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Hemp beverages beat craft beers when it comes to tariffs

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President Donald Trump’s on again, off again tariffs have rattled many industries, including the regulated cannabis industry that will be affected as vape hardware and packaging prices get hit with tariffs in shipments from Asia. But according to a new report from Whitney Economics, one segment could actually benefit: hemp beverages.

While hemp beverages are sold in aluminum cans and will face increases in container costs from the tariffs, other parts of the supply chain are less affected by tariffs and the products are sold domestically. Add to that the surging popularity of the products, and you have a winning formula.

Hemp drinks have hit the beverage industry by storm. Major distributors are stocking them even as states look to ban intoxicating hemp products. Some states are even carving out exceptions for the beverages in those proposed bans.

Another advantage, according to Whitney Economics analyst Beau Whitney, is that all of this is happening as the craft beer business struggles. Alcohol consumption has been experiencing declines in sales, and the once-hot trend of craft beers is already looking like the moment is fading. The Brewers Association recorded 399 closures in 2024 compared to 335 new breweries, indicating a shift in the industry’s trajectory. The latest tariffs are adding another headache for those brewers.

In addition to the aluminum used in cans, Whitney noted that beer companies also face tariffs on stainless steel, which is used in brewing equipment. Beer businesses are also dependent on hops, which are also tariffed.

“On the other hand, the Trump tariffs could represent a significant upside opportunity for the hemp beverage industry, which has been experiencing strong growth for several years now,” wrote Whitney. “As alcohol and beer sales decline, hemp beverages have filled in the gaps in demand. The popularity of hemp cannabinoid beverages is just at the beginning of its ramp.”

Whitney Economics noted that the hemp beverage sector has come on strong, especially since the market opened up in Minnesota in 2022.

“Recent surveys in Texas, Illinois and Tennessee indicate that hemp beverages are capturing an increasing amount of market share among hemp retailers, distributors and manufacturers,” Whitney wrote in a recent newsletter.

Hemp beverages tend to be more expensive than craft beers. A four-pack of infused seltzer can range from $9.99 to $16, while a 12-pack of craft beers often runs $20 or less. If the craft beer makers raise their prices in response to the increased expenses from tariffs, hemp beverages no longer look quite so expensive.

So, while hemp beverages are fighting in various states to keep from getting banned, at least the group gets one gift in the form of avoiding most tariffs.



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2025

Shop LGBTQIA+ brands and dispensaries this Pride Month

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Shop with Pride all year long by supporting these queer-owned cannabis brands & retailers.


For decades, the cannabis and LGBTQIA+ communities have organized, protested, educated, and advocated for their rights to exist and thrive. And often, their goals overlapped. Lest we forget: Dennis Peron opened the first medical cannabis dispensary in San Francisco, the Cannabis Buyers Club, to help service queer people coping with AIDS and other medical conditions. Brownie Mary Rathbun’s main clientele were AIDS patients.

If not for the combined activism of these two communities, Prop 215 might not have existed, and set off the nation’s slow and ongoing journey towards safe and legal access to cannabis. This June, Leafly is highlighting the fire from authentic torchbearers of this great gay movement.

Use our shopping filter to browse LGBTQIA+ owned dispensaries in your area and place an order for pickup or delivery this June and all year long.

Find dispensaries like SWAY in the Northalsted/Boystown gayborhood of Chicago—the first and only queer-owned dispensary in Illinois.

“SWAY is built on the strong, sassy shoulders of those who came before. The queer rule-breakers who fought for medicinal weed as a remedy against HIV. The Black and Brown activists breaking down barriers to weed, despite bearing the brunt of over-criminalization and prosecution.”

From Flore Dispensary in San Francisco’s Castro District to Massachusetts’s Tree House Craft Cannabis, there are LGBTQIA+ owned dispensaries from coast to coast that you can support this Pride Month and beyond.


Shop queer-owned cannabis brands

Check out our curated list of products from queer cannabis brands who have made the cannabis landscape a better, danker place.

LGBTQIA+ brands and dispensaries like FLAMER, pictured here with their Pillow Talk jarred flower
(/FLAMER)

FLAMER

Available in New York

New York’s FLAMER crafts high-quality, high-style pre-rolls and whole flower, featuring cheeky names and clear effect and terpene information, so you have all the information you need to find your best fit. The queer brand is “chosen-family-owned-and-operated” and draws inspiration from the gritty glamour of New York nightlife. Their newest release, Sasha Colby Kush, is a must this Pride season.

Drew Martin

Available in California & New York

Queer-owned Drew Martin combines sun-grown cannabis and botanicals to create terpene-rich, perfectly mellow, low-dose pre-rolls. Joints as unique as you are.

LGBTQIA+ brands and dispensaries like Stone Road, pictured here with their Bubble Hash pre-rolled joint four pack
(/Stone Road)

Stone Road

Available in California & New York 

Stone Road has something for every smoker, from single joints to hash-infused pre-roll packs to eighths to pre-ground ½ ounces to dabbables. As with life and love, there’s no wrong way to be.

Grass Queen

Available in Vermont

The woman- & queer-owned Vermont cannabis company, Grass Queen, makes small-batch flower and botanical blends while creating space for communities underrepresented in today’s cannabis industry.

