of 10 milligram THC seltzers would likely have very intense effects. Moderation is key, as with alcohol consumption.
Future Regulatory Challenges for THC
A huge question mark hangs over the future of THC beverages – how will the federal government move to regulate cannabis? “At any point, the rug could be pulled out. The government could say we’re putting a temporary stop to this,” Lamar warned. Until firm regulations are enacted, uncertainty prevails.
Lamar said overlapping agencies like the FDA and TABC mean confusion over things like licensing, product testing, and manufacturing facilities. “The biggest challenge is that we don’t know what the federal regulations will look like. Will it go back to state agencies like TABC?” he asked. “There’s already been talk in Texas about clamping down.”
For brands trying to gain a foothold, rapid consumer adoption will be critical. “If I like one particular brand, it’ll be very hard to switch. Saturation will happen quickly. These liquor stores will only carry seven to 10 brands maximum,” per Lamar’s projection. THC Entrepreneurs who want a seat at the table must act decisively during this transient window of opportunity. “It’s a new gold rush,” Lamar says, “those who establish consumer interest quickly will find the most gold.”
To learn more about THC branding and marketing via Lamar Romero, you can check out lamarromero.com and get a free 15-minute consultation.