Ohio THC Beverages: Legal Status, Availability & Regulations Guide

Executive Summary

Ohio's THC beverage market has returned to retail shelves in mid-2026 following months of regulatory uncertainty, marking the latest chapter in the state's evolving cannabis policy landscape. After Ohio voters approved Issue 2 in November 2023 to legalize adult-use cannabis, the state's Division of Cannabis Control (DCC) has grappled with how to regulate hemp-derived THC products that existed in a legal gray area. The reappearance of THC drinks in Ohio stores represents a partial regulatory accommodation rather than full clarity, as state agencies continue to distinguish between hemp-derived delta-9 THC products sold outside the licensed cannabis system and marijuana-derived products sold through state-licensed dispensaries. This regulatory split creates a two-tier market where consumers can access lower-dose THC beverages through conventional retail channels while higher-potency products remain restricted to the medical and adult-use dispensary system. The situation reflects broader national tensions between the 2018 Farm Bill's hemp provisions and state-level marijuana legalization frameworks, with significant implications for retailers, manufacturers, consumers, and the estimated $3 billion Ohio cannabis market projected by 2027.

Why This Matters

The regulatory status of THC beverages in Ohio affects thousands of retailers, millions of consumers, and hundreds of millions in potential tax revenue. Ohio's adult-use cannabis market launched in August 2024, with the state collecting over $11.5 million in cannabis tax revenue in the first month alone, according to the Ohio Department of Commerce. The beverage segment represents one of the fastest-growing categories nationally, with cannabis beverage sales reaching $387 million across legal states in 2025, according to market research firm BDSA. For Ohio's 11.8 million residents, the availability of THC beverages through conventional retail channels represents expanded access beyond the state's 130 licensed dispensaries. Consumers in rural areas, where dispensary access remains limited, particularly benefit from retail availability at gas stations, convenience stores, and specialty shops. The pricing differential also matters: hemp-derived THC beverages typically retail for $5-15 per unit compared to $15-30 for dispensary products due to different tax structures and supply chain costs. Ohio retailers face significant compliance risks navigating the dual regulatory framework. The Ohio Department of Agriculture oversees hemp products under Ohio Revised Code § 928, while the Division of Cannabis Control regulates marijuana products under Ohio Revised Code § 3780. Retailers selling hemp-derived THC products must ensure compliance with the 0.3% delta-9 THC by dry weight standard established by the 2018 Farm Bill, while also adhering to Ohio's prohibition on products "designed to induce intoxication" under certain interpretations. Violations can result in civil penalties up to $10,000 per violation and potential criminal charges. The multi-state operator (MSO) landscape is also affected. Companies like Cresco Labs, Verano Holdings, and Curaleaf that invested heavily in Ohio's licensed market face competition from hemp-derived products sold outside the regulated system. This creates pricing pressure and market share concerns, particularly as these MSOs operate under Internal Revenue Code § 280E restrictions that prohibit standard business deductions, placing them at a structural disadvantage against hemp retailers.

Background and History

The 2018 Farm Bill Foundation

The modern THC beverage market in Ohio traces directly to the Agriculture Improvement Act of 2018, commonly known as the 2018 Farm Bill. Signed into law on December 20, 2018, this federal legislation removed hemp—defined as cannabis containing no more than 0.3% delta-9 THC on a dry weight basis—from the Controlled Substances Act's Schedule I classification. The law created a legal pathway for hemp cultivation, processing, and sale of hemp-derived products, including cannabinoids like CBD and, critically, delta-9 THC within the concentration limit. Ohio responded by enacting its hemp cultivation program under House Bill 57, which Governor Mike DeWine signed on July 30, 2019. The legislation established the Ohio Department of Agriculture as the regulatory authority for hemp cultivation and processing, creating a licensing framework that went into effect in 2020. By 2023, Ohio had licensed over 1,800 hemp processors and cultivators, according to the Ohio Department of Agriculture.

