Big players enter hemp-derived THC drink market amid restrictions

Another week, another move from an established company into the federally legal, hemp-derived THC market.Organigram Global, one of Canada’s largest marijuana producers, announced April 1 that it was entering the growing delta-9 beverage segment through a multimillion-dollar deal for Collective Project, a THC drink manufacturer based in Hamilton, Ontario.

ADVERTISEMENT A day earlier, Curaleaf Holdings founder and CEO Boris Jordan touted the release of the company’s new energy drink, which combines 10 milligrams of hemp THC with 50 milligrams of caffeine.The hemp-beverage market, fueled by shifts in consumer behavior and government allowances, is also drawing traditional retailers and conglomerates into the fold.

Recent entrants include San Francisco-based tech giant DoorDash and the parent of Edible Arrangements, a behemoth that generates about $500 million in annual sales from bouquet-shaped fruit baskets via its franchised stores and delivery service.The intoxicating hemp-beverage boom, which originated in Minnesota in 2023, has expanded nationwide but primarily taken root in the Southeast and Texas and, more broadly, in states without regulated access to traditional marijuana products.

Minnesota, where recreational marijuana sales could launch sometime this year, is one of the few states that also regulates hemp-derived cannabinoid products.Licensed marijuana operators and traditional retailers are initiating varying strategies to win over consumers while navigating production, warehousing and delivery challenges as more states enact restrictions and, in some cases, outright bans.

Mainstream crossing over to hemp-derived THC Georgia-based Edible Brands, a subsidiary of Edible Arrangements, launched its e-commerce marketplace March 20 in Texas.Edibles.com, which is expanding sales to the Carolinas, Florida and Georgia, had 31 hemp-derived THC products available at press time, including delta-9 beverage...