Hemp-derived THC beverages are a growing on-premises category, driven by evolving consumer preferences and demand for alternatives to traditional alcohol beverages. Enabled by the 2018 Farm Bill, the market has expanded rapidly under a patchwork of state regulations with limited federal oversight.
An impending federal ban threatens to disrupt this emerging market, creating uncertainty for restaurant operators and eliminating a new revenue opportunity.
Restaurants operate on thin margins and need flexibility to meet customer demand. Today, 5% of operators already offer hemp-derived THC beverages and 26% would consider doing so with clear regulations in place.
That’s why the Association supports delaying the federal ban and establishing a clear national regulatory framework that ensures safety, while allowing state and local flexibility. Federal standards should include age verification, production and quality requirements, labeling and dosing transparency, marketing guidelines, and impairment standards—similar to the beverage alcohol model.
Providing clarity and avoiding disruption will help restaurants meet consumer demand, operate safely, and maintain stable business conditions