Is the High Over for Hemp Drinks?

The Journal explores the sudden crisis facing the booming hemp-derived THC drink industry, a billion-dollar sector that has surged in popularity as a non-alcoholic alternative to wine and cocktails. These brightly packaged, fruity beverages—sold in stores like Target and convenience shops—contain microdoses of THC and are marketed as hangover-free social tonics, appealing to health-conscious adults, especially those over 40. The industry's rise was fueled by a loophole in the 2018 Farm Bill, which legalized all parts of the hemp plant, including THC, despite Congress not intending for intoxicating products to be included. Now, a new federal spending bill set to take effect in November 2026 will ban hemp drinks with more than 0.4 milligrams of THC—effectively killing the market, since even the lowest-dose products exceed that threshold. Companies like CAN, led by CEO Jake Bullock, are scrambling to lobby for legal regulation, pushing for a 21+ age limit and taxation similar to alcohol. While there’s bipartisan interest, especially among Republican lawmakers, legislative progress remains uncertain, leaving the industry in limbo with just months to survive or rebuild. Despite the looming ban, the industry has seen a surge in sales as consumers rush to buy before the deadline. Retailers are growing wary of holding inventory that could become illegal, threatening supply chains. Jake Bullock and other industry leaders are preparing for a long-term fight, emphasizing safety, consumer responsibility, and the potential for a regulated, sustainable market. The episode underscores a clash between entrepreneurial innovation and regulatory oversight, with the fate of a new consumer category hanging on political will and legislative timing.