Big Alcohol Plans Entry into $1 Billion Hemp THC Drink Market

Major alcohol companies, including Constellation Brands and Pernod Ricard, are exploring entry into the rapidly growing cannabis beverage market, particularly focusing on THC-infused drinks derived from hemp, which can be sold legally in many U.S. stores unlike marijuana-derived products restricted to dispensaries. These companies have been cautious due to past unsuccessful cannabis investments but see new opportunities as traditional alcohol sales decline amid rising inflation, interest rates, and changing consumer behavior following the pandemic drinking surge. Hemp-based THC beverages offer a lucrative but risky alternative to conventional alcohol, with some alcohol producers actively researching and negotiating potential investments in this segment. Despite regulatory complexities and public health warnings about alcohol consumption, the appeal of high-margin cannabis drinks has attracted interest from major players like Corona brewer Constellation Brands and Absolut vodka distiller Pernod Ricard. This shift reflects a broader strategic response by Big Alcohol to recapture market share lost to emerging cannabis brands and adapt to evolving consumer preferences. The trend signals an ongoing transformation in the beverage industry as traditional sales challenges combine with the growing acceptance of cannabis products.