The $150 Billion Opportunity: THC Drinks
The world of beverages is evolving, and a new contender is shaking up the market: THC drinks. With projections that the cannabis industry could surpass alcohol, reaching $270 billion in the U.S., it’s no surprise that THC beverages are making waves. At VXP, we’re diving deep into what this means for beer distributors and why this category represents a massive opportunity for growth and innovation.
Breaking the Stoner Myth: The New THC Consumer
For years, the cannabis industry catered to a narrow audience: heavy users purchasing high-potency products in dispensaries. But there’s a shift happening. As Ian Dominguez, founder of Delta Emerald Ventures, pointed out on the Tapped In Sales podcast:
“When you make low-dose THC beverages available in a retail setting that the consumer is more used to, they buy it hand over fist.”
The key takeaway? Women and light cannabis users, two largely untapped markets, are driving demand for low-dose, accessible THC beverages. These products are breaking out of dispensaries and finding homes in grocery stores, liquor stores, and other familiar retail spaces—opening doors for new consumers to enter the category.
A Familiar Playbook: Lessons from Post-Prohibition Beer
Ian drew a fascinating comparison between THC drinks and the rise of 3.2 beer after Prohibition:
“We said 3.2 beer, sell it everywhere… And this is how we think it’s gonna play out in cannabis, where mass-produced beverages at low dose are available anywhere beer is sold.”
This historical precedent shows how low-dose products can combat black markets and introduce moderation into everyday consumption. For beer distributors, this is an opportunity to leverage existing networks to bring THC drinks to market responsibly and efficiently.
Why Beer Distributors Are Uniquely Positioned to Win
Beer distributors are already experts in regulated products that require age gating, quality control, and compliance. THC beverages fit naturally into this wheelhouse. With infrastructure, relationships, and expertise already in place, distributors can:
- Expand their portfolio with high-margin products.
- Tap into untapped consumer bases, such as women and light cannabis users.
- Drive adoption through familiar retail channels like convenience stores and grocery outlets.
What’s Fueling the Growth?
Several factors are driving the rapid adoption of THC beverages:
- Low-Dose Options: These products encourage moderation and cater to consumers seeking alternatives to alcohol.
- Accessibility: Making THC beverages available in traditional retail settings brings cannabis into the mainstream.
- Quality Assurance: Tested, age-gated, and reliable products build trust and confidence among consumers.
Real-World Success Stories
In Minnesota, where THC drinks have been available for two years, they now account for 15% of sales at some liquor stores. This rapid adoption showcases the category’s potential when placed in the right retail settings. Meanwhile, states like Tennessee are seeing slower but steady growth, proving that this is a long-term opportunity with staying power.
What’s Next?
As THC beverages continue to grow, beer distributors must adapt to capitalize on this opportunity. Here are some steps to consider:
- Evaluate Potential Partners: Look for brands that prioritize quality, compliance, and flavor innovation.
- Engage in Regulation: Be at the table, not on the menu, by actively participating in shaping state and federal cannabis policies.
- Educate Your Team: Provide training on the unique aspects of THC beverages, from consumer education to compliance requirements.
The Bottom Line
THC drinks represent a $150 billion opportunity for beer distributors to expand their portfolios, attract new consumers, and drive growth. By leveraging their expertise and infrastructure, distributors can play a pivotal role in bringing this category to the mainstream.
🎧 Want to learn more? Check out the full conversation with Ian Dominguez on our latest Tapped In Sales episode.
Are you ready to embrace the next big thing? Let’s talk. Contact us at VXP to explore how we can help your team navigate this exciting opportunity.