Hemp Beverage Consolidation: A Market in Transition

The U.S. hemp-derived beverage industry is evolving from a fragmented startup landscape into a maturing consumer category. Over the past year, early signs of consolidation have begun to appear as both established cannabis companies and strategic investors look to scale through acquisition rather than incremental growth.

Hemp-infused and hemp-derived THC beverages have gained significant traction as consumers seek functional alternatives to alcohol and traditional wellness products. Yet, the market remains heavily state-driven and regulatory-sensitive, limiting national expansion and making scale difficult for smaller brands. That combination—strong consumer demand coupled with structural barriers—is often the catalyst for industry consolidation.

Two key transactions highlight this market momentum: 

Agrify Corporation’s Acquisition of Señorita (December 2024)
Agrify Corporation, a leading provider of branded solutions for the cannabis and hemp industries, acquired certain assets from Double or Nothing LLC, the owner and creator of Señorita, a hemp-derived THC (“HD9”) beverage brand. Created by winemakers Charles Bieler and Joel Gott, Señorita reimagines the classic margarita by replacing alcohol with THC for a hangover-free experience. The brand has rapidly gained recognition, winning The High Times Cannabis Cup and expanding to nine U.S. states and Canada. Its products are now available through top retailers including Total Wine, ABC Fine Wine & Spirits, and Binny’s, with new flavors such as Paloma and Ranch Water introduced following the acquisition.

Agrify’s Interim CEO Ben Kovler described the deal as part of a strategic pivot toward high-growth hemp beverage products, calling the segment “the fastest-growing, most exciting beverage category in the country.” Agrify exchanged approximately 530,000 shares of common stock for Señorita’s assets. The transaction underscores the company’s shift toward consumer-facing hemp brands and hints at a potential divestment of cultivation and extraction operations to enhance shareholder value.

Organigram Global Inc.’s Acquisition of Collective Project (April 2025)
Organigram, one of Canada’s largest licensed cannabis producers, expanded into the U.S. hemp-derived THC beverage market by acquiring all issued and outstanding shares of Collective Project, a premium craft-style THC-infused beverage brand. The deal, announced in April 2025, was valued at approximately C$6.2 million (≈US$4.3 million) upfront, with potential earn-outs that could raise the total purchase price to as much as C$30 million.

Founded in 2013 by the team behind “Collective Arts,” the brand is recognized for its distinctive art-forward packaging and its line of cannabis and hemp-infused sparkling juices, teas, and sodas. Before the acquisition, Collective Project had already established a presence in Canada and launched in 37 U.S. states—including Florida, Georgia, Minnesota, and Texas—by late 2024. Through this transaction, Organigram rebranded as Organigram Global, signaling its intent to leverage its Canadian infrastructure to accelerate U.S. market penetration. The earn-out structure makes it one of the largest disclosed hemp-beverage transactions to date, underscoring investor confidence in the category’s growth potential.

Big Alcohol’s Response: A New Competitive Dynamic
According to Reuters (July 23, 2025), traditional alcohol companies are beginning to respond to the rapid growth of hemp and THC beverages amid declining sales in their core categories. Beer volumes were down nearly 6% through mid-2025, spirits by 5.6%, and wine by 9%, while the U.S. hemp-derived THC beverage market is projected to surpass US$1 billion this year and US$4 billion by 2028. Some retailers now report that THC beverages account for up to 15% of sales, rivaling wine margins in certain markets.

While “Big Alcohol” has been cautious about directly entering the federally gray hemp/THC space, several major players are actively exploring or testing the market:

• Molson Coors CEO Gavin Hattersley told Reuters in January that he’d “be naive to say THC beverages aren’t having an effect, at least in a small way.”
• Tilray Brands, now the fourth-largest U.S. craft brewer with labels including Montauk and Shock Top, is distributing its new hemp-derived THC seltzers through existing beer channels such as United Distributors in Georgia. Tilray’s beverages are now sold in 13 states. “There’s not a real leader that’s taken ahold of the market so far, and that’s what we look to do,” CEO Irwin Simon told Reuters earlier this year.
• Heineken’s Lagunitas and Pabst Blue Ribbon, the fifth-largest U.S. brewer, have each extended their brands to THC seltzers sold in California dispensaries. Lagunitas, in partnership with Cannacraft, is exploring hemp-based formulations to enable broader interstate distribution.

Although major alcohol companies remain hesitant to engage fully until federal clarity emerges, their increasing participation validates the commercial potential of hemp-derived beverages. The result is a rapidly evolving competitive landscape—one likely to accelerate strategic partnerships, licensing arrangements, and full-scale acquisitions as established players look to secure a foothold in this growing segment.