Congress has passed a surprise bill that would effectively shut down Minnesota's thriving THC beverage market. The provision, which was tucked into a federal government shutdown bill, bans products containing more than 0.4 milligrams of hemp-derived THC β significantly lower than the 5 milligrams per serving currently authorized under state law.
Breweries and beverage producers are sounding the alarm, warning that the ban would be a "life-or-death" issue for their businesses. Drew Hurst, president and COO of Bauhaus Brew Labs in Minneapolis, says that if the bill goes through as worded, there's no chance his business will survive beyond the one-year mark.
The impact of the ban won't just stop at breweries; it would also affect can manufacturers, distributors, and liquor stores. Matt Kenevan, owner of Dabbler Depot in St. Paul, notes that this provision would have a ripple effect throughout the entire beverage supply chain.
Minnesota was among the first states to authorize the production and sale of THC drinks, making it a pioneer in what's now a multibillion-dollar industry. The state has seen hemp-derived THC beverages as a vital lifeline for breweries struggling with declining beer sales since the COVID-19 pandemic.
Surly Brewing founder Omar Ansari emphasizes that these products have become essential for keeping people employed and generating revenue. "We've put millions of dollars into our original facility, which probably would have closed if not for THC beverages," he says.
However, until the ban takes effect in late 2026, consumers can continue to purchase hemp-derived THC beverages without any changes to their existing legal status. The state Office of Cannabis Management plans to continue licensing businesses and overseeing all THC products during this interim period.
Industry leaders argue that a comprehensive regulatory structure is a more effective solution than wholesale bans. Matt Schwandt, an attorney, notes that Minnesota's system has allowed hemp businesses to operate responsibly and keep bad actors out of the market.
Minnesota Sens. Amy Klobuchar and Tina Smith expressed support for federal hemp regulations that account for existing successful THC regulatory systems like the one in Minnesota. The Senate proposal to remove the hemp provision from the shutdown deal ultimately failed, leaving producers and retailers to rally behind building public awareness and pushing for re-legalization of hemp-derived THC products before the ban takes effect.
For now, breweries are relying on consumer outrage to push for change. Bob Galligan, director of government and industry relations at the Minnesota Craft Brewers Guild, says that while the bill came as a surprise, he's feeling more hopeful than ever about the potential for change within the next year.
Breweries and beverage producers are sounding the alarm, warning that the ban would be a "life-or-death" issue for their businesses. Drew Hurst, president and COO of Bauhaus Brew Labs in Minneapolis, says that if the bill goes through as worded, there's no chance his business will survive beyond the one-year mark.
The impact of the ban won't just stop at breweries; it would also affect can manufacturers, distributors, and liquor stores. Matt Kenevan, owner of Dabbler Depot in St. Paul, notes that this provision would have a ripple effect throughout the entire beverage supply chain.
Minnesota was among the first states to authorize the production and sale of THC drinks, making it a pioneer in what's now a multibillion-dollar industry. The state has seen hemp-derived THC beverages as a vital lifeline for breweries struggling with declining beer sales since the COVID-19 pandemic.
Surly Brewing founder Omar Ansari emphasizes that these products have become essential for keeping people employed and generating revenue. "We've put millions of dollars into our original facility, which probably would have closed if not for THC beverages," he says.
However, until the ban takes effect in late 2026, consumers can continue to purchase hemp-derived THC beverages without any changes to their existing legal status. The state Office of Cannabis Management plans to continue licensing businesses and overseeing all THC products during this interim period.
Industry leaders argue that a comprehensive regulatory structure is a more effective solution than wholesale bans. Matt Schwandt, an attorney, notes that Minnesota's system has allowed hemp businesses to operate responsibly and keep bad actors out of the market.
Minnesota Sens. Amy Klobuchar and Tina Smith expressed support for federal hemp regulations that account for existing successful THC regulatory systems like the one in Minnesota. The Senate proposal to remove the hemp provision from the shutdown deal ultimately failed, leaving producers and retailers to rally behind building public awareness and pushing for re-legalization of hemp-derived THC products before the ban takes effect.
For now, breweries are relying on consumer outrage to push for change. Bob Galligan, director of government and industry relations at the Minnesota Craft Brewers Guild, says that while the bill came as a surprise, he's feeling more hopeful than ever about the potential for change within the next year.