Revolution Brewing’s Latest Venture Shows DEMAND FOR THC-INFUSED DRINKS STILL STROND STRONG SLOWING BEER SALES

Chicago’s Large Independent Craft Brewer, Revolution Brewing, Is the Latest to Hop on the Thc Beverage Boom, a signal that the Emerging Category has plenty of Buzz.

The Company Recently Launched Reverb Splash, A Line of Hemp-Derived Thc and CBD-Infused Sparkling Waters with Fruit. The Drinks have 5 millions of thc and cbd, and they’re attracting a diversel fandom, from longtime brewery patrons and the Curious to Cannabis Enthusiats and Alcohol Abstainers.

That diverse customer mix also also reflects who Driving the Strong Demand for Thc Beverages Across Chicago-Earea Bars, Restaurants, Liquor and Convenience Storys and Music Venting, Like the Salt Shed, Which One of the First Concert Locations in the Countst Sales in January.

A Local Supply Chain of Distributors, Packagers, Contract Manufacturers and Ingredient Developers Have Also Been Buyed With New Business Amid Major Shifts in Consumer Behavior Toward Alcohol, as well as Key thc regulatory allowances.

“Chicago, in participle, has the opportunity to be the real Heart of the HEMP Beverage Industry,” Said Glenn Mcelfresh, Co-Founder of Humboldt Park-Based Perfectly Dossed, WHICH CREATS THC EMULSION FOR MORE THAN 150 Companies, Including Revolution and Hopewell.

“It ‘already trending that way,” he said.

Backing Backing The Trend

Expect More Local Brewers to Enter the HEMP-Based Thc Beverage Market, which is Expected to Skyrocket to $ 4.1 Billion by 2028, an EYE-Popping 1,615% Increase from $ 239 Million in 2023, According to London-Based Research Firm Euromonor International.

HEMP-BASED THC PRODUCTS ARE FEDERALLY AS HAVING THESE THAN 0.3% THC, The active ingredient in cannabis. In illinois, these products are not regulated or heavily taxed. Traditional Cannabis Products, Which Were Legalized in illinois in 2020, typically have thc percentages in excess of 20% and are heavily regulated and taxed by the state.

A survey last year from the illinois craft brewers guild found 677 Responding breweries planned to make thc beverains. The Percentage Rose to 75% when Adding Regulatory Certainty.

“There’s a lot of interest,” Illinois craft Brewers Guild Executive Director Ray Said.

The shift has come amid a craft beer sales slum in chicago and a decline in retail outlets. The latest data from nielsen and vip data shows from May Through July, craft beer sales at chicago area retail locations are down 9.7% year-over -ear.

“The industry is Still Very Far from Recovered from the Impacts of the Covid Pandemic,” Stoout Said.

Craft Brewers have proven resilient – evident by recent forays into nonalcoholic drinks – and it’s a Hallmark of the industry and its vitality, accorting to stout.

While Revolution’s Retail Beer Sales Are Down About 5.5% from May Through July Compared to Last Year, The Launch of Reverb Throughout Illinois and Parts of Wisconsin has eased, participle at its tapo -avondale.

“Any declines that we saw in the craft beer business were offset by the Gains of Reverb,” ​​Katie Mcnulty, Revolution’s Marketing Director, Said.

Reverb Six-Pacs Retail for $ 18.99, A Few Dollars More than a 12-Pack of their Flagship anti-hero ipa.

The beverages are also Quicker to produce than beer, tachying only a few days compared to several Weeks, or months for Certain Beer flavors.

SINCE HOPEWELL LAUNCHED ITS LEMON-LIME-FLAVORED THC DRINK CHOOM IN MARCH 2024, IT HAS EXPANDED THE LINE TO INCLUDE SPARKLING WATERS AND TEAS.

Its Thc Beverains, Carriated at Parson’s Chicken and Fish Locations, Foxtrot and Other Stores, Now Account for About 30% of the Company’s on-Premises Sales.