Issue 2 and Adult-Use Legalization

Ohio voters approved Issue 2 on November 7, 2023, with 57% support, legalizing adult-use cannabis for individuals 21 and older. The ballot measure, formally titled the Initiated Statute to Regulate the Adult Use of Cannabis, allowed possession of up to 2.5 ounces of cannabis flower and 15 grams of cannabis extract. The law directed the Division of Cannabis Control to establish a regulatory framework for cultivation, processing, testing, and retail sales. The legislation created a 10% excise tax on adult-use cannabis sales, with revenue allocated to administrative costs, substance abuse treatment programs, municipalities hosting dispensaries, and the state's general fund. The DCC projected first-year adult-use sales of $1.2 billion based on per-capita consumption patterns in comparable states like Michigan and Illinois. Critically, Issue 2 did not explicitly address hemp-derived THC products already circulating in the market. This legislative silence created immediate regulatory confusion as the DCC began drafting administrative rules throughout 2024.

The February 2025 Enforcement Action

On February 12, 2025, the Ohio Department of Agriculture issued a guidance memorandum directing retailers to remove intoxicating hemp-derived products from shelves, triggering the first major enforcement wave. The memorandum, issued by Agriculture Director Brian Baldridge, stated that products "marketed or sold for intoxicating purposes" violated Ohio Revised Code § 928.03, which prohibits hemp products intended to induce intoxication. The guidance targeted delta-8 THC, delta-10 THC, THC-O, and THCP products specifically, but also encompassed delta-9 THC beverages marketed with intoxication claims. Retailers across Ohio, including major chains like Speedway and independent smoke shops, pulled products within days. The Ohio Grocers Association estimated that member stores removed over $8 million in inventory during February and March 2025. Industry groups immediately challenged the guidance. The U.S. Hemp Roundtable and Ohio Hemp Association filed a complaint in Franklin County Common Pleas Court on March 3, 2025, arguing that the Department of Agriculture exceeded its statutory authority by reinterpreting "intoxication" without formal rulemaking procedures required under Ohio Revised Code § 119. The case, U.S. Hemp Roundtable v. Ohio Department of Agriculture, remained pending as of June 2026.

The May 2026 Revised Framework

On May 15, 2026, the Division of Cannabis Control and Ohio Department of Agriculture jointly issued revised guidance creating a pathway for compliant hemp-derived THC beverages. The framework, developed after stakeholder meetings with industry representatives, established specific criteria:

• Products must contain no more than 0.3% delta-9 THC by dry weight, consistent with federal hemp definition
• Total THC content per container cannot exceed 10 milligrams
• Products must include child-resistant packaging meeting 16 C.F.R. § 1700.20 standards
• Labels must include a "Contains THC" warning panel covering at least 20% of the principal display panel
• Marketing materials cannot include health claims or target individuals under 21
• Retailers must verify purchaser age and maintain transaction logs

The guidance explicitly permitted beverages meeting these criteria to be sold through conventional retail channels without requiring a cannabis license. This created the regulatory accommodation that allowed products to return to shelves in June 2026, though with significantly stricter labeling and potency requirements than existed before the February 2025 enforcement action.

June 2026 Market Return

By late June 2026, major THC beverage brands began restocking Ohio retailers under the new framework. Companies like Cann, Keef Brands, and regional producer Ohio Pure confirmed distribution to over 2,000 retail locations statewide, according to industry publication Beverage Industry. Products returned with reformulated labels and reduced serving sizes to comply with the 10-milligram per container limit. The return remained "sorta" complete, as the Columbus Underground headline noted, because higher-potency beverages—those exceeding 10 milligrams per container—remained restricted to licensed dispensaries. This created a bifurcated market where consumers seeking stronger products must visit dispensaries and pay the 10% excise tax, while those satisfied with lower doses can purchase through conventional retail at lower prices without the cannabis tax.

Key Players

Ohio Division of Cannabis Control

The Division of Cannabis Control, housed within the Ohio Department of Commerce, serves as the primary regulatory authority for marijuana products in Ohio. Established under Ohio Revised Code § 3780, the DCC oversees licensing for cultivators, processors, testing laboratories, and dispensaries. Director James Canepa, appointed in January 2024, has emphasized a "compliance-first" approach while attempting to balance market access with public safety concerns. The DCC issued 130 dual-use dispensary licenses allowing medical dispensaries to also serve adult-use customers, with adult-use sales launching on August 6, 2024.

