Welcome Note

Welcome Back Gardeners to the 102nd edition of Herbal Profiles!

In this week’s edition, I get into what I see as the next major growth stage for hemp-derived beverages: on-premise adoption. Liquor stores have already proven the category can thrive in traditional alcohol channels, but bars, stadiums, and venues remain the inevitable next step to true mainstream reach. Two leading founders share why this leap matters, the insurance and regulatory roadblocks that stand in the way, and how the industry can prepare now to seize the opportunity.

I’ve also rounded up this week’s key headlines from across the space, from major funding news to notable brand expansions and policy moves shaping the category.

And don’t miss the latest episode of the Free Spirits Podcast. 

Let’s get into it.

-Lars

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News Roundup

• Cannabis drinks are growing in popularity — and could soon be available at bars and restaurants - Business Insider outlines how evolving regulations could bring THC beverages into bars and restaurants. The piece explores the intersection of hemp laws, alcohol regulations, and consumer demand as the sector continues to mature.

• Now or Never for THC Drinks - VinePair examines the urgency facing THC beverage brands as they navigate complex regulations and try to win shelf space in both retail and hospitality. The article highlights investor hesitation, distribution hurdles, and the narrowing window for breakout growth.

• Are cannabis drinks losing their buzz? - The Hustle questions whether the cannabis beverage category is slowing down. It points to data showing plateauing interest from consumers and investors, while noting continued innovation and competition within the space.

• THC On Tap: Cannabis-Infused Drinks On Draft Now Offered In 3 States - THC beverages are now being served on draft in select venues across California, Minnesota, and Nevada. The article details how on-premise sales are expanding and what infrastructure and regulatory conditions make this possible.

• Tilray Revamps U.S. THC Drinks With Higher Dosage Options - Tilray is relaunching its U.S. THC beverage portfolio with updated formulations featuring higher THC content. The company is targeting experienced consumers while responding to feedback about taste and potency.

• Uncle Arnie’s Raises $7.5M, Targets Category Leadership in THC Drinks - Uncle Arnie’s has secured $7.5 million in Series A funding to expand production, retail partnerships, and marketing efforts. The brand aims to solidify its position as a leader in the high-dose THC beverage segment.

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On-Premise Is the Next Growth Stage for Mainstream THC Beverage Adoption

Walk into the right liquor store and you’ll see it: THC beverages sitting next to beer and RTDs, and moving. This is something we all already know. And that reality tells you everything about where the category belongs in consumers’ minds. The next leap is putting those same THC beverages in the places people actually drink: bars, music venues, festivals, and, eventually, stadiums. We have already seen this play out, just on a small scale vs a huge venue thus far. It is the channel that will turn a fast-growing niche into a normal, sessionable part of social life.

Two macro currents make the timing undeniable. First, alcohol is on the decline with record-low 54% of U.S. adults say they drink alcohol, and a majority now consider even “moderate” drinking unhealthy.  Second, regulated cannabis familiarity plus legal access to hemp-derived products has reframed the category from “edible alternative” to “drink you can hold.” The consumers are ready for this, but can we unlock on-premise responsibly and at scale.

What insiders are actually seeing on the ground

From two separate conversations with leading operators:

• A founder described a live-venue pilot where their low-dose THC drink outsold every other beverage, beer, wine, spirits RTDs, water, energy drinks, during a two-hour service window. The team’s takeaway wasn’t just velocity; “success” also meant no incidents and smooth compliance, exactly what venue operators and insurers care about.

• Another founder building a sessionable THC beverage framed the north star clearly: stadiums. Their launch approach is local-first (non-infused taste trials, then hemp rollouts where legal), with on-premise as the brand’s cultural home, because that’s where pacing, community, and responsible consumption can be modeled in real time.

Both founders independently made the same call: on-premise is the next big growth multiplier, and the biggest current bottleneck.

Why on-premise THC drinks fit hospitality’s operating system

Ritual and pacing. Low-dose formats (2–5 mg per serving) translate the round-by-round cadence that already powers hospitality economics. Patrons don’t buy “a buzz;” they buy time, another round with friends, another intermission drink. Where retail often rewards higher dose for value, on-premise rewards sessionability and repeat orders.

Education in the moment. At a venue, staff can set expectations on onset and dose, recommend a second round at the right interval, and answer questions. That’s impossible at retail and far more persuasive than a back-of-can explainer.

Crowd management benefits. Operators repeatedly flagged fewer alcohol-adjacent externalities (rowdiness, conflict) during THC drink activations compared with similar alcohol service windows. One venue partner told a founder their metric of “success” was zero incidents, and THC beverages helped them hit it.

Founders who have worked both regulated and hemp channels emphasized the same operating lesson: on-premise dose should lean low, not because high-dose products are “bad,” but because hospitality lives on velocity and safety. A 10 mg single-serve that sells at retail may stall at a bar; two 5 mg pours, or one 2–3 mg and a follow-up, fit both the guest experience and venue policy better.

The real blockers (and how to de-risk them)

1) Insurance and liability (the make-or-break).

This is the operator’s first (and last) question. Practical de-risking playbook operators are using:

• Policy mapping: confirm GL + product liability do not exclude hemp/THC; secure event-specific endorsements where needed; clarify whether liquor liability policies treat THC as “intoxicants.”

• Indemnification stack: brand → distributor → venue. Standardize COIs, name insureds, and carry vendor agreements that specify dose caps, ID procedures, and service cutoffs.

• Service controls: cap per-transaction milligrams (e.g., ≤10 mg per guest per hour), set no-mix or time-separation rules for alcohol/THC cross-consumption, and require ID scanning.

• Documentation: batch COAs via QR on menus; maintain incident logs; pre-event staff briefings and post-event debriefs filed with ops and insurers.

2) Staff training (no cannabis TIPS…yet).

There’s no universal cannabis equivalent of TIPS/ServSafe. Leading groups are building house SOPs: dose ladders, talking points on onset, “when to suggest a water,” refusal scripts, and a red-flag checklist (visible impairment, poly-use concerns). One founder predicted a TIPS-style cannabis module will emerge—and early adopters will look like the adults in the room to regulators and carriers.

The science operators actually cite in approvals

Debates about impairment will outlast this cycle, but nuanced evidence helps win internal approvals. A recent study of frequent medicinal cannabis users who ingested THC oil found no measurable decline in hazard-perception performance versus baseline. Participants compensated by choosing slower speeds and longer following distances, mirroring what many operators observe anecdotally in venues: calmer guests and fewer escalations. (I and no one is suggesting that anyone consume these drinks and then get behind the wheel, but the study was interesting. Be safe and responsible though please)

Balance that nuance with common-sense guardrails and signage (“Do not drive after consuming THC,” ride-share promos, etc.).

The category’s tipping point—told by operators, not theorists

One founder believes we’ll see near-universal on-premise availability within three years, including in sports venues. Whether that takes 18 or 36 months depends less on consumer demand (it’s there) and more on how quickly brands and venues standardize insurance, SOPs, and training. The upside is obvious: a channel where THC beverages can be sampled, explained, paced, and celebrated.

When THC beverages can be ordered at the bar with the same ease and confidence as a light beer, the category won’t just be “accepted.” That’s mainstream adoption. And it’s an operating problem we can actually solve.

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