Business
Minnesota’s low-dose THC beverage market is booming
Minnesota, of all places, has become the hottest market for low-dose, hemp-derived THC beverages in the country – and likely anywhere else, including Canada and Europe.
The unexpected success of these cannabis beverages could bode well for the state’s nascent recreational marijuana market, with adult-use sales expected to begin in a little more than a year.
Recreational marijuana possession, use and homegrows became legal in the state on Aug. 1.
In the meantime, consumers of all stripes are flocking to hemp-derived THC beverages, with monthly sales likely topping $1 million.
The rush has been fueled by widespread retail access, easing stigmas associated with cannabis and the state’s geographic position on the map.
Illinois and Michigan, the nearest states with adult-use sales, are hours away from most residents.
Minnesota regulators and lawmakers paved a wide path where hemp-derived THC could be sold in the Midwest market, a big reason why these types of beverages are selling well at liquor stores, restaurants, grocery chains – such as Cub supermarkets – and other locations that have largely been closed to THC products nationwide.
The 2018 Farm Bill legalized hemp and opened the door for sales of delta-8, delta-9 and other intoxicating hemp-derived cannabinoids with up to 0.3% THC by dry weight.
The Minnesota market, which doesn’t require a license to sell hemp-derived THC products, kicked the door wide open.
The widespread availability of low-dose THC offerings has helped bring new customers into the fold as well, particularly nonsmokers and baby boomers, industry insiders tell MJBizDaily.
“It has exposed an entire state of consumers to the fact that they can purchase these products the same way they can purchase alcohol,” said Leili Fatehi, partner and principal of Blunt Strategies, a government relations and communications firm in Minneapolis that helped craft the state’s cannabis legalization policies.
“And the sky hasn’t fallen. If anything, we’re seeing that consumers are much more prepared and comfortable engaging in conversations, learning about the products and approaching them safely.”
The beverage boom has also been a boon for local manufacturers – including one of the state’s larger independent craft brewers, Minneapolis-based Surly Brewing Co. – as well as national cannabis brands such as California-based infused beverage maker Cann, one of several companies shipping hemp-derived THC beverage products from Minnesota to consumers across the country.
A paradigm shift
The groundwork for Minnesota’s current boom in hemp-derived THC beverages was laid a little more than a year ago, in May 2022.
That’s when state lawmakers passed a groundbreaking law that allowed the sale of hemp-derived THC edibles in mainstream retail outlets such as grocery and convenience stores – distribution channels largely prohibited in recreational and medical cannabis markets.
“We saw an absolute explosion of our THC beverage market here in Minnesota almost overnight,” said Jason Tarasek, a Minneapolis-based cannabis attorney at Vicente.
“I won’t say it’s entirely incorporated into our culture and society, but it’s well along the way.”
Under the 2022 law, which took effect July 1 of that year:
- Edibles must contain 5 milligrams or less of hemp-derived THC per serving, or 50 milligrams maximum per package.
- Beverages must contain 5 milligrams or less of hemp-derived THC per serving, or 10 milligrams maximum per package.
The prolonged hot streak, insiders say, could serve as a harbinger for a strong adult-use market, which will likely carry far more restrictions similar to those in other recreational marijuana states.
Minnesota became the 23rd state in the U.S. to legalize adult-use marijuana after Gov. Tim Walz signed a unique legalization bill into law last May that also permits the sale of hemp-derived cannabinoids such as delta-8 THC.
The adult-use legalization law will likely usher in changes for Minnesota’s hemp-derived THC marketplace – changes that could affect sales.
“The adult-use cannabis bill will impose greater regulation and licensing requirements upon these hemp-derived THC products,” Tarasek added.
“We may have started out fairly lax in terms of regulation, but we will be tightening that up.”
Retail sales in the adult-use market are expected to begin in early 2025, sources told MJBizDaily.
For comparison, the state’s medical marijuana retailers are projected to generate $110 million this year, growing to $230 million by the end of 2028, according to the 2023 MJBiz Factbook.
Brewed up opportunities
In developing the 2022 legislation that kicked off the low-dose THC frenzy, Minnesota lawmakers and industry stakeholders prioritized local business opportunities and a homegrown supply chain, according to Fatehi.
“We’ve gone through great effort to pass a law that creates this very Minnesota business-focused marketplace,” she said.
As a result, national brands have sought out Minnesota manufacturers.
