Editor’s Note: This story was originally published in BevNET Daily Briefing on August 19.
If beverage entrepreneurs somehow thought the THC drink business would be more “chill” than the non-infused side, they might soon learn a hard lesson.
To be clear, we’re not saying things are slowing down – far from it, judging by the volume of new products and brands arriving in my inbox every day. But there are a couple indicators that suggest we’re in the midst of a transition to a new phase, one in which multi-state operators (MSOs) and large retailers – and a handful of high-performing indie brands – hope they emerge as the big winners.
Big Weed Turns Up: Once the big companies throw their weight behind a beverage trend, the landscape begins to shift; we’re currently seeing that play out in prebiotic sodas, and it’s beginning to happen in THC now, too.
- Billion-dollar cannabis brands Trulieve, Curaleaf, Green Thumb Industries (Rythm) and Tilray have all deepened their beverage portfolios since the start of 2025 with additional products and distribution. Meanwhile, other MSOs like Ayr (Levia) have fallen off.
- There’s also the threat of disruption from private label: after seeding the market for hemp drinks with a dedicated in-store set, Total Wine & More has quietly introduced a 5 mg THC-infused, citrus-flavored spirit called Time Off in 750mL bottles. In an emerging, price sensitive category with lots of runway for growing awareness still ahead, high-margin private label products seem like a potent weapon.
Investors Easing In: Despite the murky regulatory waters, investors have decided they’re ready to jump into THC drinks. Last week, Uncle Arnie’s closed a $7.5 million round – but perhaps more significantly, has attracted experienced beverage operators like CMO Brian Miesieski and Boston Beer Co. founding partner Harry Rubin (investor & board member) to its cause.
Tracking: Backed by a recently expanded product portfolio, Brez(tracking at $60 million in revenue for the year) is now conducting its “first and only” fundraise with a target of $25 million, per founder Aaron Nosbich. If the money starts flowing, Nowadays which has been on a tear this summer, could be an attractive target as well.
🗣️ “It’s one of the first times in food and beverage history that none of the big players can enter,” said Flyers Cocktail Co. CEO Craig Lewis of the THC category at BevNET Live this summer. “The timing is now for these early brands to get in and build market share and when those big players do get in, [those brands] will be a lot easier to acquire.”