Good morning.
We’ve got a great story from Chris Casacchia on how hemp companies are responding to the ban and charting a course forward. Sales are surging, and THC beverage companies are coalescing on a strategic carveout from the broader ban.
Let’s get to it.
-JB, JR, ZH, NM
This newsletter is 802 words or about a 5-minute read.
💡What’s the big deal?
HEMP
A federal ban is coming. Hemp brands are on the clock to find a resolution.
Driving the news: Congress’ decision to fold a broad hemp ban into the government funding bill has set off a yearlong scramble across the fast-growing THC beverage and edibles market worth billions of dollars, reports Chris Casacchia exclusively for Cultivated.
The ban, which takes effect next November, would outlaw most consumer hemp products and immediately upend national distribution models that have moved THC drinks into bars, liquor stores, and big-box retailers.
What they’re saying: “I think we'll end up seeing THC beverages having to play by the same rules as alcohol,” said Angus Rittenburg, CEO and co-founder of Wynk.
Why it matters: The category is booming.
Wynk saw search traffic spike and sales double after the ban passed, and production at its New York co-packing facility is on track for five million cases in 2025, up from 700,000 this year, a staggering 614 percent increase. Cheech and Chong also reported a surge in distributor orders as consumer awareness exploded.
The big picture: Lobbying is intensifying as brands pursue multiple legislative paths, including a Farm Bill fix and standalone bills.
But the push is fracturing the industry. Smaller suppliers fear beverages will get a special carve-out backed by alcohol distributors, while the cannabis industry is itself split on the ban.
What’s next: Capital is tightening, valuations are shifting, and the race to influence Congress is now fully underway. The shot clock is ticking.
Read the full story: A federal ban is coming. Hemp brands are on the clock to find a resolution.
📣 Quotable
“It’s the same people that are trying to keep marijuana illegal in Texas. It’s the alcohol lobby. The fact is, when people start smoking weed, they drink less,” said podcaster Joe Rogan in a recent episode of The Joe Rogan Experience in response to the federal hemp ban.
“It could be because they just decided to get high and not get drunk. Or it could be that they smoke pot and they get a little paranoid and they go, oh my god, why am I poisoning myself five days a week?”
⏩ Quick hits
Ohio Lawmakers may be moving to ban hemp products ⛔
On the heels of the federal government enacting a hemp set to start in late 2026, Ohio lawmakers are reportedly preparing to file their own hemp ban. Hemp products have been on the chopping block in the Buckeye State since it launched its adult-use cannabis market in Aug. 2024. The Ohio Capital Journal has more on the anticipated legislation.
Texas plows ahead with hemp regulations 🤠
The Texas Alcoholic Beverage Commission moved forward on Tuesday with its efforts to regulate the sale of consumable hemp products as questions swirled around the future of the industry due to federal restrictions on the products approved by Congress last week, reports The Texas Tribune.
Rep. Omar says she is working on a hemp exemption 🚧
Minnesota Rep. Ilhan Omar told Marijuana Moment that she is working on a bill that would carve out an exemption from the federal prohibition for states that already allow hemp products. Omar is the latest of several lawmakers that have spoken out in favor of finding a way to preserve the hemp industry. On the other side of the aisle, South Carolina Rep. Nancy Mace (SC) proposed legislation that would reverse the ban.
San Francisco to suspend municipal cannabis taxes 💰
San Francisco lawmakers will suspend a proposed tax on local cannabis businesses until at least next year, as cannabis shops in the city contend with burdensome regulations, price drops, and illicit market competition, San Francisco Standard reports. The state of California recently rolled back a planned tax increase from 19% to 15% to help struggling operators.
😜 One fun thing
“This is basically a very carefully, precisely designed study of cross-fading,” Dr. James MacKillop told The New York Times.
MacKillop is an author on a recent study of 150 undergraduate students that found the students tend to drink less alcohol after they’ve smoked cannabis. It’s nice to see some rigorous analysis of what we anecdotally know. Read the full New York Times story.
📰 What we’re reading
Solving for the Alcohol Industry in Hemp Regulation | Cannabis Musings