Shoping carts are wheeled outside a Target Store during Black Friday sales in Brooklyn, New York, U.S., November 26, 2021. REUTERS/Brendan McDermid
MINNESOTA: Target Corp is testing the sale of hemp-derived THC beverages at a handful of locations, marking an important milestone for an industry that is largely been shut out of national chains.
THC beverage makers initially confirmed the move. The chief executive officer (CEO) of Cann, a THC beverage company founded in 2018, said its drinks are now being sold in a small number of Minneapolis locations.
“It’s the first step to getting broad adoption of THC-infused drinks,” Cann CEO Jake Bullock said in an interview.
A Target spokesman said the company is testing a limited offering of THC beverages in select Minnesota stores to better understand consumer interest in the category.
The products are available in Target liquor stores, which are located within Target stores and have their own entrance.
Shoppers must be 21 to purchase items, and there’s a cap of five milligrams of THC content.
Retailers often pilot the sale of new products in select locations to test appetite before offering them broadly.
In some cases, companies then opt against selling the products.
A household name like Target entering the space “really normalises the THC beverage category,” said Diana Eberlein, chair of the Coalition for Adult Beverage Alternatives, a group representing the makers of THC drinks.
“This signals to other groups that this category is here to stay.”
Surly Brewing Co is another company in the trial.
“We’re excited that Target has chosen us, among other brands, to participate in their test,” said Elise Bartlett, Surly’s vice-president of marketing.
While higher potency cannabis products are illegal on the federal level, hemp-based products have been widely available for years thanks to a loophole in the 2018 Farm Bill.
Hemp-based drinks have proliferated in Minnesota since 2022, when the state government legalised their sale to those 21 and older.
Furthermore, liquor store chains, including Total Wine & More already sell several brands of THC drinks, while convenience store chain Circle-K also started offering the beverages in some states earlier this year.
Trail Magic, another THC drink, said it’s also participating in a 10-store trial run at Target.
“What’s exciting about this launch is that an organisation like Target, with the size of a legal department they have and the risk tolerance they have, was able to go through the review process, was able to find a path to market and say, ‘yes, we can sell these products in our store’,” Trail Magic co-founder Jason Dayton said in an interview.
The initial order of Trail Magic was for 12 cases per store, Dayton said, with each case containing 24 cans total broken into smaller packages.
The move comes as state and federal lawmakers increasingly target hemp products with THC. — Bloomberg
