The Farm Bill and Hemp Co-Packing

By Jimmy Semrick — January 15, 2025

The 2018 Farm Bill fundamentally changed the landscape for hemp-derived products in the United States. By removing hemp from the Controlled Substances Act and reclassifying it as an agricultural commodity, the legislation opened a massive new market for consumer products — including beverages. For founders building brands around hemp-derived ingredients like CBD, CBN, and Delta-8 THC, the opportunity is real. But so is the compliance complexity.

At BrellaPak, we work with beverage brands navigating this space every day. This post breaks down what the Farm Bill actually changed, what compliance means for hemp-derived beverages, and why choosing the right co-packing partner matters more in this category than almost any other.

What the Farm Bill Changed

Before 2018, hemp was classified alongside marijuana under the Controlled Substances Act, making it effectively illegal to grow, process, or sell commercially. The Agriculture Improvement Act of 2018 — commonly known as the Farm Bill — drew a clear legal line: hemp is cannabis with a Delta-9 THC concentration of no more than 0.3% on a dry weight basis. Anything above that threshold remains a controlled substance.

This distinction created a legal pathway for hemp-derived ingredients in consumer products, including beverages. Brands can now formulate with CBD isolate, broad-spectrum hemp extract, water-soluble cannabinoids, and other hemp-derived compounds — as long as the finished product stays within the 0.3% Delta-9 THC limit and complies with applicable state regulations.

The practical impact has been enormous. The hemp-derived beverage category has grown from a niche curiosity to a meaningful segment of the functional beverage market. Consumers are buying hemp-infused seltzers, relaxation shots, wellness tonics, and even hemp-derived THC beverages in states where those products are permitted.

Compliance Is Not Optional

The legal framework for hemp beverages is real, but it is also layered and evolving. Federal law sets the baseline — the 0.3% Delta-9 THC threshold — but individual states layer on their own rules. Some states have embraced hemp-derived beverages with clear regulatory frameworks. Others have imposed additional restrictions on THC content, labeling requirements, or sales channels. A handful have effectively banned certain hemp-derived compounds in consumable products.

For brand founders, this means compliance is a moving target. What you can sell in Colorado may not be legal in Iowa. The labeling requirements in California differ from those in Florida. And the rules change — sometimes with little notice.

This is why working with a co-packer that understands hemp compliance is not a nice-to-have. It is a requirement. A production error, a mislabeled batch, or a THC concentration that drifts above the legal limit can result in product recalls, regulatory action, and reputational damage that an emerging brand cannot afford.

Why Co-Packing Hemp Beverages Is Different

Hemp beverage production introduces complexities that conventional beverage co-packing does not. Here are the key differences:

Ingredient Sourcing and Documentation

Every hemp-derived ingredient needs a Certificate of Analysis (COA) from an accredited third-party lab. The COA documents the cannabinoid profile, THC concentration, and absence of contaminants like heavy metals, pesticides, and residual solvents. Your co-packer needs systems in place to verify COAs, track lot numbers, and maintain a complete chain of custody for every ingredient batch.

Formulation Stability

Cannabinoids are hydrophobic — they do not naturally dissolve in water. Hemp beverage formulation requires nanoemulsion technology or other solubilization methods to create stable, bioavailable products. Without proper formulation, cannabinoids can separate from the liquid, settle at the bottom, or degrade over time. Your co-packer needs experience with these formulation challenges and the equipment to handle them.

Labeling and Regulatory Compliance

Hemp beverage labels must accurately reflect cannabinoid content, include required disclaimers, and comply with both FDA food labeling regulations and state-specific hemp product rules. This is not something you can figure out on your own and hand off to a generic label printer. Your co-packer should have experience navigating these requirements — or work with regulatory consultants who do.

Batch Testing and Quality Control

Finished product testing is essential. Every production batch should be tested to confirm THC levels remain within legal limits and that the cannabinoid content matches what is stated on the label. This means your co-packer needs relationships with accredited testing labs and turnaround times that do not bottleneck your production schedule.

Why BrellaPak for Hemp Co-Packing

We built BrellaPak to handle the categories that other co-packers avoid or underserve. Hemp-derived beverages are one of them.

Our facility is set up to work with hemp-derived ingredients across multiple container formats — droppers, shots, and bottles. We handle formulation and R&D, ingredient and packaging procurement, production, and warehousing under one roof. That end-to-end model matters for hemp brands because it reduces the number of handoffs, tightens quality control, and simplifies compliance documentation.

We work with founders at every stage — from brands running their first production batch to established companies scaling into new SKUs or new states. Our minimums are designed for emerging brands, not enterprise contracts.

If you are building a hemp-derived beverage brand and need a co-packing partner that understands both the production requirements and the compliance landscape, we should talk.

Ready to discuss your hemp beverage project? Get in touch with our team — we will walk you through the process, answer your compliance questions, and help you figure out the right production plan for your brand.