Minnesota Craft Brewers Thrive As Adult-Use Cannabis Legalization Expands Market

Craft brewers in Minnesota are celebrating the positive impact of the recently signed adult-use cannabis measure, which has provided a boost to their industry and expanded the market by allowing liquor stores to sell these beverages for the first time.

The legislation, signed into law by Gov. Tim Walz (D), establishes clear guidelines for the production and sale of low-dose hemp-derived THC drinks. It also distinguishes between hemp-derived products and those made from marijuana, ensuring compliance with federal legality.

Dan Justesen, the owner of Utepils Brewing in Minneapolis, emphasized the significance of this distinction, as it allows small breweries like his to stay in the market, reported Kare 11. 

Bob Galligan of the Minnesota Craft Brewers Guild, who successfully advocated for regulations and taxation, said edibles and beverages will be subject to a 10% state tax, in addition to existing sales taxes, starting from July 1.

However, serving THC beverages on the premises requires a separate insurance policy to cover liability, which poses a challenge as insurance companies lack prior experience in this area.

What's Next?

The newly established Minnesota Office of Cannabis Management will take about a year to become operational and issue state licenses to new players in the recreational cannabis industry. Existing brewers selling legal THC beverages can continue their operations but must register with the Minnesota Department of Health to provide the state with a comprehensive understanding of the THC landscape.

While permanent rules will be developed over the next year, interim regulations have been put into place. These include a prohibition on certain hemp-derived products, mandatory third-party testing for potency and contaminants and measures to restrict access to individuals under 21.

The new law does not impose limits on the number of retailers but introduces state registration for sellers for the first time. Local ordinances implemented last summer will remain in effect for now, but they will need to be reconsidered in light of the newly established state rules. "Once registration with the Department of Health is required on Oct. 1, the state will finally know how many retailers are selling the products, something that has been unknown since the edibles law took effect last summer," reported Minn Post.

Recreational marijuana legalization is expected to bring needed structure to the hemp-derived edibles and beverage market in Minnesota. Craft brewers are embracing the regulations, which ensure product safety and consumer confidence.

The inclusion of THC beverages in liquor stores has expanded the market and created new opportunities for brewers to thrive in this emerging sector.

Related News

• Gov. Tim Walz To Sign Recreational Cannabis Bill Into Law On Tuesday, Minnesota Becomes 23rd Legal State
• Guns And Weed Don't Mix: Newly Legal Minnesota Already Got The ATF Warning Letter

Photo: Courtesy Of Tom Conway On Unsplash