Welcome to The Straight Dope, our weekly series that explores the best cannabis products in Michigan.
People are getting tired of booze – the hangovers, the regrets, the impact on their health.
As the demand for alcohol alternatives grows, THC beverages are gaining popularity nationwide, popping up in restaurants, grocery stores, smoke shops, convenience stores, and even on tap at bars. Once confined to regulated cannabis dispensaries, hemp-derived THC drinks are now widely available in states embracing the trend.
But so far, Michigan is not among them. Not yet, anyway.
Green Street Beverages, a Boston-based company behind THC drink brands Hi*AF, HiTide, and Boundary Waters, is hoping to carve out a foothold in the state. While Michigan law prohibits the sale of marijuana-derived THC drinks in public venues like bars and restaurants, the 2018 Farm Bill, which legalized hemp and its derivatives, provides a legal pathway for hemp-based THC beverages in those businesses. Some call it a loophole.
Michigan’s Cannabis Regulatory Agency (CRA) strictly limits the sale of marijuana-derived THC drinks to licensed dispensaries, meaning consumers can’t legally sip a THC seltzer at a bar or order a cannabis-infused cocktail at a restaurant.
But hemp-derived THC drinks fall into a different category. Thanks to the 2018 Farm Bill, these beverages are not classified as marijuana products. This allows them to be sold at grocery stores, bars, and gas stations in states that have not explicitly banned hemp-derived THC beverages.
Because Michigan has not passed laws specifically prohibiting hemp-derived THC drinks, companies like Green Street Beverages see an opportunity to operate outside of the state’s tightly regulated cannabis industry. In fact, the company already ships its products across the country, including Michigan, through online sales. Green Street Beverages says it expects to be in 12 states by the second quarter of this year.
In states like Minnesota and North Carolina, hemp-derived THC beverages have taken off, with some bars and restaurants offering them as an alternative to alcohol. Without the restrictions of liquor licenses or state cannabis laws, hemp-derived drinks have already become a multimillion-dollar industry.
For those beverage makers, the advantages are even greater. Unlike cannabis companies that face heavy taxes, banking restrictions, and strict regulations, hemp-derived THC beverage makers operate with far more flexibility. They don’t need a dispensary license, don’t have the same advertising limitations, and can distribute their products through traditional retail channels. They also aren’t subject to Michigan’s 10% excise tax, like regulated adult-use cannabis.
“There is a monstrous amount of THC beverages in liquor stores now,” Jarrod Jordan, chief marketing officer for Green Street Beverages, tells me. “It has definitely taken off more than expected.”
But beverage makers in the regulated recreational market say the hemp-derived drinks are inconsistent, mild, and poorly regulated.
Whatever the case, consumers are also driving the rapid expansion of the THC beverage market. Gen Z and millennials, in particular, are drinking less alcohol, and hemp-derived drinks offer a way to unwind without the hangovers and high calorie counts of traditional boozes.
Green Street’s lineup, which includes citrusy Hi*AF Orange Lift, lemon-infused Huckleberry Boundary Waters, and HiTide Craft THC Margaritas, is designed to deliver a consistent, relatively low-dose THC experience. Each can has between 3 and 10 milligrams of THC, depending on the drink you choose, compared to as many as 200 milligrams of THC in beverages sold at dispensaries in Michigan. The goal is to give consumers a relaxed, social buzz without overindulgence or the anxiety that comes with too much THC.
“There is a shift in the way people are socializing,” Shea Coakley, CEO of Green Street Beverages, says. “With beverages, this is the first avenue that can really reach the mass market. It doesn’t involve smoking, which we all know is bad for you. Drinks are inherently sociable. You get together, you have some coffee, some wine, or a few beers. It allows consumers to experience THC in a way that is super comfortable.”
The regulated market
Although bars and restaurants in Michigan don’t offer THC-infused beverages, the drinks have become increasingly popular at dispensaries statewide, and they’re far more regulated and have a wider array of potencies.
One of the statewide leaders in marijuana-infused THC beverages is Pleasantrees, which began selling the drinks in January 2023. Since then, its five dispensaries have sold about 100,000 units of THC drinks, according to Sarah Waldrop, marketing director for Emerald Brands, a vertically integrated company that includes Pleasantrees. Between 2023 and 2024, beverage sales increased 34% at Pleasantrees’ dispensaries, Waldrop tells me.
Many of those drinks were made in-house in Mount Clemens by Emerald Canning Partners, a beverage production company that is a joint venture with Pleasantrees and beverage maker Andrew Blake of Armada-based Blake’s Hard Cider. Emerald Canning stands out because its employees have dozens of combined years in the beverage industry, long before weed-infused drinks ever hit the market.
