Minneapolis (FOX 9) – A Minneapolis brewery faces a federal deadline that could shut down a key revenue stream overnight, creating immediate uncertainty for its core business.
The stakes for local breweries
Dan Justesen runs Utepils Brewing Co., which cranks out roughly 100,000 cans a month and now derives 15‑18% of its revenue from THC‑infused sparkling water under the Bandwagon brand and other labels.
By the numbers, the brewery produces about 60 cans per minute, and those THC products represent a significant slice of its monthly output, making any sudden loss a serious hit.
What the ban means for Minnesota
Although THC drinks remain legal in Minnesota, Utepils holds a federal brewery permit that could become problematic if hemp‑derived THC beverages are again classified as illegal under federal law.
The brewery also manufactures for other brands sold across state lines; a federal ban would render those interstate sales illegal once the Dec. 11 deadline passes.
What we don’t know: Federal regulators have not explained how they will enforce the ban against breweries that already hold federal permits and have been producing THC beverages for three years.
“They have never said a word to any of us for the last three years about producing this product in our breweries. Will they?” Justesen asked, highlighting the regulatory vacuum.
The uncertainty has created a ripple effect along the supply chain, with retailers, warehouses and producers all wary of being stuck with unsellable inventory after Dec. 11.
“It’s the proverbial hot potato. Who wants to get stuck with inventory when the rules end?” Justesen said, noting that nobody wants to bear the risk.
Industry leaders are now scrambling to eliminate exposure, but they lack clear guidance on what the final regulatory landscape will look like.
