Could low dose THC beverages be a $20 billion boom? 🍹

LOW DOSE
VCs and private equity investors are fueling the low dose THC beverage boom 🍹

Driving the news: A new crop of investors are betting on entrepreneurs and brands in the growing market of low dose THC beverages, dispelling some widespread notions that capital has dried up in the struggling cannabis industry. 

The beverage category, which is exploding in several states like Minnesota and Florida, is attracting strong interest from venture capital and private equity firms — and their cash.

Cultivated has uncovered tens of millions of dollars actively chasing hemp-derived THC and traditional cannabis beverage plays, through interviews with key investors. The fizz has bubbled up despite escalating restrictions on hemp-derived products and outright bans in some key markets, including California, Texas, and Tennessee.

What they’re saying: “We think this category will be bigger than craft beer in 10 years,” Delta Emerald Ventures Founder Ian Dominguez said. 

And: “If there’s no major regulatory oversight from the federal side this should be $5 to $10, maybe $20 billion industry over the next five to 10 years,” Listen Ventures Managing Partner Jeff Cantalupo said. 

The bottom line: Greater consumer adoption has coincided with product availability and generational shifts in alcohol and cannabis consumption. 

DoorDash last month highlighted a 19% sales jump in hemp-derived, federally compliant THC drinks and edible orders from December to the end of January, following an eye-opening announcement it would start delivering these products in early 2025.

A push to carry these types of products by regional liquor stores, such as Binny’s Beverage Depot in the Midwest, and national chains such as Total Wine & More, has significantly increased profit margins, an appealing development for investors.

Read the full story from Chris. 

-CC

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“If your company is operating in hemp, cannabis or anywhere in between, your survival depends on political advocacy — not just policy engagement. SB 3 showed us what happens when the industry stays in the shadows. Pennsylvania offers us a chance to do it differently,” Project Champion President Gretchen Gailey wrote in an op-ed for Marijuana Moment. 

Project Champion advocates for cannabis and hemp reform in the US.

California cannabis sales stumble 📉

Legal cannabis sales in California hit just over $1 billion in the first quarter of 2025, down 11% from the same quarter a year prior, SF Gate reports. The outlet says it’s the largest drop in the history of legal cannabis sales in California — another sign that the state’s industry is struggling. The licensed market supplies under 40% of the cannabis consumed in the state on average, according to the Department of Cannabis Control. 

Ohioans can legally buy more weed tomorrow 🚚

Consumers in Ohio will be able to buy up to 2.5 ounces of cannabis at once starting tomorrow, thanks to new guidelines from the Ohio Division of Cannabis Control. The new limit increased from one ounce, which has been in place since the market launched last August. The limit was originally in place to ensure that medical patients still had an adequate supply. 

Legalization qualified for Florida ballot, but might need a court order 🗳️

Smart & Safe Florida, the organization behind the last attempt to legalize in Florida, is once again attempting to get legal cannabis on the ballot in November of next year. The organization filed for a court injunction on Friday to block a new law that could hinder their petitioning efforts. The organization recently submitted more than enough signatures for the measure, but a new Florida law threatens a $50,000 fine for every non-state resident that is used to gather signatures. Smart & Safe Florida used 474 non-residents leaving them in danger of a $23.7 million fine, according to Creative Loafing Tampa. 

Maryland Governor announced new round of assistance funding 💰

Gov. Wes Moore is launching a new round of grants from the Cannabis Business Assistance Fund, which will go to winners from last October's license lottery. Previous rounds awarded more than $45 million to help social equity applicants and medical license holders when converting to adult-use. The state's Department of Commerce (DOC) has not yet released an official date for the application window to open. DOC's website for more details.

Budr acquires Canopy's three CT dispensaries 🤝

Budr, a Connecticut-based dispensary chain, announced on Monday, that it had bought out three Botanist dispensaries in the state, which is owned by Canopy Growth’s US subsidiary. With the acquisition the Botanist is still active in Massachusetts, New Jersey, New York and Ohio. Budr now has seven locations in Connecticut and one in New York. 

Vangst buys Missouri staffing company 📦

Vangst, a major recruiting platform for the cannabis industry, announced the acquisition of Missouri-based Se7en Staffing & Employment Solutions. The purchase is Vangst's third in the last year, as the company continues to grow. The company did not disclose financial terms of the transaction. 

Cannabis company alleges wrongdoing at the DEA 👀

Cannabis company MMJ BioPharma is calling for the termination of key DEA officials, alleging constitutional violations, unethical behavior, and biased enforcement practices that have stalled cannabis research. The company claims the DEA continues to operate under an unconstitutional administrative law judge (ALJ) system and favors major cannabis firms while blocking compliant research applicants. Attorney General Pam Bondi is quoted in the release as saying the Department of Justice will no longer defend the ALJ system in court — which could have implications for the stalled push to reschedule cannabis.

Nebraska Senate confirms Governor's two commission appointees 🙋

The senate voted 34-11 and 27-16 to confirm Dr. Monica Oldenburg and Lorelle Mueting to join the three members of the Nebraska Liquor Control Commission on the state’s Medical Cannabis Commission. Medical advocates in the state have raised concerns about the appointees as the governor openly opposed last fall's medical cannabis ballot measure. The Nebraska Examiner has more on the outcry.

THC Drinks Aren't The New Beer, They're Something Else, Says Tilray | Benzinga

Why veterans need cannabis rescheduling | Alabama Political Reporter

The Cannabis Fight Could Be Headed to the Supreme Court | Forbes

Cannabis Hyperemesis Syndrome | Substack