• Court to Owoc: Don’t Rely on AI
• Judge Considers Receivership for Uncle Nearest Whiskey
• Lifeway Forecasts Record Annual Sales Growth
• Chicago CPG Brands: Taste Radio Meetup This Week
• Kroger Settles with C&S
• Taste Radio: The Marvel Hero At The Helm Of Lake Hour

As summer gets hotter, we’re all getting higher. 

Or at least it feels that way. After the initial wave of hemp-derived THC drinks arrived on the market in micro-dosed 2.5 mg to 5 mg versions, the category now appears to be surging under a new North Star of 10 mg per container. 

Strong signals are coming from Brightfield Group and Sightlines data over the past year with sales of drinks containing at least 10 mg hemp-derived THC rising almost 18%, representing 60% of the total market. Sales of 5 mg products grew around 6.7%, while 2-5 mg drinks fell 8.6%. Those trends are playing out on the shelf, too…

• In Minnesota (one of the country’s most mature markets) 90% of THC drink sales are coming from 10 mg drinks, per Brightfield.
• Jon Halper, owner/CEO of Minnesota-based Top Ten Liquors, noted on LinkedIn that nine out of the store’s top 25 best-selling THC items are 10 mg 4-packs. 
• Stepping further back, 48 out of the store's top 50 4-packs are 10 mg (only 2 are 5 mg). 

That seems to have sparked the attention of some of the largest cannabis players. After launching its 10 mg Onward line at the beginning of the year, Florida-based Trulieve last month expanded distribution (Romano Beverage in Illinois, Anheuser-Busch in Northern Florida) and added a caffeinated energy SKU. And, just this morning, Tilray revealed new 10 mg versions for its Fizzy Jane’s and Happy Flower drinks. 

Does that mean 10 mg is the new industry standard? Not necessarily. 

• Five milligram and lower dosages can be particularly effective in educating consumers about THC and providing a soft entry to the category. 
• Similar to a low-alcohol drink, low THC in an on-premise venue minimizes the chances of over-serving customers, and creates the economic incentive to sell more cans.

Rather than committing to a fixed dose, it’s more about being able to play both sides of the fence with 5 mg and 10 mg options – a critical point when it comes to interstate commerce. In Minnesota, for example, 10 mg THC drinks can be sold in single cans if they are marketed as containing two servings of 5 mg each. But in Connecticut, single containers are capped at 5 mg THC and servings at 1 mg; in Kentucky, it’s 5 mg per 12 oz. can. 

By that logic, couldn’t you just make bigger cans? That’s what happened in Iowa, where Lion Bridge Brewing circumvented the state’s 4 mg per 12 oz. can limit by putting 5 mg THC in a 16 oz. can (it would take a 30 oz. can to get to 10 mg). That’s not a problem for Michigan’s Uncle Skunks, which packs an eye-watering 100 mg THC per 12 oz. can, listed as four 3 oz. servings of 25 mg each.

Really, it’s the same kind of format-flexing innovation that has brought canned brands like Brez, Cann and Nowadays into the higher-ring multi-serve space as of late. Whatever your favored dosage or vessel, it’s nice to have options. 

For more on Tilray’s move into the higher THC space, BevNET Insiders can read the full story here.

Work with the team behind hundreds of successful beverage launches. From formulation to production, BevSource provides the strategy, insights and execution you need to move faster, avoid costly missteps and scale with confidence. Let us turn proven know-how into first-time-right execution for you. Learn more

A Florida judge is not too happy with Jack Owoc after the Bang Energy founder filed documents, apparently written by AI, that cited nonexistent cases.

• The incident occurred in a lawsuit filed against Owoc by Monster Energy seeking to enforce the $377 million judgment it won against him in its 2022 false advertising case.
• Owoc, who is representing himself, apologized to the court for the incident, claiming that financial hardship has forced him to rely solely on free internet sources for his legal filings and that he did not intend to mislead the court.
• He now faces a potential ban on making new filings without permission as a result.

He’s not alone: Since the launch of ChatGPT, attorneys have repeatedly made the same error, leading to sanctions and serious reprimand from judges for failing to review their filings.

Insiders can read more about the incident on BevNET.

Uncle Nearest Premium Whiskey faces an uncertain future as a judge weighs its lender's request for a receiver to seize control of the company's operations.

The legal drama began late last month when Farm Credit Mid-America, a primary agricultural lender, sought the emergency appointment of a receiver to take over operations at Nearest Green Distillery. 

In court last week the two parties made their cases – with Uncle Nearest’s defense arguing a receivership would be catastrophic to the brand. But the company did not refute that it is in default for over $100 million in loans and will not be able to make its upcoming payment. 

For now, the judge has ordered to preserve the collateral in question – primarily whiskey barrels – and has issued a gag order prohibiting both parties from making public statements, including to the press and on social media platforms. 

Read the full story on BevNET.

On Thursday, August 14, from 5 to 7 p.m. CT, we’re partnering with Hoste Cocktails, InvestBev, Ingredion, and Sorse Technology to bring the food, beverage and beer communities together in Chicago, and we’d love for you to join us.

• This is a chance to connect with local founders, operators, and investors who are building and backing some of the most talked-about food and beverage brands. 
• Leaders from Lemon Perfect, S2G Investments, Chomps, Tonic Ventures, Supply Change Capital, and more are already signed up.

It's free to attend, but space is limited. RSVP for free here.

Lifeway Foods’ drinkable kefir and farmer cheese posted strong volume growth and were cited as primary drivers of the company’s record sales in the Q2, per an earnings report this morning.

• Confident that its growth strategy is paying off, the company is reiterating its long-term target of $45 million to $50 million in adjusted EBITDA for fiscal year 2027.
• Lifeway said it expects to deliver the strongest annual sales growth in company history in 2025. 
• The strong results come after French dairy giant Danone has made a third attempt to acquire the business.

💬 “The results speak for themselves, with continued investments behind our key Lifeway-branded products, alongside the growing consumer embrace of health and wellness, we are well-positioned to continue this incredible momentum through the back half of the year,” said CEO Julie Smolyansky during a call discussing the results. 

Insiders can read the full earnings recap on BevNET.

Kroger has settled a lawsuit with C&S Wholesale Grocers that the latter company had filed earlier this year, alleging it was owed a $125 million fee following the termination of the Kroger-Albertsons megamerger agreement. 

• In 2024, C&S entered into a definitive divestiture agreement with Kroger to acquire up to 579 stores. The move was part of Kroger’s attempt to gain FTC approval for its proposed $24.6 billion merger with Albertsons. 
• In a Delaware Superior Court filing, the companies said they have resolved all claims in the litigation. Terms of the settlement were not made public.  

Actor Wyatt Russell – best known for his role as U.S. Agent in the Marvel film “Thunderbolts” – and producer Richard Peete pull back the curtain on their journey launching Lake Hour, a fast-growing canned cocktail brand that’s making waves far beyond the red carpet.

Tune into the full episode. Also available on Spotify and Apple Podcasts.