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Welcome Note

Welcome back Gardeners!

The Free Spirits Podcast with David Gonzalez and myself is back for Season 2 and episode 5 dropped last week featuring Douglas Fulton!

So be sure to subscribe and rate/review the show! It really does help us grow!

You can find us on Youtube, Apple, Spotify or wherever you get your podcasts!

I hope you enjoy this week’s newsletter

And as always, my email is open!

-Lars

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

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News Round Up

What’s Behind U.S. Surge of THC Beverage Launches?

The U.S. is experiencing a significant increase in THC-infused beverage launches. Major cannabis companies like Trulieve, Curaleaf, and Green Thumb Industries are introducing hemp-derived THC drinks as federal cannabis legalization remains uncertain. These beverages are marketed as non-alcoholic alternatives for social events, with flavors such as sea salt margarita and peach bellini. The market for hemp-derived THC products is projected to reach $14 billion, attracting interest from major alcohol companies.

Ohio Senate Bill Targets Hemp-Derived THC Products

Ohio lawmakers are considering legislation that would impact the sale of hemp-derived THC products, including Delta-8 THC. The proposed Senate bill seeks to regulate these products more strictly, potentially affecting their availability in marijuana dispensaries. Supporters argue that the bill would enhance consumer safety, while opponents express concern over limiting access to legal hemp products.

Michelle Salzman Says Hemp Regulation Is Dead — But It Needs to Be Revived, Like Right Now

Florida Representative Michelle Salzman has declared that current efforts to regulate hemp products have stalled, emphasizing the urgent need to revisit and implement regulatory measures. The lack of regulation has led to concerns about unregulated products, particularly those appealing to children. Salzman advocates for a framework that includes THC caps, packaging restrictions, and sales limitations to ensure public safety.

Rebel Rabbit Blackberry Lemon

Rebel Rabbit has introduced a new limited-release flavor, Blackberry Lemon, as part of its Lab Rabbit Innovation Program. Each can contains 10 mg of THC and 40 mg of natural caffeine, offering a unique combination of effects. The product includes a QR code for consumer feedback, allowing customers to influence future product development. This initiative reflects the brand’s commitment to innovation and community engagement. 

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Why Regional Strategy—and the 3-Tier Debate—Will Define the Future of THC Beverages

If you’re building a THC beverage brand in 2025, national expansion is not just a marketing puzzle, it’s a legal obstacle course, that seemingly changes daily.

New data from Brightfield Group shows that Delta-9 now leads in buyer demand, and cannabis drinks are one of the fastest-growing THC formats in the U.S. But here’s the catch: those sales don’t look the same in every state, and neither does the law.

While founders debate brand voice and flavor profiles, policymakers are deciding something far more foundational: how, and where, your product can be sold.

That’s why this week’s Hemp Beverage Alliance meeting felt like a turning point. States like Massachusetts, Texas, and Nevada are each weighing new legislation that could reshape distribution forever. At the heart of it all is a question no one can avoid:

It sounds simple. But under the surface, that question touches every part of the business: access, pricing, partnerships, equity, consumer trust, and brand survival.

Let’s explore what’s happening, and what’s at stake.

State-by-State Breakdown: How Policy Is Shaping the Shelf

Massachusetts: Regulate Like Alcohol

Massachusetts’ HD 3303 and SD 2494 would restrict THC drinks to 5mg per container and treat them like alcoholic beverages, meaning no direct-to-consumer (DTC) shipping, and distribution solely through licensed alcohol retailers.

Upside:

• Access to a robust retail network

• Potential mainstream consumer legitimacy

• Easier enforcement through existing infrastructure

Downside:

• DTC is cut off, a key lifeline for small brands

• Liquor store placement doesn’t guarantee education or fit

• 5mg cap limits product innovation

Texas: Ban or Box In?

Two competing bills are moving through the Texas legislature:

• SB 3 would ban nearly all cannabinoids except CBD and CBG, wiping out 90–95% of the market.

• HB 28 would legalize THC beverages, but only through the three-tier alcohol system, removing DTC and placing oversight with the Texas Alcoholic Beverage Commission.

This is regulation with serious strings attached.

