Herbal Profiles #70

Author

Lars Miller
January 03, 2025

Welcome Note

Welcome back Gardeners! Cheers to a NEW YEAR!

Well, my new Linkedin made it a whole week before getting banned for being a “duplicate” account. So I think I may just SOL as it pertains to having a Linkedin account. Will update you should anything change.

So PLEASE follow me on Bluesky, X, Facebook, Instagram, and of course Youtube, I would love to chat with you there. You also can always reach me by just hitting reply here. Another place I will be hanging out is the r/DrinkCannabis subreddit on… Reddit. So if you hang out on Reddit go ahead and join our growing community!

In case you missed it, David Gonzalez and I launched a podcast last year & the sixth episode and final show of Season 1 was released with Chris Fontes.

So be sure to subscribe on Apple, Spotify, or wherever you get listen to podcasts. Also, be sure to rate us and maybe give the Youtube Channel a follow to if that’s your jam!

Just a heads up, The Free Spirits Podcast is on break until February and then we will be regrouping for season 2. Similarly, the Founder and Creator Spotlight’s will be making a return in 2025 as well, likely next week.

Lastly, in case you happen to be really into Coffee as well, I just launched a new newsletter that will be laid out similarly to this newsletter just focused on Coffee, and more specifically the speciality coffee industry. I named it The Retired Barista as I am a former barista in a speciality coffee shop and honestly, I miss it everyday! So if I get become a millionaire I’d love to start a shop just to be able to work the bar!

High Spirits Beverages, The Original Hemp-Derived THC Drink by Free Spirits with David Gonzalez & Lars Miller

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Any comments or questions? Leave comment on this post or shoot me an email. Would love to hear from you!

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The Future of Cannabis: 8 Predictions for 2025

2024 was a whirlwind year for the cannabis and hemp beverage industries. From regulatory hurdles to market expansions, we saw the landscape shift dramatically. State-by-state battles over legality played out, acquisitions hinted at industry maturation, and consumers began to show signs of evolving expectations.

Here we are 3 days into 2025 and it’s that time of year where we look at the year ahead and offer some predictions. Here are my predictions for how cannabis, and especially hemp beverages, will evolve in 2025.

1. The Farm Bill Will Finally Be Renewed

The Farm Bill has been in limbo for years, with temporary extensions keeping hemp products alive in the market. But 2025 will likely see Congress pass a full renewal of the bill, bringing much-needed clarity to the industry. For hemp-derived beverages and edibles, this renewal is pivotal. While the broad framework will remain intact, we can expect stricter regulations around THC content, testing, and compliance. This is a double-edged sword:

Upside: Clearer definitions will protect the market from outright bans and provide a stable foundation for growth. Brands with strong compliance practices will thrive.

Downside: Small players may struggle to meet these new standards, especially if the cost of compliance increases.

What should brands do now? Prepare. Invest in third-party testing and transparent labeling. Build a supply chain that can adapt to tighter regulations. Consumers and distributors alike are demanding trust and reliability—brands that deliver will solidify their position in the market.

2. Regulatory Scrutiny Will Intensify

State-level battles over hemp-derived products will reach a fever pitch in 2025. We’ll see more states attempt to ban or heavily regulate these products, especially in regions where lawmakers face pressure from alcohol and pharmaceutical lobbies. At the same time, we’ll likely see a surge in states codifying these products into law, as Georgia and Minnesota have already done.

However, this patchwork approach creates an uneven playing field: States like California are setting a precedent with heavy-handed restrictions, while others, like South Carolina, are signaling open support. Trade groups and coalitions, such as the Hemp Beverage Alliance, U.S. Hemp Roundtable & others, will play a critical role in fighting restrictive policies.

Federal intervention may become necessary to create a cohesive framework. This could include FDA oversight, standardized testing protocols, and clearer definitions of hemp-derived THC products.

Takeaway for industry players: Engage in advocacy efforts. Support trade groups and push for sensible regulations that balance safety with market viability. This is an industry-wide effort—collaboration will be key.

3. Consolidation and Acquisitions Will Accelerate

The cannabis beverage market is primed for consolidation. In 2025, this trend will accelerate as larger players seek to dominate the market. What’s driving this?

Price compression: As margins shrink, smaller brands will struggle to remain profitable, making them attractive targets for acquisition.

Market maturity: Investors are looking for established brands with a proven track record and a loyal customer base.

I think we are poised for not only a few acquisitions, I think we will get at least 1 MAJOR one. When I say major I mean high 8 if not 9 figure acquisition. For smaller brands, now is the time to sharpen your value proposition. Be the brand that larger players can’t ignore—whether through innovative products, strong regional presence, or an unbeatable consumer connection. Which also means you need to start building an actual brand, which leads me to my next prediction.

4. The Novelty Era Will End: It’s Time for Real Brands

This may come as harsh, but for years, the cannabis beverage market has been defined by novelty. Consumers were drawn to the idea of “drinking weed,” and that novelty alone was enough to drive sales. But as the market matures, this won’t cut it anymore.

In 2025, brand positioning will be everything. Consumers are becoming more discerning, they want to know what sets your product apart. Is it flavor? Functionality? Sustainability? Authenticity?

Here’s the reality: Most brands aren’t doing this well. 

