MINNEAPOLIS (AP)—Production lines at Indeed Brewing are now filled with cans of THC-infused seltzer, marking a significant shift as the brewery navigates declining alcohol sales. This rapidly growing market has provided a lifeline for many craft breweries but is now under threat from new federal legislation set to ban these products.

Passed as part of a bill that ended the recent federal government shutdown, this provision targets beverages infused with THC, the psychoactive compound found in cannabis. With the directive set to take effect in November 2026, many in the $24 billion hemp industry are scrambling to find ways to save their businesses.

Ryan Bandy, chief business officer at Indeed Brewing, emphasized the impact of the legislation, stating, “It’s a big deal...It would be a mess for our breweries, for our industry, and obviously for a lot of people who like these things.”

Since the legalization of hemp in the 2018 farm bill, a surge of unregulated THC-infused products flooded the market, including snacks and beverages, which became readily available in convenience stores across the nation. This has raised significant health concerns, especially amongst minors, leading many states to attempt to regulate or ban these products. For instance, California and Texas have taken steps to legislate the sale and distribution of such items.

The craft brewing industry, particularly in states like Minnesota, has increasingly relied on THC-infused beverages as a major revenue source. Indeed Brewing reports that nearly one-quarter of its business now comes from these products, reflecting a broader trend among craft breweries. However, with the federal ban looming, industry leaders fear the repercussions of losing their primary revenue source.

Some lawmakers and industry advocates are pushing for a reevaluation of this legislation to preserve jobs and the benefits of regulated hemp products. They contend that there’s still a window to advocate for alternatives that prioritize the safety of consumers while supporting the industry.

“If they really thought there was a health emergency, there would be no year-long period,” said Jonathan Miller, general counsel for the U.S. Hemp Roundtable.

As the deadline approaches, stakeholders in the hemp and craft beverage industries are calling for urgent measures and legislative discussions to find a sustainable pathway forward that protects both public safety and the economic health of the craft brewing sector.