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Circle K directive to divisional mgrs in May to onboard hemp-based THC items if they seemed like sound biz oppty sent a shock wave thru D9 sector as a sign that even the most broadly targeted, conventional retailers now were ready to play (BBI, May 30). A few months later Target chain opened its doors to hemp-based Delta-9 bevs, at least in a handful of stores in Minn (BBI, Oct 10). If those two highly visible experiments pan out, industry players are betting that FOMO will bring a wave of other mainstream participants. Not surprisingly, given scrutiny segment has been getting, both retailers have been guarded in how much they offer about what they're up to. So it was no surprise that appearance by Circle K packaged-bev chief Rebekah Stevenson on NACS conference slate drew substantial crowd despite early hour last Wed. In co-presentation with Diana Eberlein, chair of Coalition for Adult Beverage Alternatives, presenters focused more on advice on navigating space than in opening kimono widely on Circle K's specific strategy. Some details emerged, tho, on how Couche-Tard unit has been navigating quickly changing category. Session was titled "Cracking Open the Potential of THC Beverages," tho we're using phrase Delta-9.As reported, Circle K started move with Georgia test that's since been extended to Florida. In Sunshine State over past coupla months, Circle K stopped & started 3X in some stores as regs changed, Stevenson reported. Recent announcement from Horticulture Co on Viola debut indicated that Circle K doors are opening in Carolinas too.From Stevenson's remarks at NACS, it was clear that D9 hasn't been a slamdunk for Circle K. Georgia was chosen as state to start in because of its "good legislation," so experiment started with 3 brands on one shelf with appropriate signage. Decision to position segment alongside 21+ beer category proved to be solid, and Circle K has stuck with that strategy. Retailer took 6 months to explore promo cycle in test and control stores there before rolling out to next state, Florida. In Ga, segment "did OK but didn't light the world on fire," Rebekah reported. If you build it, they will come? "Not with THC bevs," she warned.Circle K execs concluded that suppliers needed to do more to let shoppers know it carried their brand via techniques like geo-targeting, emails to their direct-ship customers, store locators on website and wholesaler education. "Educate your distributors, they're the boots on the ground," she stressed. For their part, retailers like Circle K need to flag availability of D9s right in their forecourts rather than waiting for visitors to enter the store.With initial lessons in hand, Circle K next opened Florida to the drinks, which received standalone coolers and more than a single shelf, and "it started to get pretty fun," Stevenson reported. (During course of presentation she showed photo of Wynk-branded standalone cooler with 5 shelves of assorted brands.) Over first 6 wks, tho, Circle K was only able to find enough compliant brands to fill 2 shelves in cooler and they were duly rewarded for their attention to detail. "Trust me, they're winning now," she applauded. Then Florida decided to change labeling regs, creating mess she likened, to laughter from listeners, to "the first time your baby had a blowout and it went everywhere . . . Be ready for it, it is going to happen . . . This is not for the faint of heart."Among her words of advice for suppliers, "language matters," so they should use the word "hemp" so as not to scare the community. "And please don't put down alcohol," still one of C&G channel's top categories despite recent slowdown. Hemp drinks are "an add-on, not a replacement." In contrast to alcohol, D9 purveyors legally are allowed and will be asked to provide free fills to prime the pump. Some suppliers "say no, we can't do that, I say, Yes you can." Suppliers should also demonstrate that they're agile enough to respond to regulations' shifting sands. "Are you ready to pivot?" she challenged. "What do you do with cans already printed?"

NACS: THC Bevs at Circle K So Far: No Slamdunks Without Stronger Awareness-Building by Both Suppliers & Retailer, Says Category Chief Stevenson; Quick Pivots May Be Required

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