cbdMD, Inc. announced that its Herbal Oasis line of hemp‑derived THC seltzers will now be distributed statewide in Louisiana through Morales Beverage Group (MBG). The partnership extends the brand’s presence beyond its existing Gulf South footprint, adding a new market that includes convenience, independent beverage, and premium lifestyle retail accounts.
Herbal Oasis blends hemp‑derived THC with CBD, CBG, and adaptogenic mushrooms such as Lion’s Mane, Cordyceps, and Reishi, and uses nano‑liposomal technology for rapid absorption. The U.S. THC beverage market reached $1.6 billion in 2025 and is projected to grow to $3.5 billion by 2030, contingent on regulatory relief. Louisiana’s regulations require registration with the Department of Health and potency limits, but the state’s growing demand for functional, alcohol‑free drinks makes it an attractive market.
cbdMD’s financial performance in 2025 showed net sales of $19.1 million, a slight decline from $19.5 million in 2024, and a flat gross profit margin of 62 percent. The company has struggled with negative margins in some areas and raised $2.25 million in a Series C preferred stock placement in December 2025 to support working capital and strategic initiatives. In Texas, Herbal Oasis achieved strong early sales, but the fact‑check report does not provide specific figures, indicating that the company is still building momentum in the THC‑beverage segment.
Louisiana’s regulatory framework imposes registration and potency restrictions that could pose compliance challenges, and the market faces competition from other THC‑infused beverages. However, the partnership with MBG, which has an established statewide distribution network, is expected to mitigate supply‑chain risks and accelerate market penetration. The company’s CEO, T. Ronan Kennedy, emphasized that Louisiana represents a stepping stone to broader regional growth, while MBG’s portfolio manager highlighted the momentum gained in Texas as a foundation for the expansion.
The expansion is a strategic move to capture a contiguous Southeast market and create a new revenue stream. By leveraging MBG’s infrastructure, cbdMD aims to bring Herbal Oasis to retailers across Louisiana in late February, targeting channels where adult consumers seek modern alcohol alternatives and functional social beverages. The partnership signals confidence in the product’s differentiated positioning and the company’s ability to scale distribution despite ongoing financial challenges.
If the Louisiana rollout proceeds as planned, it could lift Herbal Oasis sales and broaden the company’s geographic footprint, potentially offsetting the modest decline in overall revenue. The move also positions cbdMD to benefit from the projected growth of the THC beverage market, provided regulatory conditions remain favorable and the company can navigate competitive pressures. Management’s focus on cost discipline and strategic partnerships suggests a cautious but optimistic outlook for the brand’s expansion.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.