Minnesota’s booming THC beverage industry is facing uncertainty as a new federal bill moves through Congress, potentially banning hemp products containing more than 0.4 milligrams of THC. The legislation, part of a government funding package, gives manufacturers just 365 days before these popular intoxicating drinks and gummies would be outlawed.
Christopher Lackner, president of the Hemp Beverages Alliance, called the provision “arbitrary” and “punitive.” He hopes the delay will give the industry time to lobby Congress for a more balanced federal framework that supports THC beverage innovation while addressing safety concerns. Lackner emphasized that pushback from consumers, distributors, and suppliers could influence lawmakers to reconsider the restrictions.
The 2018 Farm Bill legalized hemp as an agricultural commodity and opened the door for “intoxicating” hemp products, including THC beverages. Minnesota quickly became a national leader, and Whitney Economics reported that U.S. THC beverage sales exceeded $1.1 billion in 2024. Yet, this rapid growth has drawn opposition from the legal marijuana and alcohol industries, which argue that hemp-derived drinks are largely unregulated and could pose safety risks, especially for children.
Industry leaders like Steve Brown, CEO of Nothing but Hemp, are worried about the bill’s impact on their THC beverage operations. Brown produces close to two million cans a year and works with small breweries that have found hemp-infused drinks more popular than alcohol among younger consumers. If the law passes, retailers would stop selling THC beverages, and shipping these products across state lines would violate federal law.
Attorney General Keith Ellison and 38 other attorneys general signed a letter highlighting the potential risks of unregulated hemp products. Meanwhile, state regulators are reviewing the proposed language to assess its impact on Minnesota’s THC beverage market, which has grown under strong state-level oversight.
David Ladd, president of the Minnesota Industrial Hemp Association, stressed the importance of measured regulation. “We understand the need for guardrails,” he said, “but changing the definition of hemp arbitrarily could stifle innovation in the THC beverage industry and beyond.”
As the federal shutdown bill heads to the U.S. House, Minnesota lawmakers are expected to reject the hemp provision. The outcome will determine whether the state’s THC beverage entrepreneurs can continue producing intoxicating drinks legally or are forced to pivot to marijuana-based alternatives.
For now, the debate highlights the fragile balance between innovation, safety, and federal oversight in the THC beverage industry. Manufacturers, lawmakers, and consumers are watching closely, knowing that the future of THC beverages in Minnesota — and potentially across the U.S. — hangs in the balance.