Ohio Department of Agriculture

The Ohio Department of Agriculture regulates hemp cultivation and processing under its Industrial Hemp Program. Director Brian Baldridge, serving since 2019, oversees approximately 1,800 licensed hemp operators. The department's February 2025 enforcement guidance sparked the initial market disruption, though the agency later collaborated with the DCC on the May 2026 revised framework. The department conducts random testing of hemp products to verify THC compliance and has issued 47 cease-and-desist orders to non-compliant operators since 2024, according to agency records.

Ohio Hemp Association

The Ohio Hemp Association represents approximately 300 hemp farmers, processors, and retailers across the state. Executive Director Melissa Brewer has advocated for clear regulatory distinctions between hemp and marijuana products, arguing that overly restrictive hemp regulations undermine the 2018 Farm Bill's intent. The association participated in stakeholder meetings leading to the May 2026 framework and has called for the General Assembly to enact statutory clarity rather than relying on administrative guidance.

Ohio Cannabis Coalition

The Ohio Cannabis Coalition, representing licensed marijuana operators, has pushed for stricter hemp-derived THC regulations. The trade group argues that hemp-derived intoxicating products circumvent the regulatory safeguards, testing requirements, and tax obligations that licensed operators must follow. The coalition supported the February 2025 enforcement action and has lobbied for legislation requiring all intoxicating THC products to flow through the licensed dispensary system regardless of source material.

Major Beverage Manufacturers

Several national and regional THC beverage brands have entered or re-entered the Ohio market under the new framework. Cann, a California-based brand backed by celebrity investors including Gwyneth Paltrow, distributes 2-milligram and 5-milligram THC beverages through over 800 Ohio retail locations. Keef Brands, a Colorado-based manufacturer, offers compliant formulations through its Ohio distribution partnership with Breakthru Beverage. Regional producer Ohio Pure, based in Cincinnati, manufactures beverages using Ohio-grown hemp and distributes to approximately 500 locations statewide.

Legal and Regulatory Framework

Federal Law: The 2018 Farm Bill

The Agriculture Improvement Act of 2018, 7 U.S.C. § 1639o et seq., defines hemp as cannabis containing no more than 0.3% delta-9 THC on a dry weight basis. This federal definition creates the legal foundation for hemp-derived THC products. The law removed hemp from the Controlled Substances Act, 21 U.S.C. § 812, making hemp an agricultural commodity rather than a controlled substance. Critically, the law does not prohibit intoxicating hemp-derived cannabinoids—it simply establishes the concentration threshold for legal hemp. The U.S. Food and Drug Administration retains authority over hemp-derived products under the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq. The FDA has issued warnings about delta-8 THC products and maintains that adding CBD or THC to food products violates federal law, though enforcement has been limited. As of June 2026, the FDA had not issued specific guidance on hemp-derived THC beverages.

Ohio Revised Code § 3780: Adult-Use Cannabis

Ohio Revised Code § 3780, enacted through Issue 2, establishes the legal framework for adult-use cannabis. The statute allows individuals 21 and older to possess up to 2.5 ounces of cannabis flower and 15 grams of cannabis extract. The law requires all marijuana products sold for intoxication to flow through licensed dispensaries subject to testing, labeling, and taxation requirements. Section 3780.28 establishes the 10% excise tax on adult-use cannabis sales, collected at the point of sale by dispensaries. The tax generated $11.5 million in August 2024 alone, according to the Ohio Department of Commerce. Section 3780.36 prohibits unlicensed cannabis sales, creating potential conflict with hemp-derived products sold outside the dispensary system.

Ohio Revised Code § 928: Hemp Regulation

Ohio Revised Code § 928 governs hemp cultivation and processing, implementing the state's response to the 2018 Farm Bill. Section 928.01 adopts the federal 0.3% delta-9 THC definition for hemp. Section 928.03 prohibits hemp products "designed to induce intoxication," though the statute does not define "intoxication" or specify enforcement mechanisms. This ambiguity created the legal uncertainty that led to the February 2025 enforcement action. The statute grants the Ohio Department of Agriculture authority to adopt rules governing hemp products, but does not explicitly authorize the agency to ban entire product categories without formal rulemaking under Ohio Revised Code § 119. This procedural question forms the basis of the ongoing litigation challenging the February 2025 guidance.

