Intoxicating hemp beverages have become one of the fastest-growing functional drink categories in recent years, but how the space continues to develop depends on where the products can be sold. Right now, it’s all about that Web Weed. Hemp-derived THC drink purchases from DTC websites were up 27.4% during Q1 2025, according to the Brightfield Group, an uptick from the already robust 25.9% increase reported the past two quarters. Businesses have leaned into ecommerce and direct-to-consumer sales to build brand and product awareness while expanding their customer base. That all began after Minnesota opened the door to hemp-derived THC, a market spearheaded by craft breweries in the state. Though brands are growing online, brick-and-mortar is the bigger opportunity, even despite the challenge of navigating an evolving landscape of state-by-state regulations dictating where and what can be sold in retail. Effectively allocating marketing dollars between digital and brick-and-mortar footprints can be difficult for any beverage brand. But hemp beverage makers face even more complexity due to a consistently evolving restrictions impacting both online and in-person sales. “What hemp beverages are going to have to figure out is either pricing towards DTC or building for retail first,” said Ben Mason, founder and CEO of Pillar Marketing, because “you can't sell something for $10 a can online and then make it $4 per can in retail.” That balancing act has posed challenges already, leading some brands to diversify into simpler-to-ship (read: cheaper) formats like gummies, shots and multiserve bottles and support the larger opportunity in RTD cans. “DTC is not a business plan, but a channel strategy,” said Green Street Beverage CMO Jarrod Jordan. “Especially in beverage, you can’t think that you're going to win by focusing on having a DTC Dollar Shave Club-esque business without winning in retail.” Tomorrow we will explore the opportunity and potential pitfalls of aligning hemp beverages with beverage-alcohol distribution. Insiders can read the ecomm segment of this deep dive to learn how hemp beverages are balancing DTC and retail. |