Hemp Beverage Boom Faces Uncertain Future Amid Federal Ban

Sat Nov 29 2025 05:52:16 GMT+0200 (Eastern European Standard Time)

Indeed Brewing and other craft breweries fear for their future as a new federal provision threatens to ban THC-infused products, leaving the $24 billion hemp industry in turmoil.

Craft breweries like Indeed Brewing are witnessing a surge in THC-infused beverages, which have become vital as alcohol sales decline. However, a new federal provision banning such products has left the hemp industry scrambling. This legislative move is part of a broader effort to regulate the rapidly growing market, which has led to untested and possibly dangerous products flooding the market. As states like California and Texas begin to regulate it, the industry is fighting back, pushing for regulations rather than an outright ban.

While production lines at Indeed Brewing have shifted to THC-infused seltzers in response to dropping alcohol sales, this trend faces an imminent threat due to a newly introduced federal provision that bans such beverages. The provision is burrowed in the legislation ending a recent government shutdown and is projected to take effect in November 2026, leading to a chaotic scramble within the $24 billion hemp industry.

Ryan Bandy, Indeed's chief business officer, expressed concerns about the potential devastation this ban could unleash on craft breweries and consumers who have embraced these products. As various states grappled with the emerging hemp market, many have enacted their own regulations; some states have even celebrated opportunities presented by the 2018 farm bill which legalized hemp cultivation.

The legal definition of hemp, which allows products containing up to 0.3% delta-9 THC, has provided a loophole for hemp-derived products to flood the market, often leading to untested and unregulated goods, including vape oils and candy infused with THC. Concerns about safety have surged, especially after reports of increased emergency calls linked to THC exposure among children.

In response to these concerns, lawmakers in various states have begun regulating or outright banning substances derived from hemp that induce impairment. California’s Governor Gavin Newsom recently signed legislation prohibiting sales of intoxicating hemp products outside of regulated markets, while Texas seeks to restrict access to such products to individuals over 21.

With mounting pressure on the industry, some lawmakers, including Mitch McConnell, have sought to tighten regulations on these products, emphasizing the need to keep dangerous substances away from minors while preserving the legitimate hemp farming sector. The looming federal ban could put numerous jobs at risk and cost states approximately $1.5 billion in tax revenue.

As the clock ticks down to the effective date of the ban, the hemp industry remains hopeful that there might still be room for regulation rather than prohibition, allowing for a safer and more attainable market for hemp products.