Vermont Farmers and Craft Brewers Look Towards $19.6B Market Opportunity with Hemp Beverages
Vermont-based coalition expands into popular infused beverage category with a bold vision for rural renewal
MONTPELIER, VT, June 25, 2025 — A group of hemp producers and craft brewers are coming together to establish Vermont as a leading producer of non-alcoholic hemp-infused beverages. The newly launched Vermont Hemp & Beverage Coalition is showcasing how strategic partnerships can reinvigorate small farms, create new jobs, and generate growth in the craft brewing industry.
This grassroots coalition composed of farmers, manufacturers, and independent craft breweries, is responding to a rapidly growing national demand for hemp-infused products. As more and more Americans are turning away from traditional alcoholic beverages, drinks infused with low doses of THC and CBD are filling their glasses. Industry analysts at Viridian Capital estimate the U.S. market for hemp products is now worth $19.6 billion, opening the door for Vermont companies to play a leading role in a rapidly growing industry.
"At a time when both beer and recreational cannabis sales are plateauing, the hemp-infused beverage space presents a powerful opportunity for Vermont’s craft breweries and hemp businesses to innovate and grow,” said Emma Arian, Executive Director at Vermont Brewers Association.
Vermont’s iconic craft beer industry is facing headwinds from inflation, tariffs and market consolidation, causing beer sales to slump. In 2024 craft beer sales decreased by 4% according to the national Brewers Association. Some craft brewers view hemp-infused beverages as a way to diversify their business model and restart growth.
“The craft beer industry faces significant challenges, with many cherished Vermont breweries struggling to remain viable,” said Bob Grim, Vice President of the Vermont Brewers Association and co-owner of Foam Brewers in Burlington. “I believe that hemp-infused beverages offer a crucial opportunity to engage new consumers and establish sustainable revenue streams. We cannot afford to turn our back on this opportunity."
“We see hemp as more than an ingredient; it’s an engine for economic growth in Vermont,” said Sam Bellavance, founder of Sunset Lake CBD, a South Hero hemp farm that has been producing hemp and full-spectrum CBD products since 2019. “The opportunity for farmers to sell their crop to Vermont’s 75+ craft breweries could be a game changer.”
With the passage of the 2018 Farm Bill, Vermont farmers like Bellavance rushed to grow hemp. The Vermont Agency of Agriculture established a Hemp Pilot Program, including regulations for product testing, age restrictions, and labeling requirements. “The pilot program gave us a multi-year case study on how these products can be produced and sold in a safe and responsible way.”
Despite the Vermont Legislature ending the pilot program in 2022, the Vermont Hemp & Beverage Coalition estimates that over 100 Vermonters are still actively employed in the hemp industry. “If we don’t create a space for a local hemp industry, not only will these jobs be lost, but customers will simply import the products from out-of-state online retailers,” cautions Bellavance.
Leading the way among local producers is Upstate Elevator, a Burlington-based hemp manufacturer founded in 2017. Upstate Elevator currently employs 30 people and produces a wide range of products including hemp-infused sodas and seltzers.
“Beyond crafting delicious, alcohol-free drinks, we’ve created dozens of local jobs by partnering with local beverage distributors and retailers such as City Market Co-op and Healthy Living Market. Partnering with Vermont craft breweries could amplify that impact, helping build a pathway for skilled work in this industry.” said Dylan Raap, CEO of Upstate Elevator.
The Vermont Hemp & Beverage Coalition is urging Vermont lawmakers and state agencies to develop policies that encourage the growth of a regulated hemp industry. With the right support, Vermont can benefit from this rapidly growing market and will develop a reputation as a leader in craft hemp beverages.
About the Vermont Hemp & Beverage Coalition
The Vermont Hemp & Beverage Coalition is an alliance of craft breweries and hemp producers working together to strengthen rural economies, create jobs, and drive innovation through collaborative product development. United by a commitment to quality, sustainability, and local agriculture, the coalition champions policies and partnerships that support a safe and regulated market for Vermont-made hemp products. Organizations interested in joining the Vermont Hemp & Beverage Coalition can visit www.vthempandbev.org
Vermont Hemp & Beverage Coalition Contact:
Samuel Bellavance
(802) 735-6705