Emily Paxhia on the boom, the bust, and the beverage that could change everything
“I get pitched a hemp beverage almost every day. Most of them look the same — same branding, same promise, same playbook.”
— Emily Paxhia, Poseidon Asset Management
Cannabis beverages are everywhere — and nowhere. Depending on who you ask, they’re either the next big frontier or the industry’s most overhyped distraction.
In our recent High Touch episode, cannabis investor Emily Paxhia helped us make sense of the moment. Having backed cannabis brands since 2013 and studied analog categories like beer, cider, and functional beverages, she’s seen this cycle before.
Here’s what she’s watching — and why she’s still optimistic.
Cannabis drinks should be a category-defining format. They’re discreet, familiar, and social. They fit seamlessly into parties, restaurants, and concert venues. And they offer a lighter, more functional alternative to alcohol.
But despite that promise, most cannabis beverage launches fail.
“It’s asking to be disrupted,” Emily said. “Most decks look like they came from the same AI generator.”
She’s not wrong. The sameness — in branding, positioning, and flavor — has flattened what should be a dynamic category. Instead of owning a clear identity, many cannabis drinks fall into generic “relax and refresh” tropes.
Emily draws on experience with major CPG and beverage clients to underscore the challenge. Remember the hard seltzer wave? The market exploded, then compressed, leaving only a few winners and a sea of failed SKUs.
“Latecomers struggled because shelf space got crowded. Innovation slowed. And most didn’t have real staying power.”
Cannabis beverages, especially hemp-derived drinks, are now riding that same boom-bust curve:
Even for the brands that get the product right, there’s another problem: distribution.
“The logistics are brutal,” Emily said. “Volume, weight, refrigeration — it’s a margin-killer.”
That’s why major alcohol companies are the ones best positioned to play here. They already have the infrastructure to ship and sell high-volume liquid products. Many are already testing the waters via hemp drinks and non-THC SKUs — and they may be waiting for regulatory clarity to go deeper.
Emily suggests that this infrastructure advantage, more than brand marketing alone, may determine who ultimately wins.
So what will it take to finally break through?
Emily points to a few key ideas:
“The work is never done in beverage,” Emily said. “It’s constant innovation, messaging, packaging, distribution — all of it.”
While the regulated cannabis market struggles to scale beverages, hemp drinks are already showing up in bars, bodegas, and music venues. Emily sees this as a possible Trojan horse for cannabis to go more mainstream.
She cites deals like Sénorita’s partnership with The Salt Shed, an iconic Chicago music venue, where hemp drinks are served just like beer or cider.
“That’s a great entry point,” she said. “People want an alternative at concerts — something with an effect, but not alcohol. That’s where drinks win.”
Even if a hemp beverage gets on the shelf, it still needs to resonate. People don’t build loyalty around compliance loopholes — they build it around experience, design, and community.
And most importantly, you only get one shot to be memorable.
🎧 Want to hear more?
Check out our conversation with Emily Paxhia on High Touch, where we go deep on cannabis drinks, retail storytelling, and the next wave of brand innovation.