Cannabis drinks are taking market share and Big Alcohol is fighting back

Major alcohol companies are observing the burgeoning cannabis beverage market's success, with brands like Cann and Wynk securing distribution deals and shelf space. Facing declining alcohol sales due to post-pandemic market shifts and public health concerns, these companies are exploring entry into the cannabis market. Hemp-derived THC beverages, legal in many states, present a significant opportunity. Companies like Constellation Brands and Pernod Ricard are researching or considering investments in this sector. The market for hemp-derived THC drinks is projected to reach over $4 billion by 2028. Several brewers, including Tilray Brands and Boston Beer, are already actively involved, selling THC-infused beverages in various states. However, regulatory uncertainties and past unsuccessful cannabis investments make alcohol companies cautious. Despite this, liquor stores are seeing significant success with these beverages, boosting margins and offsetting alcohol sales declines. Consumer preference is shifting towards THC seltzers, creating a substantial growth opportunity for the industry.