“It’s a bad situation for a lot of hemp growers and processors and retailers.”
Author: Charlotte Rene Woods, Virginia Mercury
Richmond-based Bingo Beer officially entered the growing national market for hemp-derived THC products when it introduced THC seltzers earlier this year.
The non-alcoholic beverage option is growing nationwide as an alternative for people looking to cut back on or eliminate alcohol altogether. A recent Gallup poll showed that the percentage of Americans who drink alcohol has dropped to 54 percent.
Analysts and farmers say, however, that the hemp-based THC industry could come to an abrupt halt by November of next year, as Congress voted to ban most hemp-derived THC products in a last-minute government spending bill that ended a last-minute government shutdown.
THC seltzers and other hemp-based products are a “large and growing segment of the economy,” Bingo Beer co-owner Jay Bayer told the Mercury earlier this year.
“I don’t think the solution is to put the genie back in the bottle,” Bayer said on a recent call. He added that offering THC products has been an “exception” for some in the alcoholic beverage industry, as long as they meet the needs of consumers.
“If we switched from marijuana to THC, consumers would come with us,” he said.
An uncertain future
Hemp businesses across the nation are trying to map out their next steps. In North Carolina, for example, hemp businesses are facing potential legal battles to defend their industry, as in other states where cannabis is not legal.
But Virginia is in a “privileged” space, Pure Shenandoah co-owner Tanner Johnson said on a recent call. He runs the company with his siblings, whose products run the gamut of industrial hemp’s uses, from a “hemp” research contract awarded in 2023 with the US Air Force to supplying Bingo Beer’s THC seltzer.
As Congress laid out the foundations for the industry in 2018, Johnson compared the hemp-restricted provision in the government spending bill to pulling the “rug” out from under people. But companies like his have diversified portfolios and may find it easier to do business in Virginia than in states where legal cannabis markets do not exist or are forthcoming. However, he said, he is taking care of things at the national level.
As a representative of the Virginia Cannabis Association, he will also provide legislators with insights and ideas to craft and pass legislation to enable the new market.
“It’s a bad situation for a lot of hemp growers and processors and retailers,” Johnson said. “But in Virginia, we almost feel like we’re threading a needle where this industry is closing as another industry is opening.”
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North Carolina lawmakers say they’re fueling debate over the state’s marijuana laws — a move by the Trump administration to reclassify it as a less dangerous drug.
Across the country, a set of laws and enforcements regulate marijuana. The drug is illegal under federal law, but dozens of US states have legalized it. And almost all states have legalized medical marijuana prescriptions for certain ailments. North Carolina is among the remaining states to resist any form of legalization. Republican politicians in North Carolina have resisted passing any bills to legalize or decriminalize marijuana, despite public opinion polls showing broad public support for such changes.
Senate President Phil Berger said he expects his chamber to revisit efforts to legalize medical marijuana this week. “We will have a conversation within our caucus if they are interested in whether we do something,” Berger told reporters Tuesday.
The recent actions of Republican President Donald Trump may add a new dimension to these conversations. Trump’s acting attorney general on Thursday signed the drug classification as a less dangerous and less strictly regulated drug than marijuana. Federal law does not legalize marijuana for medical or recreational use.
The meetings, activists said, were at the request of Gov. Mike Braun (R).
“The governor has reached out to us to meet with other heads of his department to get their input on this move,” military veteran Jeff Staker, one of the advocates, told Fox 59. “Our next step, hopefully, will be in the governor’s office.”
Lucy Luman, who is also a veteran and serves as president of Indiana NORML, he said That federal reform “addresses major challenges our lawmakers have raised before.”
Advocates previously met with Indiana Secretary of Business Affairs Mike Speedy, they told WHTR-TV.
“It tells you that the governor has considered it well, and I hope that our organization and others will come into the governor’s office and discuss with him and brainstorm more,” Staker. he said. “You have to realize that a lot of our state legislators have been waiting for that to happen.”
“The feds have made their move, and now it’s time for Indiana to make ours,” he said. “And of course we want to do well.”
State Rep. Jim Lucas (R) said federal marijuana rescheduling “takes away the arguments that the opposition had in our state.”
State Sen. Rodney Pol (D) agreed, saying the Trump administration’s action has “helped get the ball rolling.”
last month, The governor said the “crescendo will rise” in the call to legalize marijuanaregional dynamics as well as law enforcement by opting for reform. But for now, he said, the GOP legislative leadership is “not interested in doing anything anytime soon,” even though “half of Hoosiers probably smoke illegally.”
Braun said he thinks lawmakers should take an “extra look” at medical cannabis and, while he’s personally “agnostic” about legalization, the reality is Indiana is “now surrounded by four states” that allow medicinal or adult use of cannabis.
“Probably half of Hoosiers smoke illegally,” he said, noting that suburban Kentucky allows patients to access medical cannabis, while Illinois, Michigan and Ohio have recreational marijuana laws.