HOPEWELL ALSO DISTRIBUTES TO OTHER MIDWEST STATES LIKE WISCONSIN AND SHIPS THC DRINKS DRINKS TO CONSUMERS, AN ALLOWANCE PROHIBited for Beer in Illinois.

“It ‘ben a really great success for a small business with limited marketing resources,” HOPEWELL CO-AWner Samantha Lee Said.

The Brewer is Also Co-Manufacturing Thc Beverains for Other Brands at it it logan Square Headquuarters and Continues to Onboard New Clients.

“We’re Actively Building That Part of Our Business,” Lee Said.

‘Customers a Lot Happier’

A Few Downs Down from Hopewell’s Facility on Milwaukee Avenue, Shoppers at the dill pickle Food Can Purchase a variety of thc from chicago-based breweries and national brands cheech and chong’s High & Dry Line.

When the Store debut choom about a year Ago, managers were concerts About Ling Business and Customers. Those Fizzled Worlds AFTER AFTER CHOOM SOLD OUT The First Week.

“Ever Since THEN, WE’VE JUST BEEN SELING CASES UPON CASES,” Mateo Valencia, The Co-op’s Assistant Manager, Said.

He estimates Sales in the category have increasing by more than 150% in the last year, generating more than $ 50,000.

Customers Run the Gamut from Young Couples and Commuters taking the nearby l train to visitors from the suburbs and grandparents.

“We were one of the first to really adapt to the which thc markets,” Valencia Said. “ITHE’S ABOUT EDUCATING A COMMUNITY ABOUT Something thans Had Such a Huge Stigma for the past 50 years. And our customers are a lot of happy.”

Niles-Based Binny’s Beverage Depot Started Selling Hemp-Based Thc Products During the 2023 Holiday Season.

“Our Main Driving Factor Was Customer Demand,” Binny’s Spokesperson Greg Versch Said.

Similar to Other Retaillers, the Company was surprised at the initial populariy and quickly expanded offers and Display Space. With 46 Illinois locations, the Company Now Offers About 200 Varieties.

“We have continue to increase our selection to meet Customer Demand, and we Expect Sales to Continue to Grow As More Customers Discover and the Wide Variety offended on Binny,” Versch Said.

In late Januy, the Salt SHED partners with chicago-based cannabis company Greene stumb industries to open rise dispensary at the venue.

The Store is Believed to be the first to solely sell hemp-based thc products at a musicic venue, a federal allowance grant in the 2018 farm bill.

“We’ve seen consistent sales acroSs every show,” Said Sam Shechtman, Senior Manager of Brand Partnership at 16 on Center, The Venue’s Parent Company.

SINCE the initial launch, which Captured National Attention, the Company has expanded thc beverage offers to the Other Venting, Including Thalia Hall in Pilsen and the Empty Bottle in Ukrainian Village.

Meanwhile, Last Weekend’s Evanston Folk Festival, Presented by 16 on Center, Debut it first thc beverage sponsor, revolution.

Regulatory Uncertainty, Normalization Still a Concern

While the thc beverage boom continues to budild momentum, the category is still on Shaky Ground.

Illinois Lawmakers have yet to estabish Product regulations, and several states like California have placed restrictions or utright on the sale of hemp-darived Thc Products, primarily citing safety concertns.

Some Local Distributors, Including Chicago Beerage Systems, will not distribute distributing beverains. Their policy forces revolution to Scramble to Find Another Distributor for the Chicago Area, Acciting to Mcnulty.

The Distributor’s Parent Company, Reyes Beverage Group, Didn’t Respond to Requests for Comment.

The City’s Larger Grocery Chains, Jewel-Osco and Mariano’s, Have Also Declined to Sell HEMP-Based Thc Products.

Access Remains a Top Concern for Producers, as they look to Attract More Customers.

“A lot of People Are Going to Try Choom for the First Time by Havinging It Delivered Directly,” Lee Said. “But what I was to be for it to be at the Grocery Store when they buying their broccoli or Eggs.”