LOUISVILLE, Ky. (WAVE) – A shell bill that would temporarily ban hemp-derived beverages is moving through Frankfort this week.
Senate Bill 202 cleared the Senate Licensing and Occupations Committee Wednesday night; it would ban the sale of any hemp-derived beverage in Kentucky until the summer of 2026.
Republican State Senator Julie Raque Adams is the lead sponsor of the bill, that would give the state more time to study these drinks and put more regulations in place if needed. WAVE News reached out to Adams on Thursday morning for comment but has not yet heard back.
Several Louisville companies produce THC beverages, a market that is expected to boom over the next five years. According to a 2024 Yahoo Finance report, it’s estimated that the global cannabis beverage market will reach $3.8 billion by 2030.
Locally, it was recently announced that Hectare’s, a Louisville company, will have cannabis drinks for sale for the first time at a number of Kentucky Derby Festival events leading up to Kentucky Derby 151.
“We are primarily a beverage company; hemp-derived beverages,” Hectare’s Chief Operating Officer Nick Phillips said. “It’s something that can provide relaxation without a hangover.”
Phillips said Hectare’s employs roughly 35 people, has around 40 Louisville-area investors, and they work with several local companies to produce the canned drinks. He said a ban on the drinks would be detrimental.
“It would be extremely bad for our business, our investors, the people in the community,” Phillips said. “From how we produce the products, to manufacturing, to marketing and support, we work with a lot of local companies.”
Jim Higdon, Co-Founder of Louisville-based Cornbread Hemp, echoed these sentiments in an email sent to WAVE News.
“This is a manufactured emergency generated by special interests trying to keep Kentucky in the past,” Higdon wrote. “We will fight this until the last day of the session.”
Jason Wade, Vice President of Strategic Operations for Neace Ventures, a holding company that supports brands like Hectare’s, said hemp-based drinks have exploded in popularity as consumers seek a healthier alternative to alcohol.
“The target demographic is a little bit older, more mature in the industry, it is an alcohol alternative,” Wade said. “It’s not a party vehicle by any stretch; that’s not the intended use case.”
Wade, a Louisville local who previously worked at Papa John’s before the company announced in 2020 that it was moving to a new global headquarters in Atlanta, said the potential ban on hemp drinks points to a larger issue.
“My family, we were prepared to move out of Louisville, move to Dallas or Tampa or Columbus or Atlanta, just follow the corporate opportunities,” Wade said. “That’s what’s kind of frustrating about Louisville continuing to trip on itself with these types of opportunities, we see the demand, we see the opportunity, we see the industry moving across the country, and the demand is there, but the barriers continue to be right there in front of us unfortunately in our home market.”
Phillips said he’s hoping the bill can be revised in a way that punishes the few “bad apple” companies that aren’t following the robust set of regulations he said are already in place and lets those who follow the rules continue to sell. Phillips admits that while a ban would be devastating, he doesn’t think the intent on the legislative side is to hurt business.
“It is already well regulated by the Cabinet of Health, all the way from labels to testing to what’s inside the can to ensure that it’s safe to consume and it’s out of the hands of anyone under the age of 21,” Phillips said. “(I hope we can) really work to get a commonsense bill across that is very consumer friendly and protects consumers and keeps products like these out of the hands of children and those under 21 but allows businesses like us that have invested a lot in the community and these products to continue the business.”
Copyright 2025 WAVE. All rights reserved.
A shell bill that would temporarily ban hemp-derived beverages is moving through Frankfort this week. Senate Bill 202 cleared the Senate Licensing and Occupations Committee Wednesday night; it would ban the sale of any hemp-derived beverage in Kentucky until the summer of 2026. Read More
