THC drinks could soon be harder to find as Congress delays hemp ban again

Livestream Menu THC drinks are booming, but a looming federal crackdown threatens the industry. THC beverages generated $239 million in measured U. S. retail sales in the 52 weeks through April, up 135% from a year earlier, according to NielsenIQ. Distributors are pulling back from restocking THC drinks as brands fight back against a potential product ban. THC beverages for sale at Urban Flower, a CBD and THC dispensary in Houston, Texas, Oct. 28, 2022. Elizabeth Conley | Houston Chronicle | Hearst Newspapers | Erica Fabian says THC-infused drinks have become an alcohol alternative that have made a profound difference in her family. "Drinking [alcohol] is not healthy for both myself and my husband," said Fabian, a business owner and military spouse. Her husband, a retired 20-year Navy SEAL veteran with severe post-traumatic stress disorder, has found THC beverages particularly helpful, she said. "It's an actual game-changer," Fabian said. "I've seen it with my own eyes." But now, uncertainty around the category is creating concerns that it could become harder to get those beverages. Congress this week once again pushed off a federal crackdown on hemp-derived THC products, which companies have sold for years through an existing legal loophole even though recreational cannabis use remains illegal at the federal level. The House on Tuesday passed a stopgap spending measure that, in addition to keeping the U. S. government funded, delays new federal restrictions on hemp-derived THC products from Nov. 12 to Dec. 11. The measure buys the hemp industry another month to persuade lawmakers to create a regulatory framework to allow the continued sale of those products rather than ban them. The stakes are growing as consumer demand booms. THC beverages generated $239 million in measured U. S. retail sales in the 52 weeks through April, up 135% from a year earlier, according to NielsenIQ. The data tracked more than 1,170 products across more than 200 brands. Though the drinks are legal for now, the prospect of a ban has already affected beverage makers. Jake Bullock is the CEO of THC beverage maker Cann, which he said has become the top-selling THC drink at Target and the No. 2 nonalcoholic beverage at Sprouts. He said the company is seeing record sales to retailers, but a sharp pullback from wholesalers who are trying to avoid being stuck with inventory if Congress bans the product. "Our distributors should be buying , but they're not," he said. Meanwhile, Joe Gerrity, CEO and co-founder of hemp beverage manufacturer Crescent Canna, said his company has already laid off half of its employees because of how congressional inaction has affected the business this year.