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BusinessThe hemp industry faces a potential crisis as a provision in a government funding bill threatens to ban THC-infused products, which have become essential for many breweries amid declining alcohol sales. Industry advocates are scrambling to find regulatory solutions before the ban takes effect in 2026.

Craft Breweries Face Challenges with Federal Ban on Cannabis Drinks

Indeed Brewing and its peers see a thriving market in THC-infused seltzers, but a new federal law threatens to upend their businesses as it proposes a ban on such products by 2026.

Source: AP1 min read
Craft Breweries Face Challenges with Federal Ban on Cannabis Drinks
Image via AP

In brief

Minnesota's Indeed Brewing has been filling cans with THC-infused seltzer as a response to declining alcohol sales. However, a provision buried in a recent federal government funding bill threatens to ban THC-infused beverages, impacting the $24 billion hemp industry. As businesses scramble to respond ahead of the November 2026 deadline, some lawmakers argue for regulations rather than outright bans, fearing significant job losses across the sector.

The production lines at Indeed Brewing have been busy filling cans with THC-infused seltzer instead of beer. This shift addressed falling alcohol sales, but a federal provision aimed at banning such products could put many craft breweries at risk. As the $24 billion hemp industry prepares to face this change, concerns grow about the impact on local businesses and consumers who enjoy these products.A loophole in the 2018 farm bill initially allowed the proliferation of cannabinoid products, but the newly passed ban is set to take effect in November 2026, leaving breweries like Indeed Brewing face with uncertainty. With lawmakers debating regulations to save the industry, businesses are hoping to find alternatives before it's too late.

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