A popular independent craft spirits distillery says it’s scaling back its operations—due in part to the fact that more adults are choosing marijuana over alcohol.

Heritage Distilling Company, Inc.–which has distillery locations for its whiskey and other spirits in Oregon and Washington State where cannabis is legal—said on Thursday that a confluence of factors informed its decision to close tasting rooms, shift to contract production partnerships and focus on direct-to-consumer sales.

The company listed four specific considerations that led to the consolidation of its operations. That includes “consumer shifts toward reduced alcohol consumption and alternative products, including marijuana.”

That shift is being closely monitored across the alcohol industry. Earlier this year, the CEO of Brown-Forman Corporation, which produces brands such as Jack Daniel’s and Woodford Reserve, said that the growing use of marijuana as an alternative to alcohol is putting “pressure” on the spirits industry.

This week, new congressional lobbying reports shows that many major companies such as Anheuser-Busch, Bacardi North America and Moet Hennessy USA are engaged in federal lobbying to influence cannabis policy amid the surge in interest into THC beverages.

“For more than a decade, Heritage Distilling tasting rooms were places for friends and family to gather to enjoy each other’s company and great spirits,” Jennifer Stiefel, president of Heritage Distilling, said in a press release on Thursday. “As we head into the final stretch of the year, we wanted to give our customers and club members two months of lead time to plan their final visits to our tasting rooms, to share in great memories and to thank the staff who helped them along their customer journey.”

The company also listed tax and regulatory challenges in Oregon and Washington State as additional reasons for the business model change.

The fact that evolving consumer preferences for cannabis factored into the decision isn’t entirely surprising, as there have been many recent market analyses and surveys indicating that marijuana legalization has proved to be a disruptive force for the alcohol industry.

A poll released earlier this month found that a majority of Americans believe marijuana represents a “healthier option” than alcohol—and most also expect cannabis to be legal in all 50 states within the next five years.

Another recent survey showed that four in five adults who drink cannabis-infused beverages say they’ve reduced their alcohol intake—and more than a fifth have quit drinking alcohol altogether.

That survey was released shortly after a leading alcohol industry group added a company that makes THC-infused drinks to its membership roster for the first time, furthering signaling the cultural shift.

This also comes at a time when younger Americans are increasingly using cannabis-infused beverages as a substitute for alcohol—with one in three millennials and Gen Z workers choosing THC drinks over booze for after-work activities like happy hours, according to a new poll of 1,000 young professionals.

This month it was revealed that the retail giant Target is soft launching sales of THC-infused beverages at select stores in Minnesota.

Meanwhile, Veterans of Foreign Wars (VFW) of the United States recently entered a first-of-its-kind partnership with a hemp THC beverage company, with a licensing branding deal that will support a variety of veterans services and promote cannabis drinks as a potential alcohol alternative with the drinks being available at VFW posts across the country.

Separately, while Target is apparently moving into the THC drink space, the airline Virgin Atlantic denied satirical and false claims earlier this year from a cannabis beverage company about a deal to sell its THC-infused beverages on flights.

AI isn’t coming to cannabis; it’s already here. From automated grow rooms to predictive inventory systems and compliance bots, cannabis is quietly entering its most advanced era ever. And just like legalization, the tech revolution won’t wait for anyone.

The global artificial intelligence market reached $196.63 billion in 2023 and is projected to grow at a compound annual growth rate of 37.3% through 2030. This isn’t just another tech bubble; AI and automation are fundamentally reshaping how businesses operate across every sector. From healthcare systems using machine learning to diagnose diseases faster than human doctors, to financial institutions preventing fraud through real-time pattern recognition, to manufacturing plants reducing waste by 30% through predictive maintenance algorithms, the integration of intelligent technology has moved from experimental to essential.

The numbers tell the story: McKinsey research shows that generative AI could add $2.6 trillion to $4.4 trillion annually across business use cases, representing a 15 to 40 percent increase in the overall impact of artificial intelligence. In retail, AI-driven inventory management has reduced stockouts by up to 65%. In agriculture, precision farming using IoT sensors and machine learning has increased crop yields by 20% while reducing water usage by 25%. These aren’t theoretical benefits; they’re measurable improvements happening right now across industries worldwide.

Cannabis Embraces the Digital Revolution

Legalization created the market. Technology will decide who wins it.

The cannabis industry, valued at $36.70 billion in North America in 2023, is experiencing its own technological transformation. With the North American cannabis technology market expected to grow at a 28.3% CAGR through 2030, cannabis businesses are discovering that success increasingly depends on smart technology adoption.

The unique challenges facing cannabis businesses make AI and tech solutions not just helpful, but necessary for survival. Complex state-by-state regulations require meticulous compliance tracking that human teams struggle to maintain accurately. Inventory shrinkage costs the industry millions annually, while manual compliance reporting consumes resources that could be directed toward growth. Customer expectations mirror those in mainstream retail; they want personalized experiences, fast service, and consistent product quality.

Smart cannabis businesses are responding with sophisticated solutions. Cultivation facilities use AI-powered sensors to monitor environmental conditions 24/7, adjusting humidity, temperature, and lighting to optimize yields while reducing energy costs. Dispensaries deploy machine learning algorithms to predict customer demand, ensuring popular products stay in stock while minimizing waste from slow-moving inventory. Compliance teams rely on automated reporting systems that integrate directly with state tracking databases, reducing human error and ensuring audit readiness.

The competitive advantage is clear: cannabis businesses using AI and automation report 15-30% reductions in operational costs, 40% improvements in compliance accuracy, and significant increases in customer satisfaction scores. Companies that continue relying solely on manual processes find themselves struggling to compete on price, efficiency, and reliability.

