Welcome Back Gardeners to the 122nd edition of Herbal Profiles!

Happy Friday yall!

As we wrap up the first month of 2026, I hope you're all settling into the new year well.

I've been having some incredible conversations with folks in the industry lately & I can’t wait to bring some new episodes to you for the podcast! There's so much happening right now that it's hard to keep up, but that's exactly why we're here.

Today's newsletter is packed, we've got major retail moves from Circle K and Sprouts, regulatory developments in South Carolina, new research on THC onset times, and a deep dive into what might be the end of traditional Dry January as we know it. Plus all your favorite coupons and industry updates.

And as always,

Let’s get into it.

-Lars

The subreddit I moderate with Chris Fontes has over 2,100 subscribers! And my other subreddit for the broader CPG industry is also growing, going over 700 subscribers. I would love to have you join us on either or both subreddits!

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The latest episode of the Free Spirits Podcast dropped on Monday. We have Emily Onkey from Aplós joining for Dry January! Be sure to check it out, and please subscribe and leave us a review. It is free and it really helps us grow. Thank you.

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As February approaches, the dust is settling on what may have been the last traditional Dry January. While millions of Americans still participated in the month-long alcohol abstinence challenge, a new shift is occurring in how consumers approach sobriety and moderation. The rise of "Functional January" driven by THC beverages and other functional alternatives is showing a fundamental change in what people want from their non-alcoholic experiences. Which I think most of us have seen or experienced in our own lives.

Leading non-alcoholic brands have been quietly distancing themselves from the Dry January movement that once served as their primary marketing vehicle. Ghia called Dry January "cancelled… spiritually," while Free Spirits suggested it would soon feel obsolete. Recess ran a full-page New York Times ad declaring "you don't need a new you," pushing back against January's reinvention narrative (Dry Atlas).

Perhaps most tellingly, Seedlip founder Ben Branson put it bluntly: "We don't need Dry January. Drinking has changed. Choice has changed. The options are better, ALL YEAR ROUND".

This messaging shift reflects a deeper understanding of consumer psychology. As Aplós co-founder Emily Onkey predicted, Dry January may soon feel "passé" as people adopt more fluid relationships with alcohol reduction. The month-long challenge format feels increasingly blunt and unsustainable to consumers who want moderation tools, not temporary deprivation.

The data supports this evolution. I have seen multiple brands own research showing how over 90% of respondents identified as alcohol drinkers, not abstainers.

I hear this all the time when I talk about NA beer “why would I pay the same for a worse tasting beer that won’t make me feel anything?” And while I wildly disagree with the sentiment personally, it’s a very common refrain. But THC drinks and other functional alternatives are thriving by delivering what consumers actually want: the ability to alter their mood and state.

The numbers are striking. At Top Ten Liquors, a Minnesota alcohol retail chain, "in the first week of January, all adult non-alcoholic drinks combined, NA beer, NA wine, NA RTDs, etc. generated fewer unit sales than each of the top 10 THC beverage SKUs individually" (Sightlines). Even the #10 THC item outperformed the entire NA category in unit sales during traditionally peak Dry January marketing efforts.

"January is one of the slower overall months [for us], but THC jumps," says Jon Halper, Top Ten's owner and CEO. "January is one of the strongest months of the year for THC beverages and edibles as a percent of sales".

The broader functional beverage market is exploding. Sales of THC beverages reached roughly $850 million last year and are expected to hit around $4 billion by 2028.

If you’re reading this newsletter you are already intimately familiar with the regulatory issues we are facing. However, some industry leaders view this as an opportunity rather than a crisis. Wynk co-founder Angus Rittenburg calls the hemp ban "a bit of a gift," predicting it will create "an immense squeeze on the category" that flushes out bad actors (The Daily Pour).

"There are a lot of brands that don't deserve to exist, not because they're not good people, but because their products aren't done right: they're not safe, they're not marketed effectively," Rittenburg explains. He points to 100-milligram drinks sold through liquor stores and products with identical packaging but wildly different dosages as examples of the regulatory chaos that needs addressing.

Successful companies are focusing on several key areas:

Efficacy over novelty: Products must deliver measurable effects, not just interesting flavors or packaging.

Quality imperative: Lab testing, proper dosing, and safety protocols are a must. The regulatory environment will only accelerate this trend.

Consumer education: Helping people understand dosing, onset times, and effects. Research shows THC beverages typically take effect within 11-40 minutes and last 1-3 hours, but many consumers remain unclear about these basics.

As we move into February, the industry faces a critical juncture. The most successful brands will likely be those that embrace the complexity of modern consumer desires, people who want to moderate alcohol consumption without sacrificing social connection, mood enhancement, or sensory pleasure.

The regulatory landscape will continue evolving, potentially creating opportunities for serious players while eliminating fly-by-night operators. The brands that understand this evolution and adapt accordingly will define the next chapter of the beverage industry.

For consumers, the message is clear: the future of moderation is about doing better. Whether that means a 5mg THC seltzer, an adaptogen-infused tea, or a carefully crafted non-alcoholic cocktail, the goal remains the same: feeling good without the downsides of traditional alcohol.

As February begins, one thing is certain: the conversation around sobriety and moderation will never be the same.

Enjoy this Newsletter? You’re in luck, I run a couple others. Check them out below!

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