MINNEAPOLIS, MN — A minor legal clause has ignited a significant boom in Minnesota’s hemp derived THC beverage market, revolutionizing consumer engagement with cannabis products. Following the passage of legislation in May 2022 permitting the sale of hemp-derived THC edibles and beverages in mainstream retail outlets, the state has witnessed an explosion in the availability and popularity of these products.
The new law, effective July 1, 2022, allows beverages containing up to 5 milligrams of THC per serving and a maximum of 10 milligrams per package to be sold without the stringent regulations typically associated with cannabis products. This legislative change has enabled breweries, taprooms, and retailers to serve THC-infused drinks alongside traditional alcoholic beverages, significantly altering Minnesota’s cannabis landscape.
Market Growth and Consumer Demand
Local businesses have responded overwhelmingly positively. Taprooms like Headflyer Brewing in northeast Minneapolis have eagerly embraced the opportunity to offer THC beverages on tap, allowing consumers to sample products in a social setting. “This move allows consumers more flexibility to sample and savor the beverages on-site, making it a more accessible option compared to buying a whole can,” said Dan Schnabel, taproom manager at Headflyer Brewing.
According to the Minnesota Department of Revenue, the state generated over $11.5 million in revenue from hemp-derived THC product sales between July and May of this year. The relaxed regulations have led to nearly 3,900 businesses selling hemp-derived goods by mid-June, with projections indicating that Minnesota could achieve annual cannabis sales nearing $1.5 billion by the end of the decade.
A New Era for Cannabis Beverages
The burgeoning market has attracted not only seasoned cannabis consumers but also new demographics, including non-smokers and older adults. Industry insiders report that the availability of low-dose THC beverages has helped demystify cannabis for many consumers, making it as accessible as purchasing alcohol.
Leili Fatehi, a partner at Blunt Strategies, noted, “It has exposed an entire state of consumers to the fact that they can purchase these products the same way they can purchase alcohol. And the sky hasn’t fallen.”
Future of Cannabis in Minnesota
As Minnesota prepares for the upcoming legalization of recreational marijuana sales, the state is well-positioned to leverage its existing hemp-derived THC market. The establishment of the Office of Cannabis Management and the ongoing development of regulatory frameworks will further shape the landscape for cannabis products in the state.
With the groundwork laid for a thriving market, Minnesota’s experience serves as a model for other states considering similar legislative changes. As interest in hemp-derived THC beverages continues to grow, the state is poised to lead the way in creating a regulated and accessible cannabis marketplace.
Stakeholders are optimistic about the future of cannabis in Minnesota, anticipating that the momentum generated by this legal clause will pave the way for continued innovation and growth in the industry.
