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One of the largest arenas in the country is swapping out some of its beer and cocktails for a different kind of buzz.
Chicago’s United Center will sell hemp-derived THC beverages under a “multiyear partnership” with Chicago-based Rythm Inc., the company announced today.
Starting on Feb. 4, attendees ages 21 and older will be able to purchase THC-infused drinks from brands Señorita and Rythm during most concerts, shows, and special events. The beverages will not be sold at sporting events, such as the NBA’s Chicago Bulls or NHL’s Chicago Blackhawks.
The deal establishes Rythm as the United Center’s “official THC sponsor.”
Official THC sponsor of country’s largest entertainment venue
“From our point of view, this is another step in the normalization and acceptance of these products,” Rick Schepp, general manager of beverages at Chicago-headquartered marijuana multistate operator Green Thumb Industries, told MJBizDaily.
“Many people have tried cannabis through state-regulated programs, but hemp-derived products have really opened the floodgates.”
GTI launched Rythm before selling the asset to Agrify in August. Agrify rebranded to Rythm after the sale and is now publicly listed on Nasdaq.
Ben Kovler, Green Thumb’s CEO, is also Rythm’s chairman and interim CEO.
What arenas and entertainment venues serve hemp THC beverages?
The move recognizes a growing demand for nonalcoholic options at large-scale entertainment venues – as well as continued interest in THC-infused beverages despite legal and regulatory uncertainty.
While not on the scale of United Center, other venues selling hemp-derived THC beverages across the country include Walker Stadium in Portland, Oregon; and Milwaukee, Wisconsin venues operated by Pabst Theater Group.
“Consumers are saying they want these products,” Schepp said. “This is the next step. It’s furthering access and enjoyment.”
The official kickoff will take place during concerts next week: The New Edition Way Tour with New Edition, Boyz II Men and Toni Braxton on Feb. 4, and the Life Is a Highway Tour with Rascal Flatts, Lauren Alaina and Chris Lane on Feb. 6.
“As we continue to evolve our offerings for our guests, Rythm’s Chicago roots made its THC beverages a natural fit for the United Center experience,” United Center Chief Operating Officer Joe Myhra said in a statement.
Hemp THC drinks available across Chicago
To celebrate the launch, the brands are planning special giveaways and will offer noninfused samples to introduce concertgoers to the flavors.
The lineup of the 5-milligram beverages includes Lime Jalapeño Margarita, Mango Margarita and Grapefruit Paloma from Señorita and Rythm’s mandarin orange-flavored sativa beverage.
Prices, aligned with premium spirit cocktails, will range from $15 to $17.
Rythm and Señorita drinks are currently available at other music venues in Chicago, including the Salt Shed, Lincoln Hall, Chop Shop and Empty Bottle. It also offers its products at venues in Georgia and Tennessee.
In Chicago, their products are on the shelves at retailers like Binny’s Beverage Depot, Woodman’s Food Markets and Foxtrot Market.
Illinois law allows beverages to contain up to 10 mg of THC. Both state and local Chicago officials have flirted with a ban or stricter regulation, but for now hemp THC is available.
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Why even legal hemp THC beverages aren’t easy to serve
Hemp THC is in a state of uncertainty with a federal ban on most hemp-derived products to take effect in November.
Despite that, Rythm will continue to pursue deals similar to the United Center at venues across the country, Schepp told MJBizDaily.
“We’ll continue to lean in because we’re going to follow the consumer, however the law allows us to do that,” he said. “Consumers want these products.”
But even when consumers demand it and the laws allow it, the road to getting THC-infused beverages into music and event venues isn’t smooth. Obtaining liability insurance is one of the biggest issues holding up the industry’s efforts.
Los Angeles-based Pamos Beverage Co. brand tried to partner with the Florida Panthers hockey team to be the first THC beverage sold at a major league American sports venue. But finding liability coverage scuttled the deal, according to Christopher Lackner, president of the Colorado-based trade group Hemp Beverage Alliance.
“You need to have insurance,” Lackner said.
“Alcohol policies are easy to get, but THC hemp beverages is a different policy. Insurance companies are rising to the challenge and offering it now, but that’s been the missing link for venues.”
Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.
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