Minnesota’s lawmakers face complications due to a provision in a bill aimed at ending the government shutdown, which would ban hemp-derived THC products, including popular THC seltzer drinks. Proponents like Attorney General Keith Ellison argue that these products were never intended to be legalized, but industry leaders warn the ban could devastate local breweries reliant on THC sales for revenue.
For example, Insight Brewing Company co-owner Kevin Hilliard notes that approximately 62% of their revenue comes from hemp-based THC, which has been crucial for the company’s survival post-pandemic. The 2018 Farm Bill had legalized hemp products, allowing these beverages to flourish, but ongoing concerns about the safety of certain THC products led 38 state attorneys general to push for this ban.
The new federal law would limit THC in beverages to 0.4 mg, an amount considered ineffective by industry experts like Bob Galligan from the Minnesota Craft Brewers Guild, who believes it could cripple the sector. The law would restrict breweries to intrastate sales, complicating access to financing and threatening many businesses with closure.
While some, like Hilliard, are cautiously optimistic due to their local sales model, others fear the impending changes could lead to widespread financial struggles in the brewing community. A Senate vote on the provision recently favored the ban, and if the House approves it as well, the law could take effect within a year.
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