Podcast Summary: The Journal.

Episode Title: Is the High Over for Hemp Drinks?

Air Date: April 6, 2026

Hosts: Jessica Mendoza & Ryan Knutson

Episode Overview

This episode dives into the meteoric rise—and impending existential crisis—of the hemp-derived THC beverage industry in the U.S. With the “loophole” that made these drinks legal set to close due to a new federal law, hosts and guests explore how these products went from under-the-radar novelty to billion-dollar disruptor, and why the sector is now scrambling for survival.

Key Discussion Points & Insights

1. What Are Hemp THC Drinks, and Why Are They Popular?

• Definition:
  THC-infused beverages made from hemp (not marijuana), offering a mild “buzz” without alcohol.
• Market Presence:
  Sold in convenience stores, liquor stores, big box retailers, and even online—depending on local regulations.
• Product experience:
  Processed in variable dosages, targeting adults looking for a mild, social alternative to alcohol.
• Industry Growth:
  With annual sales topping $1–1.3 billion, hemp drinks have been a rare economic bright spot for the beverage sector as traditional alcohol sales falter.
• Memorable Quote:

  "They're one of the bright spots in the beverage market in terms of growth at a time when like beer, wine and spirits are hurting." — Laura Cooper (00:57)

2. Origins: The 2018 Farm Bill and an Unintentional Boom

• Historic Background:
  Hemp, banned since the Nixon era’s “War on Drugs,” was re-legalized with the 2018 Farm Bill, intended to help farmers produce materials like fabric and construction goods.
• Loophole Uncovered:
  Legalizing “all parts of the hemp plant” unintentionally permitted extraction of psychoactive hemp-derived THC for use in edibles and drinks.
• Entrepreneurial Response:
  Startups quickly capitalized, including companies like Can (spelled "CANN").
• Quote:

  “But this is America and entrepreneurs will find a way if they think they could make money. It’s capitalism.” — Laura Cooper (05:39)

3. Inside the Industry: Who’s Drinking and Why?

• Profile of Consumers:
  Far from counterculture youth stereotypes, most users are middle-aged, higher-income adults, parents, and even seniors.

  “Our median age is 42, you know, $110,000. Household income is about the middle there. We have really strong populations, 65 plus, veterans, young parents. It's amazing.” — Jake Bullock, CEO of Can (07:26)

• Positioning as Alcohol Alternative:
  Seen as a way to unwind without hangovers or the health/social consequences of booze:

  “The midweek, grabbing a bottle of wine, having a cocktail, that's going away because folks are drinking Can instead and they're feeling so much better the next day.” — Jake Bullock (07:56)

4. Mounting Scrutiny from Parents, Public Health, and Big Alcohol

• Concerns:
  • Packaging might appeal to minors.

    “They think that the packaging might be confusing to kids ... I had seen a picture of them next to Easter candy.” — Laura Cooper (08:23)

  • Lax regulation compared to alcohol:
    No universal age restrictions (just patchwork state laws); no “sin taxes”; less regulatory oversight.

    “Alcohol companies are very concerned about it ... these makers do not have to do that. So that is a huge problem for the alcohol industry which is losing ground.” — Laura Cooper (09:09)

• Political Response:
  • Lawmakers (including Senator Mitch McConnell, author of the 2018 bill) were blindsided by the result and are now moving to “put the hemp genie back in its bottle.” (09:53)

5. The Crisis: A New Federal Ban Looms

• Upcoming Law (November 2026):
  • New regulation outlaws all hemp drinks with over 0.4mg THC per serving—rendering nearly all existing products illegal.

    "Think 0.4 milligrams. That's nothing. That literally knocks out any kind of drink." — Laura Cooper (12:00)

• Industry Fallout:
  • Immediate fear and business disruption for companies like Can.

    “Sheer terror. We weren’t expecting it ... all of our products will come off of the shelves ... Target, Circle K, Sprouts. That goes off November 12th.” — Jake Bullock (12:40)

  • Retailers are already pulling back orders, anticipating the inventory risk.

    “That inventory is going to become more and more risky as we get closer to the deadline, because they don't want to be holding big warehouses of products that will ultimately become federally illegal by July.” — Jake Bullock (13:00)

6. Industry Response: Crisis Lobbying and a Call for Regulation

• Pushing for a New Regulatory Framework:
  • Industry leaders are asking Congress for:
    • Strict age limits (21+)
    • Taxes akin to alcohol
    • National consistency to level the playing field
    • Regulation for safety and legitimacy

    “So we want regulation. That's the headline. ... This is one of the only industries that's going to Washington saying, Texas, please.” — Jake Bullock (14:01)

• Political Realities:
  Jake notes momentum in some Congressional conversations—but no clear legislative “vehicle” to reverse the pending ban in time:

  “The challenge we face is actually what legislative vehicles are going to pass Congress between now and the November ban. It's actually a political challenge more than anything.” — Jake Bullock (14:26)

• Contingency Planning:
  • If the industry “goes dark,” leaders believe consumer demand and the scale of the market will help push for eventual legalization and sensible regulation after a temporary shutdown.

    “We have a number of Plan B, C, D's ... We're not going dark forever ... There is demand sufficient to support a 10, maybe even bigger billion dollar industry here.” — Jake Bullock (15:08)

Notable Quotes & Memorable Moments

• On the accidental origins of the boom:

  “It was an unintended consequence ... Unclear. They say it was an unintended consequence of this legalization. Uh huh.” — Laura Cooper (05:34)

• On consumer experience compared to typical cannabis consumption:

  “These drinks actually are for those people that have never had THC or maybe have been afraid about it ... because they are so mild. Our most popular product has 2mg of THC in it.” — Jake Bullock (06:37)

• On the magnitude of regulatory change:

  “That's for rope. That's for rope.” — Jessica Mendoza, dismissing the new ultra-low 0.4mg THC limit’s effect (12:13)

• On the industry’s stance toward regulation:

  “So we want regulation. That's the headline. ... This is one of the only industries that's going to Washington saying, Texas, please.” — Jake Bullock (14:01)

Important Timestamps

• 00:05-01:47: Rise of hemp THC drinks and their legal quirk
• 03:30-05:13: History of hemp, Farm Bill, and the loophole’s discovery
• 06:01-07:56: Inside Can’s product, mission, and customers
• 08:11-09:53: Scrutiny from parents, health and alcohol lobbies; political reactions
• 11:42-12:16: Change in federal law explained
• 12:40-13:36: Impact on producers and retailers
• 13:43-15:00: Lobbying efforts and plans for survival
• 15:08-15:42: Contingency for post-ban industry future

Tone & Style

• Conversational, incisive, and candid — blending business reporting with personal reflections and industry commentary.
• Balanced — presents perspectives from industry, regulators, and public health advocates.

TL;DR

The U.S. hemp-derived THC beverage industry boomed thanks to an unexpected legislative loophole, delivering alcohol alternatives that appeal to a broad consumer base. However, a new federal crackdown will outlaw nearly all such drinks by November 2026, leaving entrepreneurs in panic mode. Industry leaders are lobbying for proper regulation—embracing taxes and age restrictions—in a last-ditch effort to keep their businesses alive. Whether this high-flying market can stay legal remains an open question.