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Deal to end US government shutdown strikes buzzy cannabis drinks industry
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Deal to end US government shutdown strikes buzzy cannabis drinks industry
Nov 13, 2025 4:23 PM

NEW YORK, Nov 13 (Reuters) - The agreement to end the

longest-ever U.S. government shutdown includes a provision to

stop the spread of intoxicating cannabis-infused beverages sold

in some U.S. states, which pose a threat to alcohol sales.

The provision, introduced by Senator Mitch McConnell, and signed

into law by U.S. President Donald Trump on Thursday, aims to

close a loophole that has allowed some intoxicants to be sold as

"hemp," a legal product under federal law. The new rule excludes

products with more than 0.4 milligrams of tetrahydrocannabinol,

or THC, the mood-altering substance in hemp and marijuana that

is derived from the cannabis plant.

The change, effective in a year, delivers a death blow to the

"low-dose" THC-infused beverages industry, which has rapidly

expanded in U.S. states such as Minnesota and Tennessee that

permitted the drinks. Most have at least 1 milligram of THC,

giving drinkers a buzz.

Liquor stores like Total Wine, supermarkets and convenience

stores sell the beverages, prompting market research firm

Euromonitor to project sales of more than $4 billion in 2028.

Alcohol makers such as Corona brewer Constellation Brands ( STZ )

had been internally researching the drinks to weigh

their next steps in the market segment. Pernod Ricard,

which distills Absolut vodka, met with executives of one of the

brands to discuss a possible investment over the summer, though

it ultimately did not, Reuters reported.

McConnell first legalized hemp in 2018 to support farmers in

his home state of Kentucky but then became concerned about

intoxicating products such as gummies getting into the hands of

children.

Some founders of THC-infused drinks such as Cann are hoping

to find a way in the next year to have the beverages permanently

legalized, co-founder Jake Bullock said in a statement.

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