- Fifty West expected THC beverages to match beer production but now faces millions in losses and potential cuts of up to 50 jobs.
- Rhinegeist and other breweries have pivoted to Kentucky, where sales are rising but not replacing Ohio’s larger market.
- Industry leaders say the ban has already cost hundreds of jobs statewide and are lobbying lawmakers to reverse it.
As Ohio’s crackdown on hemp-derived THC beverages kneecapped a growing market, Kentucky emerged as a beneficiary, drawing both producers and consumers south across the Ohio River.
Fifty West Brewing had high hopes for its increasingly popular line of hemp-derived THC beverages, Sunflower, coming into this year.
The Cincinnati-based craft brewer invested heavily in its hemp-based beverage line, with internal financial projections indicating it would be a substantial revenue generator in 2026. On the production side, the company had even greater expectations.
“We were anticipating we were gonna make as much THC beverages this year as we were beer,” CEO Bobby Slattery told LINK nky.
Then, politics threw a wrench into their plans.
On Dec. 19, after Ohio Gov. Mike DeWine’s unexpected line-item veto of Senate Bill 56–legislation crafted to update the regulatory framework for THC and intoxicating hemp products–the state of Ohio effectively banned the sale of these beverages in retail stores.
The new law’s enforcement mechanism took effect on March 20. Nearly one month later, some of Cincinnati’s marquee breweries are feeling the negative effects, resulting in lost revenue and, in some cases, the elimination of jobs.
To offset losses, Slattery said that Fifty West has shifted its focus south to Kentucky, where the laws are more favorable. Kentucky allows the sale of hemp-derived THC beverages to be sold only through licensed package liquor stores.
Slattery said that Sunflower’s sales in Kentucky have “skyrocketed” since Ohio implemented its restrictions in March. However, he noted that Fifty West’s sales in Kentucky were not enough to offset its losses in Ohio, given the vast difference in market size.
“The sales in Kentucky are extremely strong, and that’s good, but it doesn’t replace the sales from Ohio,” he said.
Similarly, Rhinegeist, the largest craft brewery in Cincinnati, rolled out Fuzzy Bones, its own intoxicating hemp beverage, in the fall of 2025. CEO Adam Bankovich said the brewery was forced to pivot after the line-item veto, abandoning its initial revenue projections for the product line.
The company initially expected up to 10% of its 2026 revenue to come from Fuzzy Bones.
“The impact was pretty real and immediate,” Bankovich said.
Kentucky became a key focus for Rhinegeist since the ban, as Bankovich said the market and state regulators were more receptive to hemp-derived THC beverages.
“We’re very happy with the success Fuzzy Bones has found in Kentucky,” he said. “We absolutely are still focused on supporting Fuzzy Bones in Kentucky for everybody who’s found it and enjoyed it there.”
Bankovich described the situation as frustrating, but one that’s become all too familiar as a veteran of the craft brewing industry. He likened the ban to a contemporary form of prohibition.
Regarding job losses, Slattery said that Fifty West has already cut five jobs, but over the next year, the brewery may need to eliminate an additional 40 to 50 due to ongoing impacts. For now, Fifty West has avoided broader layoffs through attrition and creative measures, such as reassigning employees to other roles to keep operations running.
Statewide, Slattery estimates that more than 700 jobs have been eliminated, in addition to $120 million in lost revenue, as a result of the line-item veto.
“When we talk about production, that means jobs, that means people,” he said. “On the business front, we had to adjust things. We’ve eliminated jobs in this instance.”
Originally, Senate Bill 56 was designed to establish a regulatory framework for previously unregulated hemp-derived THC products, such as gummies and vapes, sold at convenience stores and other loosely regulated retailers. The law also included regulations for hemp-derived THC beverages.
Ohio now requires that the beverages be sold only through state-licensed cannabis dispensaries. Breweries, bars, convenience stores, grocery stores and liquor stores were forced to either remove their inventory from the shelves or destroy it.
In the aftermath, Bankovich said the real losers in this situation are the consumers who enjoy the product. He encouraged Ohioans to reach out to their state representatives if they feel so inclined.
“Here in Ohio, as we go weeks beyond the line item veto, they’re (consumers) realizing that, like, if this is real and it sticks, I’m not going to have this beverage that I enjoy anymore, and they’ve grown accustomed to having it, and I’m sorry for them,” he said.
Slattery remains optimistic that statewide restrictions on intoxicating hemp beverages will be reversed. Currently, he, along with several other brewers across Ohio, is lobbying state legislators to overturn the ban. As an entrepreneur, Slattery said he’s learned to roll with the punches.
“Nobody opened a business that everything just went perfect, and then it all worked out right,” he said. “The roller coaster is, for me, part of what I love.”
