The Regulation of Intoxicating Hemp Beverages

Consumers enjoying canned beverages

Hemp beverages have quickly moved into the mainstream, becoming both a fixture in adult social occasions and one of the fastest-growing segments in retail. 

In 2025, retail volume grew 133% from the previous year. Yet a federal ban in December will abruptly disrupt this emerging marketplace. A better path is for Congress to regulate – not eliminate – hemp beverages by adopting a framework modeled on beverage alcohol that preserves adult access while setting national standards for age restrictions, labeling, product safety, and meaningful enforcement. 

Hemp beverages are sold in a variety of forms, with low-dose, single-serve 12oz cans containing 3-5 mg of Delta-9 THC among the most common. Among adults 21 years and older, at least half of the country has either purchased a hemp beverage or knows someone who has.

The clock is ticking: Without congressional action, federal changes taking effect December 12, 2026, will force hemp beverages off shelves and disrupt a category consumers are already choosing

 

 

A federal ban on intoxicating hemp beverages will not eliminate consumer demand or remove irresponsibly made products from the market. Instead, consumers will turn to unregulated channels where age verification, product standards, and enforcement are nonexistent.

The intoxicating hemp industry supports the jobs of hard-working Americans and should be regulated to maintain this burgeoning, diverse marketplace enjoyed by consumers.

The hemp industry supports 320,000 jobs

$28.4B in potential market activity

$1.5B in potential state tax revenue

72% of likely voters support

Account for 20% of retailers’ sales

143% growth in hemp beverage market in 2023

Capitol Hill

Congress Should Regulates Hemp Beverages Like Alcohol –– Not Ban Them

Drawing on more than 90 years of effective alcohol regulation, WSWA urges Congress to act before December 12th to create a federal framework for intoxicating hemp beverages while preserving states; authority to decide whether and how these products may be sold. 

The bipartisan Beverage Regulatory Parity Act, H.R. 10079, provides a clear pathway for low-dose, intoxicating hemp-derived THC beverages by establishing national standards for product safety, labeling, distribution, age restrictions, and enforcement. 

Federal Legislative Priorities

Regulate Hemp Beverages Like Alcohol

Ensure that Congress has Time to Enact Regulatory Legislation

Empower States to Regulate Hemp Beverages Within Their Borders

Secure Funding for Roadside Impairment Detection Training

The same regulatory system that has worked for alcohol should be applied to intoxicating hemp products. 

 

  • Proper federal regulation of hemp beverages should include:
    • Requiring federal licensure of suppliers and distributors.
    • Regulating trade practices such as prohibiting slotting fees.
    • Instituting independent testing requirements. 
    • Imposing a federal tax. 
  • States should be empowered to regulate, including prohibit, hemp beverages in their own markets.
State House

States Should Build Upon Federal Regulations by Adopting a Complementary Framework 

WSWA supports state-level rules that complement federal standards and give each state the authority to decide whether and how hemp beverages are sold, distributed, and enforced within its borders. 

State Legislative Priorities

Establish a licensure structure like that for beverage alcohol

Prohibit synthetic cannabinoids

Impose an excise tax

21 years old to purchase hemp beverages

Prohibit marketing and advertising aimed at children

Require independent testing for impurities and potency

Prohibit trade practices that create uneven playing fields

Establish procedures for product tracing

Require purchasing age of 21, labeling that doesn’t advertise to children, ban synthetic ingredients, and independent testing to keep consumers safe.

 

  • Minimum age requirement of 21 years old to purchase hemp beverages.
  • Prohibit synthetic cannabinoids.
  • Require labeling warnings and product information to educate the buyer. 
  • Prohibit marketing and advertising aimed towards children. 
  • Require independent testing of final products for impurities and potency.

Create a tiered licensing structure for manufacturers, distributors, and retailers that creates a level playing field and accountability. 

 

  • Establish a licensure structure, like that for beverage alcohol, for manufacturers, testing facilities, wholesalers, and retailers. 
  • Establish procedures for product tracing. 
  • Prohibit shipment of intoxicating hemp products to consumers from out of state. 

Impose a hemp beverage excise taxcollected and remitted by the distributor, set at a rate comparable to that imposed on beverage alcohol will provide a new revenue stream. 

Prohibit trade practices that create uneven playing fields. 

 

  • Prohibit the inducement of retailers to advertise or display products. 
  • Limit the amount of common ownership interest allowed between different tiers or a complete prohibition on vertical integration.

Hemp Markets Across the Country

States understand the benefit of regulating hemp beverages to keep consumers safe while keeping products available. The map below shows states where hemp beverages are sold like alcohol and states currently considering hemp legislation.

