Major retailer Target is deepening its involvement in the hemp-derived THC beverage market by launching sales in three more states—significantly expanding beyond a pilot program it rolled out in Minnesota last year—even as a federal law is set to ban the products later this year.
Last year, the company began a pilot program involving sales of cannabis drinks at 10 select stores in Minnesota. It later applied with state officials for licenses to sell THC beverages at all 72 of its stores in the state, where the company is headquartered.
Now, according to BevNET, Target is expanding cannabis beverage sales to more than 300 stores in Illinois, Florida and Texas. That includes every store in the latter two states and select stores in Illinois, due to the fact that some municipalities in the state have restricted hemp product sales.
“At Target, we’re always exploring new ways to meet our guests’ evolving preferences, grounded in our merchandising authority and focus on thoughtfully curating a relevant assortment,” a spokesperson told the beverage industry trade publication.
The outlet also reported that while the company’s initial launch in Minnesota only included cannabis drinks with a maximum of 5 milligrams of THC, it is now selling beverages with up to double that potency.
Target’s expansion of hemp THC beverage sales into the second, third and sixth most populous U.S. states comes months after Congress passed and President Donald Trump signed legislation that will recriminalize hemp-derived products containing more than 0.4 milligrams of THC per container.
Bipartisan lawmakers in the U.S. Senate and House of Representatives have pushed for a delay in the scheduled ban, which is set to take effect in November, but those efforts have not gained traction with congressional leadership.
“Sources report that Target is believed to be hedging against this potential ban by planning to mark down its intoxicating hemp inventory in October if there is no regulatory solution in place at that point,” BevNET said.
THC drink brands that were included in Target’s initial launch in Minnesota included Birdie, Cann, Find Wunder, Gigli, Hi Seltzer, Indeed, Señorita, Stigma, Surly, Trail Magic, Wyld and Wynk.
A poll from the cannabis telehealth platform NuggMD last year found that marijuana consumers were encouraged by Target’s decision to start selling THC beverages—with a majority saying the marketing move makes them more likely to shop at the retail giant’s stores.
Respondents were asked: “Does knowing this make you more likely to shop at Target in the future?”
A total of 50.5 percent said they would be more likely—though that notably includes 34.4 percent who said they’d only be more inclined to patronize Target if their local store carried the THC beverages. Another 16.1 percent said “yes” because they “want to support the retailer more now regardless of which locations sell the products.”
About half of respondents (49.5 percent) said Target’s embrace of a THC drink pilot program wouldn’t affect where they shop.
The mainstreaming of cannabis beverages comes as recent poll shows that a majority of Americans believe marijuana represents a “healthier option” than alcohol—and that most also expect cannabis to be legal in all 50 states within the next five years.
Another survey found that four in five adults who drink cannabis-infused beverages say they’ve reduced their alcohol intake—and more than a fifth have quit drinking alcohol altogether.
Wine & Spirits Wholesalers of America this week called out Congress for failing to address the pending federal recriminalization of hemp THC drinks in the Farm Bill that was recently passed the House of Representatives.
Target isn’t alone in joining the cannabis train as state laws continue to evolve.
Home Depot, one of the largest employers in the United States, last year shifted its employee drug testing policies to remove cannabis from screening panels entirely and stop pre-employment drug testing of most of its workers, according to a document obtained by Marijuana Moment.
In 2022, Amazon, the second largest private employer in the U.S., also backed a Republican-led bill to federally legalize, tax and regulate marijuana. It previously expressed support for a separate, Democratic-led legalization bill. Amazon has also worked to adapt to changing marijuana policies internally as it’s backed congressional reform, enacting an employment policy change in 2021 to end drug testing for cannabis for most workers, for example.
Meanwhile, Veterans of Foreign Wars (VFW) of the United States recently entered a first-of-its-kind partnership with a hemp THC beverage company, with a licensing branding deal that will support a variety of veterans services and promote cannabis drinks as a potential alcohol alternative with the drinks being available at VFW posts across the country.
Separately, while Target is apparently moving into the THC drink space, the airline Virgin Atlantic denied satirical and false claims earlier this year from a cannabis beverage company about a deal to sell its THC-infused beverages on flights.
