Earl Giles

Pete Macfarlane

Cultivation Standards Steward

Consumers Preferences

Having worked with brands across spirits, hospitality and emerging beverage categories, I've been struck by how little the fundamentals of growth actually change.

Industries evolve. Regulations shift. New products emerge. Yet the underlying challenge remains remarkably consistent: understanding consumers and creating products, experiences and businesses that earn a place in their lives.

That is why I believe one of the biggest misconceptions surrounding hemp beverages today is the tendency to treat the category as fundamentally different from the rest of the beverage industry.

Consumers don't buy categories. They buy occasions. Or, more accurately, consumers rarely think about categories the way marketers do. More often, they are solving for an occasion, a need state or an experience.

This is particularly relevant given the ongoing narrative that alcohol is somehow being replaced by cannabis or hemp beverages. While consumer habits are undoubtedly evolving, I believe that view oversimplifies what is actually happening.

Alcohol remains one of the world's largest and most resilient beverage categories. What appears to be changing is not the disappearance of alcohol, but the expansion of consumer choice. Depending on the occasion, the same consumer may choose a cocktail, a THC beverage, a nonalcoholic drink or nothing at all.

Rather than witnessing the decline of one category and the rise of another, we are seeing beverage repertoires expand. At Earl Giles, we often talk about what feels like the end of prohibition on choice. Consumers no longer feel obliged to define themselves by a single category. They are increasingly comfortable moving between alcoholic, non-alcoholic and THC beverages depending on the occasion, their mood and the experience they are seeking.

The real competition for a hemp beverage is not necessarily another hemp beverage. It could be a beer, a canned cocktail, a sparkling water or simply choosing not to consume anything.

One thing that occasionally strikes me about the hemp beverage category is that it can still be overly focused on product attributes and consumer types rather than occasions. The beverage industry has spent decades understanding the role products play across different moments in people's lives. Having worked across markets with very different regulatory environments, I've seen firsthand how restrictions often reinforce the importance of occasions. When you can't rely solely on product messaging, understanding when, where and why consumers choose a category becomes even more important.

Some brands remain heavily focused on existing cannabis consumers, while the larger opportunity may lie in understanding the broader range of social and lifestyle occasions where hemp beverages can add value for a much wider audience. The industry's future will not be determined by how many cannabis consumers it attracts. It will be determined by how many beverage consumers it attracts.

Building Products Consumers Return To

That perspective has shaped how we approach product development at Earl Giles. As a company developing products across spirits, cocktails, non-alcoholic beverages and THC beverages, we've found that consumers evaluate products through a remarkably consistent lens: Does it taste good? Does it deliver the experience I expect? Would I buy it again?

The answer always starts with the liquid.

Novelty may generate trial, but only product quality creates repeat purchase. Great marketing creates awareness. Great liquid creates loyalty.

An Industry Coming into its Own

Following conversations across the industry, including recent discussions at Hemp Beverage Expo, one noticeable shift was the overall sentiment. Compared with earlier industry gatherings this year, the mood felt more constructive and more confident about the category's long-term prospects.

The hemp beverage sector increasingly feels as though it is establishing its own identity, distinct from both the broader cannabis industry and the wider hemp sector. There was greater alignment around quality standards, responsible consumption and the role regulation can play in supporting long-term growth.

At the same time, many businesses are preparing for multiple potential outcomes. Established brands are expanding portfolios, strengthening distribution networks and, in some cases, seeking additional investment ahead of anticipated regulatory developments later this year.

While that activity suggests confidence in the category's future, I would still characterize the outlook as cautiously optimistic.

One of my takeaways from Hemp Beverage Expo was that the industry is becoming more aligned, more professional and more confident. Given the importance of potential regulatory developments later this year, that alignment is both understandable and necessary.

The challenge is ensuring the conversation extends beyond the industry itself.

Within the industry, the category feels established. Conferences are growing and brands are becoming more sophisticated,. One notable shift is the increasing number of operators and marketers from alc-bev and the wider drinks industry are exploring the space, bringing significant experience in brand building and route to market, commercial execution. Outside the industry, the picture looks very different.

Expanding Consumer Awareness

Many consumers still have limited understanding of what hemp beverages are, how they differ from traditional cannabis products, how they fit into social occasions or even whether they are legal. The industry's biggest challenge isn't market share. It's making the conversation bigger than the people already having it.

Before brands worry too much about winning share from competitors, there is still an enormous amount of work to do in recruiting consumers who have never purchased a hemp beverage before.

One of the clearest trends emerging across the category is the rise of low-dose, sessionable beverages. While the precise balance of drivers remains open to debate, this appears to reflect a combination of evolving regulation, retail acceptance and consumer interest in approachable products that fit naturally into beverage occasions.

Greater regulatory clarity would undoubtedly benefit retailers, distributors, investors and consumers. However, I don't believe the future of the category will be determined by legislation alone. November may influence the speed of growth, but it won't determine the direction of travel. The brands building consumer trust, product quality, distribution and awareness today will be in the strongest position regardless of how the regulatory landscape evolves.

Lessons for Long-Term Growth

One of the most important leadership lessons I've learned while working in highly regulated industries is to become comfortable with uncertainty. The most successful organizations maintain high standards, build adaptable systems and stay relentlessly focused on consumers.

For anyone looking to build a career in the category, my advice is simple: focus less on competitors and more on consumers. Understand the occasions you are serving. Obsess over product quality. Build distinctive brands rather than interchangeable products.

The hemp beverage industry is still writing its next chapter. The companies that succeed will likely be those that spend less time debating categories and more time understanding consumers. Regulation will evolve. Distribution will mature. Consumer awareness will grow. But the fundamentals are unlikely to change. Great marketing can create trial, but lasting success will belong to the businesses that pair strong brands with genuinely great liquid. The categories may evolve, but the fundamentals of growth remain remarkably unchanged.