Red State Weed: How Rebel Rabbit is carving out a THC beverage niche in the bible belt

In a red state known more for bourbon than buds, cannabis beverage company Rebel Rabbit is taking a bold leap into hemp-derived THC beverages — and they're not just surviving, they're thriving. 

On a recent episode of Cultivated Live, Jay and Jeremy sat down with Billy Goldsmith, co-founder of Rebel Rabbit, to unpack the origin story, market challenges, and evolving audience of one of the South’s fastest-growing cannabis beverage brands.

1. From sobriety to social THC

The Rebel Rabbit origin story begins at a brewery. Goldsmith, then newly sober, noticed how alienating it was to socialize without a drink in hand. 

“I did have a vape in my pocket,” he said, “but it was frowned upon to be lurking around sucking on the vape.” That lightbulb moment led to a big idea: What if you could make cannabis consumption as social and accepted as beer, but in a beverage form?

With a brewing and distilling background, Goldsmith and co-founder Pierce Wiley spent nearly two years developing a hemp-derived THC-infused seltzer that could serve as a sociable, alcohol-free alternative.

2. Pushing boundaries in the Deep South

Rebel Rabbit’s journey wasn’t without resistance — especially in South Carolina, where the brand is based.

 “People thought we were absolutely crazy,” Goldsmith said, referencing early retailer skepticism about legality and consumer response. Yet they persisted, even lobbying at the state level to shape more favorable hemp laws.

Despite operating in what Goldsmith called “Reefer Madness territory,” Rebel Rabbit products are now found in over 700 retail locations in South Carolina alone.

3. Target market surprise: Baby boomers and soccer moms

While the brand was initially designed with a younger, party-seeking demographic in mind, Rebel Rabbit’s biggest fans turned out to be older adults — particularly baby boomers and soccer moms looking for a gentler alternative to wine or beer. 

“We thought young kids would be the ones buying it, but it’s been older adults replacing their weekday wine or their afternoon beer,” Goldsmith said.

The company’s branding still leans masculine and edgy, but their actual consumers lean toward wellness-minded, socially moderate drinkers who want a mild buzz without alcohol’s side effects.

4. Marketing in the Gray Zone

Marketing hemp-derived THC on platforms like Instagram presents unique challenges.

 “You can’t show the can, you can’t show the THC,” Goldsmith said. Still, Rebel Rabbit invests heavily in digital content and trial-and-error advertising, refining their messaging while flying under the radar of platform restrictions.

Interestingly, unlike licensed cannabis operators, Rebel Rabbit doesn’t risk losing a license — because in most jurisdictions, they don’t need one.

5. Looking Ahead: Farm Bill uncertainty and scaling up 

With a new Farm Bill expected in 2025, Goldsmith says the company is taking proactive steps — like using full-spectrum THC extracts to demonstrate product integrity and working closely with distributors. 

“We’re trying to do everything we can to make legislators happy now,” he explained, anticipating that the hemp beverage category will soon face more regulation.

Still, Goldsmith is bullish on the category’s role as a “gateway” (his words: “terrible term”) to the broader cannabis market, especially for consumers hesitant to visit dispensaries.

Note: We used ChatGPT to summarize the key interview points and then a human edited the post.