Hemp THC Drinks Are Exploding. Here’s Why the Alcohol Lobby Is Panicking.

Big liquor is against it, and even some cannabis advocates are cool toward hemp-based THC — but that’s not stopping growth.

If you happen to stop by for a concert at the United Center in Chicago, you can now catch a marijuana-like buzz by purchasing a hemp-based drink with 5 milligrams of THC for about the cost of a beer at the massive 20,000-seat arena, one of the largest indoor venues in the region.

For drink maker Rhythm, from Green Thumb Industries, this marks a big step toward appealing to mainstream consumers and growing the brand. The United Center is one of the first major arenas to offer a mildly intoxicating product as an alternative to alcohol.

Instead of selling cannabis drinks, the arena offers hemp-derived THC beverages made by a large cannabis company, since cannabis drinks are permitted only in dispensaries under Illinois law.

“It’s something we believe in because consumers aren’t going into dispensaries to buy drinks,” Rick Schepp, general manager of Rhythm beverages, told High Times. “If you put these drinks next to alcohol, consumers aren’t scared of them, and they’ll give them a try.”

To be sure, fans of the NBA’s Chicago Bulls and the NHL’s Chicago Blackhawks won’t have access to these drinks during games because the teams and leagues haven’t approved their sale. But the arena is allowed to sell hemp-based THC drinks at concerts.

On one hand, it’s a sign that a product offering what’s arguably a better buzz than alcohol is becoming more widely available. The idea of “California sober,” avoiding alcohol in favor of a THC high, is gaining traction among consumers ages 21 to 35, a key demographic for marketers. It’s also easier to reach consumers at concerts or liquor stores, where they already go, than to get them to visit a regulated dispensary.

For some in the cannabis business, however, these products continue to present a challenge.

The entire hemp-THC segment is essentially a workaround to much stricter cannabis laws. Since 1970, under the U.S. Controlled Substances Act, cannabis has been classified as a Schedule I drug, alongside heroin and fentanyl. State laws differ, which is how the state-legal cannabis industry has grown into a tens-of-billions-of-dollars business in the U.S., beginning with medical cannabis in California in the 1990s and expanding to adult use in Colorado and Washington state in 2012.

By contrast, hemp has been regulated under the less punitive Farm Bill. The hemp-THC business emerged from the 2018 version of the Farm Bill, which legalized hemp and its derivatives. The law allows hemp to contain up to 0.3% THC by dry weight to distinguish it from marijuana.

At the time, some supporters hoped hemp would be used for fuel, food additives, clothing, and building materials. CBD was also gaining popularity, particularly after attention surrounding Charlotte Figi, a young girl treated with CBD for a type of epilepsy.

Initially, hemp products offering CBD were rolled out. Over time, however, the 0.3% dry-weight THC allowance was used to create gummies, drinks, and even smokable flower that could produce a high.

That led to a surge of hemp-THC beverages from a growing roster of brands, including Cann Beverages, Sky High, and Cornbread Hemp. Drink makers reasoned that since consumers are already accustomed to alcohol, hemp-derived THC would be a natural alternative, especially for people who wouldn’t visit a dispensary or who live in states without adult-use or medical cannabis programs.

The trend caught the attention of Sen. Mitch McConnell of Kentucky, who originally supported the Farm Bill but complained last year that hemp-THC products were being marketed to children, even though they are legally sold only to people over 21.

Late last year, the GOP-led Congress passed a ban on hemp-THC products set to take effect on November 12. Meanwhile, other states have restricted sales, including total bans in California and Oregon.

The looming federal ban has sparked intense lobbying from well-funded interests.

On one side are liquor makers and some cannabis companies that oppose hemp-THC products. On the other, the hemp-THC industry wants the ban lifted. Supporters include certain liquor and beer distributors who see the products as a way to offset declining alcohol sales among younger consumers.

It’s unclear how the battle will unfold. By industry estimates, the hemp-THC industry generates about $28.4 billion in revenue and supports more than 300,000 American jobs. But it faces the powerful liquor lobby, a longtime ally of McConnell and other members of Congress.

Several large cannabis companies, including Trulieve, Green Thumb Industries, and Tilray, continue to produce and sell hemp-based THC products. Curaleaf is exiting the segment to focus exclusively on marijuana because of the looming ban. Verano, another major multi-state operator, supports prohibiting hemp-based THC products.

George Archos, founder and CEO of Verano, said the cannabis industry’s challenges have been “exacerbated by the years-long proliferation of untested, unregulated, unsafe hemp products across the country that have never been subjected to the same safety, regulatory, tax and banking restrictions our businesses face on a daily basis,” according to an email to High Times.

Meanwhile, Jim Higdon, CEO of Cornbread Hemp and a member of the U.S. Hemp Roundtable lobbying group, said he has increased headcount by 50 to 100 employees over the past year as demand has grown. The products are legal under federal law, and consumers want them, he said.

Last year, Texas nearly banned hemp-derived THC products. But after lawmakers saw their popularity, Gov. Greg Abbott vetoed the measure in June 2025, a move that boosted the broader industry.

“If convenience stores can avoid selling beer and tobacco to minors, they can do the same for hemp-THC products,” Higdon said.

“Not everybody wants to take a gummy, and the vast majority of people will never smoke anything, but everybody drinks,” he said. “Drinking something out of a can is a discreet and easy way of enjoying THC because smoking is taboo at a sporting event, a kids’ soccer game, or a birthday party.”

Hemp-THC companies are now working to gain congressional support to extend the ban deadline and create a regulatory framework for the products.

An extension could also be included in a pro-ethanol measure backed by farmers in Iowa, Kansas, and other red states.

One logical outcome would be for both supporters and opponents to agree on quality and safety standards to protect public health. Currently, no such federal rules exist.

However, logic is often sidelined in politics. Cannabis remains classified under federal law as dangerous as far deadlier drugs, even though many argue it is less harmful than tobacco or alcohol.

Still, when farmers’ livelihoods are at stake, cooler heads may yet prevail in the debate over hemp-derived THC drinks. It would be even better if cannabis laws were relaxed and pot would be removed from the Controlled Substances Act entirely, but that seems to be just a pipe dream for now.

Photo by Elsa Olofsson on Unsplash