01SevenFifty Daily·
Federal THC cap crushes hemp beverage retailers in regulatory reversal
- Massachusetts wine and spirits retailer Art Nergaryan saw sales jump 25 to 35 percent after stocking THC drinks, then lost the category entirely when state regulators banned cannabis beverages from liquor stores in May 2024.
- US hemp-beverage retail sales surged 135 percent to $239 million in the 52 weeks prior to April 2026, but now face collapse from federal and state enforcement.
- Congress passed legislation in November 2025 capping THC at 0.4 milligrams per container, effective November 12, 2026, which effectively bans most hemp-derived THC beverages currently on sale.
- The FDA has held since December 2018 that hemp-beverage products are unlawful in interstate commerce, yet states like Minnesota, Georgia and Tennessee created their own legal frameworks, leaving the industry in legal limbo.
- Retailers, distributors and manufacturers lack federal guidance on which THC products are lawful, forcing many to operate in a legal gray area or exit the market entirely.
Reported bySevenFifty Daily