New federal hemp THC limits threaten Florida beverage market

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New federal laws could impact Florida businesses

A new federal law could have a major impact on Florida businesses that sell hemp derived drinks and edibles. FOX 13's Jennifer Kveglis has the story. 

A new federal law is set to dramatically reshape the hemp-derived THC market, leaving many Florida businesses scrambling to adapt. While supporters say the changes will help prevent intoxicating products from ending up in the wrong hands, local retailers warn the new limits could wipe out much of their inventory and threaten their livelihoods.

Florida hemp THC limits ban

What we know:

The new federal provision, which takes effect Nov. 12, places a limit of 0.4 milligrams of total THC per container, making many popular hemp-derived THC beverages and edibles illegal to sell.

The products became widely available following the 2018 Farm Bill, which legalized hemp and paved the way for hemp-derived THC products.

Mike Smith, co-owner of Herban Flow in St. Petersburg, said about 80% of the products his store sells will no longer meet the new federal requirements. He said, "So if you want a 10 milligram can, you now have to drink just about 20 cans to get to that same amount."

The company has already announced employee layoffs and plans to consolidate operations at its Tyrone Square location down to its downtown store.

Smith said many customers turn to hemp-derived THC products as an alternative to alcohol.

Local Florida business impact

What we don't know:

Herban Flow, which opened in 2021, says it has helped grow Florida's functional beverage market, even hosting the state's first functional beverage festival.

Smith said the company is now trying to determine how it can survive after the ban takes effect.

Tampa-based AstroBliss Products is also preparing for the possibility of significant losses.

Owner Michael Pool said uncertainty surrounding the industry's future has already forced the company to cut its marketing budget. He said, "I mean there's not another business I can think of where you could just be like oh yeah, we may or may not be able to be in business in 100 days and there's nothing we can do about it."

Tampa area health perspective

The other side:

Not everyone opposes the federal restrictions.

Ellen Snelling, board chair of the Hillsborough Anti-Drug Alliance, said she supports the new limits because they could help keep intoxicating THC products away from children and other vulnerable consumers.

Snelling pointed to an increase in reports of young children accidentally consuming THC-infused candies and edibles as one of her biggest concerns.

Federal hemp law future

What's next:

The hemp industry is continuing to push back against the federal changes.

Federal lawmakers have introduced the Lawful Hemp Protection Act and the Hemp Safety Enforcement Act, which aim to stop or delay the new restrictions before they take effect.

If the provision remains in place, the new limits will begin Nov. 12.

The changes do not apply to kratom or functional mushroom products. Most CBD products are also expected to remain available as long as they comply with the new federal hemp requirements.

The Source: This story is based on interviews conducted by FOX 13 with Mike Smith, co-owner of Herban Flow; Michael Pool, owner of AstroBliss Products; and Ellen Snelling, board chair of the Hillsborough Anti-Drug Alliance, along with information about the upcoming federal hemp regulations and proposed federal legislation.

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