Available in Oregon

Founded by two queer women, Katie Stem and Kate Black, Peak Extracts makes tinctures and topicals, though most know them for their vape pens and strain-specific chocolates, extracted using an eco-friendly and proprietary CO2 process. Their chocolates have six categories that cycle through strains chosen for their terpene profiles and medicinal benefits.


Shop queer-owned hemp

These queer-owned hemp brands make fabulous products that you can shop online and have shipped right to your door.

Xula Herbs

Queer- and Latinx-owned Xula Herbs is on a mission to help folks feel good. Xula makes plant-powered formulas combining botanicals, adaptogens, and hemp to address everything from period support to unwinding.

LGBTQIA+ brands and dispensaries like CANN social tonics, pictured here with a mini can of their Blood Orange Cardamom with a cocktail glass featuring a THC mocktail and slice of blood orange
(/CANN)

CANN

CANN prides themselves on concocting exciting, limited-edition THC drink flavors that tantalize the tastebuds. CANN’s roster of social tonics are infused with a microdose of THC per can, making their delightful beverages an ideal partner for any sort of gathering. 




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New study explores how THC-infused drinks are shaping drinking habits

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Data collection company MoreBetter announced a new study aimed at understanding the impact of THC-infused beverages on alcohol consumption, mood and overall quality of life. The company said it is looking for 2,000 qualified participants to provide daily feedback over three weeks about their infused beverage and alcohol consumption patterns, as well as self-assessments on their overall quality of life.

Infused beverages have become the hottest thing in cannabis. It seems every week, more brands are introducing some form of seltzer or juice infused with either regulated THC or a hemp-based THC. However, there has been little research into the effects or benefits of consuming these products.

Participants in the study must be over the age of 21 and willing to share their day-to-day experiences with using infused beverages. Individuals can check if they’re eligible for the study at this website: mystudi.es/bevstudy.

The study is sponsored by several leading beverage brands, that will collectively supply study participants with free infused beverage products to consume throughout the study.

“By collecting consumer-reported outcomes from thousands of consumers, over a multiweek basis, we provide brands and industry advocates with the real world data they need to understand how infused beverages are impacting consumers’ quality of life,” MoreBetter COO Tyler Dautrich said.

Alcohol sales have been trending downward as interest in about THC-infused beverages has increased. Some of the largest alcohol distributors, such as Total Wine & More and Spec’s, now include large selections of infused beverages. The brands, however, want to gain insight into how consumers are using their products and what perceived lifestyle benefits or wellness outcomes might result after consumption.

“The cannabis plant should be better researched, and we are hopeful that this is just the first step in learning how these products can improve people’s lives as acceptance, access, and consumption of infused beverages expands across the US,” said Adam Terry, CEO of Cantrip, also a sponsor of the study.

The study will mainly focus on canned THC-Infused seltzers, but MoreBetter will also investigate 750ml bottles used as mixers, dry powder mixes and 1.5-2 oz “shots” to study how various doses and form factors impact consumers’ perceived experiences.

“As more consumers explore mindful options, real-world data like this will be essential in understanding how THC-infused beverages are enhancing quality of life and transforming social rituals. Our partnership with MoreBetter isn’t just about validating our brands – it’s about leading a cultural shift with integrity, innovation, and style,” said Evan Eneman, CEO and co-founder of Iconic Tonics.



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Organigram joins beverage race with U.S. acquisition

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Organigram Global Inc. (NASDAQ: OGI) (TSX: OGI) told investors it is buying Collective Project Limited for approximately C$6.2 million ($4.3 million). Add in potential milestone payments and potential earnout payments, and the value of the deal could rise to C$24 million ($16.6 million) for the twelve-month periods ending September 30, 2025, and September 30, 2026.

Organigram said that the deal immediately gives it entry into the fast-growing cannabis beverage category. The company noted that the products are already available in mass retail. U.S. alcohol chains such as Specs, Total Wines and Top Ten Liquors sell numerous hemp-derived THC beverages and there is speculation that major convenience and big box retail are considering pilot testing the products.

The company said that Collective Project is already listed at Top Ten Liquors in Minnesota and Total Wines in North Carolina, South Carolina and Indiana. Organigram also sees the acquisition as a springboard for its own line of beverages as well. While Collective Project has planted flags in the U.S., it was founded in Hamilton, Ontario, in 2013. The company also has its own line of craft drinks that are top sellers in Canada.

“The acquisition of Collective Project marks yet another strategic milestone towards Organigram’s global leadership ambitions. Not only does this acquisition represent our first commercial entry into the fast-growing hemp-derived THC beverage market in the U.S., it also fast tracks our entry into the cannabis beverage category in Canada, a category that we believe is on the cusp of growth at home as well,” said Beena Goldenberg, CEO of Organigram.

Collective Project is known for its collaborations with the art community. It has featured over 2,000 artists from 40 countries on its products.

“We are pleased to be working with Organigram on this transaction as not only Canada’s leading cannabis company but also one that is deeply committed to high-quality products backed by R&D and science-backed innovation,” said Matt Johnston, Collective Project co-founder.

Organigram said that by the end of the year, it expects that products will also be distributed in Connecticut, New Jersey, Illinois, and Alabama. In Canada, the products are currently available in Ontario, British Columbia, Saskatchewan, Newfoundland and Nova Scotia with distribution in additional provinces to follow in the coming months.



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