MW Trulieve, Curaleaf and Green Thumb launch hemp-based THC drinks as cannabis reforms stall

By Steve Gelsi

With federal legalization in limbo, three of the largest U.S. cannabis companies are now selling THC drinks

Trulieve Cannabis Corp. on Wednesday became the third large U.S. cannabis company to launch a line of beverages containing the intoxicant THC, as efforts to legalize cannabis on the federal level remain in limbo.

Trulieve (TCNNF) described its Onward line as a "premium, non-alcoholic THC beverage offering a modern alternative for social occasions." The drinks, which can be ordered online and shipped to 36 states, come in flavors including sea salt margarita, blueberry mojito, Italian spritz, passionfruit martini and peach bellini.

Curaleaf Holdings Inc. (CURLF), meanwhile, is selling its Select THC line of beverages, while Green Thumb Industries Inc. (GTBIF) has invested in Agrify Corp. (AGFY), which bought the Señorita brand of hemp-derived THC beverages.

Canada's Tilray Brands Inc. $(TLRY)$ launched Tilray Alternative Beverages late last year to sell hemp-derived THC beverages in U.S. markets.

And Stiiizy, which is privately held, said last month it also plans to move into the hemp-derived THC category.

Aaron Grey, a cannabis analyst at Alliance Global Partners, said the involvement by major multistate cannabis operators such as Trulieve and Curaleaf in the hemp-derived THC beverage category reflects "confidence" that low-THC beverages will continue to be allowed under an updated U.S. farm bill. The current version of the law is set to expire in September.

The hemp-derived THC market could grow to nearly $14 billion, especially if big alcohol companies move in, Grey said,

"While the players in the market today remain smaller THC-beverage companies and legacy cannabis companies ... we believe traditional alcohol companies will look to enter the space - particularly once there is more regulatory clarity," Grey said in a research note Wednesday. "We view hemp-derived THC beverages as one of the green shoots for the industry in 2025 and will be listening for commentary on how management teams aim to capitalize on the opportunity."

For the cannabis companies, hemp-derived THC provides another revenue stream as fewer states move toward launching adult-use or medical cannabis programs.

Some states, however, such as California, have banned some hemp-derived THC products.

While cannabis remains a Schedule I drug, on par with heroin, under federal law, hemp with minute amounts of THC has been legal in the U.S. since the passage of the 2018 farm bill.

Although hemp cannot contain more than 0.3% of psychoactive THC, companies have been refining it into much higher concentrations in drinks as a workaround to cannabis prohibition on the federal level, as reforms such as the SAFER Banking bill and the rescheduling of cannabis to the less restrictive Schedule III category have stalled.

Also read: Hemp-based THC revenue may make cannabis stocks more appealing - but there are risks

And: Cannabis groups combine to push for federal reforms under Trump

-Steve Gelsi

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February 26, 2025 15:20 ET (20:20 GMT)

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