Let's talk THC

As owners and operators of a location-based entertainment venue (LBE), including family entertainment centers (FEC), you probably don't often think about cannabis or THC concerning your business. Your first thought may be of the stereotypical "stoner" hanging outside your establishment selling drugs. But the perception of cannabis has changed dramatically over the last few years, as have the laws surrounding it. So, at least for the moment, let's put aside our preconceptions and take a new look at THC.

What is THC?

There are several components to the cannabis plant, each with different effects and different laws governing its usage. THC is a chemical compound derived from the cannabis plant that creates the high feeling we associate with ingesting cannabis, either by eating, drinking, smoking, or vaping it. You are probably familiar with its more sedate cousin, CBD, another chemical compound, or cannabinoid, found in cannabis that is touted for having many of the medicinal benefits of THC, such as pain relief, without the psychoactive effects or high of THC.

Why should I care?

We have previously discussed a growing decline in alcohol consumption, especially among younger generations, most recently here. Some of this is due to younger consumers switching from alcohol consumption to cannabis. Cannabis has several perceived benefits over alcohol that many drinkers find appealing.

  • Lower in calories- Many THC drinks boast zero carbohydrates and 0-20 calories per can compared to a can of beer at 150 calories or cocktails, often clocking in at 300+ calories. This greatly appeals to young adults who are becoming increasingly health-conscious and looking to avoid empty calories.
  • Hangover avoidance- According to a recent survey by THC beverage company Crescent Canna, 66% of THC beverage consumers drink THC beverages in place of alcohol to avoid hangovers.
  • A gentler buzz - THC beverages generally take about 30 minutes to kick in and provide a gentle high that lasts several hours, avoiding the sloppy drunk effect of alcohol and the need to keep on drinking to stay buzzed. Additionally, their low dosage allows the consumer to feel "in control" while enjoying its intoxicating effects.
  • Health and wellness benefits - Unlike alcohol, which is characterized by dehydration, sleep issues, and that morning-after hangover, THC beverages promote relaxation, better sleep, and even pain relief. Some add vitamins or electrolytes to further emphasize their role as wellness beverages.

If you have any doubts about this preference for cannabis over alcohol, just look at the data. According to a 2022 survey by New Frontier Data, 69% of adults aged 18-24 prefer marijuana to alcohol, and a Bloomberg Intelligence survey noted that 74% of the same age group substitute cannabis for alcohol weekly. This trend is not just limited to the youngest adults; 65% of adults aged 25-34 and 56% of adults 35-44 are doing the same. The number of cannabis users has increased by 120% from 2008 to 2022, with an estimated 61.8 million Americans now reporting using marijuana in the past year. Notably, the US National Survey on Drug Use and Health found that in 2022, for the first time, the number of daily cannabis users exceeded the number of daily alcohol users. Even older adults are turning to cannabis as a solution for pain-related maladies such as arthritis.

But isn't it illegal?

While it is still federally illegal, 39 states have legalized cannabis for medicinal use, and 24 of those allow for recreational use as well. Adding to this, the 2018 Farm Bill legalized THC, CBD, and all other cannabis derivatives as long as they were derived from hemp. What is hemp? Hemp is a cannabis plant that has less than 0.3% THC. For comparison, cannabis plants used for marijuana typically have between 0.7%-30% THC. This creates an interesting loophole since a 10mg dose of hemp-derived THC and a 10mg dose of marijuana-derived THC are chemically identical. It just takes more hemp plants than marijuana plants to achieve the same output.


North Canna Co. exhibiting at the NRA's new Hemp Beverage Pavilion

At a time when the beverage industry is booming (see our article on dirty soda in this issue), alcohol consumption is declining, and marijuana regulations are loosening, it seems only logical that THC-infused beverages are making a splash. Nowhere was this more apparent than at this year's National Restaurant Association Show, which launched a new Hemp Beverage Pavilion at this year's convention. Here, roughly a half dozen vendors were pouring out THC-infused beverages to thirsty convention goers.


Flyer's Cocktails soon to launch at Hartsfield-Jackson Airport

THC beverages, at least hemp-derived ones, are reaching mainstream retailers and restaurateurs alike. Flyers Cocktails, a manufacturer of alcohol-fee THC-infused cocktails, will soon launch their line at Atlanta's Hartsfield-Jackson Airport.

If you find any of this intriguing, make sure to check your local laws before adding THC beverages to your venue. Although federally legal, the law varies significantly from state to state.

Bottom line

The relaxation of cannabis regulations is causing many young adults (and even older ones) to seek out cannabis as an alcohol alternative, causing a surge in popularity for hemp-derived, THC-infused beverages. This will only increase as THC products continue to become more destigmatized.

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