As cannabis beverage brands fight for shelf space, a playbook is already taking shape in the fast-growing non-alcoholic (N/A) movement, where first movers are mapping out a new beverage frontier that THC brands can learn from. How they scale in retail, capitalize on growing consumer interest, and push their category forward should translate into any beverage category.
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At a recent BevNet conference in NYC, Sally Lyons Wyatt, Global EVP & Chief Advisor at Circana, presented market research highlighting the opportunities and challenges in today’s $458 billion beverage universe. She pointed to growth in functional, experiential, and premium beverages as key outperformers. Additional data shows consumers increasingly want hydrating, sugar-free drinks with added wellness benefits and protein, taking the lead.
What began as a niche movement for sober-curious consumers has evolved into a booming mainstream category. And for cannabis beverage brands, it’s a sector rich with lessons on how to scale, differentiate, and drive consumer demand.
BevNet: Lessons From Pioneers
At BevNet, a powerhouse lineup of leading non-alc founders shed light on tactics that helped them scale in the panel discussion, Adult NA, Building The Category. Scout Brisson, CEO of Katy Perry’s sparkling adaptogenic apéritif brand De Soi, shared how the company has expanded into more than 6,000 retail doors, driving a 150 percent year-over-year retail revenue increase.
Meanwhile, The Pathfinder, a non-alcoholic spirit, jumped from 117th to 27th in sales rank in just one quarter, according to VP of Sales Jill Sites. Megan Klein, founder of Little Saints, said the brand has sold over 1 million units since 2021, 80,000 via DTC, and boasts a 40 percent customer return rate.
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“Right now, premiumization is driving our growth,” Brisson noted. “Consumers are willing to pay more for something that feels special—whether it’s flavor, function, or story.”
Brisson acknowledged that many customers still ask why a non-alcoholic beverage costs so much, underscoring the need to educate consumers about the complex manufacturing and formulation processes behind functional drinks.
Circana data backs this up: across the board, categories with premium offerings like yogurt drinks, coffee, and weight control beverages are outperforming. THC and CBD drinks, with the right positioning, can hop on the trend and offer similar value.
Consumers Driving Trends
While Gen Z gets credit for the “sober curious” trend, it’s actually Millennials and Gen X buying up premium non-alcoholic and cannabis beverages, according to the panelists.
Megan Klein reports that Little Saint’s most loyal customers are older millennials and Gen Xers.
“From the beginning, we chose not to target Gen Z because our product is premium-priced,” she said, noting younger consumers typically have less discretionary income. Instead of wellness-centric marketing like yoga events or fitness partnerships, Klein positions her brand in social drinking spaces.
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“We’re showing up at the beach where you would day drink, or at a bar, or at a nighttime social gathering.”
Brisson echoed that sentiment, adding that age and life stage are key factors.
“Our customers have experience consuming alcohol and understand the rituals around it. They’re looking to replicate those rituals without the alcohol,” she said.
While Gen Z is expected to grow into the category, both founders agree: don’t ignore Gen Z, but don’t build your brand around them.
Functional Benefits Sell, But Flavor Still Rules
“The future of beverage may be functional, flexible, and fun,” said Jill Sites, VP of sales at The Pathfinder. “But it has to taste good.”
Circana’s research confirms that while consumers are drawn to beverages with “borrowed benefits” (like hydration + gut health or energy + calm), flavor remains the top driver of purchase and repurchase. Wyatt spotlighted trending flavor profiles like white peach, coconut, and wild berry as high performers, especially in the premium and functional segments.
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For Little Saints, flavor and function are a winning formula. Founder Megan Klein noted that 85 percent of the brand’s revenue comes from direct-to-consumer sales, with a repeat purchase rate exceeding 40 percent.
“Delivering on both flavor and effect builds loyal followings,” she said.
That’s a critical point for cannabis beverage brands. The initial rush to enter the THC-infused market has some brands prioritizing effect over taste. If the taste isn’t dialed in, the novelty won’t be enough to win repeat business.
Compete By Complementing
Rather than trying to replace alcohol entirely, the most successful non-alc brands are thriving by positioning themselves as complements to existing drinking habits. Jill Sites of Pathfinder points out that 90 percent of her customers still drink alcohol—they just want more options.
“We weren’t built as a wellness brand,” she said. “We wanted to be alongside alcohol. Spirits aren’t going away; they’re evolving.”
This hybrid use is key. Pathfinder is intentionally designed to mix with gin for a lighter, more manageable cocktail experience and supports moderation without sacrificing ritual.
“Ninety-four percent of our customers still drink alcohol,” Klein echoed. “They might mix our drinks with vermouth or gin.”
This approach expands the brand’s relevance across drink occasions and provides a competitive edge in bars, clubs, weddings, and beyond.
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Music as a Launchpad
“Being part of the live music experience gives brands the platform they need to scale,” said Russell Wallach, Global President of Media & Sponsorship at Live Nation, during the Live Nation as a Brand Partner panel at BevNet.
While he didn’t specifically reference cannabis beverages, likely due to ongoing regulatory gray areas, his enthusiasm for wellness-oriented and non-alcoholic brands signaled where things are headed.
Wallach noted that wellness-focused and sober-curious brands are thriving at music venues “where product discovery feels organic, not transactional.” As more younger consumers moderate their alcohol use, Wallach sees cannabis and non-alcoholic beverages as a natural evolution of nightlife.
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“Being part of the live music experience gives these brands the platform they need to scale,” Wallach said.
For cannabis beverages facing traditional retail limitations, access to a large audience to accelerate brand awareness and use as a launchpad is golden.
As cannabis beverage brands navigate legal constraints and limited shelf space, the live event space may hold the key to mass-market momentum. The blueprint is already playing out in the non-alcoholic space, offering a proven path forward for infused beverages ready to break into the mainstream.
*This article was submitted by a guest contributor. The author is solely responsible for the content.