Congress recently passed a funding bill that includes Section 759, which redefines “hemp” in a way that could make many cannabinoid beverages non-compliant. It sounds catastrophic (like the end of hemp drinks as we know them) but there’s a one-year grace period that means that for now, business continues as usual.
For the next 365 days, producers, distributors, retailers, and investors can operate under the current rules while preparing for the eventual enforcement of the new law. This window provides the opportunity to reformulate products, if needed, , align with regulators, and plan strategically to comply with the new bill.
Understanding Section 759
Section 759, tucked into a broader appropriations bill, redefines hemp under federal law. The legislation limits the legal definition to plants (or plant parts) containing no more than 0.3% total THC by dry weight, and it establishes a very low cap for finished products: no more than 0.4 mg of total THC per container. In plain language, this effectively excludes most cannabinoid-containing beverages currently on the market.
While headlines may make it sound like an immediate ban, the law includes a 365-day transition period before enforcement begins. This means that companies can continue selling hemp beverages in the short term, relying on existing federal and state regulatory frameworks, until November 9, 2026 when the grace-period expires.
Why the Grace Period for Hemp Beverages Matters
The one-year window is crucial for several reasons. First, it allows companies to assess the functionality of their products, or expand into other non-intoxicating beverages, such as broad-spectrum CBD drinks or zero-THC alternatives. Second, it gives stakeholders a chance to align with state regulators, many of whom maintain separate licensing and compliance requirements that remain in effect during the federal transition.
Finally, this period offers an opportunity for advocacy and policy engagement. Trade associations, brands, and investors can influence potential regulations, encouraging science-based standards rather than blanket prohibitions. In other words, it’s a chance to shape the future instead of reacting to it. Groups like the Hemp Beverage Alliance are leading efforts to create a safe and thriving industry through education, advocacy, best practices and partnership.
What Industry Stakeholders Should Know Now
For producers and brands, the focus should be on product reformulation, quality control, and meticulous documentation. Ensuring that products comply with the forthcoming regulations will be essential to avoiding enforcement issues once the grace period ends. Distributors and retailers should carefully monitor stock levels, labeling, and compliance documentation, preparing for any changes that state regulators may implement in response to the new federal standard.
What Happens Next
During the 365-day grace period, the legal status quo remains largely unchanged. Companies can continue producing and selling existing hemp beverages, but forward-looking strategies are critical. Reformulation, regulatory alignment, and advocacy should all be priorities.
Even after enforcement begins, the grace period ensures that companies aren’t caught off guard. It’s a chance to transition thoughtfully, rather than scrambling reactively, which is especially valuable given the complexity of federal and state regulatory overlaps.
365 Days to Plan and Reformulate Hemp Beverages
Section 759 represents a major shift in federal hemp law. While the headlines may make it seem like an immediate ban on cannabinoid beverages, the 365-day grace period buys the industry time to adapt, plan, and advocate. The next year is a strategic opportunity for producers, distributors, retailers, and investors to ensure compliance, rethink product lines, and engage with regulators before enforcement begins.
For hemp beverage brands or investors, the time to act is now. Contact MetaBrand to explore compliance planning, risk management, and strategic guidance for navigating the post-Section 759 landscape. A little foresight today could save a lot of headaches tomorrow. (Or, in 365 days.)
UPDATE: 12/10/25 – Cannabinoid Safety and Regulation Act (CSRA) introduced on 12/10/25 by U.S. Sens. Ron Wyden and Jeff Merkley to establish regulations for hemp beverages across the country.
According to the Hemp Beverage Alliance, senators Wyden & Merkley have championed sensible regulation that keeps products away from children, provide robust product testing and transparent packaging information, and provide a pathway for the hemp beverage industry to continue to thrive.”
