Hemp ban delay drives uncertainty for Minnesota brewers

At Minneapolis-based Indeed Brewing, THC beverages account for 20% to 25% of its business.

"That is a lot of money and it's a handful of jobs that is from the increased volume and revenue," said Ryan Bandy, Indeed's chief business officer. "That going away will definitely impact that."

Indeed, like many Minnesota breweries, has adapted to a world where fewer people are drinking alcohol, particularly beer.

"People are drinking less beer and just going out less, spending less money," Bandy said. "As all of the things are more expensive, things like expensive craft beer get cut out of a budget earlier before necessities. We're all seeing the impacts of that and those market forces. THC drinks have definitely helped us stay relevant and helped create a revenue stream for all these businesses."

President Trump last year signed a law limiting hemp-derived products to 0.4 milligrams of THC per container, significantly below what's currently allowed in Minnesota where low-dose hemp products are restricted to 5 milligrams of THC per serving and 10 milligrams per container.

Bandy said Indeed has taken steps at Indeed in recent weeks with suppliers and customers prepare for winding down its THC product line before the ban takes effect.

"So we're not stuck with a bunch of illegal products. People really like these drinks and they're really important to a lot of people. We don't want to just stop making them, but we're starting now to try and figure out the winddown phase. The uncertainty is extremely hard. It's almost harder to have the uncertainty than have the certainty, even if it is bad news."

In July, Bob Galligan with the Minnesota Craft Brewers Guild explained the ban's statewide economic impact.

"We know on our front as producers, a very low ball estimate we have if this language went through, would be 2,300 jobs just as producers would go away," Galligan said.

And it's just the latest blow to Minnesota's craft beer industry which has seen a number of brewery closures.

"A lot of it's on us as breweries and companies to make things and places that host people and have spaces," Bandy said. "We as an industry maybe didn't evolve as quickly as we should have, I think a little bit of it is on us to make sure we are still making things relevant to people. If we need to change or adapt how we're doing drinks and spaces, that's our job to stay relevant."