Ceria Brewing Co.’s Grainwave, a nonalcoholic, THCinfused Belgianstyle cannabis beer. at the Keef Cola facility on December 13, 2018.
Andy Cross | Denver Post | Getty Images
You can smoke it, vape it and eat it. Now, as more US states legalize recreational marijuana, companies are betting that people will want to smoke it, too.
Weedinfused drinks are popping up in more places, and major beverage makers like Pabst Blue Ribbon and Constellation are already entering the market. Unlike CBDinfused drinks that have become more widely available in dozens of states, cannabis or weed drinks contain the psychoactive component of marijuana, tetrahydrocannabinol, or THC, which gets people high and high. it is still federally banned in the United States.
In recent years, new emulsion technology has made it possible to mix THC into a variety of beverages. Now, beverage manufacturers they are betting that people who do not want to smoke or vaporize marijuana or drink alcohol for health or social reasons can find an alternative to cannabis drinks.
And the market is getting crowded, even in its infancy, according to Amanda Reiman, vice president of public policy research at New Frontier Data, a cannabis company that tracks consumer habits.
“The choice for consumers wasn’t as wide in the past, but now we’ve seen dozens of companies involved in the cannabis beverage space,” Reiman said.
Leveraging its expertise in brewing and spirits, Pabst Blue Ribbon has begun selling a line of alcoholfree “High Seltzers.” Each 12ounce can contains 10 milligrams of THC, which the company says is “just the right amount to get you high.” The flavors come in pineapple, mango, strawberry and lemon. They are sold online or at dispensaries in states where the use of medical or recreational marijuana is allowed.
Other beer and spirits companies that have entered this space include AnheuserBusch, the maker of Budweiser; Constellation Brands, which makes Model Especial and Corona Extra; Lagunitas Brewing Company; and Ceria The range of weed drinks contain varying doses of THC, usually between 2.5 milligrams and 10 milligrams, mixed only with waterbased drinks. Mixing cannabis and alcohol is prohibited in most states that allow the consumption of cannabis.
Brightfield Group, a cannabis research agency, estimates that cannabis beverages in general will account for $1 billion in sales in the United States by 2025.
Getting into the weeds
Although beverages only make up about 1 percent of total legal cannabis sales in the U.S., that only means the market has plenty of room to grow, according to Travis Tharp, CEO of Keef Brands, which makes a wide variety of cannabis products.
“There have been multiple false starts to anoint beverages as the next big thing,” Tharp said. “But I think we’ve gotten to a point where we’re showing that yearoveryear growth is a substantial thing.”
New Yorkbased Keef has expanded into eight states where recreational weed has been legalized, as well as Canada and Puerto Rico. Among the company’s products is a 100milligram mocktail that Tharp compares to a hard bottle of alcohol.
“You shouldn’t drink a full bottle of this on your first serving,” Tharp said. “You wouldn’t drink a full bottle of vodka.”
There are experts who worry that these higher doses of THC in drinks could pose serious health risks. While cannabis beverage brands are often touted for their wellness benefits or no hangover, there has been a lack of governmentfunded research into them.
Too much of anything can be bad, doctors warn.
“THC can increase the risk of paranoia, anxiety, and even psychosis and hallucinations,” said Charles Michael White, department chair at the University of Connecticut School of Pharmacy. “The higher the dose, the greater the risk and severity of these adverse effects.”
White said there are still many unknowns in consuming cannabis in liquid form. It’s somewhere between inhaling cannabis, which gives an immediate high that leaves the body quickly, and eating it, which stays in the bloodstream longer for a slower, quieter high.
With cannabis drinks, he said the high can be intense and unpredictable, especially if too much is consumed in a short period of time.
Need for more research
Tharp added that the market for THC drinks has been hampered by a lack of research on responsible consumption, as well as few standardized policies and best practices.
“There’s not a lot of research that can be done because cannabis is a scheduled drug in the United States,” he said, adding that this is one of the main obstacles preventing the industry from joining the mainstream more quickly. .
A Schedule 1 drug is a substance that currently has no accepted medical use in the United States and has a high potential for abuse.
New Frontier Data’s Reiman agrees. If federally legalized, he said the Food and Drug Administration would study and regulate THC drinks. This could reassure wary customers and entice new ones to take a sip.
In addition to limiting research, the current federal ban on cannabis means that cannabis beverage manufacturers operate largely under a patchwork of state laws, creating a disjointed supply chain. This prevents many companies from growing significantly, leading some to withdraw their efforts in the market and others to give up entirely.
Earlier this year, AnheuserBusch announced that it ended a partnership associated with the manufacture of CBD and THC beverages. The company said it remains focused on commercializing CBDinfused nonalcoholic beverages in Canada and will continue its research into THCcontaining nonalcoholic beverages through its Fluent subsidiary, according to Hemp Today. AnheuserBusch did not respond to CNBC’s request for comment.
With states like New York and New Jersey formulating plans for recreational markets, there is still potential to reach more consumers. And as laws evolve in more mature state markets like California, there’s a push for cannabisinfused beverages to be sold alongside alcohol in lounges, clubs, restaurants and even grocery stores.
Reiman said the increased social acceptance of recreational marijuana will also include THC drinks.
“Consumers are looking for something that replaces an alcoholic beverage but allows them to consume it in the same way and environment in which they are used to consuming alcoholic beverages,” he said.