Scott Sousa learned a valuable lesson about the THC beverage market from a reggae concert. 

As Beverage Director for Frenchy’s and Clear Sky Restaurants, he oversees the adult beverage purchasing and merchandising for the operation’s various restaurant concepts. 

Frenchy's has been around for 45 years and has "beach-casual" restaurants featuring locally-caught fish and stone crab. Clear Sky Restaurants feature higher level cocktail menus and solid wine lists with great dinner menus. The group also has a liquor store that's right on Clearwater Beach right next to a large luxury resort with customer purchases ranging from a $400 bottle of wine to a small bottle of Fireball.  

One of the restaurants is located right next to an amphitheater, which earlier this year hosted a reggae concert. “In my mind, I’m saying, I got this,” says Sousa. “I bought 10 cases of THC drinks, and displayed them at a bar we set up outside that people would pass by on their way to the concert.”

While the bar raked in $3,000 in sales that evening, it only sold four cans of the THC beverages. 

As it turns out, while Sousa was correct in his assumption that these concert-goers were THC users, he was wrong in thinking they would drink THC beverages. “We spoke to people as they walked by, and they said they already have 50 or 100 milligrams of THC gummies in their pocket, so they didn’t need a 5 or 10 milligram drink,” he says. “It wasn’t the target audience at all. They’re the ‘professional users’ who smoke and do gummies. The real market is people looking to just relax.”

A shifting adult beverage landscape

What’s interesting about today's adult beverage landscape is that two of the hottest categories happen to not have any alcohol in them. We’ve seen the explosion of NA beer, wine and spirits over the past few years, and now a relatively new player to the retail and scene is THC-infused beverages. 

Once a niche curiosity, these products have rapidly gained traction among consumers looking for alternatives to alcohol, and forward-thinking operators are beginning to embrace the opportunity. “If someone is seeking out alternatives to alcohol consumption but still looking to get a buzz, that’s where a lot of these THC products are being positioned,” according to Kaleigh Theriault, Director of Thought Leadership - Beverage Alcohol for NIQ.

At ECRM’s recent On and Off Premise Adult Beverage Session in Florida, I sat down with Sousa to discuss how his operation has integrated THC beverages into their on-premise restaurants and off-premise liquor store (see full video interview below).

From zero to a key growth driver

Just a year ago, THC beverages weren’t even on the radar for Frenchy’s or Clear Sky. But when the restaurants reopened after hurricane-related closures, guests began asking for them.

“Before that point, we had zero THC drinks at all,” says Sousa. “It wasn’t even something we were working on. Then people started asking about it, and we decided to bring in one item at the liquor store. Now, just six to eight months later, we’re up to 25 SKUs.”

That rapid expansion highlights just how quickly consumer interest has surged. What started as curiosity-driven purchases has evolved into regular demand. Today, guests walk in already knowing what they want. “It’s gone from, ‘What is this?’ to ‘Do you carry this brand?’ in a matter of months,” Sousa says.

A surprising customer base for THC beverages

Like many, Sousa originally assumed THC beverage customers would skew toward young, alternative, and heavy cannabis users. But as he learned with the reggae concert, he was wrong. “I truly thought every person coming in for THC would be tatted up with a man bun,” he jokes. “But it’s everybody. We’ve had 75-year-old women asking if it’s legal and if it might help them sleep. We’ve got soccer moms. We’ve got the 20-to-29 group that’s not drinking alcohol as much. It’s across the board.”

That broad appeal underscores one of THC beverages’ biggest advantages: they meet diverse consumer needs. For some, they provide relaxation and stress relief. For others, they offer a healthier-seeming alternative to alcohol, with no hangover the next morning.

According to NIQ’s Theriault, who spoke at the Session, THC is part of the overarching trend of moderation, which is also driving the spike in purchases of NA Adult Beverages (in fact, many consumers consider THC drinks a NA adult beverage). “Consumers are seeking out these products, and it’s not one type of consumer, but a pretty broad spectrum,” she says. “They are finding those opportunities where someone may not want to consume alcohol mid-week, and the No. 1 occasion for these THC beverages is that wind-down occasion.”

