Businesses are rushing to quench the growing thirst for THC-infused beverages despite a hazy regulatory environment in Georgia.
At Grapes & Grains in Chamblee, Ty Dealy cordoned off a portion of his upscale liquor store and created a new business called Good Vibes. It opened July 12, occupying a small storefront decorated in wood planks.
A banner now pushed into the grass declares, “THC and CBD drinks sold here!” Dealy didn’t want to fork over thousands for an official sign.
“This could change at literally any minute,” Dealy said, referring to looming policies that could potentially squash the budding industry.
Credit: Source: Good Vibes
Credit: Source: Good Vibes
Though recreational use of marijuana has been legalized in many states, it remains illegal under federal and Georgia law.
The harvest of hemp, which is the same plant species as marijuana, has been permitted under federal law since 2018, but it’s up to state governments to police hemp goods that contain THC or other psychoactive compounds.
A 2024 Georgia law limits sales to customers over 21, requires product testing and bans smokeable products.
A failed bid by some lawmakers this past legislative session to ban the hemp-derived beverages on public safety grounds isn’t impeding a proliferation of new THC drinks. A hemp beverage expo in Atlanta earlier this month drew more than 1,200 people, where several companies shrugged off worries they could one day be shut down.
“Concern is built into our blood,” said Christopher Lackner, founder and president of the Hemp Beverage Alliance, which organized the expo held downtown.
“It doesn’t worry me. It’s an expectation,” said Mary Eggers Bernuth, co-founder of Montana-based Pharos Brands. In August, she said the company will begin distributing its THC-infused sparkling beverages in Georgia.
“It’s an emerging industry,” she said. “We all expect constant pivoting and movement.”
A flurry of new products
At the hemp drink expo, beverage makers showed off THC-infused cold brew coffee, red wine, pre-packaged margaritas and beers.
“Everybody’s trying to come up with which verticals make more sense,” said Sam Garfinkel, a senior vice president of commercial operations and strategy for Tilray Brands. The Canadian cannabis and alcohol company owns Georgia breweries SweetWater and Terrapin.
Tilray has launched two THC-infused drinks: seltzer Fizzy Jane’s and cocktail brand Happy Flower, now sold at Total Wine & More in Georgia.
Many new drinks come in low doses. California-based brand Dad Grass launched drinks with 3 milligrams of THC, adding adaptogens (substances to manage stress) such as Lion’s mane mushroom and amino acid L-theanine.
“You can get home from work, have a nice, relaxing, slightly buzzing beverage,” Dad Grass co-founder Ben Starmer said. “And you’re not too stoned to do the dishes.”
A shaky legal environment
Federal law allows hemp-based products such as drinks and gummies that have less than 0.3% delta-9 THC.
The hemp industry now is seeing increasing oversight and regulation.
Last month, Texas tried to nix consumable hemp products but the state’s governor vetoed the legislation.
“If one of these big Southern states bans it, Georgia may then do the same thing,” said Omari Anderson, founder of Atlanta-based The Best Dirty Lemonade, a THC-infused twist on a favorite summer drink.
Federal lawmakers are eyeing new regulations. This month, the Senate Appropriations Committee approved a provision in a spending bill to ban hemp products. That followed a similar measure by a House committee in June.
Hemp Beverage Alliance’s Lackner called the legislative efforts “concerning.” But for now, he said, “we remain at the status quo.”
Industry opponents point to the intoxicating effects of THC drinks and worry children could access the products.
“It is our understanding that hemp-derived, high-THC products can lead to traffic deaths, addiction, violence and psychotic episodes,” said Mike Griffin, public affairs representative for the Georgia Baptist Mission Board, which supported the recent legislative ban effort.
Some alcohol and pharmaceutical companies view hemp beverages as competition, said Duane Stanford, editor and publisher of trade publication Beverage Digest.
“The beer industry is wrestling with whether to beat them or join them,” he said.
Skyrocketing demand
The scrutiny comes as demand skyrockets for hemp beverages as an alternative to alcohol.
The World Health Organization says no level of alcohol consumption is safe for a person’s health, and young people are drinking less today.
Meanwhile, almost 90% of U.S. adults think marijuana should be legal for medical or recreational use, according to the Pew Research Center. Marijuana use among adults, both young and older, has doubled since 2013, according to Gallup.
“This is the biggest cultural change in adult beverages since Prohibition,” Lackner said.
Scofflaw Beverage Co., best known for its beer, launched THC-infused beverages last year. Now in all three of the company’s breweries, it’s become the top-selling product, said co-founder Matt Shirah.
“There’s been such a seismic shift in what the consumer wants,” Shirah said.
He warns jobs are at stake if Georgia looks at another ban.
“They can either catch up or people will drive to Alabama,” he said.
At Grapes & Grains, Dealy said he felt he had no choice but to invest in the THC drink business. He’s planning to add another to his Johns Creek location.
Right now, liquor stores can’t legally sell the drinks. That’s why he walled off an area. But it could easily be torn down if the industry collapses.
“We defensively needed to do it and keep our customers,” he said. “It should be as big as our beer area.”
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