How a Legal Loophole is Putting THC on Liquor Store Shelves

You can now walk into a Total Wine & More and walk out with a fizzy drink that gets you high—but not from marijuana. These new-age beverages contain delta-9 tetrahydrocannabinol (THC), the same psychoactive compound found in weed, except it’s extracted from a federally legal source: hemp.

Wait—how is that legal?

The short answer: a loophole in the 2018 Farm Bill.

This bill reclassified hemp as legal, so long as it contains no more than 0.3% delta-9 THC by dry weight. While that limit sounds negligible, it created a surprising legal window for innovation. For example, a 12-ounce (about 340g) beverage can legally contain up to ~10 milligrams of delta-9 THC, a standard psychoactive dose, because of how the law defines the 0.3% limit by weight—not by serving or potency.

That technicality sparked what some call the “hemp loophole”—allowing companies to create intoxicating products outside of the heavily regulated marijuana market. Even more surprising? These hemp-derived THC products are legal in many states where marijuana isn’t.

CBD, Chemistry, and Cannabinoid Conversion

Much of the THC used in hemp products isn’t extracted directly—it’s synthesized from CBD, which is found in abundance in hemp. Through relatively simple chemical reactions, manufacturers can convert CBD into delta-8, delta-9, or other THC isomers.

These conversions weren’t addressed in the original Farm Bill, and most state laws haven’t caught up. The result is a booming market for psychoactive products sold in gas stations, online shops, and—more recently—liquor stores. In fact, many states still don’t have clear policies regulating these synthetic cannabinoids.

The Rise of THC Beverages in Mainstream Retail

The entry of retailers like Total Wine into the THC beverage space marks a turning point. These aren’t boutique dispensaries—they’re national chains that previously kept cannabis at arm’s length. By using hemp-derived THC, they’re able to bypass cannabis licensing altogether while still meeting consumer demand for cannabis-adjacent experiences.

It’s a smart move: beverage-based consumption is projected to be one of the fastest-growing categories in the cannabis market, appealing to health-conscious consumers who want to unwind without alcohol. The THC beverages market is projected to grow to $28.6B by 2033.

So What’s the Catch?

This all operates in a legal gray zone. The DEA has clarified that synthetically derived THC isomers should be considered controlled substances—regardless of their hemp origin—but enforcement is inconsistent. Meanwhile, regulators are scrambling to catch up, and state-by-state laws are in flux. It’s a high-stakes game of legal whack-a-mole.

How Pantry Helps Distributors Navigate This New World

As hemp-derived THC goes mainstream, cannabis distributors and manufacturers face a fast-moving, fragmented landscape. Demand is skyrocketing—but so are compliance requirements, logistical hurdles, and the risk of stockouts in retail.

That’s where Pantry comes in.

Pantry helps cannabis brands operate with the precision of traditional CPG companies. Our platform powers smarter forecasting, tighter inventory control, and seamless fulfillment across state lines—whether you're selling to dispensaries, convenience stores, or retail giants like Total Wine.

Learn how we helped the leading cannabis distributor Kiva Sales and Services expand their operations and sell more.