THC Beverage Firm Hires TTB Vet to Navigate Legal Storm

📊 Key Data
  • $30 billion: The current market value of the hemp-derived THC beverage industry.
  • 95%: The estimated portion of existing hemp-derived products that could be eliminated by proposed 2024 Farm Bill regulations.
  • 0.4 mg: The strict THC cap per container set to take effect in November 2026 under new federal legislation.
🎯 Expert Consensus

Experts agree that the hemp-derived THC beverage industry faces an existential regulatory threat, but proactive engagement with policymakers using established alcohol frameworks offers the most viable path to long-term legitimacy and market stability.

4 months ago
THC Beverage Firm Hires TTB Vet to Navigate Legal Storm
Christopher Forster-Smith

THC Beverage Firm Hires TTB Vet to Navigate Legal Storm

LOS ANGELES, CA – January 21, 2026 – In a strategic move signaling a major shift for the embattled hemp-derived beverage industry, fast-growing brand Nowadays announced it has hired Christopher Forster-Smith, a former senior official from the federal agency that regulates alcohol, as its first Director of Regulatory Affairs. The appointment comes as the multi-billion dollar market faces an existential threat from new federal legislation aiming to close the legal loophole that allowed its explosive growth.

Forster-Smith, who previously managed cannabis and hemp policies for the U.S. Treasury's Alcohol and Tobacco Tax and Trade Bureau (TTB), is tasked with guiding the company through a complex and hostile regulatory landscape. His hiring is a clear declaration of intent by Nowadays to not only survive the coming crackdown but to proactively shape a durable and responsible framework for the future of THC-infused beverages.

"Creating this new role and bringing on Chris is a strategic move we're making to ensure the long-term viability and success of this category," said Justin Tidwell, CEO and Founder of Nowadays. "We're at a moment where thoughtful regulation of hemp-derived THC beverages is essential to long term success of the category. Chris' experience and deep understanding of frameworks and policy related to alcohol make him uniquely qualified to help us navigate the current environment."

A Market on the Brink of Transformation

The hemp-derived THC beverage industry flourished in the legal gray area created by the 2018 Farm Bill. The bill federally legalized hemp by defining it as a cannabis plant containing no more than 0.3% delta-9 THC on a dry weight basis. This definition inadvertently opened a pathway for companies to produce psychoactive beverages with meaningful doses of THC, so long as the final product's total weight kept the THC concentration below the legal threshold. The result was a booming, unregulated market valued at nearly $30 billion, offering consumers a legal alternative to alcohol and state-licensed cannabis.

That era is rapidly coming to an end. A provision tucked into a federal funding law signed in late 2025 is set to devastate the market. Effective November 2026, the law will impose a strict cap of 0.4 milligrams of THC per container and ban synthetic cannabinoids. Furthermore, the proposed 2024 Farm Bill contains language that would redefine hemp based on its "total THC" content and explicitly ban any products with "quantifiable amounts" of intoxicating cannabinoids. Industry groups like the U.S. Hemp Roundtable have issued dire warnings, estimating that such rules could eliminate as much as 95% of the existing hemp-derived products from the market.

This impending regulatory cliff has sent shockwaves through the industry, forcing companies to choose between lobbying for a legislative lifeline, pivoting their business models, or facing extinction. Nowadays' decision to hire a high-profile former regulator represents a third, more proactive path: engaging directly with policymakers to build a new, more stable foundation.

An Architect from the Inside

Christopher Forster-Smith is not just another lawyer; he is an architect of the very type of regulatory systems the hemp industry now desperately needs. During his more than eight years at the TTB, he served in senior roles where he focused on alcohol regulation, compliance, and taxation. Crucially, he also managed all cannabis and hemp-related policies for the agency's Regulations and Rulings Division. This unique dual expertise in both established alcohol frameworks and emerging cannabis issues makes him a rare and valuable asset.

His background is further bolstered by a Ph.D. in Political Science from The Johns Hopkins University, which provides a deep theoretical understanding of how durable, consumer-protective regulatory structures are designed and implemented. He joins Nowadays' General Counsel & Head of Regulatory Affairs, Michelle Bodian, to form a formidable team aimed at influencing policy from a position of experience and credibility.

"I'm incredibly grateful for the opportunity to join Nowadays at such a pivotal time for the industry," Forster-Smith stated. "Drawing on my experience from alcohol regulations, I'm looking forward to working with the team, trade associations, and policymakers in the development of new frameworks that allow hemp THC products to prosper responsibly."

Charting a Course with an Alcohol Compass

The strategy championed by Nowadays and Forster-Smith involves using the time-tested regulatory framework for alcohol as a blueprint for hemp-derived beverages. This approach is gaining traction among responsible industry players who see it as the most viable path toward legitimacy and market stability. Advocacy groups like the Hemp Beverage Alliance have already proposed principles that mirror alcohol laws, including strict 21-and-over age restrictions, clear labeling standards, reasonable taxation to fund enforcement, and leveraging existing, licensed alcohol distribution and retail channels.

This vision of an orderly market stands in stark contrast to the current chaotic reality. The absence of federal clarity has led to a confusing patchwork of state laws. In Minnesota, for example, THC beverages are permitted with a cap of 5mg per serving, creating a regulated local market. Meanwhile, states like California and New York have imposed severe restrictions or outright bans, citing consumer safety concerns in the absence of federal oversight. This state-by-state conflict creates immense hurdles for national brands and confuses consumers.

By bringing in an expert from the TTB, Nowadays is betting that it can help convince lawmakers at both the federal and state levels that a system analogous to alcohol regulation is the best way to address public health concerns while preserving a legitimate industry. This includes advocating for sensible potency limits, quality control testing, and marketing rules that prevent appeals to minors, thereby building consumer trust and providing a stable environment for businesses to operate.

A Proactive Bet on a Regulated Future

With its products already in over 10,000 retail stores, Nowadays is a significant player making a high-stakes bet. Instead of simply lobbying against new rules, the company is investing in the expertise needed to help write them. The hire of Forster-Smith is a calculated move to transition from a legally ambiguous gray market to a fully legitimate and regulated consumer product category.

This proactive stance could set a powerful precedent for the entire industry, separating responsible actors who embrace regulation from those who have profited from the lack of oversight. As the federal government moves decisively to close the 2018 Farm Bill's unintended loophole, the companies that survive will likely be those that, like Nowadays, have prepared for a future where compliance, safety, and legitimacy are not just buzzwords, but the fundamental pillars of their business. The future of the hemp beverage industry will be determined in the coming months, and this move positions a key player to have a seat at the table where the new rules are made.

Event: Regulatory & Legal
Sector: Venture Capital
Theme: Geopolitics & Trade
Product: Cryptocurrency & Digital Assets
UAID: 11669