Markers like 4/20 also give retailers and brands an opportunity to create awareness as they prepare for the busy summer months. In the last year, alcohol chains like Total Wine & More have brought on a number of THC beverage brands and created sections for them in their stores. The move gained popularity as liquor stores are legally allowed to sell hemp-derived products — as opposed to marijuana — that contain 0.3% or less THC. This regulation falls under the 2018 U.S. Farm Bill, which legalized hemp and derivatives such as low-dose THC. In 2022, Minnesota became the first state to legalize the sale of THC food and beverages, and other states have since followed suit.

With the growing number of brands in this category, alcohol retailers now have a number of options to choose from when deciding what alcohol alternatives to merchandise along their wine and spirits and offerings.

Last September, entrepreneurs Josh Miller and Tyler Holland launched Daizy’s Social Soda, a line of Delta-9 THC-based beverages. Miller and Holland also operate the nonalcoholic mixer line,Owen’s Craft Mixers. The duo decided to get into low-dose THC drinks by filling a white space that overlaps alcohol alternatives and the hot better-for-you soda space.

The co-founders told Modern Retail that, in the last few months, the brand has already received interest from non-dispensary retailers, namely liquor stores. Daizy’s is now sold in hundreds of locations across 17 states, including at chains like Total Wine, Specs Texas, and ABC Wine & Spirits in Florida. According to Miller, this distribution is the path to growing the emerging category of low-dose THC beverage. 

Seeing the explosive demand for these drinks, alcohol retailers are quickly carving out more space for these cannabis alternatives. “If you walk into a Total Wine now, you’ll see THC beverages taking up a whole aisle,” Holland said, adding that this channel was unforeseen even five years ago. Holland likened the burgeoning demand to the craft beer craze of the early 2010s, which pushed retailers to dedicate shelf space to it.

“The success of Owen’s is what paved our way to being a dependable supplier and brand manager,” Miller said. “Without having those prior relationships, I don’t think people would be as receptive to our new brand.”

One of the biggest challenges in scaling a cannabis beverage nationally is the complex supply chain, Miller explained. “Even if you have the best product, not having the right distribution in place will prevent you from actually growing more.” 

Unlike the marketing playbook used to grow Owen’s footprint, Miller said cannabis beverage is largely reliant on shelf presence that catches customers’ attention. “We have to make sure we have displays calling out the key attributes of our products at the store level,” Miller said. That’s due to the difficulties of advertising across different states with various legal status.

Retailers’ interest in THC drinks is prompting others to enter the space. 

This year, publicly-traded Tilray Brands is getting into hemp beverages by leveraging its existing network.

Tilray’s portfolio includes craft breweries and distilleries, such as Montauk Brewing Co. and  Breckenridge Distillery. The company’s adult-use and medical cannabis business also includes hemp protein powders, hemp seeds and hemp, among other formats.

Over the past few months, Tilray has ventured into hemp-derived THC beverages beginning with the launch of Happy Flower in October 2024. Tilray is also preparing for the upcoming launches of its other cannabis beverage lines, Fizzy Jane’s and Herb & Bloom, later this year.

Sam Garfinkel, senior vp of commercial operations and strategy at Tilray Brands, told Modern Retail that, since launching last fall, Happy Flower has entered liquor retail in the Southeast, including in Total Wine and ABC Fine Wine & Spirits in Florida.

Garfinkel said Tilray’s existing manufacturing and distribution infrastructure has been a big sell when pitching retailers. 

“Our advantage is that we already had relationships with these buyers and had the distributors in place from day one,” Garfinkel said. “So as we were building out our [THC] portfolio for launching, we were able to secure meetings and work with the retailers.” He added that having expertise in product formulation, regulations and manufacturing also helped quickly bring the beverage line to market.

Happy Flower’s THC cocktails include popular flavors like margarita, peach bellini and strawberry daiquiri. Garfinkel said this is “to make them as approachable as possible” to the average alcohol drinker.

“What’s great about these low-dose beverages is they’re designed not for the heavy cannabis consumer,” Garfinkel explained, but for a more occasional consumer or someone who’s just getting into the category. That’s also why Happy Flower features lower doses of THC, at 5 milligrams or 10 milligrams.

Similarly, Miller of Daizy’s said, given the category’s infancy and need for customer education, retailers are looking to stock “trustworthy and transparent brands” that have certification, testing and clean ingredients. Miller also pointed to the better-for-you features that help Daizy’s stand out, like low sugar, low calories and no additives. 

Miller said periods that people outside of the industry often think of as a big milestone — like 4/20 — aren’t necessarily a big promotional focus. But the timing coincides with the start of the warmer weather, which is a historically busy time for beverage brands. With fierce competition on the shelf, flavors and seasonality also play a role. This month, Daizy is launching a watermelon lime flavor, along with a secondary line of mini shots at a slightly lower dosage.

The interest from alcohol retailers is encouraging more brands to enter the market. Even DTC-focused cannabis brands are starting to test liquor stores.

Peter Barsoom is the co-founder and CEO of 1906, a cannabis brand that makes THC tablets designed for microdosing. In February, the company launched its Off Duty product, a liquid THC shot that can be added to any beverage. Barsoom said liquid shots in mini pouches made the most sense for starting a beverage line, as they’re easier and cheaper to ship than cans.Barsoom said without the ability to sell through large alcohol chains, brands like his are limited to their DTC channel and adding one dispensary partner at a time. 

For context, Barsoom said that last year, 1906 brought in $8 million in DTC revenue and $40 million in dispensary or retail sales. Products like Off Duty will help with the brand’s footprint expansion. “The liquor channel will be a big focus for us this year,” Barsoom said.

“Low-dose beverages have never been a heavyweight in the dispensary world,” Tilray’s Garfinkel said. Instead, the category is meant to complement the growth of other cannabis products in the dispensary channel. “But when you put them in front of a Total Wine consumer or an ABC Fine Wine & Spirits consumer, that’s exactly what they’re looking for.”