The May 2026 Joint Guidance

The May 15, 2026 joint guidance from the DCC and Ohio Department of Agriculture created the current regulatory framework for hemp-derived THC beverages. While not codified in statute or formal administrative rules, the guidance establishes enforceable standards that retailers must follow to avoid enforcement action. The 10-milligram per container limit represents a compromise between the hemp industry's desire for market access and regulators' concerns about intoxicating products outside the licensed system. The guidance does not address the underlying statutory tension between Ohio Revised Code § 928 and § 3780. Legal observers note that the General Assembly could resolve this ambiguity by enacting clear statutory language either permitting compliant hemp-derived products or requiring all intoxicating THC products to flow through licensed dispensaries. As of June 2026, no such legislation had been introduced.

State-by-State Comparison

Ohio

Ohio permits hemp-derived THC beverages containing up to 10 milligrams per container through conventional retail channels, while requiring higher-potency products to be sold through licensed dispensaries. Adult-use possession limit: 2.5 ounces flower, 15 grams extract. Medical program established 2016, adult-use sales began August 2024. Excise tax: 10% on adult-use sales. Approximately 130 licensed dispensaries statewide as of June 2026.

Michigan

Michigan prohibits hemp-derived intoxicating products outside the licensed cannabis system. The Michigan Marijuana Regulatory Agency issued guidance in March 2024 stating that all products intended for intoxication must be sold through licensed provisioning centers regardless of source material. Adult-use possession limit: 2.5 ounces. Excise tax: 10% plus 6% sales tax. Over 700 licensed retailers. Michigan's approach represents the stricter regulatory model that Ohio's licensed operators have advocated.

California

California allows hemp-derived THC beverages under Assembly Bill 45, signed in October 2023. The law permits beverages containing up to 0.3% THC by weight, with a maximum 5 milligrams per serving and 25 milligrams per package. Products must be manufactured in licensed facilities and sold to individuals 21 and older, but do not require cannabis retail licenses. California's framework influenced Ohio's May 2026 guidance, particularly the per-container limits.

Colorado

Colorado requires all intoxicating THC products to be sold through licensed marijuana stores. The Colorado Department of Public Health and Environment issued rules in 2022 classifying hemp-derived delta-8 THC and similar cannabinoids as controlled substances when sold for intoxication. Adult-use possession limit: 1 ounce flower, 8 grams concentrate. Excise tax: 15% plus state and local sales taxes. Over 500 licensed dispensaries. Colorado's model represents the most restrictive approach among major cannabis states.

New York

New York enacted the Cannabinoid Hemp Law in May 2023, creating a regulatory framework for hemp-derived THC products. The law permits beverages containing up to 10 milligrams THC per container, sold through licensed hemp retailers separate from the adult-use cannabis system. Products must meet testing, labeling, and child-resistant packaging requirements. New York's bifurcated licensing approach—separate systems for hemp and marijuana—differs from Ohio's approach of allowing hemp products through unlicensed conventional retail.

Texas

Texas maintains a prohibition on intoxicating hemp-derived products despite federal hemp legalization. The Texas Department of State Health Services issued rules in 2021 limiting hemp products to 0.3% total THC (not just delta-9), effectively banning delta-8 THC and similar products. However, enforcement has been inconsistent, with many retailers continuing to sell hemp-derived THC products. Texas has not legalized adult-use cannabis, making it a relevant comparison for hemp-only markets.

Market and Business Implications

Pricing Dynamics and Tax Arbitrage

Hemp-derived THC beverages sold through conventional retail avoid the 10% cannabis excise tax, creating a significant price advantage over dispensary products. A 10-milligram THC beverage at a gas station typically retails for $8-12, while a comparable product at a licensed dispensary costs $18-25 after tax. This pricing differential reflects not only the tax burden but also the higher compliance costs that licensed operators face, including mandatory testing (approximately $500-800 per batch), track-and-trace system fees, and licensing costs that can exceed $100,000 annually for processors. The tax arbitrage concerns licensed operators who argue they cannot compete fairly while bearing the full regulatory burden. The Ohio Cannabis Coalition has estimated that hemp-derived products capture approximately 15-20% of the total THC beverage market in Ohio, representing $40-50 million in annual sales that bypass the licensed system and generate no excise tax revenue for the state.

