Low-dose THC drinks may be gaining shelf space in bars and retail chains, but they are not resonating with marijuana shoppers in California, according to industry representatives.
Data shared with state legislators shows a clear preference among consumers for stronger products. Beverages containing over 10 milligrams of THC make up over 93 percent of yearly sales in the state’s cannabis drink segment. The figures were presented in a letter from a coalition of licensed operators and advocacy organizations seeking to influence pending legislation.
In California, hemp-derived THC drinks, commonly found in national outlets such as Total Wine & Spirits and Circle K, are not allowed. A 2024 emergency order issued by Gavin Newsom prohibited their sale, and the restriction was later made permanent. As a result, state-licensed cannabis shops remain the only legal point of purchase for THC-infused beverages.
Within those stores, customers appear to favor stronger formulations. Industry representatives argue that regular cannabis users, many of whom have higher tolerance levels, are driving demand for products with greater potency.
The debate comes as state lawmakers consider new limits on THC content in beverages. A bill introduced in the state assembly would restrict THC levels to no more than 10 milligrams per drink. Opponents say such a cap would effectively eliminate most of the existing market.
Figures presented to the Assembly Committee on Business and Professions indicate that cannabis beverages generate approximately $79 million in annual revenue statewide. Of that total, roughly $73.6 million comes from products exceeding the proposed 10 mg threshold. Advocates warn that enforcing the limit would significantly alter the category.
They also caution that tighter restrictions could unintentionally strengthen illegal sales. Producing marijuana beverages requires specialized processes and equipment, making them harder to replicate outside regulated channels. If higher-potency options disappear from licensed stores, consumers may turn to unregulated sources to meet their preferences.
Organizations backing the opposition include the California Cannabis Industry Association, the Cannabis Distribution Association, and the California Cannabis Operators Association, as well as brands such as Stiiizy.
While low-dose THC drinks are often marketed to people seeking an alternative to alcohol, especially in mainstream retail settings, that audience differs from typical cannabis buyers. According to Los Angeles consultant Hirsh Jain, frequent cannabis users tend to favor products with stronger effects, which may explain why higher-dose beverages dominate sales in licensed stores.
As lawmakers weigh the proposed restrictions, the debate underscores broader questions about how cannabis products are regulated and who they are intended to serve. Leading marijuana companies within and outside the U.S., such as Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED), will be following how the legislature in California resolves this issue since any law enacted could trigger similar changes in other states.
About CNW420
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
To receive SMS alerts from CNW, text CANNABIS to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CannabisNewsWire.com
Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: https://www.CannabisNewsWire.com/Disclaimer
CannabisNewsWire
Denver, CO
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com
CannabisNewsWire is powered by IBN