“I’m going to listen to law enforcement. They’ve even changed their minds about legalizing and regulating,” Braun said, adding that he compared cannabis to gambling. The state was late to pass laws allowing adults to gamble, he said, but now ranks among the top three states nationally in terms of per capita revenue from vice.
“Some people won’t want to, just on principle. A lot of police and sheriffs in our state are willing to cross the border (to buy cannabis). It’s going to be a growing problem, so far, the way our state legislature has opposed it,” he said. “I’ve been more agnostic about it. I can see the points of view, and I’ve seen law enforcement move somewhat.”
“So that will give you the best description of where the dynamic is in our state,” the governor told WOWO. “I think the leader of the Senate and the Speaker of the House in particular are cool — and they control the legislative agenda — they’re not interested in doing anything anytime soon. But I think the crescendo will rise, and that pretty much describes where we are.”
Specifically, Ball State University’s (BSU) Bowen Center’s annual Hoosier Poll found that 59 percent of residents support the legalization of cannabis for medical and recreational purposes. An additional 25 percent return allowing patients to access medical marijuana, bringing total support for that reform to 84 percent.
“It’s no secret that I’m not,” Senate President Pro Tem Rodric Bray (R) said at the end of 2024. “I don’t have people coming to me with really compelling medical cases to find out why it’s so beneficial. And any situation I’ve seen, it’s passing medical marijuana, it’s basically passing recreational marijuana.”
House Speaker Todd Huston (R) questioned any medical benefits associated with marijuana, calling the substance a “mental health deterrent.” He and others suggested that lawmakers in favor of reform simply want to increase state revenue.
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In 2017, the city of Oakland made history by becoming the first city in the country to launch a Cannabis Equity Program, which helps those affected by the “War on Drugs” enter the cannabis industry and create thriving local businesses. The program changed policy conversations about cannabis equity in California and across the nation.
Now, in an effort to raise awareness about venture capital and help them survive and thrive, Oakland has launched the nation’s first initiative to promote city-certified venture capital businesses in the cannabis industry. The Oakland Legendary Cannabis Certified Equity Label lets buyers know they support businesses that invest in creating high-quality products by prioritizing equity. The label commemorates the city of Oakland as the birthplace of modern cannabis legalization and highlights its operators as legendary pioneers who define cannabis culture and set standards that are now accepted worldwide. Oakland currently has 50 licensed Equity cannabis businesses.
“Oakland continues to lead with courage and conviction. During my time in Congress, I chaired the Cannabis Caucus and called for cannabis equity programs to address the harm done to Black and Brown communities,” said Oakland Mayor Barbara Lee. “Today, the Oakland Legendary label puts power back where it belongs, helping consumers make informed choices and ensuring that those with the most influence lead and thrive in today’s economy. Oakland is proud to lead the way!”
“The City of Oakland is committed to fostering the economic success of local venture capital companies,” said Ashleigh Kanat, director of Oakland’s Department of Economic and Workforce Development. “The Oakland Legendary brand lets consumers know they’re supporting a certified Oakland stock business and getting a true Oakland experience: premium, authentic and locally produced with a story they won’t find anywhere else. This differentiation will increase the presence of cannabis products in the market.”
“The Oakland Legendary brand is the gold standard for quality,” says Dale Sky Jones, Executive Chancellor of Oakland University. “These are the ones who defined the culture and perfected the craft long before there was a legal market. When you buy Oakland Legendary, you’re not just supporting a local business; you’re getting the world’s most authentic, high-caliber cannabis. These brands are true trendsetters, and once you try them, you’ll understand why Oakland remains the epicenter of the world’s finest cannabis.”
“Root’d believes it is extremely important to highlight the brands of operators who were disproportionately impacted by the War on Drugs and educate the consumer on the importance of protecting the equity brands that have shaped the culture and community of cannabis. These core equity brands are the root ecosystem of our culture; the bigger and stronger the roots, the healthier Root’d’s culture McCullough” 510 has a long legacy in the cannabis industry and has been featured on the front page of the New York Times for being one of the first dispensaries in the nation. “It’s important to us that we direct consumers to amazing products and also shop with a purpose.”
Consumers can easily identify Oakland’s legendary certified equity operators through the Oakland Legendary certification mark on packaging, advertisements, and certified equity dealer windows. In a nod to the resilience of the community, the brand’s official positioning is slightly tilted, with the word “Legendary” rising, symbolizing the upward trajectory and sustained growth of Oakland’s capital operators.
The Oakland Legendary awareness campaign includes exclusive use of the certification mark on packaging and marketing materials and “I Hella ♡ Oakland Legendary Cannabis” swag. High-visibility billboards are located along Highway 880 to publicize the program. The public awareness campaign is supported by the National Equity Trade Network.