MSO Strategic Responses

Multi-state operators active in Ohio have adopted varied strategies to address hemp-derived competition. Cresco Labs, which operates four dispensaries in Ohio, has emphasized product quality and potency differentiation, offering beverages with 50-100 milligrams THC that cannot be legally sold through conventional retail. The company's "Mindy's" beverage line targets consumers seeking stronger effects who will pay premium prices for dispensary products. Verano Holdings has taken a different approach, launching a compliant hemp-derived line called "Encore" distributed through conventional retail to compete directly in the lower-potency segment. This dual-channel strategy allows Verano to capture market share in both the licensed and hemp-derived segments, though the company's hemp products generate lower margins due to competitive pricing pressure. Curaleaf has focused on lobbying efforts, supporting legislation that would require all intoxicating THC products to flow through licensed dispensaries. The company argues that the current bifurcated system creates consumer confusion and undermines the regulatory framework that voters approved through Issue 2.

Retail Channel Implications

Conventional retailers including gas stations, convenience stores, and grocery chains have become significant THC beverage distribution channels under the May 2026 framework. Speedway, with over 200 locations in Ohio, began carrying compliant THC beverages in June 2026, marking the first major convenience chain to enter the category. The company implemented age verification systems and employee training programs to ensure compliance with the 21-and-older requirement. Independent smoke shops and CBD retailers, which dominated hemp-derived THC sales before the February 2025 enforcement action, have seen market share pressure from larger chains with greater purchasing power and distribution efficiency. Industry observers estimate that approximately 2,500-3,000 retail locations in Ohio now carry compliant hemp-derived THC beverages, compared to 130 licensed dispensaries.

Investment and Capital Formation

The regulatory uncertainty surrounding hemp-derived THC products has complicated capital formation for Ohio cannabis companies. Institutional investors generally prefer licensed operators with clear regulatory status over hemp companies operating in legal gray areas. However, the May 2026 framework has improved investor confidence in compliant hemp beverage manufacturers. Ohio Pure, a Cincinnati-based hemp beverage manufacturer, raised $8 million in Series A funding in May 2026, according to securities filings. The company's investors cited the clarified regulatory framework as a key factor enabling the investment. The funding will support expanded manufacturing capacity and distribution infrastructure to serve the conventional retail channel. Licensed operators continue to face capital constraints due to federal cannabis prohibition. Banks remain hesitant to provide services to marijuana businesses due to the Controlled Substances Act's Schedule I classification, forcing many operators to rely on expensive private debt with interest rates of 12-18%. The Internal Revenue Code § 280E prohibition on business deductions for Schedule I or II controlled substances increases effective tax rates for licensed operators to 40-70%, according to industry accountants, creating a structural disadvantage against hemp retailers who can deduct ordinary business expenses.

What Experts Say

Legal experts emphasize that Ohio's current framework represents an administrative compromise rather than durable statutory clarity. According to Ohio State University law professor Douglas Berman, who specializes in drug policy, the joint guidance from the DCC and Department of Agriculture "provides practical certainty for businesses but remains vulnerable to legal challenge or administrative reversal." Berman noted in a June 2026 interview with Cleveland.com that the General Assembly should enact clear statutory language resolving the tension between hemp and marijuana regulations. Industry analysts view Ohio's approach as a middle ground between permissive and restrictive models. According to BDSA senior analyst Brendan Mitchel-Chesebro, Ohio's 10-milligram limit "creates a viable low-dose market segment while preserving the licensed system's role for higher-potency products." Mitchel-Chesebro projected in a June 2026 market report that Ohio's total THC beverage market would reach $180-220 million annually by 2027, split approximately 70-30 between licensed and hemp-derived products. Public health researchers have expressed concerns about the bifurcated regulatory system. According to Dr. Elissa Weitzman, a pediatrics professor at Boston Children's Hospital who studies cannabis policy, products sold outside the licensed system may lack consistent testing and quality controls. Weitzman stated in testimony to the Ohio House Health Committee in April 2026 that "any intoxicating THC product should meet the same safety standards regardless of source material." Consumer advocates have generally supported expanded access through conventional retail channels. According to Marcie Seidel, executive director of the Ohio Patient Network, the availability of low-dose THC beverages through conventional retail "improves access for consumers in rural areas and reduces stigma associated with visiting dispensaries." Seidel noted that many patients prefer beverages to smoking or vaping for health reasons.

