By Joe Beeton

A federal ban on hemp-derived THC products set to go into effect November 2026 would eliminate most intoxicating hemp products nationwide, closing the so-called “hemp loophole” left by the 2018 Farm Bill. Without legislative intervention, the THC ban would force a major reset for manufacturers and retailers of this rapidly growing category in c-stores.

For hemp-derived THC product manufacturers that helped build the category alongside convenience retailers, the looming deadline for the federal THC ban is not a signal to retreat. It is a call to engage—more deliberately, more visibly and more collectively—while there is still time to shape what comes next. Executives at hemp companies Delta and 3CHI told NACS that the future of hemp-derived THC products in c-stores will be decided not just in Washington, D.C., but by how retailers and suppliers position themselves now on compliance, credibility and advocacy.

(Read more about the battle to save intoxicating hemp beverages in the January 2026 issue of NACS Magazine.)

A Quick Recap on the Federal THC Ban

Let’s take minute to break down what’s going on:

• In November 2025, the Senate voted to ban intoxicating hemp products as part of legislation to reopen the government.
• The proposed ban revises the 2018 Farm Bill’s language to sharply narrow what qualifies as legal hemp, capping total THC at 0.3% on a dry-weight basis and limiting finished hemp products to no more than 0.4 milligrams of total THC per retail package. These changes effectively prohibit intoxicating hemp products from general retail. The revised definition also bars synthetically modified cannabinoids, including most delta-8 THC products, from retail sales.
• NACS is opposed to an outright ban of intoxicating hemp and hemp-derived THC products and is advocating for appropriate regulation of the products, including safety regulations and age verification, so they can be legally and responsibly sold in convenience stores. NACS has been at the forefront of pushing for federal recognition and regulation of THC and hemp products for a number of years.
• In January 2026, Indiana Congressman Jim Baird introduced legislation to delay the ban on hemp-derived THC products, asking for the ban’s enactment to be pushed back an extra two years to November 2028.
• Also in January 2026, U.S. Congressman Morgan Griffith (R-VA) and U.S. Congressman Marc Veasey (D-TX) introduced the Hemp Enforcement, Modernization and Protection (HEMP) Act in Congress, a bill to regulate hemp-derived THC products and set a regulatory framework for intoxicating hemp beverages and CBD products.

If There’s a Place for Intoxicating Hemp, It’s C-Stores

Hemp-derived THC products have moved quickly from novelty to mainstream in the past few years. The state of Minnesota has allowed THC-infused beverages in stores since 2022. Target is testing THC-beverages at certain Target liquor stores in Minnesota—the first big-box player to do so. At the beginning of 2026, Circle K franchisees added THC beverages to stores in Texas. Last October, Circle K also announced plans to start selling hemp-derived THC beverages in as many as 3,000 stores nationwide sometime in 2026. In the last quarter of 2025, the retailer rolled out THC beverages produced by Horticulture Co. and branded by former NBA star Allen Iverson in North Carolina, South Carolina and Florida.

Suppliers point to convenience stores as central to the category’s evolution.

“Convenience stores have played a foundational role in the growth of hemp beverages,” said Delta Chief Operating Officer David Thomas. “[Intoxicating] hemp beverages work in the same distribution, merchandising and compliance rhythms that c-stores already understand, so for many stores, these products have become a meaningful part of their adult-beverage mix.”

The convenience industry processes more age-restricted transactions than any other industry, making stores ideally suited to carry the intoxicating hemp and hemp-derived THC products that customers want, said Jon Taets, NACS director of government relations.

“The industry's track record for responsible retailing of age-restricted products is unmatched. Federal and state regulation should recognize this fact and allow convenience retailers to participate in this market and partner with regulators to ensure a safe, enjoyable experience for customers,” he said.

“Convenience stores reach a large population of adult consumers who, by choice, will never step into a smoke shop or dispensary, but who already trust c-stores for age-restricted products,” said Justin Journay, founder of 3CHI, one of the largest manufacturers of hemp-derived THC products. “That makes c-stores one of the best methods of distribution for a large portion of the population.”

The Industry Raises Concern Over Federal THC Ban

Both companies view the impending federal ban as something that’s subject to change.

