What a federal ban on THC-infused drinks and snacks could mean for the hemp industry

Industry Overview - The hemp industry, valued at $24 billion, is facing a potential ban on THC-infused products, including beverages and snacks, due to a provision in a recent federal bill [2][3] - Craft breweries, such as Indeed Brewing, have turned to THC-infused seltzers as a response to declining alcohol sales, indicating a shift in consumer preferences [1][2] Legislative Background - The legalization of hemp cultivation in 2018 allowed for the growth of a new cash crop, but the law's definition of hemp created loopholes that enabled the production of high-THC products [4][5] - The current legal framework allows products to contain THC levels that can impair users, despite being classified as hemp [5][6] Market Impact - The proliferation of unregulated hemp-derived THC products has led to concerns about safety, particularly regarding pediatric exposure, with some states reporting increased calls to poison-control centers [6][7] - The unregulated market for these products undermines the legal marijuana industry, which is heavily taxed and regulated, creating competitive challenges for established businesses [6]