mg Magazine | June 2025

June | 2025

mgmagazine.com

TM

RETAILING | BUSINESS | BRANDING

For The Cannabis PROFESSIONAL

DRINK UP

12

SIP HAPPENS

top-selling infused beverages

The ultimate guide to launching a hemp beverage brand

INSIDE:

Pulp Friction

Paper’s Quiet Revolution

A Dose of Refinement Gotham’s Chelsea Gallery

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D I S P E N SARY L AYO AY OUT DES IGN | CUSTOM & I N-STOCK FI XTURES | CA N NN N A BI S D I S P LAY S | F D I S P L AYS | FL OWE R VASE | PLANT ER D I SPLAYS | CUSTOM SOLUTI ONS | SHOWCA PLANTER SH OWCAS ES | C A S H W R A MERCH AND I S I NG A ND M ORE CO UNTERS | TABLE S | APPAR E L AND MERCH D I SPLAY | VISU A L MERCHA

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NEWSROOM 10 THE News, data, trends, and other tidbits for the well-informed professional.

COLUMN 16 GUEST Lighter, greener, and more refined—

Contents

paper’s subtle evolution marches on.

18 RETAILING Gotham’s new concept store in Chelsea curates the dispensary experience.

34 CULTIVATION A new generation of growers is reviving ancient practices to heal the land—and the soul.

40 BEVERAGES Pop the cap on summer’s coolest trend: infused drinks that satisfy and sell.

Radicle Herbs

34

46 LEGAL Obtaining cannabis patents and

trademarks requires finesse and foresight.

48 INSURANCE Protecting your business isn’t getting any easier—or cheaper. Here’s how to cope.

26

New Markets

Hemp-derived THC drinks are going mainstream in liquor stores, convenience shops, and even on DoorDash. Here’s what brands must know before diversifying into the booming but legally murky category.

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Editor’s Letter

“ CIVILIZATION BEGINS WITH DISTILLATION.

—WILLIAM FAULKNER

Faulkner may have been talking about bourbon, but it turns out infused drinks can be just as civilized—and at least as disruptive.

After years on the fringe, infused beverages are making a power play. They’re sessionable, shelf-stable, and still have a slightly avant-garde edge. They also feel familiar: a cold can in the hand, a subtle lift instead of a blast-off. For consumers looking to ditch alcohol or dip a toe into THC, drinks are the gateway that doesn’t feel like one.

But here’s the twist: Cannabis beverages aren’t leading the charge. Instead, hemp is the standard-bearer.

Thanks to a legal loophole in the 2018 Farm Bill—and some creative interpretations of chemistry—hemp-derived-THC drinks are flooding traditional retail channels. They’re showing up at liquor stores, gas stations, and even grocery chains, often without the regulatory baggage or brutal tax burdens cannabis products drag behind them. No dispensary license? No problem. Welcome to the wild, wild west of consumer packaged goods.

But as the category expands, it also raises important questions: What does consumer trust look like in an unregulated environment?

Will cannabis beverages ultimately benefit from their hemp-fueled cousins—or be overshadowed by them?

This month’s feature dives into what the trend means for cannabis brands. Is this a gold rush or a cautionary tale? Can legacy operators compete—or are they already in the rearview?

Spoiler: Some big players are doing both, jumping into hemp while reinforcing their cannabis core.

We also spotlight the innovators driving the beverage boom and break down the logistics, distribution quirks, and flavor trends shaping the category. Whether you’re building a brand, shopping for a white-label partner, or just trying to figure out where the heck all the seltzers came from, there’s something here for you.

The lines are blurring, the drinks are bubbling, and the rules are changing fast.

Bottoms up.

Kathee Brewer Editorial Director

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Contributors

ALEX BOONE

With the launch of Botani in 2018, Vice President and General Manager for Alternative Markets Alex Boone was instrumental in helping SWM International break into the cannabis space. Today, he serves as the division’s managing director.

He possesses more than twenty years of experience in sales, marketing, and product development for North American and international markets. botani.com

BRIAN O’CONNELL

In his role as analyst for InsuranceQuotes, Brian O’Connell studies the insurance industry and provides tips, advice, and insights. A former Wall Street trader, he is the author of the books CNBC’s Creating Wealth and The Career Survival Guide. His commentary regularly appears on major media platforms like Fox Business, U.S. News, The Motley Fool, and TheStreet. insurancequotes.com

JAKE WEBB, ESQ.

As a specialist in intellectual property law, Jake Webb, Esq., focuses his practice on patent and trademark litigation and patent prosecution. His litigation experience includes patent, trademark, trade dress, and other intellectual property disputes. He is especially interested in the emerging relationship between the cannabis industry and intellectual property law. bannerwitcoff.com

PAUL RIVARD, ESQ.

Formerly a patent examiner and the chief legal officer for a clinical-stage pharmaceutical company, Paul Rivard, Esq., brings a unique combination of experience to bear on his practice. He concentrates on counseling in intellectual property matters including risk assessment, patent preparation and prosecution, and post-grant proceedings before the U.S. Patent Trial and Appeal Board (PTAB). bannerwitcoff.com

CHRISTIAN WOLFGRAM, ESQ.

With experience in patent, trademark, and copyright litigation as well as patent and trademark prosecution, Christian Wolfgram, Esq., has represented clients in a variety of matters, including patent counseling for cannabis-related inventions, developing global intellectual property protection strategies, asserting and defending rights before the PTAB and U.S. Trademark Trial and Appeal Board, and large-scale district court litigation. bannerwitcoff.com

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Editorial Director Kathee Brewer editorial@inc-media.com Creative Director Angela Derasmo Digital Strategist Dexter Nelson Circulation Manager Faith Roberts Contributing Writers Alex Boone, Alyson Jaen Esq., Anthony Coniglio, Brendan McKee, Brian O’Connell, Christian Wolfgram, Esq., Danny Reed, Dennis Bielik, Ellen Holland, Jake Webb, Esq., Justin M. Brandt Esq., Kim Prince, Kris Krane, Laura A. Bianchi Esq., Leah Eisenberg Esq., Marc Beginin Esq., Michael Mejer, Niklas Kouparanis, Pam Chmiel, Paul Rivard, Esq., Rachel Gillette Esq., Rachel Permut, Richard Proud, Robert T. Hoban Esq., Ruth Rauls Esq., Scott Thomas, Shane Johnson MD, Shawna Seldon McGregor, Stacy Litke, Sue Dehnam, Tara Coomans, Taylor Engle, Will Read

Artists/Photographers Roman Samborskyi, Chris Coe, Eric McLean, Ian Talmacs, Dean Drobot, Josh Sep, Mike Rosati, Christine Bishop, Unsplash

ADVERTISING SALES & CLIENT SERVICES BRANDI MESTA Senior Account Executive Brandi@inc-media.com (424) 703-3198

MEG CASHEL Account Manager Meg@inc-media.com (424) 246-8912

BUSINESS OFFICES Chief Executive Darren Roberts Tech Architect Travis Abeyta Accounting Diane Sarmiento Brittany Gambrell Subscriptions subscribe.mgmagazine.com Back Issues store.mgmagazine.com Mailing Address mg Magazine 23055 Sherman Way, Box 5069 West Hills, CA 91308 (310) 421-1860 hello@inc-media.com

mg Magazine: For The Cannabis Professional Vol.11, No.6 (ISSN 2379-1659) is published monthly by Incunabulum LLC, located at 23055 Sherman Way, No. 5069, West Hills CA 91308. Periodicals Postage Paid at Las Vegas Post Office and additional mailing locations. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: Send address corrections to mg Magazine, 23055 Sherman Way, No. 5069, West Hills CA 91308. mg is printed in the USA and all rights are reserved. © 2025 by Incunabulum LLC. mg considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains criteria understanding that the publisher is not rendering legal or financial advice. Neither Incunabulum LLC nor its employees accept any responsibility whatsoever for contributors’ activities or content provided. All letters sent to mg Magazine will be treated as unconditionally assigned for publication, copyright purposes, and use in any publication or brochure and are subject to mg’s unrestricted right to edit and comment.

