EXCLUSIVE: Cannabis Beverage Sector Needs Consumer Education, Data, Has Upside Ahead - 'A Source Of Long Term Growth'

The cannabis beverage sector faces challenges for scale and consumer education. Investors and companies in the space see growth opportunities and are ready for the coming breakout moment.

Here's the insight from a panel of experts at the 2025 Benzinga Capital Conference in Chicago.

Cannabis Beverage Opportunities: The cannabis beverage space has attracted investments and entry by large beer companies, including Boston Beer Company SAM.

"We think this is a source of long-term growth for us," Boston Beer Company Head of Cannabis Paul Weaver said at the Benzinga event.

Among the products from Boston Beer is Teapot, a cannabis-infused iced tea beverage.

Weaver said cannabis beverages are perfect for new cannabis customers as they might be afraid to enter a dispensary, and this is an easy-to-use-and-buy product in a sector they are likely familiar with.

Cheech and Chong Global Holding Company Chief Beverage Officer Ted Whitney said people being stressed out and needing better access to recreational relief is leading to consumer demand for cannabis-infused beverages.

"It's an awesome category. We actually have excitement around this," Whitney said.

Loverboy CEO Kyle Cooke, who is also known for his appearance on the Bravo TV show "Summer House," said there are opportunities for cannabis beverages, with beer, wine and spirits all currently trending down among consumers.

"There's a monumental shift," Cooke said.

Cooke said the cannabis beverage sector needs more low-dose options and more education for consumers as, for many consumers, "THC is THC."

Noah Friedman, whose Topshelf Ventures venture capital fund invests in the cannabis space, said cannabis beverages can solve escapism, provide fun and be used for social interactions.

"It's a damn good business," Friedman said.

Friedman added that the beverage space has proven time and time again that companies that can play the game right make a lot of money, which could be true for cannabis beverages in the future.

Panel moderator Tim Seymour, who is behind the Amplify Seymour Cannabis ETF CNBS, said the existence of cannabis beverages as a category is "loud and clear."

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Cannabis Beverage Setbacks: While the panelists and moderator agreed that cannabis beverages are a category in the sector and an opportunity for growth, several setbacks remain that could be holding the sector back.

"Data is honestly the biggest problem," Weaver said.

The Boston Beer Company Head of Cannabis said, unlike the traditional beverage space, there is no real data for the cannabis beverage space, which is limiting investment in it.

"It's a really exciting investment time."

Weaver said some beverage companies overinvested in the cannabis space.

Friedman highlighted distribution and velocity as two of the keys to success in the sector.

"Distribution is absolutely critical," Friedman said.

Friedman said operators in the space should ensure they are ahead of their relative market in sales and growth, which could help land distribution in the future.

Cooke said the cannabis beverage space desperately needs consumer education, a role he hopes to help with.

The panel viewed the lack of consumer education and data points for the cannabis beverage sector mostly negatively, but Cooke added one positive aspect.

Cooke said there are not many Goliaths in the space, and it’s not David vs. Goliath right now.

"As an entrepreneur, I'm so excited," Cooke added.

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Photo courtesy of Wendy Davis.