Hemp THC deadline hits $200 million industry, leads to layoffs, but liquor stores may maintain

Hemp, THC products face uncertain legal future A potential federal ban is threatening the future of THC drinks as investors and manufacturers in the industry face economic uncertainty. FOX 9's VCorin Hoggard has the latest details.  The Brief After Dec. 11, the federal government is set to ban almost all hemp-derived THC products.On Dec. 12, Minnesota-based liquor stores, including Top Ten Liquors, say they plan to keep selling hemp drinks under state law.Nothing But Hemp/Canna CEO Steven Brown said uncertainty is already cutting orders in Minnesota's $200 million-a-year hemp industry. (FOX 9) - Minnesota hemp sellers say the approach of Dec. 11 is already hitting their bottom line and changing what stores keep on the shelf. Minnesota liquor stores plan to stay put After Dec. 11, some Minnesota liquor stores say they still expect to sell hemp drinks. The federal law would complicate things, but state law gives those retailers a path to keep THC products on shelves even if the federal change makes business harder. Local perspective: At some liquor stores, especially national brands like Total Wine, shelves are starting to show blank spaces where THC products would be. But Minnesota-based retailers, including Top Ten Liquors, are planning to stay in the category. "We will be in the category on December 12th. We plan to stay in the category. We have to tweak some things within our business model. If it's not federally legal, we'll no longer be able to take credit cards," said Jon Halper of Top Ten Liquors. By the numbers: Halper said THC is big business at Top Ten, and the store has given the category a large amount of shelf and cooler space. "We literally have three sections and a lot of cooler space dedicated to THC," said Halper. Hemp manufacturers feel a slowdown At Nothing But Hemp headquarters, the production line is still abuzz, but it is not business as usual. The uncertainty is already doing damage to Minnesota's $200 million-a-year hemp industry, and Brown said smaller businesses and store orders are feeling it. What's next: Brown said some small businesses have already stepped back as the federal deadline gets closer. "A lot of the small businesses have dropped off just because of the uncertainty. Liquor stores are buying a lot less product at a time. Before when we used to sell five or six cases to a, you know, individual liquor store, they might be only purchasing one or two. Some have completely got rid of the category altogether," said Brown. Brown has also lobbied Congress to put guardrails on hemp while keeping it legal for people over the age of 21. He’s hopeful that effort will work out, but for now he’s living with the kind of uncertainty that he says could make someone reach for a gummy. What we don't know: We haven’t tallied how many Minnesota liquor stores plan to stay in the hemp category after Dec. 11. There’s also no guarantee Congress will act on the guardrails Brown has suggested. The Source: This report leans on information from THC industry insiders, including Nothing But Hemp/Canna CEO Steven Brown and Top Ten Liquors owner Jon Halper. CannabisMinnesota