How Cannabis and Alt Beverage Brands Can Thrive Despite Marketing Hurdles

Mon, Feb 10

Key Points

Consumer-facing brands in the cannabis and alternative beverages industries face marketing challenges due to regulatory constraints and advertising restrictions.
The federal illegality of cannabis in the United States and the legal distinction between cannabis and hemp pose hurdles for brands looking to bring products to market.
Some companies extract THC and CBD from hemp to sell online and in retail stores, but potential changes in regulations, such as the upcoming Farm Bill, could impact their strategies.
Strict advertising policies on major social media platforms limit brands' ability to promote cannabis-related products, requiring them to find creative ways to reach their target audience.

The journey is challenging, but it’s possible to break through the barriers.

In today’s digital age, consumer-facing brands are finding innovative ways to establish their presence online. However, they often face a complex maze of marketing challenges. Stringent advertising regulations and the intricacies of e-commerce — especially in industries such as cannabis and alternative beverages — require brands to be more ingenious and resilient than ever.

The Challenges of Marketing Cannabis and Alternative Drinks The alcohol industry is undergoing a significant transformation with the rise of cannabis-infused and alternative beverages. Yet, bringing these products to market is anything but simple.

Regulatory constraints pose the first major obstacle. While cannabis remains federally illegal in the United States, resulting in a fragmented legal landscape, hemp is federally legal. This distinction has led some companies to extract THC and CBD from hemp instead of cannabis, enabling them to sell direct-to-consumer online and in liquor stores, grocery stores and convenience stores.

However, this approach comes with challenges. The upcoming Farm Bill could significantly impact the viability of this strategy, with certain states already moving to ban or restrict hemp-derived THC products. Working in this complex environment demands a strategic approach to ensure compliance and growth without missteps.

Advertising restrictions add another layer of complexity. Major social media platforms enforce strict policies against promoting cannabis-related products, limiting brands’ ability to reach potential customers through conventional digital marketing channels. Paid advertisements are often prohibited, which compels companies to devise creative outreach strategies.