Jake Bullock, co-founder & CEO of Cann (a social beverage containing Delta-9 THC and CBD), urged Vibe Conference attendees to get ready for the "fifth drink category" during his breakout session, "The THC Beverage Opportunity."
The session explored the cannabis beverage category, which is rapidly expanding into on-premise venues, with hemp-derived THC beverages creating new revenue opportunities and changing consumer behavior. Bullock emphasized that operators who sit on the sidelines risk being left out of frameworks that could define access and profitability for years to come. Here's a recap of what was covered in this future-looking session.
What are THC Beverages?
The most important distinction to be aware of is hemp-derived THC versus THC from marijuana.
While the 2018 Farm Bill resulted in a loophole that allowed for hemp-derived THC beverages, it expired on September 30, 2023. Congress has passed multiple one-year extensions to prevent a lapse in programs, with the current extension keeping the 2018 provisions in place through September 30, 2025.
Bullock said this creates a 12-month window for the industry's "good actors" — brands and operators building responsibly — to establish the framework for an alcohol-style regulatory model that opens mainstream multi-outlet retail to THC beverages. Congress has signaled support for low-dose THC products, and there is strong bipartisan support for 2.5mg and 5mg dosing thresholds — but not for 10mg and above.
The Fifth Adult Beverage Category
Adult beverages can be separated into the categories of beer, wine, spirits, and RTDs — and now THC beverages. Bullock acknowledged that THC beverages aren't just offering flavor innovation — they represent an entirely new product category altogether.
And this product has serious selling power in the off-premise with strong category penetration in independent liquor stores, while multi-outlet chain retail adoption is on the horizon. In fact, Cann's own sales in traditional retail — liquor stores, grocery, and on-premise — grew 273% in 2024.
Total Wine & More liquor store said, "THC drinks outsold the entire Chardonnay cateogry in Q1 2024, the first quarter of launching."
Dave Anglum, VP of Adult Beverages at Minnesota-based grocery chain Cub, called the THC beverage category potentially "the next hard seltzer or RTD drinks," and said, "it has the capability of becoming a significant category."
The Live Nation Case Study: A Wake-Up Call for On-Premise
While it's clear that THC beverages are making inroads into off-premise retail, where does this new category stand in the on-premise?
Bullock says live event venues and independent restaurants are opening up to THC/hemp drinks. To illustrate the opportunities, Bullock shared a case study of Cann's partnership with Live Nation.
The rollout began modestly with a trial run at Minnesota Yacht Club, progressed to Shaky Knees Music Festival in Atlanta, and then scaled across the Live Nation portfolio to events like III Points in Miami. At each stop, the numbers told the same story.
What the Data Showed:
- THC beverages outsold energy drinks and hard seltzers behind the bar.
- They held their own against top-selling RTDs — some of the most proven performers in the live event environment.
- Health and safety incidents were down at events where THC beverages were available.
- In post-event attendee surveys, THC drinks ranked among the top things festivalgoers said they were glad the venue had offered.
That last point deserves particular attention. In an era of hyper-competitive hospitality, guest satisfaction scores are currency. The fact that a beverage product moved the needle on attendee experience surveys — not just revenue — signals something significant about where consumer preferences are heading.
Who Is the THC Beverage Consumer?
The profile of the hemp beverage drinker doesn't match the stereotype many operators might assume. Cann broke down the demographics of some typical THC beverage consumers.
Soccer Moms (Ages 25–54, Female)
63% of hemp beverage consumers are women between 25 and 54. They are calorie-conscious, wellness-oriented, and actively seeking sophisticated alternatives that don't feel like sacrifice. This is a guest who already exists in your dining room — she's just not being served the right product yet.
Millennials (30-45)
Millennials are turning to hemp-infused beverages as a primary vehicle for relaxation, stress relief, and mental clarity. They are willing to pay a premium for brands that align with their wellness positioning — meaning strong margins are achievable.
Gen Z Young Adults (18–24)
Over 18 million Gen Z consumers now prefer hemp beverages during social events. One-in-three are also choosing hemp beverages over alcohol.
Of those ages 21-25, alcohol is still dominant with 50% of this demo having a past month incidence with alcohol. But cannabis is gaining ground with just over 25% consuming it monthly.
THC Beverages Will Eat the Non-Alc Category
The session made a bold prediction that THC beverages are coming for the non-alc category.
Today's guests are more mindful about what they're consuming, and they are drinking better and exploring alternatives. As a result, modern non-alc programs have evolved well beyond soda and mocktails — today's guests expect beverages that deliver on three dimensions: effect, sugar/calorie profile, and caffeine content. THC beverages check all three boxes in a way that traditional non-alc options simply cannot. The guests ordering those zero-proof drinks are exactly the guests most likely to convert to THC beverages once they're on the menu and properly trained staff are recommending them.
What On-Premise Operators Should Do Now
The session closed with a summary of where the opportunity sits for hospitality operators:
- THC drinks are not going away. The consumer demand, retail momentum, and live event performance data are too strong.
- Off-premise has led adoption so far, but on-premise will ultimately drive the category at scale. Your venue is where trial and conversion happen.
- Live events and independent restaurants provide the roadmap for best practices. Low-dose, well-positioned, properly staffed — these programs are already working.
- The current regulatory window is an opportunity to test and prepare. The operators building knowledge now will have a meaningful competitive advantage when multi-outlet chains move in force.
The fifth category has arrived. The question is who serves it first.
Keep an eye out for more recaps of our Vibe Conference sessions!
Contact us now to secure your program for the 2027 Vibe Conference:
Elliot Howell, Sales Director, ehowell@questex.com
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