BUSINESS MEDIA SERVICES

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The Newsroom 10 | mg

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WATERLOO, Ontario – Within five years after Canada federally legalized adult use, licensed retailers had captured 78 percent of the consumer market—and that percentage may continue to rise, according to a study to be published in August in the International Journal of Drug Policy.

“Since the opening of legal retail stores in Canada in October 2018, legal retail sales have increased in a linear fashion, with no indication of a ‘plateau,’” researchers at the University of Waterloo’s School of Public Health Sciences and the RAND Drug Policy Research Center in California wrote in their report.

The team attributed much of the transition to a combination of increased access to legal products and retail prices that have declined over time.

Studies in the United States have indicated a similar trend, although the shift from illicit to legal markets is somewhat hampered by lawmakers’ reticence to end federal prohibition. With no standardized regulatory structure, high licensing fees, and a federal tax penalty on cannabis businesses, dispensary prices often are higher than what consumers can find elsewhere. Nevertheless, a 2023 survey by New Frontier Data concluded 52 percent of Americans who purchase cannabis had made the transition to shopping in licensed dispensaries.

Illustration: Ian Talmacs / Unsplash

Canada’s Legal Market Displacing Illicit Trade

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Photo: Lucas-van-oort / Unsplash

THE NEWSROOM

Tax Rate Tango

Minnesota’s adult-use program isn’t yet off the ground, but already state lawmakers have added 5 percent to the 10-percent excise tax approved in 2023’s enabling legislation.

Nevertheless, the state’s tax rate remains on the low end of a scale that ranges from 6 percent in Missouri to 37 percent in Washington state.

Not Everything’s Bigger in Texas A Texas House bill that would expand the number of dispensaries in the state from three to fifteen and nearly double the list of conditions qualifying for medical use sailed through the chamber but faces a battle in the Senate, where a competing bill would allow only six licensed dispensaries. An estimated 2 million Texans qualify for the Compassionate Use program under current law, but only 93,000 are registered, mostly in major cities.

Powered by

Do you have an app for that?

Dispensary mobile apps are rapidly emerging as a leading sales channel, driven by consumer demand for the convenience of shopping and reordering from their phones. Push notifications sent through mobile apps convert 3–5x better than SMS and offer a more cost-effective, long-term solution for cannabis retailers — making them a powerful tool for boosting both sales and customer engagement.

During the 4/20 weekend of 2025, mobile app usage experienced the highest growth percentage of any sales channel at 73% YoY, highlighting the shift toward mobile-first shopping experiences in the industry.

Recommendations:

When investing in a mobile app we recommend finding a solution that integrates seamlessly with your existing e-commerce ecosystem.

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“

All of the marketing we’ve done … is done by being mindful of what it feels like to be marginalized.

Photo: Josh Sep / mg Magazine

— Luke Anderson and Jake Bullock, co-founders, Cann

“

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THE NEWSROOM

Juāna Edibles

Photo: Eric McLean / Unsplash

Developed by women for women, Juāna’s new gummies are formulated to help consumers resynchronize with the harmonies of nature. Available in six flavor combinations designed to address specific need states—Recover, Arouse, Focus, Sleep, Calm, and Uplift—the edibles combine premium live ice-water hash, adaptogenic herbs, and cannabinoids with other all-natural ingredients. juana.org

Tax Dollars at Work

Crypto to the Rescue?

A New Jersey dispensary owner believes cryptocurrency could solve at least some of the industry’s payment-processing woes. Pipe Dreams is test-piloting a system from PDX Beam that allows customers to scan a QR code at checkout and instantly convert crypto coins into dollars.

Clean Torch

A breath-activated, flameless electric lighter that doubles as a vaporizer, Clean Torch employs a rechargeable coil-powered system, making it windproof, travel-friendly, and better for the planet than traditional butane lighters. The device is compatible with 510-thread cartridges, includes interchangeable heads for versatility, and comes in bold colors to suit almost any vibe. cleantorch.com

“

Herb is the healing of a nation; alcohol is the destruction.

—Bob Marley Photo: Jon Tyson / Unsplash

Albuquerque, New Mexico, is funding half of a $4-million basic-income program with cannabis sales taxes. Eighty low-income families that have been “negatively impacted by the criminalization of cannabis” and include children who struggle academically receive a monthly stipend of $750 each.

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Highest Achievers Celebrating Arizona’s Most Influential Executives in Cannabis

Arizona’s cannabis industry is blazing trails thanks to the visionaries who light the way. Join us as we honor the powerhouse executives shaping policy, driving innovation, and setting the gold standard for leadership in the Grand Canyon State and beyond.

Front Row - From left: Sara Gullickson, the Cannabis Business Advisors; Kim Prince, Proven Media; A.J. Sullins, High Grade USA; Laura Bianchi, Bianchi & Brandt; Ann Torrez, Arizona Dispensaries Association; Sara Presler, Mohave Cannabis Co and President of the Arizona Dispensaries Association.

Row Two - From left: Josh Kesselman, RAW Rolling Papers & HBI; Marie Saloum, Green Pharms Dispensaries & Trap Culture Events; Ryan Hermansky, Noble Herb Dispensary and Pure Edibles; Lilach Power, Mazor Collective and Giving Tree Dispensary; Susan Hwang, Best Dispensary.

Photo: Jon Tyson / Unsplash

Row Three - From left: Michael O'Brien, Sonoran Roots Dispensaries; Raul Molina, The Mint Dispensaries; Lori Hicks, Arizona Natural Concepts Dispensary (ANC); Jason Vedadi, Story Cannabis; Greta Brandt, Justin Brandt, Bianchi & Brandt.

Back Row - From left: Kirk Schmitz, Grow Sciences; Brian Warde, The Prime Leaf Dispensaries and Arizona Dispensaries Association Government Affairs; Demitri Downing, Marijuana Industry Trade Association (MITA); George Thimsen, Timeless; Fife Symington.

Stay inspired. Stay influential. Stay elevated.

PRESENTED BY PROVEN MEDIA IN COLL ABORATION WITH AZBIGMEDIA.

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Paper, Reimagined PAPER IS BECOMING LIGHTER, GREENER, AND MORE ESSENTIAL IN PACKAGING AND CONSUMER PRODUCTS.

BY ALEX BOONE

P

aper is having a moment in the cannabis industry. From ultra-thin sheets to innovative packaging solutions, paper has evolved rapidly to play a crucial role in the customer experience.

While headlines focus on rising cannabinoid content and a veritable explosion in product formats, a quiet revolution has been unfolding in how paper manufacturers are improving product performance and helping brands stand out on shelves.

Because we manufacture paper products at Botani, I’ve had a front-row seat to emerging trends in the paper industry. Here are four key developments to watch that could impact how you package and deliver your products in the coming years.

Less is more. When it comes to rolling papers, thin is in. The industry has seen a definitive shift toward lightweight wraps. For years, fourteen-gram paper was the industry standard. Now, we’re seeing more brands adopt thirteen-gram options.

Why? Less paper means consumers can more fully experience the flavor nuances of their flower. When paper manufacturers reduce the weight of the paper while maintaining proper rolling functionality, there’s less interference between the consumer and the pure essence of the flower.

Everyone is “getting back to nature.” As consumers become increasingly conscious about what they put into their bodies, they’re also increasingly demanding more natural, less chemically processed papers. Wood pulp remains the material from which most rolling papers are made, but unbleached varieties are gaining traction.

By skipping the chemical whitening process, unbleached papers retain the natural characteristics of the fiber, giving papers a more organic look and feel. This shift is part of a broader movement toward transparency in ingredients and production methods.

Botanical engineering is in. The third big trend in paper production is the increasing use of botanical fibers like hemp instead of wood. Annual crops represent a more sustainable, biodiverse alternative to traditional wood pulp, which requires a multiyear growth cycle.

