Business of Drinks 23: Cannabis Beverages Are On the Rise — What You Need to Know with Diana Eberlein - Business of Drinks
Cannabis drinks are showing substantial growth, and even displacing alcohol among younger consumers.
I got the scoop on how this emerging category is shaping up — and the legalities around THC-infused drinks — from Diana Eberlein, president of the Cannabis Beverage Association (CBA), a non-profit trade association established to represent and advocate on behalf of THC and CBD beverage brands. She’s also an expert in THC emulsification, as the VP of Marketing & Business Development at SōRSE Technology, a supplier of CBD, hemp, and terpene emulsions for food, beverage, and topical manufacturers.
Diana walks us through the regulatory landscape of THC drink, as well as the lobbying efforts underway to expand access to these beverages.
As background: In the U.S., about half of Americans now live in a state where recreational cannabis is legal, and the market for cannabis is growing exponentially.
So who’s buying cannabis-infused drinks? It’s largely Millennials and Gen Zs, with older consumers mixed in.
We know — from the 2023 Gallup poll — that younger consumers are not onboarding to alcohol like prior generations. And they see alcohol as unhealthy compared to cannabis — particularly Gen Zs. In fact, two in three 18- to 24-year-olds say they are somewhat or very concerned about the impact of drinking on their health, according to a July 2023 CivicScience survey of 5,545 respondents.
Also, we know that marijuana use is displacing alcohol among younger audiences. From 2015 to 2022, the percent of US adults aged 18 to 25 who reported they had used any alcohol in the past month dropped by 8 percentage points to about 50% of those surveyed. Over the same time period, that group’s use of marijuana shot up by 6 percentage points, to about 25% of those surveyed, per the National Survey on Drug Use and Health.
It appears — looking at the data, and speaking with executives from cannabis drinks companies — that these consumers are not going sober. Rather, declines in alcohol are somewhat proportional to gains in cannabis use.
In this episode, we cover:
The appeal of cannabis-infused beverages for consumers looking to cut back on alcohol.
The difference between hemp-derived Delta 9 THC drinks and traditional cannabis.
Where THC drinks are legal in states across the country (and where they’re available in bars and restaurants!).
CBA’s 2024 education and lobbying efforts on Capitol Hill.
The emulsion technology behind making fast-acting THC drinks.
Predictions for the future of the cannabis drinks business (spoiler: big things are coming).
And that’s just the beginning. Give a listen for more.
About Erica Duecy, host:
Erica Duecy is host of Business of Drinks, and one of the drinks industry’s most accomplished digital and content strategists. She has built publishing and marketing programs for Drizly, VinePair, SevenFifty, and other hospitality and drinks tech companies. She also has led digital editorial teams at Architectural Digest and Saveur magazines. Her content, podcast, and video programs have won more than 40 digital and editorial awards. She is a WSET Advanced-certified wine and spirits communicator, and author of the cocktail book Storied Sips (Random House), about the real-life stories behind the world’s most famous cocktails.
To learn more about Erica Duecy:
https://www.instagram.com/ericaduecy/
https://www.linkedin.com/in/erica-duecy-4a35844/