How the THC Ban Will Hit Minnesota and Wisconsin This December

From Minnesota taprooms to Wisconsin gas stations and smoke shops, THC drinks have become a familiar sight across the Upper Midwest.

In Minnesota, low-dose THC seltzers have turned into a lifeline for local breweries, with brewers reporting more than $5 million in THC beverage revenue in 2025 alone. Meanwhile, in Wisconsin, hemp THC has grown into an estimated $700 million industry supporting about 3,500 jobs.

For a lot of Minnesotans, a THC seltzer has become as normal a taproom order as an IPA. Since the state legalized low-dose hemp-derived THC in 2022, those drinks have turned into a lifeline for local breweries facing slumping alcohol sales, with brewers reporting more than $5 million in THC beverage revenue in 2025 alone.

However, a federal law signed last November aimed to change that. It caps hemp products at 0.4 milligrams of total THC per container, while most THC drinks contain somewhere between 2 and 10 milligrams per can.

The ban was originally set for November 12, but a short-term funding bill signed in September pushed the date back to December 11.

Supporters of the ban, led by Kentucky Sen. Mitch McConnell, say it closes a loophole in the 2018 Farm Bill that let untested THC products spread into gas stations and convenience stores nationwide.

Some states have also reported spikes in poison-control calls involving kids and THC. The legal marijuana industry, which sees hemp THC as unfair competition, supports the ban too.

Why Some Minnesota Taprooms Are Now Going Cash-Only on THC Drinks

Even with the deadline still weeks away, customers are starting to feel it. Indeed Brewing and Bauhaus Brew Labs in Minneapolis have moved to cash-only sales of their THC drinks.

The reason comes down to Square, the popular payment system many small businesses use for checkout, from card readers to the screen you sign at the register.

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According to the breweries, Square will no longer allow THC products to run through its system at all, even when a customer pays cash, in anticipation of the ban. Square did not respond to a request to explain its policy.

Indeed's chief business officer expects more taprooms to follow suit before the end of the year, since other payment systems are likely to adopt similar rules. Other options exist for THC sellers, but they typically charge higher fees than traditional systems.

Duluth Breweries Feel the Squeeze as the THC Deadline Nears

Some breweries are skipping the cash shuffle altogether. In Duluth, Blacklist Beer plans to end THC production and sales as of October 31.

At Duluth's Bent Paddle Brewing, the stakes are even higher. CEO Bryon Tonnis said last year that THC beverages make up about 40% of the company's revenue, with 45 employees relying on that production.

Bent Paddle has since been trimming costs while lobbying for a delay, and in a public plea to customers, it argued these products should be tested, labeled, and regulated at the state level rather than banned.

Minnesota's oldest brewpub is in the same boat. Duluth's Fitger's Brewhouse jumped into the THC game with an Apricot THC Seltzer inspired by its famous Apricot Wheat, and has since added cherry and raspberry lemonade flavors. Each can contains 10 milligrams of hemp-derived THC, which is 25 times the new federal limit.

What Could Happen Across Minnesota

InBound Brew Co. in Minneapolis has already ended THC production. The Minnesota Craft Brewers Guild says roughly half of its member breweries make or sell hemp THC products.

The guild's director of government relations has said he wouldn't be surprised if 20 to 30 percent of Minnesota breweries close after the ban takes effect.

There is a sliver of good news. Minnesota's top cannabis regulator says THC drinks and edibles won't disappear from store shelves, though the number of places selling them will likely shrink.

The state's Office of Cannabis Management warns that businesses will face banking, tax, and interstate shipping headaches once the products become federally illegal.

What Could Happen in Wisconsin

In Wisconsin, the picture is different. Marijuana remains illegal in Wisconsin, but hemp-derived THC products have been sold legally there thanks to the same Farm Bill loophole, in what has been an unregulated industry. Unlike Minnesota, Wisconsin has no state system built around these products.

Gov. Tony Evers has warned the ban could affect 3,500 jobs and $700 million in economic activity, as noted earlier, and the state has 470 federally licensed hemp growers.

State lawmakers have proposed competing bills, with some aimed at banning the products outright and others at regulating them.

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Is There Still Time for Congress to Step In?

Maybe. Minnesota Sen. Amy Klobuchar and Kentucky Republican Sen. Rand Paul have introduced a bipartisan bill to regulate hemp products instead of banning them.

Other proposals would delay the ban to 2028 or repeal it entirely, but as of this week, none have advanced past committee.

Whether you're a THC seltzer fan or a strictly-hops kind of person, this one is bigger than what's in the can. It's about the small breweries, hemp farmers, and taproom staff in Minnesota and Wisconsin who built something under the rules they were given.

Until Congress decides what happens next, the best thing you can do is support your local taproom and maybe keep a little cash in your pocket.