Moreover, hemp’s carbon footprint is excellent. The plant sequesters so much carbon dioxide that it is considered carbon-negative. In addition, hemp requires minimal chemicals to grow and process and generates minimal waste.

As more consumers demand sustainable products, look for papers made from hemp and other wood alternatives to rise in popularity.

For example, Botani recently introduced wrappers crafted from tea leaves. We chose tea leaves not only because they offer unique aroma and flavor profiles, but also because they’re fully biodegradable.

Packaging is changing. Beyond rolling papers, there’s a parallel evolution happening in packaging. Brands increasingly seek ecologically transparent packaging that will protect and seal freshness without adding material layers or incorporating single-use plastic.

One approach is to create packaging from lightweight papers similar to rolling papers but with added barrier properties.

These papers can be as light as fourteen grams, allowing brands to show their products through the packaging. The papers also may be watermarked, adding branding without increasing weight or environmental impact. As an added bonus, the packages are biodegradable.

We are still in the early stages of paper innovation, but the future direction is clear. Paper will continue to evolve, playing a bigger role in both cannabis consumption and packaging. There’s still work to be done, but the possibilities ahead are exciting.

Photo: Botani

GUEST COLUMN

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RETAILING

Still Life with

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In Chelsea, Gotham’s newest concept store blurs the lines between gallery and dispensary, creating a serene, subversive space where cannabis, art, and community converge.

BY TAYLOR ENGLE PHOTOGRAPHY BY CHRIS COE

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RETAILING

I

n a city where rewriting the rules is par for the course, Gotham has found plenty of kindred spirits. The female-founded concept store recently opened its fourth location, this time in Chelsea, the beating heart of New York’s contemporary art scene.

But this shop isn’t just another Empire State dispensary. With the debut of Gotham Gallery, the brand introduced the city’s first dedicated art exhibition space within a cannabis retail environment.

Since its inception, Gotham has been known for blurring the lines between lifestyle and plant products.

The chain’s Bowery flagship introduced a mezzanine space for displaying works by emerging artists, and the enthusiastic response made one thing clear: New York’s appetite for creativity is nearly impossible to satisfy.

As Gotham continues to redefine the dispensary experience, the brand’s newest space promises to evolve into a true cultural hub, where the lines between art, commerce, and community will continue to blur.

What comes next for the trailblazing brand? The future looks as visionary as the artists Gotham supports.

“Chelsea has always been a hub for fashion, art, and lifestyle, so it was the perfect place for Gotham to expand,” said founder Joanne Wilson. “This location is an environmental embodiment of our vision—a space where art, design, and cannabis intersect seamlessly. It’s a place where cannabis is celebrated not just as a product, but as a cultural force, integrated into the creative energy that already thrives in Chelsea.”

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RETAILING

The Gotham team tested the artistic waters by showcasing some emerging artists in the mezzanine of the Bowery store. According to Wilson, the response from both artists and the surrounding community was overwhelmingly positive, and art and culture have since become essential to Gotham’s mission of changing the narrative around the plant.

“With the opening of our Chelsea location, we saw an opportunity to expand our vision even further by introducing a full-scale gallery space,” she said.

“It allows us to showcase artists more formally while keeping the experience approachable and integrated into our retail environment. It’s also a little subversive. The gallery is traditional in form but housed within a dispensary. It’s never been done before, and that’s exactly the point. Gotham is rewriting the rules.”

The new 805-square-foot gallery represents Gotham’s most dynamic venture yet, offering space for group exhibitions, solo shows, and brand activations. Visitors enter through the shop’s signature design-forward retail space, where high-end cannabis products, fashion pieces, and wellness goods tempt guests on their way to the gallery.

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RETAILING

The Chelsea location combines retail flow with an artistic aesthetic. Entering guests are greeted by a calming palette of warm woods, soft neutrals, and sculptural accents. Natural textures create a tactile richness that mirrors the elevated nature of the products. Strategic lighting showcases key display zones while maintaining a gallery-like ambiance throughout, and the result is a seamless blend of boutique retail and immersive installation, where visitors move intuitively between standout product moments and contemplative artistry.

Carefully curated shelving and built-in display islands showcase goods like objets d’art, while minimalist pedestal risers lead toward the gallery entrance in the back. There’s a quiet reverence to the space, almost like entering a museum—but with an infused wink. Gotham doesn’t take itself too seriously, and the balance between elegance and edginess is what gives the space such a strong point of view.

Gotham Gallery is more than just an aesthetic extension. The gallery is a statement of its own.

Spearheaded by Creative Vice President Rachel Berks and newly appointed Gallery Sales Manager Emma Schwartz (formerly of internationally influential Pace Gallery), the space is curated with a collector’s eye and a community-first ethos.

“Together, [Schwartz and Berks] are continuing to shape Gotham as a destination for discovery and dialogue around contemporary art,” Wilson said. “Our goal is to build a community of collectors who are inspired by our space and the artists we support, with a focus on up-and-coming talent across all mediums.”

The debut exhibition, “The World is Yours,” opened April 19, bringing together popular rapper Nas and homeware design studio Objects Are By. Anchored

by Danny Hastings’ never-before-seen photographs of Nas from 1994, the show features a limited collection of homeware and apparel available exclusively at Gotham Chelsea.

For Gotham, cannabis is as much about connection as consumption. The brand’s programming reflects that belief, and monthly events range from guided meditations and journaling sessions to fashionforward pop-ups and game nights.

“Cannabis is communal, and we always take that approach to our events,” Wilson said. “Our programming creates space for connection, reflection, and conversation—inclusive events that invite our community to engage in unexpected, meaningful ways.”

The focus on experience also extends to the store’s design. Each Gotham location features a signature arboreal art installation by artist Molly Lowe, whose

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sculptural trees made from recycled materials nod to the quaking aspens of upstate New York. In Chelsea, the luminous leaves—crafted from hand-painted capiz shells—create a stunning sense of serenity that works to ground the space.

“I always wanted a tree in each store, but I was concerned about keeping up a live tree,” Wilson said. “Molly helped bring that vision to life through sculptural interpretations—each one unique. It has become our signature.”

The tree’s placement—near the center of the retail floor—invites guests to pause, look up, and take a breath. In the heart of the city, that moment of stillness is rare. And in a dispensary, it’s transformative.

“At its core, Gotham is an experiential space— every element is intentional,” Wilson said. “But what truly brings it to life is the human connection.

Our ‘cannaseurs’ [budtenders] are not only deeply knowledgeable, but they’re also trained to meet people where they are. We want our guests to feel welcomed, informed, and inspired—like they’re part of a community. Beautiful design draws people in, but it’s the knowledge, the care, and the conversation that keep them coming back.”

Speaking of knowledge, care, and conversation: This fall, Gotham’s Editions initiative will offer limitededition, artist-designed products including T-shirts, prints, rolling trays, and ashtrays, allowing customers to take home a piece of the gallery experience.

“I love editions,” Wilson said. “Owning something rare, artist-designed, that few people can buy simultaneously supports the collector-consumer and the artist. It’s special. It gives artists a different perspective on how to bring their visions to life and to a new audience that might not have collected before.”

With product offerings spanning premium flower, pre-rolls, vapes, edibles, and topicals—alongside a curated selection of fashion and lifestyle brands like Luar, Eckhaus Latta, Collina Strada, and Gotham Goods—the Chelsea location proves once again that Gotham is more than a dispensary. It’s a cultural institution in the making.

“Chelsea has always been the beating heart of New York’s art scene, and we’ve planted our flag right in the middle of it,” Wilson said.

Because when art meets cannabis in a space designed with intention, the result isn’t just a dispensary. It’s a destination.

