Walk into many convenience stores, grocery stores and liquor stores in Minnesota and you’ll see something you won’t see in most states:
Shelf after shelf of low-dose, hemp-derived THC beverages, gummies, powders and more.
Minnesota has seen an explosion in the segment since becoming the first in the nation to legalize products containing hemp-THC in 2022, effectively being crowned the country’s leader in regulating and selling products that are currently being hotly debated in many states.
It’s especially impressive, considering Minnesota does not allow alcohol sales inside grocery stores and only gave the greenlight to Sunday liquor sales less than a decade ago.
“In Minnesota, during COVID, brewers were not even allowed to sell to-go, so they were very much in the red, and so this was a huge opportunity for them to not only sell and make their own products, but also to co-pack,” said Diana Eberlein, chair of the advocacy group Coalition for Adult Beverage Alternatives (CABA) and chief external affairs officer for cannabis emulsion firm Vertosa.
Minnesota currently has 5,345 retailers licensed to sell hemp-derived edibles and beverages, according to August data from the state’s Office of Cannabis Management (OCM).
An OCM spokesperson said the state does not track sales data on the products “as the market is still growing and maturing.” A report last year in Politico, however, said THC drinks have become a $200 million industry in Minnesota.
36 Lyn Refuel in Minneapolis has developed a thriving hemp-THC segment.
Josie Johnson, operations manager of 36 Lyn Refuel Station in Minneapolis, can attest to the steady growth of hemp-THC at her convenience store.
“When I started here (in 2022), there were very limited, maybe two different brands of THC edibles only,” Johnson said. “There were no drinks whatsoever.”
In the years since, Johnson has grown the store’s THC program into a thriving segment with more than 40 SKUs, all produced by local suppliers. A small cooler is packed with several rows of THC beverages, while THC edibles and shots live behind the counter.
Among the offerings are Minnesota-centric products like You Betcha! Cannabis Co. canned drinks and Cannesota gummies.
Johnson said it’s become a “top seven” category for the store, moving about 600 units per month.
She has a theory about why hemp-THC products have taken off in the state.
“We’re bored,” she said. “It’s cold. OK. Seriously. Gives us something to talk about. If it’s not about the weed, it’s the weather … It almost feels like we just got Sunday liquor sales recently. Now, you’ve got weed at the gas stations. It just was like liberation, to an extent.”
The Lunds & Byerlys grocery store in suburban St. Louis Park, Minnesota, has an extensive THC beverage selection.
In the Wines & Spirits department, THC drinks are taking up more and more shelf space, according to the store manager.
There’s a wall of more than 30 beverage SKUs near the front of the department and a refrigerated section with even more drinks in the back, by craft beer. Shoppers can build their own four packs of THC drinks from the available singles.
Shoppers at Lunds & Byerlys can build their own THC beverage four packs.
A store manager said the category keeps “growing and growing” and that Lunds & Byerlys stores without their own liquor departments have begun selling the products in-store.
Under Minnesota’s regulations, products can contain up to 5 milligrams of hemp-THC per serving, with a maximum of 50 milligrams per package.
Beverages can have two servings, for a maximum of 10 milligrams of hemp-THC per can or bottle. Edibles that contain multiple servings must be scored or wrapped. Consumers must be at least 21 to purchase the products.
At 36 Lyn, employee education is a major component of the store’s hemp-THC program.
The store relies on TruAge technology to ensure compliance for each transaction.
“It’s very much a group effort,” Johnson said. “If staff have questions, I like to inform them. OK. This is the next rule. This is the newest product. Always bring them up to speed about anything new.”
But there is some uncertainty about the future of Minnesota’s hemp-THC bonanza.
In 2023, the state passed a bill to legalize adult-use cannabis, becoming the 23rd state to legalize recreational weed. After many stops and starts, the OCM is doling out licenses to dispensaries and other businesses. Native American tribes were the first to receive permits. Dozens of other permits have been awarded via lottery.
Will consumers stop buying hemp-THC from c-stores, grocers and liquor stores, in favor of dispensaries? It’s too early to tell.
For her part, Johnson said she is “slightly, but not terribly” concerned about the upcoming rule changes.
“We aren’t selling flower, so we aren’t up against that arena,” she said. “I don’t know what’s going to happen. Recreational flower is almost here and there are dispensaries popping up.”
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