Texas brands wouldn’t be able to build localized sales channels. Instead, they’d be locked into liquor distribution, even if their target demo shops online or at specialty wellness stores.

Nevada: A Fork in the Road

Nevada’s SB 356 currently prohibits detectable THC in consumable hemp products. But there’s a push to amend the bill and allow:

• Sales wherever alcohol is sold

• A 10mg THC cap per beverage

• A 5% excise tax

• Oversight from the state’s cannabis board

Whether Nevada becomes a model for sensible regulation or a cautionary tale depends on what happens in the next six weeks.

Should THC Drinks Be Distributed Like Alcohol? The 3-Tier Debate

Let’s unpack the pros and cons of placing cannabis beverages into the alcohol model.

✅ The Case For

1. Instant Infrastructure

The alcohol system is well-established. Licensed distributors already deliver to bars, liquor stores, grocery chains, and convenience stores nationwide. Tapping into that system gives cannabis beverages immediate retail scale. In addition to mainstream acceptance. This can help reduce the stigma around the plant and welcome in a whole new demographic to the category.

2. Shared Consumer Rituals

Cannabis drinks mimic the rituals of beer, wine, and seltzers. Flavors, carbonation, social settings. They belong in the same aisles and coolers. Alcohol-style regulation gives them the legitimacy and visibility they need. It also welcomes many potential new consumers to the category in places they may have drank alcohol or simply water.

3. Distributor Motivation

Alcohol distributors are looking to backfill declining beer sales. They want new categories, and cannabis beverages could be the next revenue stream. It also gives them even more control and power over the category and the shelves.

⚠️The Case Against

1. Power Concentration

The three-tier system adds a gatekeeper between brands and consumers. It benefits large players who can pay for placement, but limits emerging brands who thrive on nimble DTC strategies and retail education. The DTC aspect of this, while in the long run may not be a huge segment it gives brands access to consumers as they build their brand.

2. Lack of Fit

THC drinks aren’t alcoholic. They’re subject to dosage, onset time, and ingredient considerations that alcohol retailers often don’t understand. Forcing them into this system risks mismatched oversight and poor consumer experience.

3. No Room to Grow

Locking into the alcohol model now could stall future innovation. As science advances and consumer preferences evolve, the 3-tier system may not offer the flexibility this category needs long-term.

Coexistence > Competition

It’s tempting to build a brand by tearing down alcohol, calling out sugar content, hangovers, and health risks.

Data supports this too. Alcohol is facing backlash from Gen Z, public health organizations, and even the U.S. Surgeon General.

But here’s the thing: cannabis beverages don’t win by being anti-alcohol. They win by being better in certain moments, not by tearing down a category they often rely on for distribution.

This idea was broken down beautifully by Daniel Crocker in a recent Spill the THC piece, where he argues that “being anti-something is not a platform.” If THC beverages want to earn the trust of consumers, distributors, and regulators, they need to frame themselves as an opportunity, not a threat.

In fact:

• 70% of cannabis users also drink alcohol (BDSA)

• Many THC beverage consumers switch situationally, choosing infused drinks for a quiet night or a midweek wind-down

• The biggest growth opportunity isn’t in conversion, it’s in coexistence

Distributors, retailers, and policymakers will support cannabis beverages that offer new choices, not new enemies.

Regulation Over Prohibition

When politicians call these products dangerous, what they’re often reacting to is a lack of control, not a lack of safety.

But the solution isn’t prohibition. It’s sensible, enforceable regulation:

• Dosage caps

• Lab testing

• Clear labeling

• Retail licensing

• Age restrictions

That’s what smart policy looks like. And it’s what good actors in the space already want.

The longer we resist building that framework, the longer we leave room for fear-based bans like SB 3 in Texas, or sweeping prohibitions like Nevada’s initial draft of SB 356.

Final Take: Local Strategy Is National Strategy

From a distance, this might all look like patchwork policy.

But for those of us in it every day, it’s a clear trend: your brand’s success will depend on its ability to navigate local rules, local retail, and local narratives.

Because storytelling isn’t just what you say.

It’s where you say it, and how well you understand the ground you’re standing on.