Texas works to save its hemp beverage industry amid federal uncertainty and booming sales in convenience stores and liquor retailers.
Texas works to save its hemp beverage industry as it is at a crossroads as it moves to preserve a booming hemp beverage industry. The state finds itself caught between evolving state regulations and looming federal restrictions. What started as a niche segment of the hemp market has quickly become a mainstream category, with hemp-derived drinks now available on convenience store shelves and even at large liquor retailers like Total Wine & More. Yet lawmakers in Austin and policymakers in Washington are locked in a debate which could redefine the future of this sector.
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The hemp beverage market took off in Texas following the 2018 federal Farm Bill, which legalized hemp and its derivatives with limited amounts of tetrahydrocannabinol (THC), the psychoactive compound found in cannabis. Without clear federal guidelines specifically addressing consumable products, hemp drink manufacturers expanded rapidly — forming a product category that includes seltzers, sodas and “zero alcohol, buzz-oriented” beverages that appeal to adults seeking alternatives to traditional alcoholic drinks. These products often provide mild psychoactive effects, making them especially attractive to consumers who want a social buzz without the calories, hangovers or legal complexities of alcohol.
Major brands have taken notice. Hemp-derived beverages from companies such as Bayou Beverage, hi Seltzer and Wana Brands have secured distribution deals with Total Wine & More, bringing THC-infused seltzers and sparkling drinks to hundreds of stores nationwide, including locations in Texas. These offerings deliver carefully measured doses of hemp-derived THC, often paired with cannabidiol (CBD) or other cannabinoids, positioned as adult recreational or relaxation beverages. The presence of these products in both convenience marts and big-box liquor stores signals how quickly the category has transcended its counterculture origins to enter mainstream retail channels.
Yet that mainstream success has heightened scrutiny. At the state level, Texas lawmakers have grappled with how to regulate — or even whether to allow — intoxicating hemp products. Earlier legislative proposals sought a total ban on THC-containing hemp products, which business groups warned would dismantle a roughly $5 billion industry supporting tens of thousands of jobs. Critics of the ban argued that restrictive laws would push consumers toward unregulated black-market products while depriving adults of legally recognized alternatives.
Gov. Greg Abbott’s administration vetoed an outright ban and directed regulators to create a workable regulatory framework, leading the Texas Alcoholic Beverage Commission to finalize rules requiring age verification and setting ongoing rule-making processes to oversee consumable hemp products. These regulations mirror some alcohol industry controls, such as restricting sales to adults 21 and over.
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Complicating matters further is federal action. Legislation passed by the U.S. Senate is poised to impose strict THC limits on hemp products nationally, effectively outlawing most of the current hemp beverage offerings when it takes effect in 2026. This shift would place Texas’s state-level market directly at odds with federal law, potentially forcing companies to reformulate products or face legal challenges.
For consumers, hemp beverages represent a growing lifestyle trend. Their positioning as an alternative to alcohol resonates with adults who are cutting back on traditional drinking but still want social experiences or relaxation. As the market and regulatory landscapes evolve, Texas stands as a bellwether for how states and the federal government will balance innovation, public safety and commercial growth in an increasingly popular segment of the beverage world.
