As hemp‑derived THC drinks gain traction on liquor‑store coolers and supermarket shelves, traditional alcohol producers are feeling the pinch. Once content to watch as nimble startups carved out new niches, Big Alcohol now finds itself at a crossroads. Faced with slumping beer and spirit volumes, growing health scrutiny of alcohol consumption, and rapidly expanding cannabis‑infused alternatives, major brewers and distillers are moving from the sidelines toward the front lines of a high‑stakes battle for consumer loyalty—and shelf space.

Brewing Competition on Coolers and Counters

The past two years have seen an explosive uptake of THC‑infused seltzers, teas and tonics. In 2024, U.S. retail sales of hemp‑derived cannabis beverages topped \$1 billion, and industry forecasters predict that figure could quadruple by 2028. Younger drinkers and health‑conscious consumers—especially women over 35—have embraced these products as a “fun, hangover‑free” alternative to beer and cocktails. Convenience stores, liquor chains and even bars are scrambling to add buzzy brands like Cann, Wynk and Brez alongside established malt beverages. With margins on THC drinks often outpacing those on six‑packs of beer, retailers see cannabis options as both a hedge against flagging alcohol sales and a lucrative growth driver.

This retail momentum has come at the expense of Big Alcohol’s core categories. U.S. beer volumes slid nearly 6 percent through May, while wine and spirits each fell by more than 5 percent as post‑pandemic consumer habits shifted back toward bars, inflation pinched wallets, and public‑health warnings spotlighted alcohol’s link to cancer. In contrast, hemp‑based THC beverages have surged into the mainstream, challenging the traditional “liquid courage” model. Their slightly intoxicating yet milder effects tap into the growing “sober‑curious” trend, where drinkers seek psychoactive experiences without the calorie load or health risks associated with alcohol.

Until recently, major brewers and distillers steered clear of cannabis drinks, wary of regulatory complexities and past failures. Molson Coors shuttered its U.S. CBD drink business in 2022 amid shifting rules, and Anheuser‑Busch InBev walked away from a Canadian cannabis beverage deal the same year. Yet today, as beer volumes slide and margins tighten, that caution is giving way to pragmatism—and urgency. Constellation Brands has quietly researched hemp‑derived THC formulations, weighing whether to extend its Corona brewer’s portfolio beyond beer. Pernod Ricard executives have met with Brez’s founder to discuss minority investments, signaling an interest in population segments increasingly drawn to cannabis alternatives.

Strategic Maneuvers and Market Entry Plans

Behind closed doors, Big Alcohol’s C‑suites are mapping out diverse playbooks. At one end are direct product launches: Boston Beer, known for Samuel Adams, has tested THC‑infused Teapot tea in the U.S. after its Canadian rollout, confirming that hemp‑sourced and traditional‑cannabis THC yield identical sensory profiles. Tilray Brands—already a craft‑beer contender with Montauk and Shock Top—began distributing hemp‑derived THC seltzers through established beer wholesalers in 13 states, aiming to leverage its existing logistics network and shelf relationships. Executives at Molson Coors and Diageo have acknowledged privately that ignoring the cannabis‑infused wave would be “naive,” given the category’s rapid growth and youthful appeal.

Other players pursue partnerships and minority stakes. Pernod Ricard’s quiet conversations with upstart Brez underscore a wider trend: major spirits houses scouting nimble innovators for co‑branding and distribution deals. Diageo recently revamped its corporate venture arm to prioritize “adjacent consumables,” including cannabis beverages, while Heineken’s Lagunitas label has licensed its name to a THC seltzer sold in Cannabis dispensaries, with an eye toward broader hemp‑based rollouts as regulations permit. Pabst Blue Ribbon similarly lent its iconic branding to experimental THC cocktails in California, gauging consumer response before committing larger resources.

In parallel, alcohol giants are muscling into the CBD space with new non‑intoxicating wellness drinks, seeding the market to test operations, supply chains and marketing channels that could later pivot to THC offerings. Constellation Brands, for instance, reportedly sourced industrial hemp across multiple states to pilot cannabinoid‑infused beverages, while Brown‑Forman has explored functional formulations—combining CBD, adaptogens and mild botanical extracts—to acclimate consumers and regulators alike. These low‑THC products provide a stepping stone: should federal guidelines stabilize, the infrastructure and distribution relationships will be in place to rapidly scale higher‑potency cannabis beverages.

Beyond product lines, alcohol companies are expanding in‑house policy and regulatory teams. With federal ambiguity—hemp‑derived THC products skirt marijuana laws yet face crackdowns in states like California—and fresh legislative threats such as Senator Mitch McConnell’s proposed ban on intoxicating hemp edibles, Big Alcohol recognizes that advocacy will be as crucial as manufacturing. Lobbyists are mobilizing in state capitals to harmonize hemp‑THC beverage regulations, seeking to limit local taxes and avert flavor bans aimed at protecting youth. In Washington, trade groups representing brewers and distillers are pushing for a clear FDA framework to legitimize hemp‑THC drinks, citing public health and economic benefits.

Retailers and Consumers Drive Demand for Cannabis Alternatives

Retailers report that shelves once dominated by lagers and pale ales now devote significant space to THC‑infused options. Top Ten Liquors in Minnesota notes that in just two years, cannabis beverages have risen to 15 percent of total sales—second only to beer—and could match wine share within a year. Distributors such as Best Brands in Tennessee attribute flat alcohol volumes to their pivot toward THC beverages: instead of workforce reductions, they’ve reassigned staff to support the emerging category, building new freezer sections and retraining sales reps on hemp‑THC compliance.

