How do you scale a THC beverage brand to 100K cases while preparing for the possibility that the category could be disrupted by federal regulation?Jason Dayton and his co-founders launched Trail Magic just 19 days after Minnesota opened the door to hemp-derived THC beverages. The brand quickly grew from one wholesaler to more than 60, reached roughly 5,000 retail doors, and closed last year at about 100,000 cases, with approximately 25% year-over-year growth.In this episode, Jason explains what enabled that early momentum and what became harder as the business expanded. He shares how Trail Magic moved from racing into every available market to launching more deliberately, supporting distributors more closely, and focusing on the accounts most likely to drive sustainable velocity.We also explore what actually works at retail. Jason discusses the importance of sampling, displays, consumer education, and consistent account follow-up, along with why Trail Magic performs best in stores where shoppers value flavor and quality rather than simply seeking the most THC for the lowest price.Jason also takes us inside the company’s relationship with Target and explains what it takes to earn the trust of a major retailer in a category with significant compliance and reputational risk.With hemp-derived THC facing the possibility of a federal ban, Trail Magic is now preparing for multiple outcomes. Jason shares how the company is protecting cash, managing inventory, and diversifying beyond THC with a new line of Trail Magic Cocktails in 2.9% and 8% ABV formats.This is a candid conversation about first-mover advantage, the operational strain of rapid growth, and how to protect a brand when the rules governing its fastest-growing category may change.For the latest updates, follow us:Business of Drinks website (sign up for our newsletter!)Business of Drinks YouTubeBusiness of Drinks LinkedInInstagram @bizofdrinksErica Duecy, co-host: Erica Duecy is founder and co-host of Business of Drinks and one of the drinks industry’s most accomplished digital and content strategists. She runs the consultancy and advisory arm of Business of Drinks and has built publishing and marketing programs for Drizly, VinePair, SevenFifty, and other hospitality and drinks tech companies.Erica Duecy LinkedInInstagram @ericaduecyScott Rosenbaum, co-host: Scott Rosenbaum is co-host of Business of Drinks and a veteran strategist and analyst with deep experience building drinks portfolios. Most recently, he was the Portfolio Development Director at Distill Ventures. Prior to that, he was the Vice President of T. Edward Wines & Spirits, a New York-based importer and distributor.Scott Rosenbaum LinkedInSubscribe to the Business of Drinks channel for more insights on how brands, retailers, and operators are unlocking growth across beverages. And please rate and review us. Your support helps us reach new listeners. Thank you!

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