Hemp and low-dose delta-9 tetrahydrocannabinol (THC) beverages continue to flood the marketplace. Depending on the state, these products can be purchased in liquor stores, gas stations, grocery stores, bars, restaurants, and/or online. Despite their rise in popularity and presumed legality under the 2018 Farm Bill, some state agencies have recently made headlines with decisions to ban these products from being sold by alcohol-licensees in their states.

In this blog post, we walk through some recent examples of how different state alcohol agencies are handling the regulation of hemp and low-dose THC beverages.

Understanding Hemp and Low-Dose THC Beverages

As we mentioned in our previous blog post on this topic, hemp and low-dose THC beverages are nonalcoholic beverages infused with delta-9 THC derived from hemp, distinguishing them from traditional marijuana products. The 2018 Farm Bill legalized hemp and its derivatives, provided they contain no more than 0.3% THC on a dry weight basis. This legal gray area has led to a surge in products that can deliver psychoactive effects while being marketed alongside or as alternatives to alcohol.

State-by-State Overview

The rise of hemp and low-dose THC beverages in the market has prompted state alcohol, health, agriculture, and cannabis agencies to review their regulatory frameworks regarding the sale and distribution of these products. Each state approaches the issue differently, which has resulted in a patchwork of regulations across the country.

• California: The California Department of Alcoholic Beverage Control (ABC) has taken a strict stance on hemp beverages containing THC. On October 3, 2024, the ABC issued an industry advisory stating that alcohol licensed businesses may not carry, market, offer for sale, or sell any industrial hemp products intended for human consumption (including food, beverages, and dietary supplements) that contain a detectable amount of total THC or other intoxicating cannabinoids. Any businesses that do not comply will subject the licensee to disciplinary action. To date, the ABC has already begun enforcement efforts. Recently, ABC agents have been reported visiting licensed locations across the state and seizing hundreds of products from several licensees, removing them from shelves and preventing them from being sold.
• Massachusetts: On May 30, 2024, the Massachusetts Alcoholic Beverages Control Commission (ABCC) issued an advisory in connection with the joint notice issued by the Massachusetts Department of Public Health (MDPH) and the Massachusetts Department of Agricultural Resources (MDAR) regarding the sale of beverages and food with hemp-derived cannabinoid extracts (CBD) or THC. The ABCC made clear that it is unlawful to manufacture and/or sell food or beverages containing CBD and/or THC. This applies to alcoholic and nonalcoholic beverages. Under the advisory, the ABCC directed that products need to be removed immediately, and anyone found in violation faces potential revocation or suspension of its license. The joint notice and advisory each make clear that they only apply to hemp-derived CBD and THC products and are separate from marijuana products regulated by the Massachusetts Cannabis Control Commission.
• Minnesota: In contrast to California and Massachusetts, Minnesota explicitly [...]
  
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