Minnesota’s THC‑infused drink market is about to be crushed by a federal rule that slashes allowed THC to 0.4 mg per serving.
Federal law cuts THC limits, threatens sales
The new rule, effective Dec. 11, caps hemp‑derived THC at 0.4 mg, far below Minnesota’s current 10 mg limit for drinks and edibles.
State lawmakers had already postponed the deadline from November to December, but the tighter federal standard now forces immediate compliance.
Northern Coffeeworks in south Minneapolis built its afternoon menu around THC beverages and edibles, which have become as popular as its coffee drinks.
“It’s sad for a lot of customers that really, really like it,” barista Kara Bohlen said.
Square, the point‑of‑sale platform Northern Coffeeworks uses, announced last week that it will no longer process THC product sales.
A Square spokesperson explained that the company began notifying sellers in August to ensure compliance with the upcoming federal restrictions.
Business owners fear a sharp profit drop as they must remove THC items from their menus.
“I think it will definitely hurt us profit‑wise,” Bohlen said. “If we can’t sell THC products, will we have to raise prices on everything else to make up the loss?”
Breweries that shifted from alcohol to THC drinks now face a crisis.
Indeed Brewing, which also relies on Square, has moved its hemp product sales to cash‑only transactions.
Back Channel Brewing is discounting THC beverages aggressively to clear inventory before the Dec. 11 cutoff.
Northern Coffeeworks has pulled its THC items from public view, pending a resolution.
“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 now the rug is being ripped out from under them again.”
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