The rapid rise of THC-infused beverages has created conflict within the US alcohol industry, as brewers and distillers push for stricter regulation while distributors and retailers resist upcoming restrictions. Legislation set to take effect in December will cap THC content in drinks at 0.4mg, a limit that could force most products off shelves and potentially wipe out a fifth of revenues for some retailers, according to the Wine and Spirits Wholesalers of America.
The THC drink market emerged after 2018 hemp legalization, which created a loophole for hemp-derived THC products now sold in grocery and convenience stores across the US. Consultancy Whitney Economics estimates annual revenue exceeds $1bn, with sales tracked by retailers rising 74% to $289mn in the past year. Brands like Wynk, Crescent, Nowadays, Fizzy Jane’s, and Happy Flower market themselves as healthy, hangover-free alternatives to alcohol.
Trade groups including the Distilled Spirits Council and Beer Institute advocate for tighter controls, arguing THC drinks should be sold in dispensaries. Wholesalers warn that bans could drive responsible producers out and fuel black markets. Not all alcohol companies oppose the products—Tilray Brands, led by CEO Irwin Simon, sells both spirits and THC drinks.
More than a quarter of US adults have tried THC-infused beverages, according to Nielsen IQ, as the alcohol industry faces a historic downturn amid shifting consumer preferences toward healthier lifestyles.
Source: Financial Times Companies · Summarized by HeadlinesBriefing