When Target announced its pilot program to sell hemp-derived THC beverages in select Minnesota stores, the news made waves in both the cannabis and retail industries. Major headlines touted it as a “monumental” shift, a sign of mainstream acceptance, and a potential bellwether for national change. But as we look closer, it’s clear that Target’s entry into the THC beverage market is far from revolutionary—especially in Minnesota, a state that has already embraced full cannabis legalization.
Instead of charting a bold new course, Target’s approach feels like a calculated compromise: safe, limited, and designed to minimize risk rather than genuinely embrace the cannabis revolution already underway. Here’s why that matters—and why consumers and brands invested in true cannabis innovation should view this move with a healthy dose of skepticism.
Playing It (Too) Safe: Why Hemp-Derived Only?
Minnesota legalized adult-use cannabis in 2023, joining a growing list of states where consumers over 21 can legally purchase and enjoy a wide variety of cannabis products. Licensed dispensaries offer flower, edibles, concentrates, and yes—THC-infused beverages, often crafted with high-quality cannabis extracts. These products are often more transparent, rigorously tested, and tailored for a sophisticated consumer base that knows the difference between hemp- and cannabis-derived THC.
Yet Target chose to offer only hemp-derived THC beverages, capped at 5mg THC per serving and 50mg per package, as allowed under Minnesota’s earlier 2022 “low-potency” hemp law. Brands like Cann, Hi Seltzer, Stigma, and Trail Magic are featured in the pilot, but all conform to the more restrictive framework designed for a pre-legalization market.
For a retailer of Target’s size and influence—headquartered in Minneapolis, no less—the decision to stick to hemp-derived products feels behind the curve. With adult-use cannabis now legal statewide, this “soft launch” looks less like innovation and more like corporate hedging.
Hemp vs. Cannabis: The Critical Distinction
It’s crucial to understand the difference between hemp-derived and cannabis-derived THC products. Hemp-derived THC beverages are made using cannabinoids extracted from federally legal hemp, defined as cannabis plants containing less than 0.3% THC by dry weight. These products exist in a regulatory gray area—legal at the federal level, but often facing patchwork state restrictions and less consumer trust.
Cannabis-derived products, by contrast, come directly from marijuana plants bred for higher THC content. In legal states like Minnesota, these products are subject to stringent state oversight, lab testing, and transparent supply chains. They’re what most consumers are looking for when they want a premium, reliable, and enjoyable cannabis experience.
By limiting its offering to hemp-derived beverages, Target is not only restricting consumer choice, but also sending a message: mainstream corporate America is still wary of fully embracing legal cannabis, even in states where voters and lawmakers have already paved the way.
Consumer Savvy in a Mature Market
Minnesota’s cannabis consumers are more sophisticated than ever. They know the difference between a hemp beverage and a full-spectrum cannabis drink from a licensed dispensary. They understand dosage, entourage effect, and brand reputation. Many have already sampled high-quality cannabis beverages from local craft producers or specialized dispensaries—products that often deliver richer flavors and more consistent effects, thanks to robust state regulation.
So, when Target stocks hemp-derived THC beverages on its shelves, the move feels less like a game-changer and more like a half-step, especially when better options are available just down the street.
Missed Brand Value (and Consumer Trust)
For brands and consumers who stand for authentic cannabis experiences, Target’s pilot is a missed opportunity. Rather than elevating the conversation around cannabis and bringing new consumers into the fold, this approach risks confusing or even alienating them.
Imagine a new customer, curious about cannabis, who picks up a hemp-derived drink at Target, only to find it underwhelming compared to products from licensed dispensaries. Or a more experienced enthusiast, who sees the move as evidence that big-box retailers just don’t “get it.” In both cases, the result is the same: a diluted brand experience and a missed chance to foster real loyalty.
Regulatory Reality or Convenient Excuse?
It’s worth acknowledging that federal law still prohibits the sale of cannabis-derived THC outside of licensed dispensaries, even in legal states. But Minnesota’s regulatory framework is evolving rapidly, with new dispensaries opening regularly and consumer demand on the rise. Target, with its resources and local footprint, could have played a leadership role—perhaps by partnering with licensed cannabis retailers, advocating for expanded access, or supporting education around safe and responsible cannabis use.
Instead, the company chose the path of least resistance, sticking to hemp-derived beverages that avoid federal scrutiny but fall short of meeting the market’s true potential.
Industry Reaction: Not All Cheers
While some in the beverage and cannabis sectors have hailed Target’s move as “monumental,” others see it as a clear sign of how mainstream retail is still skittish about full cannabis integration. Local dispensaries, craft beverage makers, and advocacy groups have all pointed out the limitations of hemp-only offerings—especially in a state that is supposed to be leading the way on legalization.
The Bottom Line
Target’s decision to sell hemp-derived THC beverages in Minnesota is, at best, a cautious toe-dip into the cannabis space. In a market where consumers already have access to legal, tested, and regulated cannabis products, this approach feels less like innovation and more like a corporate cop out.
If Target and other major retailers truly want to be leaders in the cannabis beverage revolution, they’ll need to move beyond the safety of hemp-derived products and embrace the full spectrum of what legalization has to offer. Until then, savvy consumers—and authentic cannabis brands—will continue to look elsewhere.
Author’s Note:
We believe that the future of cannabis—not just beverages—lies in transparency and authenticity. The industry should prioritize naturally derived cannabinoi
