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The upcoming ban on hemp-based THC drinks is boosting sales.
Last fall, federal lawmakers moved to close a loophole that would have allowed beverage manufacturers to sell their products. With low doses of THCPsychoactive components of cannabis. But news of the ban, which is set to take effect in November, appears to only add to the hype for the emerging industry.
Sales at Cann, a THC-infused sparkling water company, rose 40% month-on-month in the two months after the ban was announced. Cann co-founder and CEO Jake Bullock told Food Dive that January saw similar monthly gains.
Bullock said that’s because news reports about cannabis prohibition are spreading the word about Cann’s products, and some of its existing customers are stocking up ahead of the crackdown.
Khan is not alone. Kentucky-based Cornbread Hemp saw a 31% increase in sales from when the ban was announced to mid-December. And spirits companies containing THC saw similar results, with weekly sales up 38.8% and average order value up 29.7% after the ban was announced.
The short-term sales increase comes amid a larger expansion of the category with more retail stores and event spaces housing the beverage.
According to the most recent NIQ study, the overall THC beverage category grew 128% year over year. Kaleigh Theriault, director of mainstream thought leadership at NIQ, attributes this increase to a variety of factors.
New brands and new items in the category are being released every day, and retailers are making room for them on store shelves, she said. These two factors make it harder to see an overall increase in THC sales due to prohibition. The expansion of retailers shows that there is significant demand for these products and this is not just a fad.
Retailers aren’t simply adding THC beverages to their product lines “because they’re new and different,” Theriault said.
“We do it because consumers are actually looking for these products,” she added.
But it wouldn’t be surprising if the ban ultimately leads to increased sales across the industry, Theriault said. She likened it to an increase in champagne sales following news of potential tariffs that could lead to price increases, causing consumers to load up before the impact.
Increased sales and increased consumer awareness could help THC beverage manufacturers delay legislation or rework it into something more industry-friendly. Earlier this year, legislation was proposed to change the regulations. Due by 2028.
THC beverage companies and analysts are watching the pending legal decisions, but consumers are less aware of the changes, Theriault said.
“From a legal standpoint, there will be a segment of consumers who have no idea what’s going on,” she said. “They’re just trying out new products.”