For example, California-based Cheech & Chong’s Cannabis Co. is partnered with two Minnesota craft brewers – Surly and Duluth-based Bent Paddle Brewing Co. – to produce the celebrity brand’s expanding line of low-dose THC drinks.
“About 90% of the product sold in Minnesota is grown and manufactured in-state,” the Cheech & Chong’s chief marketing officer, Brooke Mangum, told MJBizDaily.
“We take pride in supporting local businesses.”
Los Angeles-based Cann, one of the country’s top-selling low-dose THC beverage makers, is partnering with Fair State Brewing Cooperative of Minneapolis to expand direct sales and wholesale distribution to 33 states.
“Because of the Minnesota law that has allowed for hemp-derived delta-9 beverages to flow pretty freely through the country, more than half of our revenue comes from non-cannabis dispensary channels,” Cann co-founder Luke Anderson said.
“It’s our manufacturing hub for products that are sold all over the country.”
Even the state’s homegrown grocery chain Cub – widely known as Cub Foods – is in on the action.
“Consistent with Minnesota state law, and where it does not conflict with local ordinances, Cub Foods has begun selling edibles and beverages containing low dosage amounts of THC in the company’s liquor stores,” confirmed Charles Davis, spokesperson for parent company United Natural Foods.
Cub, headquartered in Stillwater, operates about 80 supermarkets and pharmacies primarily in the Twin Cities area.
Getting a good economic read on this emerging product category is a challenge, with sales data and growth forecasts scant.
Seattle-headquartered cannabis analytics provider Headset told MJBizDaily it does not track hemp-derived THC sales in the Minnesota market.
The 2023 National Hemp Report, released in April, valued production of floral hemp grown in Minnesota at $11 million last year.
But that doesn’t account for hemp-derived products, which would escalate that estimate significantly.
The opt-out dilemma
While consumer access for low-dose THC products is widely available across the state, dozens of cities and counties have enacted measures to stymie business operations.
Municipal opt-outs of commercial marijuana and hemp programs are all too common from California to New York.
The bans undercut a market’s true potential and could provide a chilling effect.
“Cub will not be selling low-dose THC products where local municipality ordinances prohibit it,” Davis told MJBizDaily without a prompt.
According to statistics from the Public Health Law Center at the Mitchell Hamline School of Law in St. Paul:
- 80 Minnesota cities and five counties have adopted moratoriums related to the sale, testing, manufacturing or distribution of THC products.
- 42 cities and two counties have adopted licensing and sales restrictions.
“These moratoriums are incredibly problematic because they’re not actually based on any good public policy considerations,” Fatehi said.
“They seem to be a reflex against the concerns of something new.”
The long game
Legalizing and regulating CBD and low-dose THC products is a bit of a contrarian move in a market developing a recreational marijuana program.
Other adult-use states, such as Nevada, New York and Vermont, have enacted product bans and other restrictions related to delta-8 products.
But some Minnesota policymakers have a longer view in mind.
They want to develop a new crop of local entrepreneurs who can create their own unique retail presence, business plans and supply chains while enjoying certain federal protections and benefits related to banking, lending and capital, according to Fatehi.
“Operating in the hemp-derived space is one of the best on-ramps for transitioning to operating in the adult-use space and being set up for success,” she said.
“And it makes them more competitive when they’re applying for an application, because now they have a track record.”
It appears such early entrants also have room to run.
“There’s a ton of pent-up demand for cannabis products in Minnesota,” Tarasek said.
“It’s the only game in town.”
Source: https://mjbizdaily.com/minnesota-low-dose-thc-beverage-market-is-booming/
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
AI & Technology
Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations
Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).
The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.
Trial Push Despite Multi-Million Euro Settlement
The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.
Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.
A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.
Allegations of VAT Evasion Through Marketplace Sellers
At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.
Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.
Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.
Italian Government Named as Affected Party
In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.
Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.
Multiple Investigations Add to Pressure
The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.
Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.
In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.
Amazon Denies Allegations
Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.
Broader Impact on Europe’s Digital Economy
If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.
With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.
Aviation
IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?
Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.
Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.
Root Cause: IndiGo’s Market Monopoly
The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.
This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.
Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.
Government Intervention and Regulatory Weakness
The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.
Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.
The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.
If Telecom Giants Fail: A National Paralysis
The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?
If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.
In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.
E-commerce Monopoly: Another Fragile Ecosystem
The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.
Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.
A Wake-Up Call for Regulators
The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.
As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.
Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.
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