Welcome Note

Welcome back Gardeners!

I apologize, I scheduled the newsletter to go out yesterday at 5:30 PM instead of AM and decided to just have it go out Saturday morning instead. So here’s your first Saturday edition of the newsletter!

I have been rolling out a series of brand reviews over on the subreddit I moderate with Chris Fontes. So subscribe over on Reddit and follow along there!

The Free Spirits Podcast with David Gonzalez and myself is going strong and Episode 7 dropped Monday with Gordon Whelpley, Founder, Float House. It was an awesome conversation so be sure to check it out!

In upcoming episodes David and I sit down with - Ben Larson from Vertosa, Joanne Caceres from Dentons, Benjamin Kennedy from Fable, and Julie Rhodes from Kick Fizz. So subscribe to the podcast to make sure you don’t miss any of these amazing conversations!

If you could take the time to drop a review of the podcast or even just share it with a friend or two, it really does help us grow and continue to bring you this show.

You can find us on Youtube, Apple, Spotify or wherever you get your podcasts!

I hope you enjoy this week’s newsletter

And as always, my email is open!

-Lars

Any comments or questions? Leave comment on this post or shoot me an email. Would love to hear from you!

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News Round Up

• Kentucky governor signs bill banning sale of THC beverages in bars, restaurants - Kentucky’s governor has enacted legislation prohibiting the sale of THC-infused beverages in bars and restaurants. The move aims to regulate the distribution of hemp-derived intoxicating products within the state’s hospitality sector.

• THC Drinks Aren’t The New Beer, They’re Something Else, Says Tilray - Tilray views hemp-derived THC beverages as a distinct category in adult consumption, not as a replacement for traditional alcohol. The company is leveraging its craft beer expertise to scale products like Happy Flower and Fizzy Jane.

• The reason craft brewers are becoming THC drinks producers - Craft brewers are entering the THC beverage market to diversify their product offerings and capitalize on the emerging cannabis consumer demand, utilizing their brewing expertise to innovate within the space.

• Reverb THC Beverages: A New Buzz From Chicago’s Revolution Brewing - Reverb Beverage LLC, an offshoot of Revolution Brewing, has launched a line of naturally-derived Delta-9 THC and CBD drinks, aiming to offer high-quality cannabis-infused beverages crafted with brewery know-how.

• Guest commentary: The case for sensible THC regulation - An opinion piece advocates for balanced THC beverage regulation focused on safety and consumer access, warning against outright bans that could hinder market development and innovation.

• THC sales high for municipal liquor store - Fairmont Municipal Liquor Store has reported significant sales growth in THC-infused beverages, indicating rising consumer interest and acceptance in regulated retail environments.

• Cannabis-Infused Beverages Bubble Up in Popularity - Cannabis-infused beverages are gaining traction with consumers, driven by innovation, broader legalization, and growing demand for alternative consumption methods.

• Texas governor Abbott urged to reject THC beverage ban - Advocates petition Texas Governor Abbott to veto proposed legislation banning THC beverages, emphasizing regulation over prohibition as a responsible approach for the market.

• Alcohol industry exec says regulation, not prohibition, is responsible path for intoxicating hemp drinks (op-ed) - An alcohol industry executive argues in an op-ed that regulating intoxicating hemp drinks is preferable to banning them, highlighting lessons from alcohol and cannabis policy frameworks.

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A New Front in the Hemp War: What the Farm Bill Subcommittee Vote Means for THC Beverage Brands

The U.S. House Appropriations Subcommittee on Agriculture just advanced a bill that could reshape, or rather destroy, the hemp-derived THC beverage industry as we know it.

What happened?

On June 5, a subcommittee vote moved forward a Republican-backed FY2026 spending bill that includes controversial language aimed at closing what lawmakers call the “hemp loophole”, the provision in the 2018 Farm Bill that allowed for intoxicating products like Delta-8 and hemp-derived Delta-9 to flourish.

The bill seeks to redefine hemp under federal law, disqualifying products with any “quantifiable” level of THC. This would ban nearly every hemp beverage on the market, no matter how low the dose.

In a press release, Subcommittee Chair Rep. Andy Harris said the goal is to halt the “proliferation of unregulated intoxicating hemp products” and support the agenda of former President Donald Trump.

Why this matters

The stakes go far beyond legislative cleanup, they threaten the future of a booming consumer category. The current legal definition of hemp (≤0.3% Delta-9 THC by dry weight) gave rise to a wave of low-dose, hemp-derived THC drinks marketed as non-alcoholic alternatives, and consumers have embraced them.

As Cultivated News put it, “Closing the loophole without a carveout for the good actors would destroy people’s livelihoods and force many out of work” including brands like Cann, Cantrip, Brēz, Fable, and many others which have found real traction in the market .

How we got here

Rep. Harris has pushed similar language before, most recently in 2023, when a nearly identical provision was ultimately removed from that year’s spending bill. But as chair of the powerful appropriations subcommittee (known as a “Cardinal”), Harris has more leverage than most.

Advocacy groups like the U.S. Hemp Roundtable are calling this a “direct attack” on the legal hemp industry. In their words, the bill would “ban the vast majority of safe, legal hemp-derived products sold nationwide, any product with any ‘quantifiable’ level of THC.”

What’s at stake

The implications for beverage brands are massive. Over the last year, we’ve seen:

• Retail adoption: Major chains like Total Wine, DoorDash, and even Edible Arrangements have jumped into the hemp beverage market.

• Venture capital momentum: Investors from Delta Emerald Ventures to Listen Ventures are pouring tens of millions into the space, seeing low-dose beverages as the future of both cannabis and alcohol alternatives.

• Consumer growth: DoorDash saw a 19% increase in THC drink orders between December and January alone.

But is it game over?

Not yet. A similar attempt failed last year, and even now, industry experts think it’s unlikely this bill will survive the full legislative process. As many folks I am speaking with have stated it is unlikely to make it out of committee.

That said, nobody is taking this lightly. Advocacy organizations are mobilizing. Industry Slack channels lit up with calls to action. And the U.S. Hemp Roundtable is already urging stakeholders to contact lawmakers through their advocacy portal.

What’s next?

The bill now heads to the full House Appropriations Committee. No date has been set for that vote yet.

Until then, brands, retailers, and investors would do well to stay loud, and stay ready. If federal lawmakers want to shut down an entire sector, they better be prepared for a fight.

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