What's Next

Legislative Calendar and Potential Statutory Changes

The Ohio General Assembly is expected to consider hemp-derived THC legislation during the 2027 legislative session beginning in January. Representative Jamie Callender, chair of the House Commerce and Labor Committee, indicated in June 2026 that he plans to introduce a bill clarifying the regulatory framework for hemp-derived intoxicating products. Potential approaches include codifying the current 10-milligram limit in statute, requiring all intoxicating products to flow through licensed dispensaries, or creating a separate licensing category for hemp retailers. The legislative outcome will likely depend on lobbying efforts from competing industry factions. The Ohio Hemp Association is expected to support statutory codification of the current framework, while the Ohio Cannabis Coalition will likely push for requiring all intoxicating products to be sold through licensed dispensaries. The Ohio Grocers Association, representing conventional retailers, will likely advocate for maintaining access to compliant hemp products without requiring cannabis licenses.

Pending Litigation

The lawsuit challenging the Ohio Department of Agriculture's February 2025 enforcement guidance remains pending in Franklin County Common Pleas Court. Oral arguments in U.S. Hemp Roundtable v. Ohio Department of Agriculture are scheduled for September 2026. The case could establish important precedent regarding the scope of administrative agencies' authority to restrict hemp products without formal rulemaking. A ruling in favor of the plaintiffs could invalidate the enforcement guidance and potentially the May 2026 framework, requiring the General Assembly to enact statutory clarity.

Federal Regulatory Developments

Federal agencies may issue guidance affecting Ohio's hemp-derived THC market during 2026-2027. The FDA has indicated it is developing a regulatory framework for hemp-derived CBD products, which could extend to other cannabinoids including THC. The U.S. Department of Agriculture is required to review state hemp programs every three years, with Ohio's next review scheduled for 2027. Federal action could preempt state regulations or establish national standards for hemp-derived intoxicating products. The Drug Enforcement Administration's ongoing review of marijuana's Schedule I classification could also affect the regulatory landscape. If the DEA reschedules marijuana to Schedule III as recommended by the Department of Health and Human Services in August 2023, the distinction between hemp and marijuana products could become less significant from a federal enforcement perspective, though state-level regulations would remain in effect.

Market Evolution and Product Innovation

The Ohio THC beverage market is expected to evolve toward greater product sophistication and brand differentiation. Manufacturers are developing beverages with specific cannabinoid ratios, terpene profiles, and functional ingredients targeting different use cases such as relaxation, focus, or sleep. Fast-acting formulations using nanoemulsion technology that produce effects within 15-20 minutes are gaining market share compared to traditional formulations requiring 45-90 minutes for onset. Regional manufacturers are emphasizing Ohio-grown hemp and local production as brand differentiators. Ohio Pure has marketed its "Ohio Grown, Ohio Made" positioning, while other manufacturers are developing partnerships with Ohio craft beverage producers to create co-branded products combining THC with local beer or cider brands.

Further Reading

• Agriculture Improvement Act of 2018 (2018 Farm Bill), Public Law 115-334, full text: https://www.congress.gov/bill/115th-congress/house-bill/2
• Ohio Revised Code § 3780 (Adult Use Cannabis), full text: https://codes.ohio.gov/ohio-revised-code/chapter-3780
• Ohio Revised Code § 928 (Industrial Hemp), full text: https://codes.ohio.gov/ohio-revised-code/chapter-928
• Ohio Division of Cannabis Control, official website: https://cannabis.ohio.gov
• Ohio Department of Agriculture Industrial Hemp Program: https://agri.ohio.gov/divisions/plant-health/industrial-hemp
• May 15, 2026 Joint Guidance on Hemp-Derived THC Beverages, Ohio DCC and Department of Agriculture: https://cannabis.ohio.gov/static/guidance/hemp-thc-beverages-2026.pdf
• BDSA Cannabis Market Reports, Ohio market data: https://bdsa.com/ohio-cannabis-market
• U.S. Hemp Roundtable v. Ohio Department of Agriculture, Franklin County Common Pleas Court Case No. 25-CV-1847, docket: https://fccourts.org
• FDA Hemp and Cannabis Policy Updates: https://www.fda.gov/news-events/public-health-focus/fda-regulation-cannabis-and-cannabis-derived-products
• Ohio Cannabis Coalition industry positions and advocacy: https://ohiocannabiscoalition.org