Founded by Theo Terris, Uncle Arnie’s has secured $7.5 million in Series A funding to expand production, broaden distribution, and grow its line of low-dose THC-infused beverages across the United States. The round was led by Mindset Capital, with participation from Delta Emerald Ventures, Harry Rubin, and additional strategic investors who view cannabis beverages as one of the fastest-growing segments in consumer packaged goods.

A Leading Brand in a Nascent but Rapidly Growing Category

Uncle Arnie’s first gained recognition in California with its flagship 100mg THC Iced Tea Lemonade, quickly becoming one of the bestselling cannabis beverage brands in the state. Over the past two years, the company has expanded into multiple SKUs, including infused sweet tea, mango juice, and a growing assortment of low-dose canned beverages designed for social and recreational occasions. While the cannabis market as a whole has experienced volatility, beverage sales have steadily increased as consumers seek smoke-free, dosage-controlled product formats that mirror traditional beverage use cases.

The Market Opportunity: Everyday Use, Not Novelty

Unlike early versions of infused beverages that were treated as novelty items or occasional purchases, Uncle Arnie’s products are designed for repeat use, with flavors and price points that compete directly with alcohol and traditional soft drinks. The brand’s approachable design, flavor-first formulation philosophy, and clear potency labeling have helped it build loyalty among both new and existing cannabis users.

The Series A capital will be used primarily for three initiatives:

• Expanding manufacturing capacity to keep up with rising demand in California and newly legalized states;
  
• Scaling distribution partnerships in markets like Nevada, Michigan, and Massachusetts; and
  
• Developing next-generation products using minor cannabinoids and lower-dose formulations for broader consumer adoption.
  

Why Investors Are Leaning In

Investors in the Series A round emphasized Uncle Arnie’s unique blend of brand clarity, unit economics, and operational discipline in an industry that is still maturing. In statements accompanying the round, backers pointed to strong sell-through rates, repeat purchase behavior, and successful retailer relationships as key indicators of product-market fit.

Notably, Theo Terris and his team didn’t chase every trend in the cannabis space. They stayed focused on a single insight: people don’t adopt cannabis beverages because of cannabinoids - they adopt them because of experiences. That philosophy shaped everything from flavor development to packaging to price accessibility. And that’s an important lesson for founders in any emerging market: don’t compete on novelty; compete on familiarity. When the product naturally fits into consumers’ existing habits and rituals, growth doesn't rely on education or hype - it becomes organic and compounding. Uncle Arnie’s didn’t try to reinvent drinking occasions, they simply replaced the drink. That’s how you turn a trend into a habit.

Scaling With Discipline

With capital now in place, the company is executing a disciplined expansion strategy. Rather than entering every legal state all at once, Uncle Arnie’s is prioritizing states with strong retail infrastructure and regulatory clarity. The company will initially deepen its presence in California and Nevada, followed by selective rollout into the Midwest and East Coast, based on distributor readiness and brand alignment.

Uncle Arnie’s will also invest in developing complementary product lines that appeal to alcohol-switching consumers, including low-sugar and no-sugar formulations, ready-to-drink mocktail flavors, and on-premise formats for hospitality and live events.

A Broader Shift in the Beverage Landscape

Cannabis beverages are increasingly viewed as a natural extension of the functional beverage movement. As consumers move away from sugary soft drinks and high-ABV alcohol products, they are turning to new formats that combine flavor, light effect, and convenience. Uncle Arnie’s has positioned itself squarely in this emerging space, offering controlled THC dosing with traditional flavor profiles and packaging that mirrors mainstream CPG conventions.

While regulatory hurdles remain in certain U.S. markets, the overall shift toward wellness and alternative beverages points to a strong long-term runway. Uncle Arnie’s early market traction and category leadership give it a defensible foundation as the beverage shelf becomes more competitive.

Looking Ahead

Over the next 12 months, the company plans to:

• Launch at least three new THC beverage SKUs;
  
• Expand into two new legalized recreational markets;
  
• Increase DTC reach where regulations allow; and
  
• Deepen partnerships with regional distributors and retail chains.
  

With an experienced team, focused execution strategy, and strong consumer demand, Uncle Arnie’s is well positioned to shape the future of cannabis beverages and turn category momentum into brand dominance.