Educating staff and customers about THC beverages

Having added THC beverages to the restaurant menus, Sousa notes that staff training – which is done during shift meetings and via internal communication platforms – has been essential for these new items. “You still get a lot of questions from guests, so the servers need to know how to explain it,” he says. 

Managing THC beverages in restaurants does have its nuances. They’re treated like alcohol: Only customers over 21-years-old can consume them, and this consumption is carefully monitored. But unlike alcohol, these beverages don’t fit neatly into existing menu categories. Should they be grouped with non-alcoholic options, or with seltzers and ciders? Many restaurants and retail locations are still figuring this out. 

Sousa has found a unique way to address this in his restaurants, however. He plans to introduce THC-based cocktails as part of a “Pick Your Poison” menu concept. The menu feature will have a choice of several cocktails and customers will be able to choose between a non-alcoholic version, a traditional spirit-based cocktail, or a THC-infused version, all at the same price point. “That way, you can order the same drink three different ways,” Sousa says. 

Convenience meets experimentation off-premise

At their Clearwater Beach liquor store, THC beverages have quickly become a core part of the assortment. Cans and other ready-to-drink options are especially popular with tourists grabbing something to take to the beach. Small 50 ml bottles that can be added to lemonade, iced tea, or soda are also strong sellers. They are displayed in an end cap and in the refrigerator. 

“The flavors are intentionally mild, so you can mix them with almost anything,” Sousa says. “And because we’re in a resort area where it’s 95 degrees every day, people want grab-and-go options.”

Beyond beach-ready cans, other products are marketed for relaxation and sleep, often with lavender or higher CBD content. This diversity gives consumers choices depending on their lifestyle and preferences, which is yet another reason why the category is growing so quickly.

Challenges: differentiation and quality

For Sousa, the biggest challenge he faces with THC beverages is wading through the sheer volume of new products hitting the market. “I’ve probably tasted 75 to 100 different products this year,” he says. “Some are delicious. Some are so bad you wonder how they ever made it to market. So the question becomes: what makes your product different? Why should I carry it?”

Indeed, the explosion of new brands is similar to what we experienced with the energy drink boom, or with CBD. “Every day there are new brands popping up, and the way in which they go to market is sort of following the alcohol world, but it’s still up for debate on where things like that fall,” says NIQ’s Theriault. “The trends continue to be explosive with new brands, and a lot of dollars are flowing through it.”

Consumer education is another challenge. Consumers still have many questions about legality, effects, and how products compare to alcohol, and Sousa says that staff need to spend time walking customers through the options.

The legal considerations add another layer. While Florida has not legalized recreational cannabis, hemp-derived Delta-9 THC beverages are legal for consumers 21 and older. That makes them more accessible than dispensary products, but also places pressure on brands and operators to stay on top of evolving regulations.

THC beverages are poised for strong growth

Despite challenges, the opportunity for growth is undeniable. In just six months, THC beverages have shot to 3 percent of sales at the Clearwater Beach liquor store. “That may not sound huge, but going from zero to 3 percent that quickly is a big deal,” Sousa says. “And we’re just getting started.”

This growth is especially important as traditional beverage categories face headwinds. According to Sousa, wine sales have declined for three consecutive years, and craft beer growth has slowed. THC beverages offer a fresh alternative, appealing to consumers who want relaxation without hangovers. “I think a lot of craft beer drinkers could switch to this,” Sousa says. “It’s a new option, and it’s here to stay.”

Sousa’s advice for brands: do your homework

For suppliers looking to break into this space, Sousa’s advice is clear: differentiation and diligence matter. “Don’t just slap a new label on the same old thing,” he warns. “You need to have something unique, and you need to understand the regulations.”

He points to brands like Nowadays – one of the ECRM Session participants – which not only focuses on product quality but also engages in legislative work to ensure the category’s long-term viability. Such a level of commitment builds credibility with operators. “You’ve got to show that you’re in it for the long haul and that you’re doing it the right way,” Sousa says..

For retailers, restaurants, and brands, the message is clear: this category is no longer fringe. It’s a fast-growing segment with the potential to offset declines in traditional beverage alcohol. But success requires careful execution including the education of staff and customers, navigating regulations, and standing out in a crowded marketplace.

Watch the full video interview with Scott Sousa here