Theory Wellness to Open Cannabis Beverage Dispensary in Massachusetts

Massachusetts-based cannabis operator Theory Wellness has plans to ring in the new year with the launch of a cannabis beverage dispensary in Medford, Mass.

Theory Wellness launched in 2015 and has since expanded medical and adult-use operations to Vermont, Maine, Ohio and New York, with plans to open a dispensary in Trenton, N.J.

The company debuted its Hi5 cannabis-infused beverages in February 2021 with a core portfolio of seltzers that sold more than 1 million units in the first six months. Known for a fast-acting onset and zero calories, the Hi5 product line has since grown to a range of cannabis beverages, including sodas and energy drinks. The beverages are currently available in Massachusetts, Maine and New York.

Theory Wellness produces the Hi5 product line in-house; Chief Marketing Officer Thomas Winstanley says the company has one of the largest in-house cannabis operations in Massachusetts.

“We’d always wanted to get into beverages,” Winstanley says. “And by investing in our own canning line in our space, we brought to market a really strong product that has since grown into a much larger portfolio that now includes sodas, energy drinks, and with that growth trajectory, we started to work on the Medford project.”

Theory Wellness secured a cannabis retail license for the beverage-focused dispensary in a competitive application process and has built out the store in a former Volkswagen dealership just 5 miles northwest of Boston.

The company plans to operate a more traditional cannabis dispensary adjacent to the Hi5 Beverage Dispensary, and both storefronts are located in the same building as the Medford Arts Center. As part of a community-based initiative, Theory Wellness is leasing the space and has converted it into a community gathering space to support the nonprofit organization.

Photo courtesy of Theory Wellness

The Hi5 Beverage Dispensary is expected to open sometime in January and will host one of the largest assortments of cannabis-infused beverages in a single storefront. Theory Wellness will reduce the wholesale markup on the products to offer competitive pricing and promote the rapidly growing cannabis beverage category.

While Brendan Mitchel-Chesebro, industry analyst with BDSA, recently told Cannabis Business Times that beverage sales are just 1% of total cannabis sales across all markets that BDSA tracks, Winstanley says the Theory Wellness team is “really bullish” on the beverage category.

“We make Hi5 in Massachusetts, we make it in Maine, and we’ve seen the market share increasing over time,” he says. “One of the insights that led us to a beverage dispensary was there are a lot of people who are interested in beverages as a form factor to enjoy cannabis. The nanoemulsion allows more control with your dosing, with your effects, with the time for onset, [and] a lot of these variables have started to open up a much larger consumer demographic. As we saw the category expanding, we also realized, too, that there are a lot of people who are coming just for beverages who are really interested in this portfolio. And dispensaries inherently can be sometimes intimidating for certain folks where when you go in and there is a 30-page menu with 250 products. That can be overwhelming.”

Theory Wellness has selected a group of top-performing beverage manufacturers, including CANN, Levia and Good Feels, whose products will be sold alongside the Hi5 product line at the beverage dispensary. The partnering brands will also be featured in Theory Wellness’ marketing and exclusive pricing campaigns.

“They’ve all come on board, and we’re going to be offering pricing that is the most competitive in the state by a pretty serious margin,” Winstanley says. “All of these variables come into play in terms of the experience … we’re trying to reach and the experience we want folks to have. This basically is built for a lot of beverage consumers, and it very much aligns with the spirit of what people are used to from going to a store and buying their drinks. Now they can come to the first beverage dispensary [and] shop a variety of products in a very seamless experience.”

Theory Wellness received final approval from the Massachusetts Cannabis Control Commission last week and with some final touches, Winstanley says the storefront will be ready to open within the next few weeks.

Staff at the Medford location will be shared between the Hi5 Beverage Dispensary and the more traditional dispensary next door.

“Our staff will go through the same level of training,” Winstanley says. “There will be some slight nuances around the different stores, but overall, [it’s] the same level of service that we come to expect from any location that Theory has a name attached to.”

The Theory Wellness team plans to eventually launch delivery through the Hi5 Beverage Dispensary, aligning the concept with that of alcohol delivery service Drizly.

The company would also like to turn the beverage dispensary into a consumption lounge, when regulators establish the regulations and licensing process for those facilities.

“I believe rules are being drafted by the Cannabis Control Commission [for] the consumption lounges,” Winstanley says. “Because of indoor smoking policies and restrictions, beverages are going to be a very focal point for that social consumption experience. Again, it’s not unlike other categories of alcoholic beverages, where … socialization is a key component. We see consumption lounges in the future continuing to be an accelerator for this beverage category."