Photos courtesy of Crooked Beverage Company
Over the last year, Minnesotans have been graced with benefits of the legal sale and consumption of hemp derived THC edibles and beverages. The result was an explosion of options showing up in local hemp and smoke shops. Even a few liquor retailers jumped the gun and got onboard ahead of the amended regulation that passed and was signed into law a little over a month ago.
After a year of confusion and increased availability that now spans thousands of retail outlets, restaurants, and bars, the consumers and market have started to mature, and a few trends are emerging that provide great insight into what the future of legal cannabis sales might look like here in Minnesota.
Current consumers (by and large) are targeting higher-potency options for at-home consumption while on-premise sales from restaurants and bars are driving a lot of lower-dose volume. The reason is twofold.
The consumers targeting higher-potency products are more often people that have a history with THC and have a stronger comfort level with the effects. Our research shows that many of these consumers are going to transition to full adult-use cannabis dispensaries once they are established as the ability for them to get the highest of the high will be in the consumption of marijuana-derived products vs. hemp.
The consumers that have been waiting for the right opportunity to experience THC-infused drinks have been waiting for tasty options that are available at the locations they already frequent. These consumers are less likely to walk into a dispensary and register themselves as an approved buyer by providing their government-issued photo ID. The truth is these consumers are truly looking for an alternative to alcoholic beverages or maybe are among the 18% of the of-age population that does not drink alcohol. Regardless of the reason, these consumers are more likely to pick a favorite and remain loyal customers even after a full adult-use recreational market is operational in Minnesota.
The popularity of the lower-dose options is felt especially strongly with one of Minnesota’s favorite (from what we’ve been told and our direct experiences) THC-infused beverage companies, Crooked Beverage Co., an Eden Prairie-based player composed of a few cannabis industry executives and a very well known politician here in the state. Crooked has been offering its 3 mg tonics to retailers and restaurants across the state and have popped up in more than 500 locations since inception earlier this year.
The company offers three flavors of THC-infused tonics: Berry Hibiscus, Strawberry Basil, and Blood Orange. The tonics are offered in 3 mg, 5 mg and now 10 mg options. “The ability to offer lower dose options at restaurants and bars has ensured that our restaurant partners are maintaining the average sales numbers they had with alcoholic drinks vs selling higher dose options that have many complaining that what used to be a 4 drink tab has become a 1 drink tab,” said Maddie Schenk, co-founder and CMO of Crooked Beverage Co.
“Additionally the presence of lower-dose options in your favorite liquor retail store has provided new or considering consumers with options to dip their toe in without falling in. Furthermore people are looking to consume our tonics socially and potentially have several in a sitting—on pace with others in the setting consuming an alcoholic seltzer, cocktail, or a beer.”
The truth is, Minnesota is leading the way in functional beverages with this low-potency hemp-derived marketplace, and we see many other states hopping on board with the two-tiered system in the not too distant future. So next time you are browsing the isles for the perfect cooler items for a day on the boat, consider more cans and fun vs. ONE-AND-DONE!