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FEATURE

Pouring

Profits

A NEW GENERATION OF THC BEVERAGES IS CAPTURING CONSUMER ATTENTION — AND UNLIKE CANNABIS-INFUSED PRODUCTS, THEY’RE SOLD IN TRADITIONAL MARKETS AND TAXED LIKE OTHER REGULATED GOODS. SHOULD CANNABIS BRANDS TAP INTO THE BOOMING HEMP-INFUSED MARKET?

By Pam Chmiel

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BEVERAGE MARKETS

T

he cannabis beverage market is on the rise—but hemp-derived products are making the biggest splash.

Thanks to a legal quirk in the 2018 Farm Bill, beverages infused with THC from hemp (rather than marijuana) can be manufactured and sold almost anywhere, often taxed and distributed like any other consumer packaged goods (CPG).

Cannabis-infused products, by contrast, remain highly restricted: legal only on a state-by-state basis, penalized under local and federal tax codes, and excluded from traditional retail.

According to consumer research firm Brightfield Group, limited access to adult-use cannabis continues to push consumers toward hempderived products—especially as major distributors expand their offerings to convenience stores, smoke and vape shops, and liquor retailers. Additionally, Brightfield analysts reported sociallistening insights reveal a rising number of women share their experiences with hemp-derived products for femalehealth-related concerns like menopause and premenstrual syndrome, highlighting a key demographic for THC beverage brands to engage.

Cannabis brands willing to explore the hemp space can tap into national markets, major distribution networks, and a growing consumer base hungry for smoke-free, social, and functional wellness options. Major players including Uncle Arnie’s, Jones Soda Co., Ayrloom, and Wana Brands all offer hemp-infused beverage lines. Cann, once a darling of the regulated cannabis sector, switched to hemp in 2022. The company’s products now are sold in liquor stores, smoke shops, convenience stores, and bars across thirty states and are available via online order in thirty-five states.

Within two years of the transition, the company’s already-impressive revenue grew by 70 percent.

Curaleaf, one of the largest licensed cannabis companies in the United States, is making a significant bet on hemp. In April, the company transformed one of its Florida dispensaries into a hemp storefront where it offers its portfolio of Selectbranded hemp-derived-THC products as well as intoxicating hemp products from a bevy of other big-name brands.

Edible Brands, parent company of Edible Arrangements, also plans to devote a brick-and-mortar retail location in Atlanta to hemp-infused products. DoorDash, another household name in mainstream America, began delivering low-dose hemp THC products early this year.

A market definitely exists, but as with any other emerging commercial sector, the devil is in the details. A staggering 85 percent of new CPG products fail to gain traction with consumers, according to a Nielsen report. Success in a highly competitive and capital-intensive sector hinges on careful planning, strategic positioning, and a deep understanding of consumer behavior and market

dynamics. Nowhere is this truer than in the THC-infused beverage aisle at the local minimart, grocery store, or liquor retailer, where brands must not only differentiate themselves in a saturated landscape but also educate customers about a relatively new way to consume cannabinoids—all within the few seconds it takes for a shopper to scan a crowded shelf.

So, how can brands get it right?

From branding and flavor choices to manufacturing and launch tactics, success requires more than just good taste. Here’s how to approach the opportunity strategically.

THE CANNABIS INDUSTRY HAS ITS PASSIONATE GROUP OF PEOPLE WHO GEEK OUT ON CULTIVARS AND THINK THE REST OF THE WORLD CARES. THEY DON’T. —JOHN CRAVEN, FOUNDER, BEVNET

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Get the branding right

John Craven, founder and editorial director of leading beverage industry publisher BevNet, advises brands to “shed the stoner image and refresh and rebrand the industry with an attractive look to appeal to the mainstream consumer.” Since most liquor stores place THC beverages alongside readyto-drink cocktails and non-alcoholic alternatives, standing out with smart, lifestyle-forward packaging is essential.

Brands like Cycling Frog and Flyers have leaned into distinctive visual identities. Cycling Frog uses a quirky logo of a frog on a tricycle, while Flyers channels cocktail nostalgia with flavors like Old Fashioned in alcoholfree formats. The goal: make THC feel familiar, fun, and functional.

Don’t forget to play up potential beverage use scenarios. Although many cannabis consumers seek products to address need states, hemp-beverage consumers often plan consumption around specific times of day. A light, refreshing afternoon drink evokes vibes that are very different from a robust happy-hour cocktail.

“THC beverages are not just a replacement for alcohol but an option for multiple beverage occasions,” according to Happi co-founder Lisa Hurwitz. The hemp-derived beverage brand tailored its product line to address a variety of classic use cases. For example, Happi Dance, formulated for daytime consumption, contains THCV for focus.

Happi Glow, designed for winding down after work, features a blend of CBG, CBN, THC, and lion’s mane for relaxation. Happi Nightcap, infused with CBN and reishi mushrooms to promote sleep, serves as an alcohol-free bedtime sendoff. Meanwhile, Happi’s THConly flavored seltzers cater to social

occasions that lean toward hanging out with friends. With a clever interplay of color and stylized graphics, each variety gives visual cues about its purpose that are identifiable at a glance despite their subtle delivery.

Since they have limited options for retail marketing, established brands realize the best way to drive market adoption is to address consumer issues through the messaging on their packages.

Some brands employ playful slogans to guide shoppers through the novelty of consuming cannabinoids in food and drink. Cann suggests occasions to enjoy its drinks by using packaging callouts

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like, “Take me to a party!” Wynk nods to alcohol alternatives, stating, “It doesn’t have to be such a dry January.”

Hurwitz agreed on-package education is essential. “We find people are curious about the blends and formulations, so including educational content on the side panels is critical,” she said.

Start simple, then expand

According to Brightfield Group, the top reasons consumers hesitate to purchase hemp-derived-THC beverages include uncertainty about legality, concerns about side effects, dosing confusion, and not knowing how the product will

make them feel. Mainstream consumers may be curious about THC but often feel intimidated by the acronym itself, much less the breadth and variety of products marketed with confusing names, unfamiliar ingredients, and sometimes indecipherable (at least to the uninitiated) jargon. That’s why starting with approachable formats, flavors, and doses is key.

“Getting consumers to try THC products is already a marketing challenge,” Craven said. “Introducing [new products] with unfamiliar flavors and ingredients only makes it harder.” He advised brands to “make

a mainstream, approachable drink to ease the curious into THC beverages.

Incremental innovation is the tactic that always seems to win.”

Hurwitz agreed. “A year ago, especially in Minnesota, retailers and distributors asked us to remove information about CBG and CBN from our packaging because consumers didn’t understand it,” she said. “This year, they’re asking us to add more.”

That said, Craven encouraged brands to be cautious about giving consumers more information than they want or need. “Similar to coffee nerds or bourbon snobs, the cannabis industry has its passionate group of people who geek out on cultivars and extraction methods and think the rest of the world cares.

They don’t,” he said. “Consumers don’t want to know whether a specific strain contains limonene and myrcene or was greenhouse-grown [and manufactured] using solventless extraction. They just want to take a gummy and relax.”

Potency is another area cannabis brands should approach cautiously.

Unlike in the dispensary market—where potency can soar as high as 1,000 milligrams of THC per bottle or can— most hemp-derived beverage brands have opted for a low-and-slow approach to dosing, typically offering drinks with 2.5 to 10 milligrams of THC per container.

“Seventy percent of our consumers choose five-milligram drinks,” Hurwitz said. “But we also have a lot of consumers who want to trade up to ten.”

Container size also is a crucial factor in encouraging consumers to feel comfortable with infused beverages.

Happi’s core demographic—primarily women aged thirty-five to fiftyfive—embraces the brand’s 2.5- and 5-milligram drinks that come in small, eight-ounce cans, which are easy to tote

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in a purse or carry to social gatherings.

“A lot of thought went into the can size and how we assumed the consumer would experience it,” Hurwitz said.

The decision to use a smaller container was intentional for Happi Nightcap, too. “If you’re drinking our Nightcap before bed, you don’t want to put a lot of liquid into your body and risk midnight trips to the bathroom,” Hurwitz said.

