A THC drink CEO says he’s working with competitors to save their billion-dollar industry after the crackdown on hemp
The recent passing of new hemp regulations has sent shockwaves through the burgeoning THC beverage industry, threatening to dismantle a billion-dollar market that has gained traction in recent years. Delta Beverages, led by CEO Jack Sherrie, is at the forefront of this struggle, as the company produces seltzers infused with hemp-derived THC. The new legislation, which is set to take effect in November 2026, imposes strict limits on THC content, banning products that contain more than 0.4 milligrams of THC per container. Sherrie, along with other industry leaders, is rallying to prevent the potential collapse of their businesses, which are often small, founder-led operations. “It’s funny, we were competing and now we’re coming together,” Sherrie remarked, highlighting the unusual alliance formed among competitors in a bid to save their industry.
The controversial hemp measure was tucked into a funding package that reopened the government, catching many in the industry off guard. While some executives, like Jake Bullock of Cann, view this as a “one-year shot clock” to secure necessary legislation, the urgency is palpable. Sherrie and Bullock are optimistic that Congress will consider new regulations that will allow for the continued sale of THC beverages, which have become increasingly popular, particularly among younger consumers looking for alternatives to traditional alcohol. The CEOs argue that the legislation primarily targets highly potent synthetic products marketed toward children rather than the relatively mild THC beverages they produce. With a concerted effort to collaborate with lawmakers, Sherrie hopes to propose a bill that could legitimize and regulate THC drinks by the end of December, emphasizing the need for a balanced approach that protects both public safety and the interests of small businesses in the hemp industry.
As the deadline looms, the stakes are high for entrepreneurs like Sherrie, who expressed the emotional toll of the recent legislative developments, stating, “A lot of us are entrepreneurs. We’re small businesses. We’re not some giant corporation trying to take over the world.” The future of the THC beverage industry hangs in the balance, with industry leaders advocating for a regulatory framework that would allow them to thrive while ensuring consumer safety. The coming months will be critical as they work to navigate the complexities of legislation and secure a sustainable future for their innovative products.
Delta Beverages makes seltzers infused with hemp-derived THC that could be banned under new restrictions.
Delta Beverages
THC beverage CEOs said new hemp product rules could kill their industry.
Jack Sherrie, CEO of Delta Beverages, said he’s working with others in the industry to save THC-infused drinks.
Industry leaders are trying to get legislation passed that would legitimize and regulate THC drinks.
CEOs are scrambling to save the
THC beverage industry
after a newly passed hemp crackdown threatens to wipe out a billion-dollar drink category.
Jack Sherrie, founder and CEO of
Delta Beverages
, said he’s working with competitors and others in the industry to save their companies, many of which are small, founder-led businesses.
“It’s funny, we were competing and now we’re coming together,” Sherrie told Business Insider. “We call it a co-opetition.”
“I don’t think there’s anything wrong with capitalism and competition, but I think that we’re definitely going to have to work together as a unit to get something passed,” he added. “And we’re all very well aware of that.”
Delta sells seltzers infused with THC derived from hemp, which was made legal by a provision in the 2018 Farm Bill that allowed for hemp-derived products containing a limited amount of THC.
Under the funding package that reopened the government this month, Congress effectively closed that loophole. The new hemp measure, set to take effect in November 2026, bans products that contain more than 0.4 milligrams of THC per container. As a result, it would effectively ban many hemp-derived
THC products
currently on the market, like Delta.
“This quite literally is going to end up killing the hemp industry,” Sherrie said, adding that the measure was quietly and suddenly slipped into the bill last minute, taking many in the industry by surprise.
Jack Sherrie, founder of Delta Beverages, said the new rules could kill the THC beverage industry.
Delta Beverages
Jake Bullock, CEO of Cann
, another THC beverage company, shared similar concerns with Business Insider after the measure was passed, though he said he did not view it as a ban but instead a “one-year shot clock” for the industry to secure legislation it has long needed.
Sherrie and Bullock both said they were optimistic that new legislation could happen. The goal now is to get Congress to pass rules that will regulate the industry and ensure some
hemp-derived products
can continue being sold.
The CEOs said the restrictions were aimed at
highly potent synthetic products
, often candies, that are marketed toward kids and sold in accessible places like gas stations, rather than THC drinks, which are generally far less potent.
They also said they believe Congress is open to passing legislation that would legalize and regulate THC beverages, which have grown in popularity, especially among Gen Z, as Americans have cut back on their alcohol consumption.
Sherrie said the industry is working closely with lawmakers to propose a THC beverage bill, hopefully by the end of December.
Meanwhile, it’s been a tough time for founders like Sherrie, who said sleep was nonexistent for him during the week the bill made its way through Congress and to President Donald Trump’s desk.
“A lot of us are entrepreneurs. We’re small businesses. We’re not some giant corporation trying to take over the world,” he said. “We’re trying to thrive, and we’re just trying to do our best.”
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