For years, medical marijuana companies in Florida have fiercely campaigned for stricter regulation of euphoria-inducing hemp products, which can be purchased at gas stations, retail stores and — now — liquor stores.
The state has one of the most highly regulated medical marijuana programs in the nation. Companies have to undergo an intensely competitive, drawn-out process for a limited number of licenses. They have to grow, process and retail all of their products without outsourcing any of the steps to subcontractors. The state sets caps on the amount of THC — the intoxicating component in cannabis — in products that are sold to patients, who must get doctors’ permission and be part of a statewide database to participate in the program. In addition, companies must pay $1.3 million to renew their licenses every two years.
In contrast, retailers who sell hemp products that can get consumers as high — or higher — operate in a market that’s largely unregulated. Those companies pay $650 per store annually to be allowed to sell hemp-based or hemp-derived products, such as gummies, whole flower, vapes and more. People who shop at the stores don’t need doctors’ permission to purchase products, and there’s no limit on the amount of THC that products can contain.
And the growing demand for hemp-infused beverages, which don’t contain alcohol but deliver a buzz, is adding another twist to an expanding cannabis market that insiders liken to the “wild, wild west.”
It’s no surprise to experts, as the competition heats up, that some marijuana companies are entering the hemp market.
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Curaleaf, one of the state’s largest medical marijuana companies, this spring launched The Hemp Co. by Curaleaf and converted one of its dozens of Florida dispensaries into a hemp-only retail storefront. Curaleaf, which operates throughout the country, was the first medical marijuana company to make such a move in Florida.
Barnaby Hawken, the senior vice president of Curaleaf Hemp, which operates as The Hemp Co., acknowledged that “most if not all cannabis companies were against this space,” referring to the hemp market.
The converted dispensary in West Palm Beach offers what it calls “THC hemp” beverages — nonalcoholic, seltzer-like drinks in fruit flavors such as grapefruit, watermelon and black cherry — along with gummies.
“Sip your way to Cloud 9,” says an online promotion for the Select beverages.
The popularity of the hemp-infused beverages, which are being sold at liquor stores such as Total Wine & More and ABC Fine Wine & Spirits, is skyrocketing, as beer sales decline and the growth in wine consumption slows down, Hawken said in a recent interview.
The Hemp Co. is focusing on over-the-counter mildly intoxicating drinks, which can vastly expand the customer base by reaching people who have never tried edibles or other pot products but are more comfortable with beverages that can relax them or give them a buzz.
“It’s easier to accept versus gummies that actually make you feel something that you never have before,” said Hawken, whose company also sells gummies. “It’s much more acceptable to the U.S. consumer … because we love beverages.”
Lawmakers in 2019 authorized hemp to be grown and sold in the state to take advantage of a federal farm law. Hemp and marijuana are cannabis plants, but levels of the cannabinoid THC differ, with hemp having a THC level of 0.3 percent or less. Other cannabinoids in hemp, however, can be changed to increase the intoxicating effects of products.
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A handful of other Florida medical marijuana companies also have entered the THC-beverage market, including the state’s largest retailer, Trulieve. Their drinks, like The Hemp Co.’s, also are distributed at stores such as Total Wine or are available online.
Other multistate marijuana operators might take a foray into the hemp market, according to Paula Savchenko, an attorney who specializes in cannabis law. She said she wants to see the industries begin to work together.
“They finally said, you know what, if we can’t beat them, we’re gonna join them. I think it’s smart for the MSOs (multistate operators) because it builds their brand and it builds their footprint, and why not, right?,” Savchenko told The News Service of Florida recently.
While hemp retailers are booming, the same isn’t true for many marijuana companies, Savchenko said. The value of Florida medical marijuana licenses has plummeted. Companies also suffered a major setback in November with the failure of a proposed constitutional amendment that would have allowed recreational weed.
“The majority of operators on the marijuana side are having a hard time right now,” she said.
Trulieve, which spent about $145 million on last year’s recreational marijuana proposal, is backing a similar measure aimed at the 2026 ballot.
Meanwhile, Gov. Ron DeSantis two years ago vetoed legislation seeking to impose stricter regulations on hemp retailers and products, which often contain far more THC than products available at medical marijuana dispensaries. Lawmakers did not pass a similar proposal during this spring’s legislative session.
The rush to enter the hemp market also comes as the number of medical marijuana companies in the state is poised to double. The state has 28 licensed operators, but not all of them are up and running. Another 22 licenses set to come online are on hold because of pending litigation.
Cannabis investors looking to enter Florida are weighing their options.
“It’s a crazy crowded (hemp) market, but everybody is figuring out how they want to get into it,” John Lockwood, an attorney who has clients in the hemp and marijuana industries, told the News Service.
Acquiring a medical marijuana license, setting up cultivation and processing facilities and securing dispensary locations in Florida costs tens of millions of dollars. Meanwhile, hemp retailers can set up shop faster, easier and cheaper.
“We represent a lot of clients that are looking to enter Florida. They often do an analysis of which direction they want to go,” Lockwood said. “But I can tell you this, many operators that are looking at Florida are kicking the tires on both scenarios before they pick a path.”
Agriculture Commissioner Wilton Simpson, whose office licenses what are known as “hemp food establishments,” has pushed lawmakers to strengthen oversight of the euphoria-inducing products.
“Intoxicating hemp is largely unregulated in Florida. These products are far more potent than medical marijuana. … Stronger consumer protections are needed,” Simpson said in a text message.