Industry Leaders: The Tech Driving the Cannabis Revolution

AI, Data & Decision-Making

• BakedBot AI – An AI platform offering compliance tracking, content generation, and customer management features.
• Trees.Cloud – A data analytics platform aggregating cannabis market pricing, product information, and industry metrics.
• Tetragram – A mobile application for logging cannabis consumption and tracking product information.

Operations, Compliance & Business Infrastructure

• Flourish – A seed-to-sale software with integrated modules for cultivation, manufacturing, distribution, and retail.
• LeafLink – A B2B wholesale marketplace and ordering software for cannabis retailers and suppliers.
• Spence App – A payment application enabling direct bank-to-dispensary fund transfers.

Manufacturing & Automation

• RollPros Blackbird – A pre-roll manufacturing machine that rolls cannabis rather than filling pre-formed cones.
• Green Vault Systems – Automated packaging machinery for cannabis products.

Cultivation Technology

• The Ganjagrid PVT (Plant Vibration Trainer) – A cultivation technology that applies vibration to plants during growth phases.
• TetraSense – A cannabinoid testing device that scans for THC, THCa, CBD, and CBDa levels.

The Time to Act is Now

The cannabis industry stands at a technological crossroads. Early adopters are already seeing measurable improvements in their bottom lines, while businesses are hesitating to embrace AI and automation risk being left behind in an increasingly competitive market.

Ask yourself: Is your cultivation facility still relying on manual environmental monitoring when AI systems could optimize your yields while cutting energy costs? Are your budtenders spending valuable time on inventory counts that could be automated? Is your compliance team drowning in paperwork that intelligent software could handle seamlessly?

The cost of inaction grows daily. Every month without proper inventory management represents lost revenue from stockouts and waste. Every compliance mistake avoided through automation protects your license and reputation. Every customer experience enhanced through AI-driven personalization builds loyalty in a crowded marketplace.

The cannabis businesses thriving five years from now won’t be those with the best products alone; they’ll be those that combine quality cannabis with intelligent operations. The technology exists today. The proven results are documented. The only question remaining is whether your business will lead the transformation or scramble to catch up.

The future of cannabis is intelligent. The question is: will your business be part of shaping it?

Photo by Ashes Sitoula on Unsplash

“New Jersey’s cannabis consumers have a list of specific issues that Sherrill and Ciattarelli could address… And we vote—so the candidates would do well to stop by and say ‘high’ to us before Election Day.”

By Chris Goldstein, NORML

The Garden State is having a quiet economic revolution with legal cannabis, but both mainstream candidates for governor barely seem to be paying attention.

Nearly three million voters turned out to the polls in 2020 to allow retail sales of the plant. That ballot referendum won 67 percent approval and also proved that New Jersey’s pro-weed voters aren’t all from one party. And we’re all still out here, waiting for politicians to talk to us again.

U.S. Rep. Mikie Sherrill (D-NJ) wholeheartedly supports legalization and has taken several major pro-cannabis actions while serving in Congress, including voting to support the Marijuana Opportunity, Reinvestment and Expungement Act (MORE). She has also supported removing cannabis from Schedule I in the federal Controlled Substances Act specifically.

Earlier this year Sherrill voiced support for allowing personal cannabis cultivation in New Jersey. That’s a big shift for a former federal prosecutor.

During a campaign that has pulled focus, Sherrill still has plenty of room to connect with voters on these popular issues.

Former state Assemblyman Jack Ciattarelli (R) was no fan of cannabis while serving as a legislator. Back in 2021, during a previous campaign for governor, Ciattarelli took a moment during a debate to note that he outright opposed legalization of adult-use cannabis.

This year he softened his tone a bit by supporting a bi-partisan push to allow medical cannabis home cultivation. But Ciattarelli stopped short of allowing any adult to have a small garden. If he realizes how many older voters blaze joints in front of the news every night, Ciattarelli might still find time for Mary Jane.

There are more than 10,000 farms in New Jersey that together generate about $1.5 billion annually in global retail sales. From blueberries to soybeans, New Jersey’s agriculture currently represents the state’s third largest market—behind only pharmaceuticals and tourism.

All those farms now have some serious competition. Last year fewer than 200 cannabis operations generated just over $1 billion in sales that were all tendered within New Jersey’s borders.

Next year cannabis may surpass all other traditional farming as New Jersey’s third largest market. The Garden State’s most popular flower will likely stay in that spot for decades into the future. Think about that while you pick some overpriced pumpkins.

New Jersey’s governor now plays an important role in our cannabis economy. They appoint commissioners and get to adjust certain cannabis-related taxes. Current Gov. Phil Murphy (D) made legalization, regulation and the market launch a central effort of his two terms.

The next governor will also need to be directly involved to keep cannabis growing and taxes flowing. For instance, I’ve always wanted to see just a few of our most lucrative plants growing around Drumthwacket, the governor’s official residence.

New Jersey’s cannabis consumers have a list of specific issues that Sherrill and Ciattarelli could address.

Our medical cannabis program has been woefully neglected and deserves to be regenerated under a new vision. Adults face brutally expensive prices on regulated products compared to other states, continued prohibition on personal cultivation and ongoing access concerns.

Plants don’t generate all those profits or taxes. Every penny comes from the pockets of cannabis consumers like me. We’ve contributed nearly a billion dollars in taxes in just a few years to New Jersey’s coffers.

And we vote—so the candidates would do well to stop by and say “high” to us before Election Day.

Chris Goldstein is based in Willingboro. He’s been a cannabis consumer rights activist for thirty years and serves as a regional organizer for the National Organization for the Reform of Marijuana Laws – NORML.