The U.S. beverage market is changing faster than at any point in recent memory, and few developments illustrate that disruption more clearly than the rise of hemp-infused beverages. What began as a fringe product has rapidly evolved into a mainstream adult beverage category — one consumers increasingly view on par with beer, wine and spirits.
Recently, at Access LIVE 2026, wholesalers, retailers and industry leaders gathered for a series of candid conversations about the impact of intoxicating hemp beverages. Across those sessions, one message was clear: This category is real, consumer demand is strong and the regulatory framework has not kept pace.
The question facing the industry is no longer whether THC-based beverages belong in the market — but how that market – from supply to distribution and retail - should be regulated moving forward.
From Legalization to Market Reality
The inflection point came with the 2018 Farm Bill, which removed hemp – defined as cannabis containing no more than 0.3 percent delta-9 THC on a dry-weight basis - from the list of federally controlled substances. How the law was written opened a door to an emergent industry of hemp-derived intoxicants that manufacturers leveraged to develop and market THC beverages. But there was no regulatory system for these innovative products. In the absence of federal guidance many states began to act, creating their own regulatory systems sometimes modeled on their alcohol laws.
As David Trone, former Congressman and Founder and Owner of Total Wine & More, noted during Access LIVE 2026, “The federal government has allowed for the Farm Bill of 2018, but each state has their own myriad of laws … and we had to sift through those to make sure we got it right.”
While states have the authority to set their own policies, without clear legislative or regulatory action, gaps persist. Only the federal government can take the steps needed to ensure that products are safe and consistent across the country. The objective should be a framework that preserves state control while providing greater clarity and predictability for the marketplace.
Consumers Have Decided — And the Middle Tier Is Responding
Consumers have embraced THC beverages as part of a broader shift in adult beverage preferences. These products are increasingly viewed as just another way to relax and socialize.
Trone framed it this way: “This is now an adult beverage category…whether it’s a beer tonight or a glass of wine or … an adult hemp beverage.”
Retailers echoed that sentiment with hard numbers, with one describing how the category exploded almost overnight. What began as four linear feet of shelf space quickly expanded to “20 to 24 …190-plus SKUs,” now accounting for “three to four percent of sales, six to seven percent of profits.” That kind of growth is impossible to ignore.
Faced with clear consumer demand, many wholesalers have stepped in — applying the market discipline and compliance mindset they use for alcohol. “It’s easy for wholesalers to integrate a new category into that same selling model,” noted Best Brands CEO Ryan Moses during the Wholesaler Power Hour session on intoxicating hemp beverages. But that integration has happened in the absence of consistent federal rules, forcing the industry to self-police.
A Market Heading for a Cliff
While consumer demand for THC beverages continues to grow, Congress has chosen to enact legislation that will ban these products beginning in November. Industry leaders at Access LIVE warned that without congressional action, the hemp-derived beverage market could effectively disappear in November 2026, triggering a sudden and disruptive shutdown of the category.
One panelist described the looming scenario as “prohibition in 365 days,” a blunt assessment of what could happen if Congress allows the current language to go into effect, rather than enacting a regulatory system.
As Charlie Merinoff, Founder and Co-Chairman of Breakthru Beverage Group, cautioned, “The clock is ticking … we’ve got to get it done by the summer recess or it’s not getting done.”
For wholesalers and retailers who have invested in infrastructure, education and responsible merchandising, that uncertainty represents not just lost revenue — but destabilization of consumer trust.
Demand Won’t Disappear — It Will Go Somewhere Else
One of the strongest themes during the week’s discussions was that consumer demand will not vanish simply because lawmakers change the rules.
As Merinoff put it plainly, “You cannot put the genie back into the bottle. This is out there … the consumer wants it.”
History suggests that when legal markets are shut down abruptly, demand doesn’t disappear — it simply migrates. Several panelists warned that banning or severely restricting THC beverages, without a regulated alternative, risks pushing consumers toward an underground economy with even fewer safeguards.
As Trone noted, “If it goes the other way…there’ll be an underground economy,” adding that the industry should be focused on “FDA-taxed, three tier” solutions instead.
Regulation, Not Prohibition
WSWA’s position, reinforced repeatedly during Access LIVE, is that THC beverages need regulation in a manner consistent with alcohol.
In Charlie Merinoff’s words: “What we need is regulation, not prohibition.” To the experts who weighed in, that regulatory framework should include:
- Clear federal oversight, including FDA involvement
- Accurate labeling and testing standards
- Responsible dosage limits
- Age-gating and enforcement
- Taxation and transparency
As Trone explained, “Putting hemp beverages … in the three-tier system [is] the common sense, the right way.” He added that FDA oversight is essential “to make sure what’s in that can or bottle is exactly what it says on the outside.”
Several panelists cited 5 or 10-milligram THC limits as a reasonable and responsible standard, reinforcing the idea that guardrails — not bans — are the right path forward.
The Three-Tier System Is Built for This Moment
Wholesalers and retailers alike made the case that the existing three-tier system already provides the infrastructure needed to manage THC beverages responsibly.
“If you want it to look like alcohol and feel like alcohol and be taxed like alcohol,” said Steve Jabour of Spec’s Family Corporation, “pump it into the system that works … the plumbing’s there.”
Retailers emphasized that a regulated system would increase both legitimacy and consumer protection. As Jabour noted, “It adds an added layer of legitimacy … from a supplier to a wholesaler to the retail shelf.”
Wholesalers, meanwhile, pointed to their ability to handle compliance, logistics, tax collection and education at scale — capabilities already proven within the wine and spirits categories.
Until Congress Acts, Good Actors Must Lead
With uneven state action and no clear federal framework, the industry must step up – especially in states without defined guardrails – while respecting and adhering to state laws where they are in place. As Ryan Moses said, “In the absence of regulation … it’s important that we’re doing the right things –being the good actors.” A federal baseline would provide consistent guardrails nationwide while preserving the ability of states to build on that framework as they see fit.
Responsible self-regulation includes:
- Reasonable dosing decisions
- Clear packaging standards, signage and consumer education
- Rigorous COA and testing protocols
- Close collaboration between wholesalers and retailers
In panel discussions, several retailers noted how many have already implemented internal standards. “Every product we carry has to follow our protocols,” Jabour said, adding that they rely on wholesalers to help ensure compliance before products ever reach the shelf.
Several speakers also warned that if the industry doesn’t help shape the rules, “someone else will do it for us.”
The Path Forward
Across all three sessions, wholesalers, retailers, and suppliers aligned around a single conclusion: THC beverages aren’t going away — but uncertainty must.
The choice is stark. Either THC beverages are embraced by a transparent, regulated system that prioritizes safety, accountability and compliance, or they remain stuck in a legal gray zone that threatens consumers, businesses and public trust.
As Trone summed it up, “Partnership…one team…it’s retail, working with wholesale, working with WSWA jointly.”
At Access LIVE 2026, the aggregate message from the middle tier was that the infrastructure exists, consumer demand is proven, and time is running out. The future of THC beverages will be decided by whether policymakers choose regulation over prohibition, and whether the industry continues to lead with responsibility, collaboration and clarity.