The THC ban is a major challenge to the category, Thomas admitted, but “with clear age [verification], manufacturing standards and labeling requirements—which are appropriate and welcome—our hope is that the conversation in Washington evolves toward a balanced regulatory framework, not a prohibition.”

NACS has been at the forefront of pushing for federal recognition and regulation of THC and hemp products for a number of years and is advocating for responsible regulation over a ban.

“We have found across many product categories that prohibition doesn’t work. Sound regulation allowing responsible retailers to sell these products is a better approach, and we will continue to work with Congress toward an outcome that works for the industry,” said Taets.

The looming THC ban hasn’t deterred 3CHI’s distribution plans. “We’re approaching it as if nothing has changed—full steam ahead,” Journay said. “While the regulatory timeline is uncertain, demand and consumer support are not, which is why we’re confident we’ll see a positive change in the law prior to the November 2026 deadline.”

That confidence, he said, is rooted in preparation. 3CHI expects regulatory changes around manufacturing standards, testing and age requirements—and has already invested accordingly. The company is Good Manufacturing Practices (GMP)-certified across its manufacturing and warehousing, and it operates an in-house lab that develops testing methods for the industry. With those quality controls in place, Journay said, the company can stay focused on growth even as the regulatory environment shifts.

Responsible Retailing Is the Path to Successful Regulation

If lawmakers regulate hemp-derived THC products like other adult-use categories, then reputable suppliers—and the stores that know how to identify them—should have little to fear, both companies said.

Journay urges c-store operators to require and review Certificates of Analysis (COAs), particularly for vapes, where he says testing fraud is widespread, and to treat hemp like any other 21-plus category regardless of state law nuances. He also recommends keeping inventory lean, with roughly one to two months of supply of products from brands you trust.

“We believe the biggest risk for retailers isn’t the category,” Journay said. “It’s trading long-term customer trust for minimal short-term savings by buying the cheapest product available or trademark-infringing goods instead of legitimate brands.”

Thomas echoed that emphasis on responsibility, which he described as a shared effort. He said Delta is focused on supporting retailers with education, training and category insights to help maintain compliance during this and any future transition periods.

How Hemp-Derived THC Manufacturers Are Preparing for the Ban

Looking ahead, Delta is pursuing two parallel priorities, Thomas said. The first is product and market adaptation—continuing to expand responsible, adult-oriented offerings while exploring formulations that could fit within revised federal guidelines.

The second is advocacy and collaboration. Thomas believes progress depends on unified participation from retailers, manufacturers, distributors and trade groups.

“We believe advocacy is strongest when entire sectors show unified support,” he said. Over the next year, Delta plans to work with national associations, including NACS, to encourage larger beverage stakeholders to engage in building a modern regulatory framework.

“Our posture is collaborative,” Thomas said. “We want to ensure everyone who participates in adult-beverage commerce feels included in the process.”

3CHI also stressed the importance of policy-focused advocacy efforts. Journay said the company maintains federal and state advocacy teams, works with industry groups, educates lawmakers and regulators and provides technical input on legislative proposals such as the Cannabinoid Safety and Regulation Act (CSRA) led by Senator Ron Wyden (D-OR) and Representative Morgan Griffith (R-VA)’s HEMP Act. The company has also presented directly to the FDA on issues including delta-8 THC and testing standards.

On the retail side, 3CHI focuses on education that Journay said protects stores, including COA training, product guidance, responsible merchandising and staff education. He said the company has delivered a consistent message to lawmakers since 2019: 21-plus access, standardized testing, proper packaging and labeling and keeping the market open to proven age-verified channels like convenience stores.

Call to Action: ‘Now Is the Time to Fight’ for Hemp-Derived THC’s Future

Both suppliers stress that 2026 will be pivotal, and that retailer voices matter. Thomas encouraged retailers to engage lawmakers and share store-level data illustrating economic impact, consumer demographics and safety outcomes.

“Legislators respond to concrete numbers,” he said.

Journay’s message was more urgent. “Now is the time to fight, not after the rules are written without your input,” he said. “It’s a winnable fight, but it requires you to get involved right now.”

Read more about NACS advocacy on intoxicating hemp here.