While the THC beverage market remains a sliver of the overall cannabis industry, it’s possible that summer 2023 could one day be seen as a turning point for the category thanks to the legalization of mainstream sales for hemp-derived drinks in Minnesota, a federal agency’s recommendation to reschedule cannabis, and the embrace of THC drinks by trendsetting California retail chain Erewhon.

The latter has now brought on pioneering hemp beverage brand Weller’s THC sparkling water line into its stores. We caught up with Weller CEO John Simmons to learn more about the brand’s experience in both Erewhon and Minnesota in order to learn more about how hemp-derived THC is breaking out into the mainstream and how the brand is using the opportunity to reach new consumers.

•On Erewhon: “I think with Erewhon, it was a chance for us to learn how consumers will react to it, and to gauge demand with that specific set of consumers and their shopper demographic. For Erewhon, it was a chance for them to learn as well if this is something that they should include in their sets, if it was exciting for their consumers. 

•On Shifting State Requirements: “Every state is different and what we're doing with our THC launch is we're shipping to distributors in six states and we are paying close attention, along with our legal team, to regulations that are either developing or in process. We're participating in feedback sessions, along with other beverage companies, to see if we can add clarity and information to the dialogue that's occurring.”

•On Federal Regulation: “The lack of action by the FDA has hurt the entire industry, I think that's abundantly clear. Many retailers are looking for guidance in terms of [whether] this is FDA approved and by what guidelines this industry is going to be regulated. We've been waiting for that, and a lot of states have created those guidelines by themselves in a vacuum.”

Read the full interview on BevNET

Recess is bringing its Zero Proof mocktails to every USC Trojans home football game. They will be sold at every USC Trojans football game at the L.A. Coliseum. The mocktails will also be stocked at all of the stadium bars, alongside traditional alcoholic options. 

• Recess’ Zero Proof line features functional ingredients guayusa, L-theanine and lemon balm and comes in four cocktail-mimicking flavors: Lime “Margarita,” Grapefruit “Paloma,” Watermelon “Mojito,” and Ginger Lime “Mule.
• Launched in 2018, Recess initially banked on trends in CBD beverages but has since expanded into three different beverage lines (plus powders) that stress the brand’s relation to “mood” and relaxation.
• Recently, the company announced it had moved its Mood drinks into over 5,000 stores nationwide including major distributors like Target, Albertsons, CVS, H-E-B, Sprouts and Winn Dixie.

Listen to Recess founder Ben Witte discuss the brand’s strategy

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Performance energy drink maker Celsius has announced a new partnership with LEARFIELD, a media and technology company powering college sports, to expand its footprint on college campuses nationwide.

• Kicking off the college football season, Celsius will add five new schools to its roster – University of Oregon, University of Colorado Boulder, United States Air Academy, University of Washington and University of Michigan – and expand its existing partnership with Texas A&M University.
• According to a press release, Celsius will host a variety of on-campus activations throughout the college football seasons while also releasing digital and in-venue strategies in select partner facilities featuring Celsius branding. 
• Additionally, the energy drink maker plans to work with standout quarterbacks Bo Nix (Oregon) and Michael Penix Jr. (Washington) as well as leading running back Blake Corum (Michigan). The student-athletes will participate in an integrated social campaign.

The news comes after Celsius reported record-high Q2 revenue of around $326 million, up 112% from $154 million in 2022, during its latest earnings report earlier this month.

Last year's Heisman Trophy winner, USC’s Caleb Williams, has signed a NIL endorsement deal with Dr Pepper. Williams joins former Alabama quarterback Bryce Young and college quarterback D.J. Uiagalelei, who have all appeared in the soft drink company’s Fansville series, an episodic advertising campaign centered on a fictional town obsessed with college football. The endorsement adds to William’s current roster of NIL endorsements which include deals with  AC+ION Water and Athletic Brewing Company among other CPG brands. Athletic has been active in the space, previously signing running back Bijan Robinson and quarterback  C.J. Stroud. Sports drink brands Powerade, Biosteel and Barcode have also been active in NIL endorsements of college basketball athletes.

Mirroring other global spirit groups, Pernod Ricard warned of a slowdown in sales growth for its portfolio in the U.S. over the next fiscal quarter, citing high comparables with the same time period last year. 

• The group experienced its most active year in terms of investment (over $1 billion) in a decade, with a focus on premium-plus brands and attractive categories in North America, including its acquisition of brands Skrewball and Codigo 1530 Tequila, and a majority stake in Canadian RTD company ACE Beverage Group, as well as upping its stake in Sovereign Brands. 
• But the company expects those acquisitions to contribute to organic growth in H2 2024, and to help offset negative numbers in the earlier start of the year. 

Diageo, Brown-Forman, and Cuervo also saw sales lag post-pandemic and as consumers adjust to the impact of inflation. Those numbers echo reports of continued challenges at bars and restaurants, a slowdown in luxury spirits and consumers looking for quality at a bargain price.

The spirits producer behind Monaco canned cocktails is bringing Ollitas Tequila, a brand from a historic tequila family, to the U.S., the company announced this week.

• Established in 1926 by Don Eduardo Orendain, Destilería Orendain is one of the four founding families of the modern tequila industry and is the original force behind the tequila regulatory council (the body that certifies a tequila as produced legally).
• The distillery also produces brands like Mark “Marky Mark” Wahlberg’s Flecha Azul and Casa Komos.
• The privately-owned Miami-based spirits company was founded in 2006 and has found success with its Monaco Cocktails, ranked among the top five in sales, up 42% in off-premise sales since this time last year according to NIQ data.
• With plans to enter additional categories driving industry growth, the company said it plans to continue “to expand its presence and add new brands to its portfolio.”

It's not just farm-to-can craft ginger ale and sodas for North Carolina’s Devil’s Foot Beverage Company. The craft beverage brand - known for working with local breweries - is taking its expertise in making mixers to launching its own two RTD cocktails: Carolina Mule and Vodka Lemonade.

• The canned drinks pair Devil’s Foot’s local and organic root and fruit juices with Botanica Vodka from Nippitaty Distillery in Charleston, SC and Asheville Vodka from Cultivated Cocktails in Asheville, NC.
• Both RTDs will be launched at the Asheville-based beverage company’s tasting room on September 29 with wider distribution planned for later this year.
• Founded in 2017, Devil’s Foot was established to provide higher quality mixers and non-alcoholic offerings using its connection to local farmers and producers to grow the brand and distribution. The company has expanded from its original roots opening a larger facility and taproom while also expanding into neighboring states and partnering with local craft breweries on the Zero Proof Series, a 7-SKU of non-alc drinks.

Dive Deeper: Devil’s Drink: Craft Soda Rises in Craft Beer Country