Minnesota businesses scramble ahead of federal law limiting hemp THC products

Minnesota businesses that have embraced THC-infused drinks and edibles are bracing for significant changes, as a new federal law threatens the sale of the products. That law, set to take effect Dec. 11, limits hemp-derived products to 0.4 milligrams of THC. Minnesota's current market allows drinks and edibles with up to 10 milligrams of THC. The hemp law had been previously pushed off from November to December. Minnesota legalized hemp-derived THC products in 2022, which helped fuel a booming industry. At Northern Coffeeworks in south Minneapolis, THC beverages and edibles have become a popular menu item alongside coffee drinks. "It's sad for a lot of customers that really, really like it," barista Kara Bohlen said. Bohlen said the coffee shop learned last week that its point-of-sale provider, Square, would no longer process sales of THC products. "Through Square, they immediately sent us a message and said that we need to pull all of our THC products," Bohlen said. A spokesperson for Square said the company began notifying sellers in August, so as to comply with the upcoming federal restrictions. For businesses that have come to rely on THC sales, the potential impact is significant. "I think it will definitely hurt us a bit profit-wise," Bohlen said. "Like, OK, we're not doing THC products anymore, so will we have to increase prices on things to make up for lost profit?" Breweries, which have pivoted more to THC beverages as consumers shift away from alcohol, would be particularly impacted. Indeed Brewing, which also uses Square, has shifted hemp product sales to cash-only transactions. Meanwhile, Back Channel Brewing has begun discounting THC beverages in an effort to sell existing inventory before the new restrictions take effect. Northern Coffeeworks has moved many of its THC products out of public view, at least for now. "I feel bad for the local businesses where they were told they could get into this market," Bohlen said. "People took big chances and made the switch and jumped in, and now it's like the rug is being ripped out from under them again." Featured Local Savings