Good morning.
We’re one week out from our inaugural The Highrise event in NYC. We’ve seen the guest list and we know the room will be packed with daily Cultivated readers, so thank you!
Plus, follow us on LinkedIn because this afternoon we have another announcement coming your way. Stay tuned!
Let’s get to it.
-JB, JR, ZH
Today’s newsletter is 828 words or about a 5.5-minute read.
💡 What’s the big deal?
HEMP
Hemp companies adjust to changing local regulations
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Driving the news: Hemp beverage companies continue to adjust their 2026 strategy amid federal uncertainty and ever-changing local rules.
It appears that many are coalescing on a strategy that would ideally preserve low-dose hemp-derived THC drinks, while other changes are still up in the air.
Zoom in: While regulations such as those recently proposed in Texas would effectively shut out the hemp THCA flower market, beverages appear to have carved themselves a strong enough niche to survive as they continue to take over shelf space in liquor stores.
This week, Chicago's City Council approved a ban on numerous types of intoxicating hemp products, but bars and taverns will still be able to legally serve THC beverages in the Windy City.
Several other states, such as Tennessee, have new hemp restrictions that will take effect later this year.
Kentucky-based Cornbread Hemp recently dropped its lawsuit against Tennessee over the state’s upcoming requirement that hemp products be produced exclusively in-state. The company’s reasoning was that federal changes could potentially render the case meaningless.
What they’re saying: “Most of the lobbying groups that were supportive of a ban said, very fairly, that we need to ban all this stuff until there are regulations to make it safe for consumers,” Wynk co-founder Angus Rittenburg told The Daily Pour, a beverage industry publication.
“So my stance is: They got the ban, now let’s work together on the regulations.”
Room for optimism: Meanwhile, hemp company Uncle Arnie’s recently announced it was entering the Texas market, and Texas Circle K locations began selling Varin hemp beverages last week.
Last week, a bipartisan group of House members filed a bill that would push back the proposed hemp ban from 2026 to 2028, allowing for more time (and a potential change in House leadership) before the ban takes effect.
Hemp beverage brands are also staffing up for a lobbying push before the ban goes into effect in November. Nowadays hired Chris Forster-Smith as Director of Regulatory Affairs. He formerly served as a project manager for the Alcohol and Tobacco Tax and Trade Bureau, which is responsible for federally regulating and collecting tax on alcohol and tobacco.
The final word: It appears that many beverage operators remain cautiously optimistic and supportive of new rules that ensure the nascent market is safe and inaccessible to minors.
-ZH
📣 Quotable
"Without sensible regulation for the sale of hemp and hemp-derived products, we risk undercutting public safety, damaging industry credibility, and putting South Carolina small businesses in jeopardy," wrote Coastal Green Wellness founder David Spang in an op-ed for the South Carolina Daily Gazette.
⏩ Quick hits
The market is new and prices are still high, but Minnesota pulled in about $31 million since the first non-tribal dispensary opened in September
Organigram Global stood out among its Canadian peers in terms of effort lobbying the government last year, though there was plenty of lobbying among companies toward provincial governments.
The Massachusetts Cannabis Control Commission is developing a process to monitor businesses that go into receivership. There are currently 24 licensed operators in the state that have entered receivership.
Washington lawmakers introduced SB 6204, which would allow home cultivation. Washington remains one of just four states with legal adult-use without legal homegrow for all adults.
The latest spending bill to come out of Congress includes a provision requiring Customs and Border Protection to provide a briefing on cannabis seizures that occurred in states where it is legal, such as in New Mexico where CBP officers conducted several seizures near the border in 2024.
🤝 Deals, launches, partnerships
Gotham Growth Project, which was started by New York cannabis company Gotham, will feature a six-session accelerator for small operators ready to scale or stabilize their business. The initial cohort will be dedicated to black-owned businesses, but subsequent cohorts will expand to additional underserved communities.
Curaleaf, which already owns medical dispensaries in Maine, announced the launch of its first cannabis shop in Vacationland. $CURLF
Kazmira Pharmacy, in Denver, Colorado, has become the nation’s first 503A compounding pharmacy to offer CBD products.
The Boston Beer Company’s TeaPot brand introduced Blueberry Chamomile with 10mg of rosin THC.
🧳 People moves
Data journalist Andrew Long parted ways with MJBiz, he said on LinkedIn. That leaves only a handful of original journalists left on the MJBiz team. Support cannabis media!
📰 What we’re reading
SC needs hemp regulations that protect businesses and customers | South Carolina Daily Gazette
Medical marijuana business booming in Texas | San Marcos Daily Record