Despite their popularity with liquor stores, bars and even event venues, low-dose THC beverages aren’t a hit with cannabis retail customers in California.
In fact, cannabis beverages with more than 10 milligrams of THC account for more than 93% of annual state beverage sales, a coalition of licensed cannabis companies and advocacy groups told state lawmakers in a letter Tuesday.
The hemp THC beverages sold across the country in mainstream retailers like Circle K gas stations and Total Wine & Spirits are banned outright in California thanks to a 2024 emergency declaration from Gov. Gavin Newsom, made permanent last year.
That leaves licensed cannabis retailers as the only legal sales outlet.
And customers there prefer much higher dosage products, advocates for the $3.9 billion annual California cannabis industry claimed.
Are low-THC beverages popular with cannabis consumers?
The numbers come as California cannabis industry advocates are mobilizing to defeat a bill in the state Legislature, sponsored by Assembly Member Jacqui Irwin, a Democrat from Thousand Oaks, that would cap THC at no more than 10 mg.
According to a letter to Assembly Member Marc Berman, who chairs the Assembly Committee on Business and Professions, where Irwin’s bill will be heard:
- Cannabis beverages account for $79 million in annual sales in California
- Products with more than 10 milligrams of THC account for $73.6 million of that total
That “effectively bans the current beverage category,” according to the letter obtained by MJBizDaily.
Limiting California to low-dose THC beverages would kill sector, industry claims
What’s more, banning higher-potency cannabis drinks would be yet another boon to the state’s illicit market.
That’s because cannabis beverages are difficult to replicate outside of regulated channels, as they require sophisticated equipment and logistics, the letter stated.
Signatories include:
- California Cannabis Industry Association
- Cannabis Distribution Association
- California Cannabis Operators Association
- St. Ides/Pabst Labs
- Stiiizy
Why do cannabis consumers prefer high-THC beverages?
The idea that low-dose THC beverages aren’t a hit with California cannabis consumers seems to run contrary to conventional wisdom that drinks are a booming product category for the nationwide industry.
However, that could be because the target audience for low-dose hemp-derived THC beverages is alcohol consumers looking for an alternative, while regular cannabis consumers – with higher tolerances – are looking for a more potent product, said Hirsh Jain, a Los Angeles-based consultant and principal of Ananda Strategy.
