As Louisiana prepares to enforce stricter THC regulations starting January 1, 2025, businesses in the hemp industry are scrambling to adapt. The new law imposes tighter potency limits on THC products and significantly restricts where they can be sold. Local retailers are holding major sales to clear non-compliant inventory, while producers weigh the viability of operating in the state under the new rules.
Retailers Rush to Adapt
Under the updated regulations, the potency of THC in hemp-derived products will drop from 8 mg to 5 mg per serving. Additionally, the law imposes packaging limitations for edibles and beverages. These changes have sent retailers like Simply Cannabis on Magazine Street into overdrive.
“We’re running sales until the first,” said Collin Avrard, General Manager of Simply Cannabis. “We’re preparing for the worst from the state just because the regulations are so heavy.”
High-potency products, which drive sales due to their efficiency and popularity, will no longer meet legal standards, leaving retailers scrambling to clear their shelves.
Producers Face Tough Decisions
The new law is equally challenging for THC product manufacturers. Crescent Canna, known for its Crescent 9 THC Seltzer, is grappling with whether to reformulate its products or pull out of Louisiana altogether.
“It’s completely impossible to exist as a company when every year you’re fighting for your life with legislators who don’t understand what they are doing and don’t care to hear your opinions,” said CEO Joe Gerrity.
Key product restrictions include:
- THC Beverages: Maximum 5 mg THC per serving, with each serving at least 12 fl oz. Only one serving is allowed per container, and packages are limited to four containers.
- THC Edibles: Maximum 5 mg THC per piece, with no more than 40 mg THC per package. For example, an eight-pack of 5 mg gummies is the highest potency allowed.
Restrictions on Sales Locations
The law also reduces access to THC products by banning certain retail locations from selling them.
- Bars and Restaurants: Only bars and restaurants with existing hemp permits can continue selling THC beverages. No new permits will be issued.
- Gas Stations: Starting January 1, 2025, gas stations will no longer carry hemp-derived products. However, truck stops are exempt from this restriction.
These rules create confusion for businesses and consumers alike, leaving some questioning the logic behind the distinctions.
Industry Concerns
The law’s financial and operational impacts on businesses are significant. Retailers must educate customers on what products will no longer be available, while producers face the possibility of layoffs or exiting the Louisiana market.
For many, the broader concern is the chilling effect such regulations could have on the hemp industry in Louisiana. Restrictive laws deter innovation, discourage investment, and limit consumer choices, ultimately threatening the industry’s growth.
Conclusion: A Need for Legislative Reform
Louisiana’s new THC law highlights a disconnect between lawmakers and the realities of the cannabis industry. Without more collaboration and informed decision-making, businesses and consumers will continue to suffer the consequences of poorly conceived regulations.
As the January 1 deadline looms, businesses are racing against time to adapt. Whether through clearance sales or complete operational overhauls, Louisiana’s hemp industry is bracing for impact.
