Welcome Note
Welcome Back Gardeners to the 123rd edition of Herbal Profiles!
Happy Friday yall!
It’s been a few weeks since I have sent one of these. What have I been doing? Well, we currently are sitting at this weird inflection point in the industry where we technically have an end coming but not really. So, naturally, what we all want to talk about is policy as that’s currently the most important thing. Will we even exist in 8 months?
I am not a policy expert. Nor am I a lawyer. There’s so many amazing resources for these things and frankly I am not one of them. If I can’t add to the conversation I don’t want to regurgitate stuff that you can find elsewhere or frankly might be wrong. So I decided to take a little break.
Interestingly I went down to Miami last week for the CannaBev Summit and had some great conversations with folks. The general sentiment was there’s going to be some sort of solution. Whether we as an industry like that solution is a different question. But, as my friend Jason Dayton put it in a recent Linkedin post maybe the first step is simply saving the industry in some way, and then growing from there. Small step first, before getting exactly what we want. I liked that. Let me know what you think.
And as always,
Let’s get into it.
-Lars
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News Roundup
Amendment To Delay Hemp THC Ban Won't Get A Vote At Farm Bill Hearing, Key GOP Congressional Committee Chair Signals — The Republican chair of a key House committee signaled that a proposed amendment to delay the hemp THC ban by one year isn't relevant to the Farm Bill, casting doubt on its prospects for a vote. The amendment, introduced by Rep. Jim Baird, would have pushed the November 2026 compliance deadline back to 2028.
Kentucky Bill Would Expand Cannabis Drink Sales Beyond Liquor Stores — Kentucky lawmakers are considering Senate Bill 223, which would allow hemp-derived cannabis beverages to be sold in bars, restaurants, and at fairs and festivals, expanding beyond the liquor store-only sales permitted under current law. The bill would regulate cannabis drinks similarly to alcohol, restricting sales to those 21 and older and setting open container rules that mirror existing alcohol regulations.
Facing Hemp Ban, PA Lawmakers Race to Regulate THC Drinks and Products — With the federal hemp ban deadline approaching, Pennsylvania lawmakers are weighing two competing proposals: one that would allow THC drink sales through beer stores, and another that would regulate hemp-derived THC products alongside medical cannabis under a new Cannabis Control Board. Stakeholders from the hemp, medical marijuana, and beer wholesale industries are urging swift action ahead of the November 12 deadline.
Florida's Kids Shouldn't Be the Test Case for Intoxicating Hemp — A column in the Tampa Bay Times argues that Florida needs to strengthen enforcement around intoxicating hemp products, citing concerns about child-attracting packaging and easy access at convenience stores. The author calls on the state legislature to implement real age-gating, stricter packaging standards, and a clear enforcement plan ahead of the federal definition change in November 2026.
Wisconsin Governor Urges Congress to Modify Federal Hemp Law — Wisconsin's governor has publicly called on Congress to modify the federal hemp law set to take effect in November, warning that it would jeopardize 3,500 jobs and $700 million in economic activity for the state. The governor joins a growing number of state-level officials pushing back on the federal provision.
Hemp THC Beverage Sales Surge Ahead of Looming Federal Ban — Hemp THC beverage sales are spiking in the months following the announcement of the November 2026 federal ban, with brands like Cann reporting double-digit growth as consumer awareness of the impending restrictions grows. The hemp beverage market is currently estimated at $1.1 billion, though industry groups warn the new 0.4mg total THC cap per container could eliminate up to 95% of existing products.
How Much Does THC Take from Beer? — The Brewers Association published a data-driven analysis examining whether hemp-derived THC and recreational cannabis are meaningfully cannibalizing beer sales. The analysis found that beer shipment declines in cannabis-legal states versus non-legal states fall within normal statistical variation, suggesting the substitution effect is smaller than commonly assumed.
Tilray Brands Acquires BrewDog, Creating a ~$500 Million Global Craft Beer and Beverage Platform — Tilray Brands completed its acquisition of key BrewDog assets — including the global brand, UK brewing operations, and 11 brewpubs — for £33 million, projecting a combined global beverage platform of approximately $500 million in annual revenue. Tilray, which already markets 5mg THC hemp beverages, is separately negotiating to acquire BrewDog's U.S. and Australian assets.
