THC Beverage Makers and Distributors: Top 5 Concerns for 2025
In the past couple of weeks, I have been contacted by a few major news outlets about the legality of “THC beverages”. While it sounds like you can only find these products in a state-licensed cannabis dispensary, reporters are calling me about hemp-derived THC beverages that are cropping up for sale online and in major liquor stores across the country. Hemp-derived THC beverages are alcohol-free/non-alcoholic (“AF/NA”) drinks that are infused with delta-9 THC derived from hemp, usually along with other intoxicating cannabinoids, so that these beverages produce psychoactive effects without legally being dubbed “marijuana.”
How?
Due to the passage of the 2018 Agricultural Improvement Act (the “Farm Bill”), hemp and all of its derivatives (containing no more than .3% delta-9 THC on a dry weight basis) are no longer illegal schedule I controlled substances pursuant to the Controlled Substances Act (CSA) (even arguably if they contain other intoxicating cannabinoids). Note, though, that synthetically derived intoxicating cannabinoids remain illegal controlled substances on the CSA. Right or wrong, the Farm Bill technically allows for hemp-derived intoxicating cannabinoids so long as the pre-harvest hemp contains less than .3% delta-9 THC. As a result, enterprising hemp product makers and businesses quickly took advantage of this seeming oversight, which is why we’ve seen an almost overnight explosion of these THC beverages in the U.S.
The THC Beverage Craze
My initial two cents are that the first hemp-derived cannabinoid craze was cannibidiol (“CBD”). There was a time where it was hailed as a medical panacea by some, and I even remember when you could buy CBD-infused activewear that would allegedly help with workouts. The U.S. Food and Drug Administration (“FDA”) was not on board with the medical and health claims being made by the majority of hemp-CBD makers and sellers, and the agency continues to send out warning letters accordingly. Hemp-CBD is pretty much in the rearview mirror now, though, and the newest hemp-derived cannabinoid craze is these THC beverages. And my second two cents is that this particular hemp trend is getting stronger and stronger because of certain consumer demand (mainly the sober curious crowd) and because of the power of the ancillary players that are willing to distribute and sell it to consumers (like giant liquor distributors and retailers as well as gas stations, bars, and restaurants).
In turn, this post covers what, in my opinion, are (or should be) the top five concerns for hemp-derived THC beverage producers and distributors in 2025:
1. You’ve Got a Year, But Keep an Eye on Congress
The 2018 Farm Bill has once again been extended. This time for a year. That means that THC beverage makers and distributors have another year under their belts to gain market share and do business before Congress potentially addresses these products in a negative way. When I went to several cannabis events and trade shows last year, I got a mixed bag of opinions about how Congress will handle the alleged “loophole” in the Farm Bill that’s allowed for the proliferation of hemp-derived intoxicating cannabinoids–some say Congress is aching to close the loophole because it never intended to de facto legalize these products; others say THC beverages have gotten too big, powerful, and in demand to be sacked in the next Farm Bill. I don’t really think anyone can make the call here (especially given that a new presidential administration is coming in), but we should see whether THC beverages remain alive hopefully by the end of this year. As a result, THC beverage makers and distributors need to have a back-up plan in case Congress kills their dreams with the stroke of a pen. Alternatively, they need to engage in government relations accordingly in an effort to not only remain in the AF/NA marketplace but also to be regulated (which many THC beverage groups focused are asking to be regulated accordingly already).
2. States Are Friend, Foe, or Indifferent
Similar to their state-licensed cannabis cousins, because the federal government hasn’t done anything to regulate or really oversee these types of THC beverages, the states are picking up the slack. And very similar to state-licensed cannabis, each state is treating THC beverages differently. States now fall into four categories: permit and regulate intoxicating hemp products (see Minnesota); ban intoxicating hemp products altogether (see California); litigate over trying to ban or restrict intoxicating hemp products (see most recently Virginia); and do not take any affirmative action to specifically address intoxicating hemp but treat intoxicating hemp products like any other consumer product under the law (see Wisconsin). Obviously, THC beverage producers and distributors need to be extremely mindful of the applicable laws within a given state’s borders when it comes to THC beverages. And if you’re entering a state that regulates THC beverages (or that treats them like any other consumer good), you need to know and stay on top of the applicable regulations for packaging, labeling, safety warnings, product content, and consumer age limits, if any.