Delaware’s cannabis landscape is on the brink of a seismic shift. A proposed bill, spearheaded by State Representative Debra Heffernan, aims to restrict THC-infused beverage sales exclusively to licensed liquor stores, sidelining hemp retailers who have been pivotal in building this burgeoning market. This legislative move, which has sparked heated debate, could reshape the state’s hemp industry, impact small businesses, and alter consumer access to these popular products. With the 2018 Farm Bill opening the door for hemp-derived THC products, Delaware’s unregulated market has flourished, but the proposed regulations threaten to upend this growth. Let’s dive into the details of this proposal, its implications, and the voices shaping the conversation.

The Rise of THC Beverages in Delaware

Since the 2018 Farm Bill legalized hemp—defined as cannabis with 0.3% or less THC—Delaware has seen a surge in THC-infused beverages. These non-alcoholic drinks, containing 5 to 20 milligrams of hemp-derived delta-9 THC, offer a mild psychoactive buzz, appealing to consumers seeking alternatives to alcohol. Available in flavors like coastal orange and raspberry peach, brands like Delta Crush and Hectare’s have found their way into liquor stores, bars, restaurants, CBD shops, and even gas stations. The global market for these beverages surpassed $3 billion in 2024, with U.S. sales reaching $382 million, a nearly 1,000-fold increase from $400,000 in 2020, according to Brightfield Group. In Delaware, THC beverage sales have become a lifeline for liquor stores facing declining alcohol revenue, with some estimating these drinks could account for 20% of their sales.

Heffernan’s Proposal: A Liquor Store Monopoly

Representative Heffernan’s bill, introduced in May 2025, seeks to regulate Delaware’s “gray area” THC market by funneling beverage sales through the state’s three-tier alcohol system. This system requires products to move from approved manufacturers to one of 22 licensed distributors, then to specially licensed liquor stores. The proposal includes a 50-cent tax per 12-ounce can, limits drinks to 10 milligrams of THC, and mandates testing by the state’s Public Health Lab or authorized cannabis facilities. The Office of the Alcohol Beverage Control Commissioner would oversee regulation, bypassing the Marijuana Commissioner. Notably, the bill bans THC beverage sales in bars, restaurants, microbreweries, CBD stores, smoke shops, and gas stations, while also prohibiting THC Beverage Sales Online for Delaware residents. This move aims to enhance public safety by ensuring age verification and product testing, but critics argue it unfairly favors the alcohol industry.

Hemp Retailers Cry Foul

Hemp retailers, who pioneered Delaware’s THC beverage market, are reeling from the proposal’s potential impact. Owners like Jesse Ginefra of Botana Organics, a CBD store in Wilmington, argue that the bill would “put us out of business” by stripping them of a top-selling product. Ginefra, who has sold THC-infused drinks since 2019, emphasizes their role as a healthier alternative to alcohol, popular among the “sober curious” crowd. Nicole Chick, co-owner of Puffster in Dover, echoes this sentiment, stating, “This bill makes no sense and will destroy my business.” Hemp advocates, including Zoe Patchell of the Delaware Cannabis Advocacy Network, contend that CBD stores and the state’s forthcoming 30 marijuana dispensaries should also be allowed to sell these beverages. They argue that excluding hemp retailers ignores their role in normalizing THC Beverage Sales Wholesale and building consumer trust.

Liquor Industry Sees Opportunity

In contrast, Delaware’s alcohol industry, grappling with a two-year decline in sales, views the bill as a lifeline. Liquor store owners like Bill Galbraith of Wine and Spirits Co. of Greenville estimate that THC beverages could stabilize revenue by meeting evolving consumer preferences. Paul Ruggiero, president of NKS Distributors, Delaware’s largest alcohol distributor, supports the bill but calls for robust product testing. However, some in the industry, like Mike Reilly of Dewey Beer Company, criticize the proposed tax as excessive, noting it could “decimate” the budding THC beverage market. The alcohol sector’s enthusiasm for THC Beverage Sales White Label opportunities—where retailers rebrand existing products—further highlights their eagerness to capitalize on this trend.

Public Safety vs. Economic Impact

Heffernan’s bill stems from public safety concerns, particularly around youth access to THC products. School resource officers report near-daily confiscations of hemp-derived edibles, and state officials cite emergency room visits linked to unregulated products containing harmful chemicals. The Delaware Department of Alcohol and Tobacco Enforcement has received complaints about underage consumption, prompting a new workgroup to address the issue. Yet, hemp advocates argue that the bill overreaches, potentially banning non-intoxicating CBD products. Jena Murray, president of the U.S. Hemp Roundtable, warns that the legislation could devastate small businesses without addressing the root causes of illegal sales. The stalled bill, tabled in June 2025 after backlash, reflects these tensions, with Heffernan promising a revised proposal in 2026 after consultations with stakeholders.

Federal Shadows Loom

Delaware’s debate unfolds against a backdrop of federal uncertainty. A proposed U.S. Agriculture Appropriations bill could redefine hemp to ban products with any “quantifiable” THC, potentially outlawing most hemp-derived beverages nationwide. The 2018 Farm Bill’s extension through 2025 offers temporary reprieve, but the lack of federal guidance has left states like Delaware to navigate a patchwork of regulations. Connecticut, for instance, allows THC beverages in both liquor stores and marijuana dispensaries, while Massachusetts bans them outside cannabis retailers. This inconsistency complicates THC Beverage Sales Online and interstate commerce, leaving Delaware’s hemp retailers vulnerable to shifting policies.

The Road Ahead

As Delaware pauses its THC beverage bill, the state’s unregulated market persists, with liquor stores, hemp shops, and bars operating in a legal gray area. The delay provides temporary relief for hemp retailers but leaves public safety concerns unaddressed. Heffernan’s commitment to revise the bill with input from the new Marijuana Commissioner, Joshua Sanderlin, and stakeholders offers hope for a balanced approach. However, the rift between the alcohol and hemp industries remains stark, with each vying for control of a lucrative market. Consumers, meanwhile, face uncertainty about where they can purchase THC beverages, particularly as online sales and on-premise consumption face restrictions.

A Call for Balance

Delaware’s THC beverage saga underscores the challenges of regulating a rapidly evolving industry. The proposed bill aims to protect consumers but risks stifling innovation and punishing small businesses. Hemp retailers, who have driven the market’s growth through THC Beverage Sales Wholesale and THC Beverage Sales White Label strategies, deserve a seat at the table. Likewise, the alcohol industry’s economic struggles warrant consideration, but not at the expense of fairness. As Delaware navigates this complex terrain, a nuanced policy—one that prioritizes safety, supports small businesses, and respects consumer choice—could set a national standard. For now, the state’s hemp retailers hold their breath, hoping their voices will shape the future of THC beverages in the First State.

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Staples, A. (2024). Beer drinker perceptions of cannabis-infused beverages. British Food Journal, 127(2), 451-475. https://doi.org/10.1108/bfj-02-2024-0209