Ensure Congress has Time to Properly Regulate

Congress needs more time to develop a thoughtful, enforceable regulatory framework for intoxicating hemp products.

WSWA supports the one-month delay of the federal ban, extending the November 12 deadline to December 11, which was included in the Continuing Resolution passed by the Senate on August 7. The extension would provide one extra month to advance a federal framework for hemp beverages. The House will need to vote on it following August recess. 

WSWA supports the bipartisan Hemp Planting Predictability Act (H.R. 7024 and S.3686) to extend by two years the implementation timeline for changes to the legality of hemp-derived products, so that Congress can enact meaningful regulations.

A federal ban on intoxicating hemp products will not eliminate consumer demand or remove irresponsibly made products from the market. Instead, consumers will turn to unregulated channels where age verification, product standards, and enforcement are nonexistent.

CABA logo

“The Coalition for Adult Beverage Alternatives has long called for one thing: regulate low-dose hemp beverages like alcohol. The Beverage Regulatory Parity Act is delivering on that ask, and we are proud to stand firmly behind it. From trade practices to dosage limitations to taxation, this legislation moves us toward the parity our industry needs and deserves. Most critically, the Beverage Regulatory Parity Act codifies the three-tier system for hemp beverages, the same framework that has made the United States alcohol regulatory model the safest in the world. This structure works because it creates accountability at every level of the supply chain, ensures regulation through chain of custody, and keeps products out of the hands of minors. We commend Congresswoman Van Duyne and Congressman Landsman for introducing this legislation, which establishes sensible regulation that prioritizes consumer protection and safe access.”

Diana Eberlein, Chair, Coalition for Adult Beverage Alternatives
Know the Lingo
Cannabinoid
General term referring to intoxicating and non-intoxicating structural compounds derived, extracted, modified, or created primarily from the Cannabis sativa plant including Delta-9 THC, Delta-8 THC, CBD, and THCa.
CBD
A cannabinoid chemical compound that naturally occurs in the Cannabis sativa plant. CBD does not contain THC and therefore does not produce psychoactive effects, however, chemists can transform CBD oil into THC psychoactive substances, such as Delta-8 and Delta-9.
Conversion
Extracting CBD from a hemp plant and altering it into psychoactive compounds. Delta-9 THC from this process is often referred to as “semi-synthetic” or “converted.” Converted compounds start from naturally occurring compounds i.e., CBD or Delta-9, but may exist in only trace amounts e.g., Delta-8, Delta-10, so they are “converted” to produce commercially viable concentrations.
Delta-9 tetrahydrocannabinol (THC)
Naturally occurring main psychoactive compound in cannabis.
Delta-8 and Delta-10 tetrahydrocannabinol (THC)
While Delta-8 and Delta-10 THC are naturally occurring THC isomers (i.e., have the same chemical formula as Delta-9 THC), the atoms are arranged differently and they only occur naturally in very small amounts. Because of the small amount occurring naturally, Delta-8 is usually made synthetically by converting CBD or Delta-9 THC in a lab through chemical reactions.
Extraction
Small amounts of Delta-9 in hemp plants are extracted and combined with Delta-9 from other plants to reach usable quantities.
Hemp
In the 2018 Farm Bill, hemp was legalized and defined as Cannabis sativa L. and any part of that plant with a delta-9 tetrahydrocannabinol (THC) concentration of no more than 0.3 percent on a dry weight basis. However, the FY2026 Agriculture Appropriations Act changed the definition to limit legal hemp products to those containing no more than 0.4 mg of naturally occurring THC per container.
“Synthetic” THC
Lab-made cannabinoids that do not exist naturally in the Cannabis sativa plant. Production involves harsh solvents and chemical conversions, increasing the risk of impurities, and unknown contaminants.

In The News:
Hemp Regulation

View All

Aug 10, 2026

Bipartisan Bill Would Regulate Hemp-Derived THC Beverages Like Alcohol, WSWA Endorses Legislation

Comprehensive, Consumer-Safe Framework Offers Clear Federal Standards for Low-Dose Intoxicating Hemp Beverages

Read More

WSWA logo

Mar 24, 2026

Wine & Spirits Wholesalers of America Launches Educational Resource on Intoxicating Hemp Beverages

New Microsite Outlines Path for Safe, Effective Regulation as Market Rapidly Expands

Read More

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Contacts 

Questions about hemp beverages? Contact one of our knowledgeable staff:

Dawson Hobbs

EVP, Government Affairs

dawson.hobbs@wswa.org

Jake Hegeman

SVP, Legal & Regulatory, General Counsel

jake.hegeman@wswa.org

Chelsea Crucitti

VP, State Affairs

chelsea.crucitti@wswa.org

Christy Moran

SVP, Communications & Marketing

christy.moran@wswa.org