“We are beverage people,” Matt McAlpine, president of Emerald Canning Partners, tells me. “This facility was designed, built, and now operated by beverage people. That’s what sets us apart. You know what you’re going to get when you come to a manufacturer like this. We’re beverage professionals who have done this for years. Quality is everything to us.”
Sales of Emerald Canning’s beverages rose 277% in the past year, according to the company.
Among their offerings are seltzers, teas, and syrups. THC levels range from 5 to 200 milligrams.
Unlike hemp-derived drinks, which often face little oversight, marijuana-infused beverages sold at dispensaries are subject to strict testing, labeling, and potency standards set by Michigan’s Cannabis Regulatory Agency. Consumers also know exactly how much THC they’re getting. That level of transparency and oversight has helped brands like Pleasantrees build a loyal customer base that comes back for the consistency and quality of the beverages, McAlpine says.
The hemp-derived THC drinks, he argues, are bad for the growing industry because the lack of standards creates inconsistencies and potential health hazards. He says his team tested more than 50 hemp-derived THC drinks, “and not a single one would have passed Michigan’s regulations.” Some exceeded the state’s THC limits, while others had much less THC than advertised, he says. His team also found microbial contamination that can come from unclean equipment, poor storage conditions, or low-quality ingredients.
“It’s a massive concern for us as a beverage company that there is that much bad product out there, providing poor consumer experiences or poor consistency, and they’re not tested, and they’re getting shipped right to your door,” McAlpine says.
He adds, “They need to be banished. Right now it’s the absolute wild west.”
Over the past two years, Pleasantrees has highlighted its THC beverages as part of its Dry January campaign aimed at encouraging people to swap alcohol for cannabis. The campaign includes deals and recipes for THC cocktails such as strawberry watermelon mojitos, spicy margaritas, and orange creamsicles.
THC beverage companies believe there is a ton of potential for even stronger growth, despite the expanding reach of hemp-derived beverage makers.
“The cannabis consumer is used to very flavorful, sugary, high-dose beverages. In the Michigan market, that is what the consumer is looking for,” Waldrop says. “That being said, there’s still a massive opportunity to grab the mass market consumer who is not necessarily following the cannabis market but is very much interested in the massive surge of these beverages.”
Like the hemp-derived THC drink companies, the licensed recreational cannabis businesses are hoping lawmakers eventually allow their drinks in bars, restaurants, and even professional sporting events.
“It would be incredible to go to a Tigers game and be able to drink a 5 or 10 milligram THC beverage,” McAlpine says. “You’re not going to have a fight in the parking lot or the tailgate after. You’re going to have better nachos and barbecue.”
The straight dope
I sampled THC drinks from Pleasantrees and Green Street Beverages. I’d never tried a THC drink before, so I didn’t know what to expect. Both offered delicious beverages that hit me with a high within 10 minutes of taking the first sip. I was expecting the delayed onset that typically comes with edibles.
What I found were highs that felt soothing, social, and manageable — something you could enjoy during a backyard barbecue or a night out with friends.
My favorite was the 30-milligram THC Peach Pleasantea from Pleasentrees. It reminded me of the fruity tea I grew up drinking in the summer. Not only was it full of flavor, but it packed a punch. I felt buzzed, relaxed, and even a little energized. It was the kind of high that lifts you up without knocking you over.
If you want something even stronger, Pleasantrees offers beverages with up to 200 milligrams of THC.
“It would be incredible to go to a Tigers game and be able to drink a 5 or 10 milligram THC beverage. You’re not going to have a fight in the parking lot or the tailgate after. You’re going to have better nachos and barbecue.”
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I also enjoyed Green Street Beverages’ Hi*AF lineup, especially the Orange Lift, a hemp-derived seltzer with 10 milligrams of THC. The high was more mellow, but it was still noticeable. It left me feeling cheerful and talkative.
Without weighing in on the broader debate over regulation, I was impressed with both companies’ offerings. While I can’t speak for every hemp-derived THC drink on the market, Green Street Beverages appears to be doing it right.
Whatever the source — hemp or marijuana — there’s no question these drinks have a place in our social landscape. I’d love to see them at bars, restaurants, and sporting events across Michigan. But it will take action from lawmakers first.
One thing is clear: Many of us are ready to leave booze behind, and we should be able to enjoy a THC drink at establishments that sell alcohol.
If you want us to sample your cannabis products, send us an email at [email protected].