Meanwhile, the brand’s ten-milligram drinks are packaged in twelve-ounce cans, because the larger liquid volume helps mask hemp’s natural bitterness, which new-to-cannabinoids consumers may find off-putting.

Rethink manufacturing and launch

The majority of infused beverages in both the cannabis and hemp spaces are seltzer-based, because those formulations are the least complicated to make and test. That generally means they’re less expensive to produce, as well. But the world would be dreadfully boring if every beverage had fizz.

Consumers also enjoy infused coffees, teas, and lemonades, which require specialized manufacturing equipment.

“If you’re making a coffee-based beverage, you need retort processing,” said Tom Cortez, chief executive officer at Emergent Beverages, founded by beverage- and alcohol-industry veterans. “If it’s a tea product, tunnel pasteurization is required.”

Because manufacturing and distribution are where many startups stumble, Cortez advised extreme due diligence when considering manufacturing partners. “Before we do business with a manufacturer, our team flies in and walks the facility to understand their operation, sanitary conditions, requirements, scaling

capabilities, and shortcomings,” he said.

A brand’s go-to-market strategy also influences manufacturing decisions.

Some facilities can produce up to 1,600 cans per minute, while others offer smaller, limited runs—an option that, while more costly, allows emerging brands to test consumer response before scaling. Another critical consideration is location. Strategically locating manufacturing facilities near key markets can significantly reduce shipping expenses. Cortez explained, “We like to produce where we sell to minimize back-end costs such as warehousing and distribution.”

For many hemp-THC beverage brands, direct-to-consumer (D2C) sales offer a low-barrier path to market.

Without the limitations of cannabis retail, D2C provides immediate marketing feedback, builds brand loyalty, and generates sales data that later can sway retail buyers. D2C can be an especially effective strategy for brands looking to test the market before making significant investments.

According to Hurwitz, Happi launched its beverage line in 2021 using the D2C approach, amassing 80,000 subscribers on its website before transitioning into bricks and mortar—a process made easier by strengthening its pitch to retailers with strong e-commerce sales data. The built-in customer base now drives sales and foot traffic to the brand’s retail partners. Today, Happi sells through traditional retail outlets in ten states and primarily distributes through Anheuser-Busch’s network, proving a strategic D2C launch can lead to largescale retail expansion.

Brēz also leveraged the D2C model.

In May, founder Aaron Nosbisch shared his company’s first-quarter 2025 performance: Two years after launch,

the company maintained 12,000 active e-commerce subscribers and reported quarterly revenue of $2.21 million. He attributed 83 percent of his company’s sales to D2C and 17 percent to traditional retail.

Move into storefronts strategically

Retailers sell brands—they don’t build them. Convincing a retail outlet to stock a new product is no easy task, but demonstrating a strong sales history, a robust marketing strategy, and consumer demand can help. Retail buyers look for products that create buzz and drive foot traffic. For new brands, securing shelf space often requires a mix of strategic outreach, strong branding, and financial incentives. Offering in-store promotions, samples, and competitive margins can tip the scales in your favor and encourage retailers to take a chance on your product.

Getting in the door at major national liquor chains like Spec’s, ABC, and Total Wine & More typically requires a distributor relationship. In addition to warehousing, shipping, and sales, distributors also leverage their relationships with key accounts to negotiate shelf space. Distribution can be complex but, again, solid D2C sales data and consumer demand can help seal the relationship. “It can take months of discussions to get a brand launch just right—from brand positioning to navigating local regulations,” Cortez said. He recommends starting small and scaling up. “Taking a targeted, regional approach is often the smartest path to growth, because you can gain valuable insights at a regional level to refine branding and sales strategies,” he said.

While liquor stores are an obvious fit, convenience stores may offer a

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much bigger growth opportunity.

“Intoxicating hemp beverages are a hot topic in convenience, and the area is a must-watch for our industry— very reminiscent of the early days of vape, but with major distributors and wholesalers already engaged,” said Melissa Vonderhaar, a convenience store veteran and industry expert.

“Conversations around responsible marketing and sales are happening, and [widespread adoption is] coming fast.”

She shared key insights into the category, highlighting how convenience stores could be a pivotal launch pad for hemp-THC beverages:

• Convenience stores check more IDs

daily than airport security checkpoints and must remain strict about agerestricted products.

• Of the 152,000 convenience stores in the U.S., 90,000 are single-store operations—many of which are willing to take risks on emerging product categories.

• With 70 percent of customers

passing by the cold vault and 60 percent purchasing a drink, convenience stores serve as a key research-and-development channel and trial market for beverages.

“This category is going to be big,” Vonderhaar said. “Convenience is the best channel for testing this new space and will play a crucial role in taking hemp THC mainstream.”

Nevertheless, legal uncertainties have kept THC drinks out of major trade events and encouraged most retailers to remain cautious. The regulatory landscape for hemp-derived THC beverages varies significantly across states, creating a complex environment for brands to navigate. Some states have implemented strict testing and labeling requirements, while others have enacted outright bans on intoxicating hemp.

As of mid-2025, at least eighteen states had enacted bans or strict regulations on hemp-derived products.

States like New York, Colorado, and Oregon prohibit selling the products altogether, while others have imposed tight restrictions on formulation, labeling, and sales channels. A bill awaiting the governor’s signature in Texas would outlaw possession and sale of all intoxicating hemp-derived products starting in September.

The patchwork of state regulations makes compliance complex and expansion risky—particularly for brands hoping to scale nationally.

Compounding the issue, rumblings in Congress indicate federal legislators may redefine legal hemp in the new five-year agriculture bill considered must-pass legislation this year. Under consideration is an amendment that would ban all intoxicating cannabinoids and prohibit synthesized compounds that don’t occur naturally in the plant. The language represents a stark reversal of the 2018 Farm Bill that legalized hemp with less than 0.3 percent THC.

Understand the risks, but seize the moment

Despite promising sales, investors remain cautious about the hemp beverage sector. According to Patrick Rea, managing director of Poseidon Garden Fund, “Beverage startups are capital-intensive and carry lower margins than other CPG sectors, so there must be capital, infrastructure, and expertise to scale these companies to a point where exit multiples generate investor returns.”

He also emphasized the high capital demands of building a national or global brand. Brands must scale rapidly and efficiently to minimize dilution and maximize returns for both founders and investors. With the rare exception of Canopy USA acquisition Wana Brands,

which launched a line of hemp-derived beverages in August 2024, that hasn’t happened yet. “Until recently, THC beverages accounted for less than 5 percent of total state-legal cannabis sales in dispensaries,” he said. “The category has experienced slow growth, slim-tonegative margins, and rare exits.”

Nevertheless, Poseidon remains very interested in the space. “The growth of THC beverages is expected to contribute to a decline in alcoholic beverage consumption, and we foresee opportunities emerging across all beverage subcategories,” he said. “While high-dose [cannabis-infused] THC beverages have historically dominated the market, low-dose, hemp-derived options are now gaining traction. We believe [merger and acquisition] interest from mainstream acquirers is what unlocks returns for investors in the THC beverage sector.”

Even if investors aren’t quite ready to jump at the opportunity, the cultural shift is undeniable. Emergent Beverages’ Cortez is among the optimistic vanguard.

“I feel the infused beverage sector is a generational opportunity and will emerge as a new adult beverage category that consumers will continue to incorporate into their consumption occasions,” he said. “It is a viable category, different from alcohol.”

For cannabis brands looking to diversify, there may never be a better time to segue into hemp-infused drinks.

However, the opportunity may evolve significantly depending on future legislation. In addition to the Farm Bill’s uncertain future, potential federal marijuana legalization could reshape how both hemp and cannabis are taxed, regulated, and sold. Brands entering the hemp space now may gain a crucial first-mover advantage in consumer recognition and loyalty, but they should build flexibility into their strategies to adapt as the legal landscape shifts.

