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With the outlook for rescheduling becoming cloudier, multistate operators have begun hedging their bets by dipping into the hemp side of the industry, which was broadly legalized by the 2018 Farm Bill.
Efforts to make changes to hemp legalization haven’t gotten very far, particularly since the update for the Farm Bill that was supposed to happen in 2023 has been extended until March. And in the chaos that is the new Trump administration, what is typically a big priority has been pushed to the sidelines.
Green Market Report recently spoke with Cornbread Hemp Co-Founder Jim Higdon about his visit to Washington D.C. to check on the progress of the bill. What he came away with was a belief that there’s no appetite for conservative bans around hemp products.
Higdon also warned that since the Farm Bill appears to be a low priority, it could get extended again, leaving the current rules intact. That would keep the unregulated and profitable hemp market alive, which is appealing to regulated cannabis companies. No testing? Interstate commerce? No extreme taxation? No wonder the MSOs want a piece of the action.
Just the intoxicating hemp beverage market is estimated to have a $13 billion market potential, according to Alliance Global Partners. Since the products aren’t regulated or tracked, it’s difficult to know how much is being sold online or in smoke shops or even convenience stores. However, it’s not a stretch to say it’s already a multimillion dollar market.
Several top top MSOs have already launched their own hemp brands. Here are a few.:
Curaleaf launched a new line of hemp-derived THC products under its Select and Zero Proof brands. These products are available direct-to-consumer through the company’s online platform, TheHempCompany.com, and include items such as gummies and seltzers.
Organigram Holdings invested $2 million in March 2024 in Open Book Extracts, a North Carolina-based company that specializes in hemp-derived extracts and products. In January, the company acquired Motif Labs, a Canadian extractor known for its hemp vapes and infused pre-rolls. Organigram also has a wellness brand, Monjour, which predominantly offers CBD-infused gummies without THC.
Canopy Growth’s Wana Brands launched an online hemp e-commerce store in August 2024 called “Wanderous.” The platform features products from reputable brands, including Wana, Cann, Happi, Charlotte’s Web, Martha Stewart CBD and MXXN. The shop is age-gated and features products with hemp THC levels.
Green Thumb Industries partnered with famed NYC Magnolia Bakery to offer hemp-derived THC-infused desserts. The company also licensed its Incredibles edibles brand to Urb, a manufacturer specializing in hemp-derived products. In January, the company announced a two-year partnership with Chicago music venue The Salt Shed for an onsite store selling hemp-derived Delta-9 THC (HD9) products.
Tilray’s subsidiary Manitoba Harvest has a long history of offering hemp-derived foods, but the company is also leaning into its hemp beverage line Happy Flower and more recently its Herb & Bloom brand.
One notable holdout is Cresco Labs. CEO Charlie Bachtell was asked about hemp in the company’s last earnings call. He said he sees it as an opportunity, but also a risk.
“We’re hyperfocused on developing a responsible, respectable and robust cannabis industry, but that really is a cannabinoid industry,” he said. “But the issue with intoxicating hemp is, if it’s going to create risk to the future of our ability to get reform for a responsible and respectable cannabinoid – approach to cannabinoids, then that’s the issue.”
Bachtell added that the company continues to monitor the market.
“}]] [[{“value”:”Most of the largest MSOs now offer intoxicating hemp products.
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