Craft breweries are turning to co-packing THC-infused products to survive as taproom revenue shrinks. Minnesota's recent law change has spawned over 200 THC offerings, flooding retail shelves and squeezing out traditional craft beer placement.
Chapters
There are certain people that have made a statement that they're betting their entire future on the NA category too, as starting to co-pack. Those that have capacity are actually co-packing. And guess what? They're not necessarily co-packing NA beer, they're co-packing THC products, 'cause they're coming fast and furious. Yeah. I sit in Minnesota, as you both know, and that law changed, and there's probably over 200 products that are THC. So these craft breweries now are actually contract brewing and making THC and, you know, products. To bring them to market fast and fiercely. So that's you know, and then they're co-packing. So that's how they're surviving because their taprooms and their distribution business for their craft beer isn't making it because guess what? It's a battleground at retail. That space. Where do you think the retailer is going to get space for all the RTDs that are in the market, all the functional beverages coming, and the THC products? They're going right after craft beer, right after that space.