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CULTIVATION

Soil and Soul

REGENERATIVE FARMING IS BLOSSOMING IN THE EMERALD TRIANGLE, WHERE A NEW GENERATION OF CULTIVATORS IS REVIVING ANCIENT PRACTICES TO RESTORE THE LAND—AND SOMETHING DEEPER.

BY TAYLOR ENGLE

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“Consciously cultivated” Arcanna Flowers at River Txai Farms in Mendocino County, California.

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n the cultivation world, a quiet, nostalgic revolution is taking root. The trend revives ancient practices in order to shape a more sustainable, soulful future. Regenerative farming is finding a refreshed energy among growers who see the land as a partner, not a commodity, and the techniques represent more than cultivation methodology. For many, they’re a mindset, a philosophy and, sometimes, a spiritual practice.

Today’s most devoted regenerative farmers aren’t just growing cannabis—they’re cultivating relationships with the land, the plants, and the people who consume them. And their philosophies are as rich and layered as the soils they tend.

Swami Chaitanya, co-founder of Swami Select and a longtime cultivator in California’s Emerald Triangle, sees regenerative farming as the bridge between story and soil. For Chaitanya and many others, regenerative practices are not just better for the plant—they’re better for the planet and the people consuming the product.

“If you’re buying organic bananas at the health food store, why wouldn’t you want organic smoke in your lungs?” he asked.

In the lush wilderness of Northern California, where nature remains wild and seasonal rhythms dictate the day, regenerative farming has become more than a choice. It’s a natural extension of life.

“There are many reasons regenerative farming is on the rise in the Emerald Triangle,” Chaitanya said. “First, you’re protecting the environment while living in tandem with it. We live in the middle of the wilderness up here. We see animals, plants, and mushrooms that come and go with the seasons, and that’s what gives our cannabis its special quality.”

Regenerative practices also can be cost-savers. When farmers begin to grow regeneratively, they start to see their financial outlay slow because they no longer buy chemical inputs from distant suppliers; instead, they use natural resources they procure locally or generate themselves.

“When you do that, you’re naturally reducing your costs,” Chaitanya said. “You may have more manual labor, but you’re also becoming a steward of the land, and that becomes the whole program of your marketing.”

He added that with consumers placing increasing emphasis on “organic” and sustainable products in every sector from food to clothing and household goods, regenerative agriculture is a natural draw.

“Cannabis is a carbon sequesterer,” he said, explaining the plant absorbs so much excess carbon dioxide from the atmosphere that it often is referred to as a “carbonnegative” crop. “All of that carbon in the plant goes straight back into the soil, and that’s part of the story you can tell about your brand’s philosophy.”

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Top and above: Ganja Ma Gardens, home of Swami Select.

Left: Nikki Lastreto and Swami Chaitanya. (Photos: Mike Rosati)

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For Blaire AuClair of Radicle Herbs, regenerative farming is not merely a trend. It’s a lifestyle.

“We believe no chemicals should be used anywhere, anytime, on anything,” she said. “Anything that’s harmful to nature is harmful to us and our planet, and that’s why people have been farming regeneratively for centuries. It’s only very recently that chemicals got introduced into agriculture, and there’s clear evidence that it degrades the land, causes loss of topsoil, and leads to tons of other problems.”

Radicle Herbs’ cultivation methods lean into the natural complexity of the plant, honoring its deep connection to both Earth and the cosmos.

“The cannabis plant is an extremely complex organism with many benefits— from physical to mental and everything in between—and that’s why we believe in growing the healthiest, most vibrant and vital version of the plant,” AuClair said.

“Plants are extremely connected to the earth and the cosmos, and having plant roots in the ground in native soil helps us create the highest-quality product.”

At AuClair’s farm, every leaf raked, every mulch layer added, and every companion plant “chopped and dropped” is part of a living system designed to nourish Radicle’s cannabis and the land on which it grows. All of that contributes to what she called “a smoke that’s richer, more nuanced, and a more complex experience” that transcends lab-tested numbers.

“The flavor, the experience, how long the effects last—everything becomes more complex when it’s grown regeneratively,” she said. “We’ve even had cannabis that’s lower in THC, but it still gets people very high because THC is not the only part of the plant contributing to the way people experience its effects.”

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Left: Cannabis and flowers grow side by side at Huckleberry Hill Farms.

Above: Folk Life Farm, home of Radicle Herbs.

John Casali of Huckleberry Hill Farms has an equally deep commitment to the regenerative economy. “The soil is where the taste comes from,” he said. “Even when strains differ, the flavor reflects the land.”

Casali’s regenerative journey began more than fifteen years ago with simple additions like leaf mulch and other organic amendments. Since then, he has developed a deeply personal relationship with the earth.

He acknowledged regeneratively grown cannabis doesn’t win many beauty contests. In the same way organic fruits and vegetables often lack the polished, photogenic qualities of commercially raised crops, regenerative cannabis “can look shaggier, airier. But it resonates with consumers,” he said. “They can taste the flavor. When you walk into a Safeway or a Whole Foods and see the organic section, there’s never a perfect, shiny red apple—but when you taste [an organic apple], it’s amazing. If you’ve ever tasted a potato or carrot that was grown regeneratively, it’s night and day. To taste it is to understand exactly what we’re talking about here.”

For Elizabeth Luca-Mahmood of Green Source Gardens, regenerative farming is nothing short of a purposeful, spiritual commitment.

“It is not a question of why, but a necessity to our collective responsibility to make better choices in how we want to live and what we want to do,” she said.

“Regenerative agriculture is a niche representation of a greater awakening to this mindset. Cannabis is a powerful plant that has been in co-evolution with humanity for many thousands of years. Its resin affects our consciousness, and anything you cultivate that works on the spirit like this needs to be done with as much unity and respect to the land and plant as possible.”

Luca-Mahmood believes when one commits to the regenerative mindset—which, in essence, is an agreement to give more than you take—the health, abundance, and fulfillment received in return is remarkable.

“When you cultivate land with systems designed to recycle nutrients, foster diversity, and unite the soil biome, you are gifted with very healthy plants capable of growing without the need for poisonous chemical interventions,” she said.

The economic benefits are real, too. Instead of pouring money into chemical fertilizers year after year, regenerative farmers invest in soil systems that become better and more resilient over time.

“From an economic perspective, the main benefit for the farmer is an investment in a system that gains resiliency year after year,” Luca-Mahmood said. “This is the opposite of what happens in chemically dependent farming systems. From a personal and spiritual perspective, when you commit to this style of land stewardship, you are surrounded by a living system born of your intentions and care. There is a kind of energetic alchemy that happens in this relationship, and you simply cannot experience it in many other ways. The joy and peace it manifests in you is healing on a cellular level.”

From the forest floors of the Emerald Triangle to the curated shelves of dispensaries, regenerative cannabis is shifting the conversation from yield to meaning and from potency to presence. The movement is rooted in reciprocity, where the health of the soil mirrors the health of the people. And in that exchange, something truly transformative begins to grow.

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PRODUCTS

BUZZ in a Bottle

FROM THROWBACK SODAS TO CUSTOMIZABLE SYRUPS, INFUSED DRINKS ARE FIZZING UP THE CHARTS WITH BOLD FLAVORS, FAST-ACTING FORMULAS, AND CONSUMER-FRIENDLY FORMATS. by the rise in sales of hemp-derived-THC-infused beverages and how that trend affects the data his company collects from dispensaries. “While these products mainly appear in traditional, unregulated channels, their growing popularity is helping normalize cannabis,” he said. “My hope is that this familiarity will encourage consumers to explore the regulated market—visiting licensed retailers and dispensaries—where they can discover the full spectrum of cannabis varieties and formats.”

To spotlight some of the biggest brands in the space, we tapped into retail data from Headset, Leafly, and Hoodie Analytics to identify the beverages that consistently rise to the top of the sales charts. These are the real-world bestsellers and top-rated favorites across dispensaries in the United States and Canada.

