Minnesota direct-to-consumer guide, 2026

Beverages

Bottled juices, sodas, kombucha, and ready-to-drink products.

Licensed Facility Required
6.875%Sales tax on soft drinks
50%Juice share at or below which a drink is taxable
5 mgHemp THC per serving; 10 mg per container
21+Age for hemp-derived beverages

What is covered and what needs a different path

What’s covered

  • Unsweetened juice or tea packed in a licensed, inspected kitchen
  • Water and drink mixes or powders made as dry foods
  • Hemp-derived beverages that meet the MDH limits and are sold to adults 21 and older

Needs a different path

  • Bottled juice, cold brew, or kombucha from a home kitchen (cottage law does not cover it)
  • Anything over 0.5% alcohol by volume, which is alcohol law, not food law
  • Beverages mixed with hemp THC over 5 mg per serving or 10 mg per container

Three compliance steps

A

Use a licensed kitchen

Bottled beverages are made in a facility licensed by MDA. Talk to MDA licensing at 651-201-6062 before buying equipment.

B

Meet federal food rules

Label ingredients, allergens, and net contents. Juice makers follow FDA juice safety rules unless they sell only direct to consumers.

C

Collect the right tax

Soft drinks (sweetened, nonalcoholic) and fruit drinks with 50% or less juice are taxable at 6.875% plus local tax. Unsweetened items may be exempt.

Quick reference

ItemRuleRegulator
Soft drinksTaxable: sweetened nonalcoholic drinks, including sweetened waterMN Revenue
Fruit drinksTaxable at 50% juice or lessMN Revenue
Beverage powdersNot soft drinks for tax purposesMN Revenue
Hemp THC drinksTwo servings of up to 5 mg each (10 mg total); tamper-evident, opaque; 21+MDH, OCM
Alcohol contentOver 0.5% ABV is regulated as alcoholTTB, MN DPS

Frequently asked questions

Can I sell kombucha at a farmers market?

Only from a licensed facility, and it must stay at or under 0.5% alcohol by volume.

Is sparkling water taxable?

Plain water is exempt; sweetened bottled water is taxable as a soft drink.

Is a drink sold in a cup taxed differently?

Yes. MN Revenue says an exempt beverage becomes taxable when served in a glass, cup, or pitcher.

Printable checklist

  • MDA licensed-facility plan in place
  • Ingredient and allergen label
  • Net contents statement
  • Sales tax category confirmed for each drink
  • Alcohol content tested (0.5% limit)
  • Hemp THC limits met if used

Licensing fee amounts were not verified; ask MDA licensing.