The appeal of cannabis drinks extends beyond novelty. Many consumers describe these beverages as offering controlled relaxation and social lubrication without the hangovers or decision‑impairment typical of alcohol. An emerging archetype is the “soccer‑mom”—female shoppers over 35—who value the measured effects and wellness associations of hemp‑THC formulas. Health‑focused bars are offering THC options alongside low‑ABV cocktails, tapping the “well‑being economy” trend. Market research suggests millennials and Gen Z drinkers, traditionally less inclined toward wine or spirits, are among the most enthusiastic adopters—viewing cannabis beverages as progressive, plant‑based alternatives that align with sustainability and conscious‑consumption values.

Cannabis seltzers also benefit from premium‑pricing power. With average price points 20 to 30 percent above craft beer six‑packs, they boost retailer margins and offset the pressure from discount supermarket beers and spirits in the face of economic headwinds. As inflation and higher interest rates continue to squeeze disposable incomes, the perceived value of “premium plant‑based experiences” helps retailers and distributors maintain profitability. Plus, the novelty factor fuels social‑media marketing and grassroots word‑of‑mouth, generating organic buzz without the hefty ad budgets that Big Alcohol typically deploys.

Recognizing this dynamic, several regional and national chains have carved out dedicated “canna‑coolers,” positioning hemp‑THC drinks alongside kombuchas and hard seltzers in an “alternative libations” section. Some hospitality groups are training bartenders on serving THC beverages responsibly, developing dosage guidelines and pairing suggestions to integrate cannabis options into mainstream hospitality settings. According to industry analysts, cannabis drinks could claim up to 10 percent of total U.S. adult‑beverage volume by 2030, reshaping the competitive landscape for all recreational drinks.

Regulatory Hurdles and the Path Forward

Despite the category’s momentum, roadmap clarity is essential for Big Alcohol’s strategic bets. Federal law currently defines hemp as cannabis with less than 0.3 percent THC by dry weight, enabling manufacturers to extract and concentrate THC up to federally ambiguous thresholds. This loophole has fueled the boom but also drawn lawmakers’ ire: over 80 state bills introduced in 2025 seek to ban or restrict intoxicating hemp products, with early adopters like California and New York already tightening rules around flavors, packaging and permissible THC levels. On the federal front, FDA Commissioner comments hint at forthcoming guidance, but industry stakeholders urge swift rules to legitimize products, safeguard consumers and close loopholes that allow marketing to minors.

Big Alcohol’s regulatory teams are engaging in a two‑track approach: advancing federal frameworks while negotiating state‑by‑state carve‑outs. They argue that regulated sales through existing adult‑use channels—liquor stores and licensed eateries—minimize black‑market risk and support traceability. At the same time, they back responsible‑use campaigns and age‑verification standards to stave off criticism that hemp‑THC drinks exploit vulnerable youth demographics.

Parallel to policy advocacy, brewer and distiller R\&D labs are tackling formulation challenges—masking the notorious bitter taste of hemp extracts, ensuring consistent dosing, and stabilizing effervescence in carbonated products. Collaborative research initiatives have emerged, pairing universities with private labs to refine micro‑encapsulation techniques, improve water solubility of cannabinoids, and develop analytical methods for rapid batch testing. Some alcohol producers are leveraging their beverage‑science expertise to optimize mouthfeel and flavor profiles in THC seltzers, while spirits companies explore cross‑category hybrid drinks that combine botanical infusions with controlled doses of THC for layered sensory experiences.

From a supply‑chain perspective, craft beverage veterans are forging relationships with hemp growers and extractors to secure reliable cannabinoid inputs. Quality concerns—batch variability, pesticide residues, trace solvents—have dogged early entrants and drawn FDA inspection warnings. In response, leading alcohol firms are investing in vertically integrated models, funding hemp cooperatives in Kentucky and Oregon to ensure field‑to‑bottle traceability and adherence to Good Manufacturing Practices (GMP). Such investments echo past moves into barley and hop farms, underscoring the importance of raw‑material control for product consistency and brand trust.

A Transforming Beverage Landscape

Big Alcohol’s embrace of cannabis‑infused drinks signals a broader metamorphosis in the adult‑beverage market. No longer confined to hops, grains and grapes, the industry is expanding into psychoactive botanicals, wellness formulations and hybrid experiences. This diversification comes at a critical juncture: as global beer volumes stagnate, spirits growth cools and wine consumption plateaus, hemp‑THC beverages represent a fresh growth vector. Industry veterans recognize that failing to engage this segment risks ceding relevance to agile startups faster than they did to hard seltzers earlier this decade.

Yet the fight is far from won. Even as alcohol majors build product pipelines, partnerships and lobbying coalitions, they must navigate shifting regulations, public‑health debates and unpredictable consumer trends. The coming years will test whether century‑old brands can adapt to an era where psychoactive choice extends beyond alcohol, and where the next toast may be lifted with a cannabis‑infused sip rather than a classic cocktail.

In this unfolding contest, success will hinge on mastering science, securing trusted supply chains, and forging regulatory clarity—ultimately determining which players shape the future of the bar cart, the cooler aisle, and the social rituals of adults seeking new ways to unwind.

(Adapted from MarketScreener.com)

Categories: Economy & Finance, Regulations & Legal, Strategy