Regulated Cannabis' New Best Friend
Low Dose Hemp Beverages Are Massive TAM Expansion
I’m about as bullish as one can be about low dose hemp THC beverages. One of the most remarkable things that has come up in my research and due diligence is that upwards of 90% of the consumers who buy these hemp beverages never step foot in a dispensary.
The brands who are selling these beverages know this as they are able to sell online and get a lot of data and survey their customer base as well. And if you think about it, this makes a lot of sense. Someone who is buying 2mg, 5mg or even 10mg cannabis beverages is not the same customer as someone walking into a dispensary looking for flower that causes a very specific effect or edibles that will knock your socks off.
Hemp beverages are a massive Total Addressable Market (TAM) expansion for cannabis because they are exposing consumers who never step foot into a dispensary to the benefits of THC and the superiority of THC to alcohol. These beverages are not competing with regulated cannabis, instead they are taking market share from alcohol.
The consumers of low dose beverages are all future customers of higher dose, prescription strength cannabis when they need a stronger dose, more focused effect or full flower effect.
Also, consider that beverages are a socially acceptable way to consume THC in a way that smoking is not. There is simply little difference between a White Claw or a beer or a low dose hemp beverage. And it is fascinating that these beverages are the most popular in states where cannabis is illegal and are serving as the battering ram, destroying the stigma of THC in these states.
And there is no better example of destroying the stigma and massive TAM expansion than hearing that the Florida Panthers, a NHL team, is now offering hemp beverages in their stadium.
In other news, the High Spirits podcast hosted me this past week and I talked all about my newly closed hemp beverage fund and the opportunity in hemp beverages. I hope you enjoy!