Americans are still cracking open cold ones, but what’s inside their cans is changing.
More people are now reaching for cannabis beverages, nonalcoholic drinks infused with tetrahydrocannabinol, or THC, the main ingredient in marijuana that makes you feel high. Some varieties also include cannabidiol, or CBD, a chemical compound found in marijuana or hemp that proponents say helps relieve pain, anxiety and other health symptoms. The drinks come in different forms including seltzers, juices, sodas and teas.
Consumer demand for cannabis beverages is growing as Americans drink less booze. According to a July Gallup survey, the percentage of U.S. adults who say they consume alcohol fell to 54%, the lowest level since 1939, when the polling organization first started tracking people’s drinking behavior. An increasing share of Americans also believe moderate alcohol consumption is unhealthy, the poll found.
Hundreds of brands small and large now hawk cannabis beverages, many promising to help take the edge off in social settings.
“There’s a replacement factor going on between THC beverages and wine and beer and distilled spirits,” said Beau Whitney, chief economist at Whitney Economics, an Oregon-based consultancy focused on the cannabis and hemp industry.
THC beverage sales in the U.S. are expected to grow from $1.1 billion last year to nearly $5.6 billion by 2035, according to Whitney Economics.
“The remarkable growth and innovation we’re seeing in the hemp-derived beverage space is a clear sign of consumer enthusiasm and entrepreneurial success,” Michelle Rutter Friberg, director of government relations at the National Cannabis Industry Association, told CBS News in an email.
Potential health impacts, side effects
Several THC beverage brands market themselves as nonalcoholic alternatives and say their drinks contain zero calories and zero sugar. Doctors, however, warn that cannabis beverages can come with side effects.
Whether smoked or ingested as an edible or drink, cannabis can affect the brain, heart, lungs and mental health, CBS News medical contributor Dr. Céline Gounder said, adding that the drug can spark anxiety, paranoia, a fast heart rate and, in rare cases, psychosis.
Potential short-term effects of cannabis include issues with memory, focus and coordination, said Gounder.
“People may have trouble remembering new information, paying attention or moving smoothly,” she said. “This can slow reaction time, cause slurred speech, and raise the risk of car crashes by 30%-40%. The effects depend on how much cannabis is used, how it’s taken and how used to it someone is.”
Heavy or long-term intake of the drug, especially in teens, can lead to lasting issues with memory, attention and decision-making, said Gounder. Long-term use, she added, can also lead to cannabis-use disorder, which is a clinical term for addiction, defined by the U.S. Centers for Disease Control and Prevention as when users are unable to stop using cannabis even though it’s causing them health and social problems.
Some heavy users may also develop severe nausea and vomiting, Gounder said. Those most at risk are pregnant individuals, teens, and people with mental or heart conditions, she added.
Also, the potential effects of a cannabis-infused drink can be felt in as little as 15 to 20 minutes, compared with 30 to 90 minutes for an edible, according to Dr. Staci Gruber, an associate professor of psychiatry at Harvard Medical School, in a recent article on the school’s website.
“If you are interested in trying it and it is legal for you to do so, be mindful about controlling the experience until you know how a particular product affects you,” Gruber said.
Target eyes THC segment
The U.S. has a patchwork of regulations governing the sale of cannabis products, with states offering varying degrees of restrictions, including minimum-age requirements. THC beverages can be legally sold in 44 states in total, 37 of which allow sales outside of the marijuana dispensary systems according to Whitney. In those areas, the beverages can commonly be found at restaurants, bars, grocery stores and liquor stores.
Cannabis beverages have even caught the attention of major retailers like Target. The Minneapolis-based chain confirmed to CBS News that it is testing the sale of THC beverages at certain Target liquor stores in Minnesota. While other retailers, such as Total Wine & More, already sell cannabis beverages, Target is the first big-box player to explore the THC beverage market.
“At Target, we’re always exploring new ways to meet our guests’ evolving preferences and needs,” a spokesperson said.
Whitney Economics estimates there are 500 to 750 brands marketing cannabis drinks. Of those, roughly 30 are sizable labels with national distribution, while the rest are regional and local brands, according to Diana Eberlein, chair of the Coalition for Adult Beverage Alternatives Retailers, a group that represents stakeholders in the hemp and alcohol industries.
Better-known names in the space include Cycling Frog, which makes THC seltzers and edibles; Cann, which markets itself as a “social beverage”; and Nowadays, which employs the motto “the future of drinking is here.”
Mainstream alcohol brands are also testing the waters: Both Lagunitas Brewing Company and Pabst Blue Ribbon have come up with their own THC-infused beverages.
Whitney and Eberlein said the cannabis drink sector is growing most rapidly among women in their 30s and early 40s who are looking for more accessible, and less caloric, alternatives to alcoholic beverages.
“They still want to have a beverage, but they don’t want the high amount of calories. They don’t want the alcohol, they don’t want the sugar, and they don’t want to have a hangover the next morning,” Whitney said. “They’re replacing their evening glass of wine with THC beverages.”
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