The Future of Hemp Beverages in Ohio: Navigating the Roadblocks of SB 86

Interest in hemp-infused beverages has exploded across the United States, and Ohio is no exception. As health-conscious consumers search for alternatives to high-sugar sodas and alcoholic drinks, hemp-based options like CBD seltzers and THC-free elixirs are cropping up on store shelves. But a bill currently making its way through the Ohio legislature, SB 86, threatens to dramatically reshape the landscape for farmers, beverage makers, and retailers.

What exactly is at risk? And how might these proposed regulations impact everyone from hemp growers to local craft beverage companies? This post breaks down the core of SB 86, highlights what it could mean for the fast-growing hemp beverage category, and shares industry perspectives on where Ohio could go next.

Hemp Beverages Are Booming, But Uncertainty Looms

Over the past several years, hemp and its non-intoxicating compounds, particularly cannabidiol (CBD), have become key ingredients in a wave of “better for you” beverages. From functional sodas crafted by boutique brands to multi-state distribution deals, the sector has seen rapid growth driven by:

Customer demand for legal, low-THC recreational products
The wellness trend and desire for functional ingredients
Innovative local businesses creating jobs and value from Ohio-grown hemp

However, the legal status of hemp-derived compounds has always been complex, varying from state to state. With SB 86, Ohio lawmakers aim to clarify some gray areas—but critics say the bill’s approach could inadvertently strangle the local hemp beverage market.

Breaking Down Ohio SB 86 for Hemp Beverages

SB 86 proposes sweeping changes to the way hemp products—including drinks infused with cannabinoids like CBD and delta-8 THC—are regulated, sold, and taxed in Ohio. Here’s what stakeholders need to know:

Strict Limits on THC and Other Cannabinoids

The bill would set lower thresholds for delta-9 tetrahydrocannabinol (THC)—the main psychoactive compound in cannabis, which hemp beverages typically avoid exceeding by law. But SB 86 also brings other cannabinoids such as delta-8 under scrutiny, essentially reclassifying many hemp-derived extracts as marijuana if they exceed trace levels.

Key points:

Any drink containing more than 0.3% delta-9 THC by dry weight would be restricted, aligning with the federal 2018 Farm Bill.
SB 86 lumps in other cannabinoids with a psychoactive effect, even if derived from legal hemp.
This broad definition could ban or severely restrict beverages currently on the market.

“We’ve worked hard to ensure all our products remain federally compliant, but SB 86’s language could put our flagship drinks out of business overnight,” says Rachel Lewis, co-founder of an Ohio-based hemp beverage startup.

New Taxes on Hemp Beverages

If passed, SB 86 would impose additional excise taxes on hemp-infused drinks, mirroring those levied on alcohol and vaping products, despite their lack of intoxicating effects.

Potential impacts include:

Higher retail prices for consumers, reducing the products’ competitive edge against legacy sodas and drinks.
Squeezing already tight margins for small beverage makers and Ohio hemp farmers.

“The added taxes on non-intoxicating CBD seltzers don’t make sense when you compare them to untaxed sodas or energy drinks,” notes Mark Brighton, owner of a micro-bottling facility in central Ohio. “It would make it much harder to educate the public on the benefits of hemp if prices push these drinks out of reach.”

Distribution Restrictions and Licensing

SB 86 doesn’t stop at content limits and taxation. The bill also seeks to overhaul distribution channels:

Hemp beverage makers would need to obtain new state permits, akin to those for alcohol producers.
Retailers could only sell hemp drinks if properly licensed, and sales might be limited to specialty or adult-only locations.
Direct-to-consumer shipping, a lifeline for many small producers, could be banned or heavily restricted.

This approach not only creates logistical hurdles but could also shut out grocery stores, cafes, and convenience chains that have been early adopters of hemp beverage sales in Ohio.

“Losing access to our largest retail partners would be devastating. Our entire business model relies on the ability to sell safely and legally in mainstream stores,” says Lewis.

What’s at Stake for Hemp Farmers, Beverage Startups, and Ohio Consumers?

For Ohio Hemp Farmers

Local hemp growers are counting on a robust, innovative beverage market to create downstream demand for their crops. Currently, beverage makers represent a key customer, buying whole plant material or processed extracts. If SB 86 restricts or even collapses this segment, farmers could lose vital contracts, dimming hopes for a thriving, high-value supply chain in Ohio.

For Beverage Makers and Entrepreneurs

SB 86 may unintentionally favor larger, multi-state operators with deep pockets to weather new licensing and tax costs. Craft startups and minority-owned businesses, which have sparked much of Ohio’s hemp beverage innovation, could struggle to keep up.

For Policymakers and Public Health

Proponents of SB 86 argue that the bill is about protecting consumers from dangerous or mislabeled products, especially those with significant psychoactive effects. Yet, critics contend that reasonable, modern regulations—with standards for ingredients and safety testing, not prohibition and over-taxation—could better serve both innovation and public health.

How Are Industry Professionals Responding?

Across Ohio, entrepreneurs and farmers are organizing lobbying efforts, meeting with lawmakers, and raising public awareness of SB 86’s economic and practical impacts.

“We want to work alongside the state to ensure products are safe and transparent,” Brighton says. “But blunt-force bans and taxes treat our entire industry as a public safety problem instead of an opportunity to create jobs, add farm value, and provide healthy alternatives to sugary or alcoholic drinks.”

Ohio Beverage Association’s recent white paper argues for:

Content limits based on up-to-date science, not blanket bans on minor cannabinoids
Sensible, fair taxes in line with product risk and public health goals
Licensing pathways that encourage transparency without crushing entrepreneurs

What Can Ohio Learn from Other States?

States like Colorado and Minnesota have developed nuanced frameworks that allow regulated sale of low-THC hemp beverages, balancing safety and economic growth. Their successes suggest:

Clear labeling and third-party testing are critical for consumer trust.
Taxes and fees, if any, should be proportional—not a barrier to entry.
Broad education campaigns help set realistic expectations for consumers and retailers.
Flexibility in retail channels (including direct-to-consumer shipping) can support small producers while preventing illegal diversion.

Ohio has the chance to carve out its own approach, learning from both the missteps and achievements of other early adopters.

What’s Next? How Stakeholders Can Engage

SB 86 is still moving through committee, and lawmakers have an opportunity to amend the bill in ways that both protect consumers and nurture Ohio’s growing hemp beverage ecosystem. Here’s how you can make your voice heard or prepare for possible regulatory changes:

For farmers: Build relationships with beverage makers and track policy developments.
For beverage professionals: Engage with industry groups, provide data on economic impact, and advocate for sensible regulation.
For policymakers: Consider the ripple effects on small business, agriculture, and public health—not just the headlines.

Charting a Path Forward for Hemp Beverages in Ohio

Ohio’s hemp beverage scene stands at a crossroads. The promise of these innovative products lies in their ability to offer healthy options, economic opportunities, and a value-added market for local farmers. But restrictive policies like those in SB 86 could easily stifle momentum before the sector reaches its full potential.

A balanced, science-driven regulatory approach is essential to keep Ohio at the forefront of the nation’s hemp beverage movement. Stakeholders across the supply chain should continue to push for smart, modern rules that prioritize safety while encouraging innovation and access.

For the latest updates, follow official legislative channels and connect with organizations representing Ohio hemp farmers and beverage entrepreneurs. Staying informed and vocal remains the most powerful way to help shape the future of hemp beverages in the Buckeye State.

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