Many products feel interchangeable, with little to no differentiation. The brands that survive will be those that invest in storytelling, community-building, and clear messaging.

Actionable Insight: If your brand identity is weak, fix it now. Build a narrative around your product that resonates with your target audience. Whether it’s through sustainability, wellness benefits, or a unique flavor profile, make your product indispensable.

5. Most Big Beverage Companies Will Remain Cautious—But Not All

Mainstream beverage giants like Coca-Cola, Pepsico, and Keurig Dr Pepper will still hesitant to dip their toes into cannabis, but my 2025 prediction is that we will see a minimum of one major player make the leap. And I am calling my shot too - My bet is on Heineken.

Here’s why: Heineken has already shown a willingness to innovate, as seen with their acquisition of Lagunitas and its weed-drinks subsidiary. They understand the value of “niche-but-growing” markets and have the infrastructure to scale quickly. Not to mention they have the on-premise game on lock with their NA Beer Heineken 0.0 being the number 1 selling NA beer on the market with about 20% market share.

If Heineken or a similar player enters the space, it will validate cannabis beverages as a legitimate category, drawing more attention and competition. Smaller brands should prepare for this shift by strengthening their unique value propositions and customer loyalty.

6. Cannabis as a Wellness Staple Will Continue to Grow

Wellness is not trend; it’s a movement, and frankly has been for awhile. In 2025, cannabis beverages will solidify their place as wellness products, targeting consumers seeking relaxation, stress relief, and sleep support. Brands must step away from marketing themselves as THC drinks and instead lean into their story and their effects.

Key drivers: Product innovation: Expect more functional beverages with adaptogens, CBD, and low-dose THC.

Celebrity endorsements: Influencers and public figures will play a significant role in promoting wellness-focused cannabis products. For brands, the focus should be on storytelling - what problem is your product solving and why should consumer care? Consumers want to know how these products can improve their lives. Craft messaging that is clear, informative, and empowering.

7. Sustainability Will Be a Differentiator

Sustainability is your competitive advantage in my opinion. In 2025, cannabis brands that prioritize eco-friendly practices will stand out.

Expect: Biodegradable packaging: Recyclable and compostable materials will become industry norms.

Carbon-neutral initiatives: Companies will reduce their environmental impact through sustainable cultivation and production methods.

Consumers are willing to pay a premium for sustainability, but they also demand transparency. Brands must communicate their efforts clearly and authentically.

8. Consumption Lounges and On-Premise Sales Will Expand

The rise of consumption lounges will redefine how people engage with cannabis beverages, think Cirrus Social Club in Denver . These spaces will offer curated experiences, much like craft beer taprooms or wine bars.

Simultaneously, expect more restaurants and bars to add hemp beverages to their menus, normalizing cannabis as a social drinking option.

This dual approach will introduce the category to new audiences while enhancing its cultural legitimacy. For brands, this is an opportunity to showcase your product in a controlled, engaging environment. Partner with on-premise locations to build consumer familiarity and trust.

Conclusion

2025 is poised to be a transformative year for the cannabis and hemp beverage industries. The challenges will be significant, but the opportunities are even greater. Brands that adapt to evolving regulations, refine their positioning, and invest in sustainability and innovation will lead the charge into this new era.

The message is clear: It’s time to focus on quality, sustainability, and building genuine connections with consumers. Here’s to an exciting year ahead—let’s see how it all unfolds.

Enjoy 20% off when you use Code HERBALx20

I am going to do my best at continuing this offering, but until I can get back on Linkedin or find new ways to source these roles, I can’t guarantee I will have a healthy flow of roles available here. I will do my best though.

Let Me Help Tell Your Story

I rarely use this platform to pitch my services, but when I sat down and began mapping out my 2025 goals I wanted to set some audacious ones. One of those goals is to make 6-figures through my side-hustles. Part of doing that is I am going to need to put myself out there even more. So here’s the services I offer and should you need help I would love to work with you.

My Services

  • Photography - This is one of my passions. If you are doing a campaign launch, brand activation, behind the scenes content, etc. I love telling your story through photography. You can see my portfolio and more at www.LarsMillerMedia.com. I specialize in event photography and lifestyle/product photography. I also do behind the scenes, portrait, and more. Shoot me an email if you’re interested in working together.

  • Ghost-writing for Executives - I have a had a few clients now and they have seen great results. I worked with one client who saw over 500k impressions and sold 5-figures worth of consulting services in the 6 months we worked together. Another client received a couple job offers and interview requests from C-Suite folks, not recruiters.

    • How does it work?

      • Consultation - We will meet and discuss - what do you want to be known for, what is your goal with building a personal brand, and I will begin crafting your content pillars and setting up all your onboarding materials.

      • We will then begin to hone your brand voice/tone and map out the strategy.

      • Then we will begin putting together the content calendar for the next 30-60 days. This can/will be a multi-channel approach.

    • What type of content can I help with?

      • Social content - Linkedin, X, Bluesky, Threads, and more.

      • Newsletter & Blogs

  • Social Media Management/Community Management - need someone who is chronically online, knows the industry well, and loves yapping with strangers online? Let me manage your social media. Deploying content, strategizing with you or your internal team on how best to leverage your internal assets, and more.

Shoot me an email to [email protected] any time and we can discuss what business challenges you are facing and how I can help. This is complete free.

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