Whether your customers are looking for highpotency effects, discreet dosing, or throwback sodashop vibes, there’s something on this list that’s flying off shelves near you.

Photo: Dean Drobot / Shutterstock

I

nfused beverages are bubbling over. In 2024, sales in the United States topped $382 million. The figure is expected to surge in 2025 as more consumers limit their alcohol intake and seek smoke-free, sociable ways to enjoy cannabis instead.

Beverages have found a strong foothold with younger consumers and the canna-curious, many of whom are drawn to low-dose, controlled experiences that feel more familiar than flower or vapes. With many THC drinks modeled after traditional adult beverages—like sparkling waters, lemonades, and craft sodas—they’re helping normalize consumption for the everyday consumer.

At the same time, drinks infused with hemp-derived cannabinoids are exploding in unregulated channels.

As consumers grow more comfortable with THC beverages in convenience stores and online, the surge in popularity is expected to create ripple effects across the regulated legal market.

Headset co-founder and Chief Executive Officer Cy Scott said he’s particularly intrigued

BY TAYLOR ENGLE

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Photo: Dean Drobot / Shutterstock

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PRODUCTS

Certified Cultivators Grape CBN Drink Certified Cultivators’ grape-flavored beverage is vegan, gluten-free, and formulated for nighttime use. Powered by SōRSE’s nanoemulsion technology, the brand claims the product is formulated for faster onset and higher absorption. The beverage contains no carbonation, and the small format makes the drink easy to consume in a few sips before bed. It likely will appeal to people looking for a compact, flavorful way to assist with rest and relaxation.

Size: 2 fl. oz.

Cannabinoids: 25mg THC, 10mg CBN Markets: Ohio

Uncle Arnie’s Iced Tea Lemonade A twist on the classic Arnold Palmer adult beverage, Uncle Arnie’s Iced Tea Lemonade combines the refreshing tang of lemonade with the mellow notes of black tea, making for a balanced flavor profile. The non-carbonated, vegan beverage promises onset within thirty minutes. The drink is popular among those seeking a smooth liftoff and nostalgic taste.

Size: 12 fl. oz.

Cannabinoids: 10mg THC Markets: California, Michigan, Nevada, Oregon

Keef Classic Cola Born in Boulder, Colorado, in 2010, Keef’s original product is still the company’s best seller. The classic cola variety’s taste is reminiscent of traditional soda-fountain drinks—with a cannabis kick. Infused with rotating strains, the caffeine- and gluten-free carbonated beverage consistently receives rave reviews from consumers and is still winning industry awards.

Size: 12 fl. oz.

Cannabinoids: 5–25mg THC Markets: Arizona, Canada, Colorado, Massachusetts, Maryland, Missouri, Puerto Rico

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Journeyman Lemonade

XMG Cream Soda

Journeyman’s tiny two-ounce bottle packs a punch of tart goodness, with a cap conveniently designed to measure 10mg doses. Made of all-natural, vegan, and gluten-free ingredients, the lemonades come in a surprising variety of flavors including cherry, berry, strawberry, peach, tropical, and tart. With bottles crafted for portability and easy use, the company suggests chilling the drinks before tossing the non-carbonated shots straight up.

One of Canada’s leading infused beverages invokes another classic soda-fountain flavor. Tilray’s XMG Cream Soda blends sweetness and effects in equal measure. The lightly carbonated drink packs a smooth, fizzy mouthfeel, providing a familiar entry point for anyone new to infused beverages. Ideal for those who want a ready-to-drink option without complex flavor layers or additives, it’s a straightforward, single-serve product designed for quick onset and casual sipping.

Size: 2 fl. oz.

Cannabinoids: 100mg THC Markets: Illinois

Size: 355 ml (12 fl. oz.)

Cannabinoids: 10mg THC Markets: Canada

Mary Jones Root Beer Soda Since 1996, the “small team of soda enthusiasts” at Jones Soda Co. has been crafting “old-timey” carbonated drinks using real cane sugar and natural flavors. In 2022, the company launched the infusedbeverage subsidiary Mary Jones, which added a new twist to the brand’s classic offerings. Available in bottles and cans, Mary Jones’s Root Beer Soda brings a traditional soda-fountain treat into the modern era.

Size: 12 fl. oz.

Cannabinoids: 10–20mg THC Markets: California, Michigan, Missouri, Washington

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PRODUCTS

Ayrloom Cran Apple Cider Combining the tartness of New England cranberries with the sweetness of fresh apples from Ayrloom’s fifth-generation farm produced a classically American flavor perfect for traditionalists in the Northeast. Each can is infused with a 2:1 ratio of primary cannabinoids for a balanced, calming effect. The drink is best suited for consumers seeking a flavorful infused drink with moderate cannabinoid content.

Dixie Elixirs Dixie has been formulating beverages and edibles since 2010, and the company’s Elixirs line of fruit-flavored drinks has populated topsellers lists ever since. Served in bottles with built-in, child-resistant dosing caps, consumers easily can measure 15ml servings with about 6mg THC each. Made with pure cane sugar and natural flavors but without carbonation, Dixie Elixirs is a classic product with consistent potency and consumer-approved taste.

Size: 8.5 fl. oz.

Cannabinoids: 100mg THC Markets: Colorado, Maryland, Oklahoma

Size: 12 fl. oz.

Cannabinoids: 10mg THC, 5mg CBD Markets: New York

St. Ides Georgia Peach High Tea This tea ain’t for novices. St. Ides brought together the sweet juiciness of ripe peaches and the soothing essence of tea with a super-potent dose of THC. The non-carbonated drink is crafted using nanoemulsion technology to support rapid onset and higher absorption. With only twelve calories and three grams of sugar per can, Georgia Peach High Tea is a low-calorie option for experienced consumers seeking a strong experience with a Snapple-like taste.

Size: 12 fl. oz.

Cannabinoids: 100mg THC Markets: California

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Versus Rapid Seltzers

Mule Extracts’ Muleshine

Versus Rapid Seltzers are Canadian favorites that come in tart-sweet, fruity flavors like key lime, blueberrypomegranate, and black cherry. SōRSE emulsion technology minimizes “weedy” taste and smell while enhancing onset time and effects.

Made with a touch of real sugar and natural flavors, the products contain only ten to twenty-five calories per serving and are best suited for consumers seeking an infused beverage with familiar flavors and seltzer’s traditional fizz.

Muleshine is a line of infused and flavored syrups that allow consumers to create their own beverages by adding 10mg-per-teaspoon measured doses to their favorite tonic, seltzer, or any other liquid. Crafted from full-spectrum, strain-specific live resin extracts, some varieties incorporate CBD, CBN, and/or CBG in addition to THC. This product is intended for consumers seeking a potent, customizable plant experience.

Size: 355 ml (12 fl. oz.)

Cannabinoids: 10mg THC Markets: Canada

Size: 4 fl. oz.

Cannabinoids: 1,000mg Markets: New Jersey, Oregon

Ray’s Lemonade Crafted with real fruit flavors including huckleberry, strawberry, blood orange, dragon fruit, mango, and raspberry, Ray’s Lemonade is noncarbonated and fast-acting. All flavors are infused with a significant amount of THC that can be consumed in 5mg increments thanks to a dose-measuring cap; some varieties also incorporate 100mg CBD. Lil’ Ray’s shots offer the same flavors and THC concentration in a smaller, sleeker, 1.75-ounce bottle.

Size: 12 fl. oz.

Cannabinoids: 100mg THC Markets: California, Michigan, Washington, British Columbia, Ontario

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Illustration: Armand Khoury / Unsplash

LEGAL

GUARDING the Goods

COMPANIES FACE CHALLENGES WHEN SECURING PATENTS AND TRADEMARKS, BUT SMART STRATEGIES CAN HELP PROTECT PRODUCTS, PROCESSES, AND BRANDS DESPITE FEDERAL PROHIBITION.