Power Vacuum — THC Drinks' Lack of Brand Recognition Turns Up Retailer Pressure — Without a dominant national brand in the hemp beverage space, retailers are being forced to take on the role of category educator and brand builder for consumers who don't yet know what they're looking for. The CEO of Top Ten Liquors, a Minneapolis-based chain with significant hemp beverage shelf space, notes that no THC brand has achieved national recognition, putting unusual pressure on retail staff to drive purchase decisions.
Low-Dose Shoppers Aren't Looking for a Favorite THC Brand…Yet — New data from consumer insights firm MoreBetter, drawn from nearly 5,000 verified participants over 22 days, shows that curiosity and novelty are the primary purchase drivers for low-dose THC beverage consumers. Even when satisfaction scores are high, 48% of participants said they definitely wouldn't repurchase or were unsure — pointing to a category still in early exploration mode with no clear path to brand loyalty yet established.
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Eight Months to Get It Right
The First Slice
In March 1933, America was thirteen years into Prohibition. Organized crime was thriving. Enforcement had become a national joke. Rather than attempt to repeal the 18th Amendment overnight, Congress took a more surgical approach. The Cullen-Harrison Act legalized beer and wine at 3.2% alcohol by weight. Not spirits. Not cocktails. Just low-alcohol beer and wine. FDR signed it on March 22nd. Nine months later, the 21st Amendment fully repealed Prohibition.
3.2% beer wasn't the end goal. It was the foot in the door.
That history feels uncomfortably relevant right now. The hemp beverage industry has roughly eight months before a federal provision effectively bans most hemp-derived THC products by capping total THC at 0.4mg per container. And this week, the prospects for a simple delay got harder, with the House Agriculture Committee chair signaling that a proposed one-year extension amendment isn't relevant to the Farm Bill markup.
The message is becoming clear: waiting for a perfect solution isn't the play. Securing the first slice is.
The Market Has Already Decided
While Washington debates, consumers are moving. Hemp beverage sales are surging, double-digit growth, mainstream retail placement at Target, Total Wine, and Sprouts, and a category that's showing up at backyard barbecues and in everyday social occasions that used to belong exclusively to alcohol. The demand isn't theoretical, it is very much real.
What's driving it isn't just novelty, as we have discussed many times in this newsletter, though novelty plays a role. It's format. THC beverages fit the way people actually socialize. You crack one open, you feel it within 20-30 minutes, you manage your experience. It mirrors the ritual of alcohol without the hangover, the calories, or the morning regret. And critically, it fits the regulatory vocabulary that already exists, a can with a label, a dose on the side, a purchase behind a counter that checks your ID.
That last part matters more than it might seem.
The Infrastructure Argument
One of the most compelling cases for hemp beverages, and one that doesn't get made loudly enough, is that the plumbing already exists. The three-tier distribution system that governs beer, wine, and spirits in this country is one of the most effective consumer protection frameworks ever built. It's age-gated. It's tested. It's compliant.
According to new data from the Brewers Association, hemp THC isn't even meaningfully cannibalizing beer sales, the gap in shipment declines between cannabis-legal and non-legal states falls within normal statistical variation. The narrative that hemp is destroying beer doesn't hold up to scrutiny. Which means the beer distribution industry, one of the most politically connected industries in America, has every reason to be an ally here, not an adversary.
The alternative, letting the status quo continue without regulation, is the thing that actually threatens everyone. Delaying to "maintain the market" means maintaining a legal environment that currently permits 750mg gummies sold out of gas stations with zero age verification. That's the environment that handed Congress the ammunition to pass this ban in the first place. An extension without a framework isn't a win. It's just a longer countdown.
The Narrow Path Forward
The conversation coming out of the CannaBev Summit last week was more aligned than it's been in months. The contours of a defensible framework are taking shape: low-dose, natural D9 only, no synthetic cannabinoids, no minor cannabinoids (unfortunately), packaging that can't be mistaken for candy, sold through licensed channels with real age verification. Is that everything the industry wants? No. Is it a foundation that can be defended in front of a skeptical Congress? Yes.
The Women in Hemp group just completed a DC trip with 60 congressional meetings in a single day. The HBA Hill Climb lands March 23-25, with advocates matching directly with legislators from their home states. The Wisconsin governor is now publicly urging Congress to act. The political momentum is building from multiple directions at once.
But momentum without alignment is useless. The industry's job right now isn't to win every argument. It's to win the one argument that opens the door.
3.2% beer wasn't the end. It was the beginning. The hemp beverage industry has the same opportunity, a defensible, realistic, low-risk starting point that acknowledges legitimate concerns and builds a foundation for what comes next.
The first slice is on the table. The question is whether the industry can agree to take it.
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