BY JAKE WEBB, PAUL RIVARD, AND CHRISTIAN WOLFGRAM, ESQS.

A

s the legal cannabis industry continues to grow, companies need to understand the everchanging landscape of intellectual property law and how to protect their products. Here, we provide a brief overview of how the plant’s unique legal status affects patents and trademarks, as well as how these issues may affect commercial operations.

A patent protects new and non-obvious inventions and gives the patent’s holder an exclusive right to the invention for a limited period of time. Patents may cover a wide range of things from plant varieties and cultivation methods to extraction techniques and infused products.

On the other hand, a trademark is a symbol or words used by a company or individual to identify their goods or services. A trademark gives the owner exclusive rights to use the mark in connection with certain products or services.

Both patents and trademarks are important tools for protecting products and brands, but there are limits on the rights they confer given the federal ban on cannabis.

PATENTS

Even though companies cannot patent “drug paraphernalia,” which comprises products used to produce, conceal, or consume federally illicit

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substances, there is an exception for products that primarily are intended for legal uses. For example, products intended for use with tobacco may be patented, even if they also potentially could be used for cannabis consumption. In fact, a lighter holder received patent protection because its components traditionally were used for tobacco, even though the patented product was advertised and marketed for use with cannabis.

Takeaway: Companies that produce or sell products that can be used for tobacco and cannabis may be able to patent those products, despite how they’re used in the market.

Some other good news is that cannabis companies likely can assert their patents despite the federal ban on the plant if the patents are broadly drafted. In one patent case, the court found a patent holder could assert its patent for extracting oils from cannabis plant material because the process also could be used for extracting legal hemp. As written, the patent was not limited to cannabis; instead, the text only mentioned plants generally.

Takeaway: Companies considering patents should seek broad ones that cover federally allowed applications and avoid specifically limiting their application to cannabis-related products or activities.

Patents may also cover genetically modified organisms, meaning cultivators may be able to receive patents on human-modified cannabis plants. This protection includes the major advantage of being able to prohibit others from cross-breeding or reproducing the modified strain.

In addition, patent protection may be available for new chemical compounds derived from or based on cannabinoids. Companies that create their own unique strains or cannabinoids should strongly consider patenting these formulations to protect their investments and prevent other companies from copying their proprietary technology.

TRADEMARKS

Obtaining trademarks also can be tricky, because products containing THC derived from marijuana are illegal under federal law. The general rule is that companies cannot obtain federal trademarks in connection with cannabis products. Nevertheless, there are ways to obtain some kinds of trademark protection.

Unfortunately, companies cannot receive trademarks for products that are considered drug paraphernalia.

But, similar to patents, goods that generally are used with tobacco are not considered drug paraphernalia and can receive trademark protection, even if there are alternative, cannabis-related uses. Companies are not required to identify all existing or potential unlawful uses of products that also have legitimate and lawful uses. So, a company could trademark brand names for rolling papers and smoking accessories that are intended for cigarettes even if those products also could be used with cannabis.

Courts have ruled companies may procure trademarks for providing information related to cannabis and related products. For example, companies have secured trademark protection for websites providing information about the plant and strains, as well as for providing consumer information about companies that deal in marijuana products or services.

It’s clear companies cannot file for trademark protection now for products they intend to sell in the future, hoping the legal status of cannabis has changed by the time the company is prepared to go to market.

But given the ever-changing legal landscape, companies should be prepared to file trademark applications as quickly as possible after federal prohibition ends.

Despite the hurdles to obtaining federal trademarks, businesses can take important steps to protect their brands. First, cannabis companies may make and sell branded apparel and then apply for federal trademarks for the apparel goods. This strategy helps organizations stake claim to their names, logos, and slogans on the federal trademark register and may dissuade competitors from using a similar name or design.

Second, companies may apply for state trademarks in each state where they conduct legal operations. These state-level trademarks cover limited areas but can be used to protect products and services outright.

While the legal status of the plant and related products provides unique hurdles to obtaining intellectual property, businesses should consider what potential patents and trademarks are available to them and how to obtain those rights to protect their investments. Companies interested in obtaining intellectual property rights related to cannabis should seek legal counsel to discuss their options.

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INSURANCE

Coverage Crunch

RISING PREMIUMS, SHRINKING OPTIONS, AND STRICTER REQUIREMENTS ARE MAKING INSURANCE HARDER TO FIND—AND AFFORD.

BY BRIAN O’CONNELL

T

he cannabis sector is moderating in 2025, with sales up but product prices down 10 percent, according to Hub International’s 2025 Cannabis Outlook Executive Survey. That’s a demanding scenario for industry businesses, which often struggle to find the right insurance. The Hub report notes about 75 percent of industry respondents stated their organizations “don’t have adequate insurance to protect against risks that will harm profits. Companies are often left with a choice between unaffordable rates and no protection.”

Cost remains a big issue, too. A “tight market” for commercial auto insurance means premiums for product transportation within the industry have tripled. “Rising costs and low capacity have made it challenging for cannabis businesses to secure appropriate coverage,” the report noted.

It’s not only higher insurance prices and lower sales revenues that are vexing operators this year. Among the other issues also weighing on company decision-makers is the lack of adequate coverage due to a paucity of insurance providers.

“The current state of cannabis business insurance is quite restricted, with limited insurers willing to participate due to the high-risk perception and regulatory complexities,” said John Crist, founder of Prestizia Insurance in Dallas.

Cultivators and retail stores, in particular, often struggle with obtaining adequate coverage. That’s partly by design, as insurers weigh the risks of offering coverage in a relatively young marketplace.

“Best practices for these businesses include maintaining stringent compliance with state regulations and demonstrating a thorough risk-management strategy,” Crist said.

“For instance, a cannabis retail client in New York had to implement extensive security and inventory-tracking systems to meet insurance requirements, which underscored the meticulous level of compliance needed.”

Without a doubt, insurers need to do a better job of understanding what cannabis companies need. Insurers must do their homework and figure out what makes firms tick to craft the correct coverage. That’s especially the case at the customer-facing agent level.

“One of the biggest challenges for new agents is the ability to learn and understand the business and marketplace,” said C.L. Mike Schmidt, an attorney with Schmidt & Clark LLP in Santa Fe, New Mexico. “There are a lot of ins and outs that an agent

should attempt to learn so they’re wellequipped to serve their clients. When it comes to underwriting the risk, agents must comprehend that the majority of policies are written on proprietary endorsements, so knowing the ins and outs of each carrier’s form is critical.”

Cannabis businesses need to protect themselves, too. Sector companies are going to have to dig deep, especially in key areas like risk-management and organizational resilience, in an environment where many companies are a single weather disaster, supply chain, or data fraud incident away from significant financial damage.

“Organizations that focus on organizational resiliency efforts will be poised for success through the implementation of a robust business continuity plan that can pressure-test these potential loss scenarios,” the Hub outlook report noted. “An insurance advisor with cannabis industry expertise can help educate both the buyer and the seller on best practices, making sure businesses secure proper runoff or [directors and officers] policies to protect the bottom line.”

Companies have faced myriad challenges getting insured and will need to show patience as the insurance industry resets in a volatile year.

“The cannabis insurance market is characterized by a hardening trend, meaning premiums are rising while insurers are implementing stricter underwriting requirements,” noted CoverCannabis’s 2025 Cannabis Insurance Outlook report. “Factors driving this trend include heightened regulatory scrutiny, an increase in product liability claims, and risks associated with emerging consumption methods.

This environment makes it harder for businesses to access affordable and comprehensive insurance coverage.”

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MOMENTS CHRONICLES

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Journey through the extensive photography archive of mg Magazine with this unique collection of images, each telling a story of resilience and ambition.

Moments: Chronicles of Success celebrates the sacrifice, dedication, and perseverance of the individuals who have shaped today’s cannabis industry, offering inspiration for generations to come.

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