Curaleaf's Strategic Exit from Hemp THC Market Amid Federal Ban

Curaleaf Holdings, a leading multistate operator in the cannabis industry, has announced its decision to withdraw from the hemp THC market. This move comes in anticipation of a federal ban set to take effect in November 2026, which will redefine hemp under U.S. law. The company, which had previously ventured into the hemp sector following the 2018 Farm Bill, is now winding down its operations in this area. Chairman Boris Jordan emphasized the company's commitment to compliance, stating, "The rules are the rules. We’re a law-abiding company, and we’re going to play by what the rules are."

Curaleaf's initial entry into the hemp market was marked by the launch of hemp-derived THC beverages, which were distributed through Total Wine & Spirits across nine states. However, with the impending legislative changes, the company will cease these operations and close its dedicated hemp outlet in West Palm Beach, Florida. While the future of its hemp production facilities in Kentucky remains undecided, Curaleaf is actively lobbying for regulatory frameworks that would allow its beverage line to continue

The company's pivot away from hemp THC is part of a broader strategic realignment. Curaleaf has recently announced plans to expand into the Virginia adult-use marijuana market through a significant $110 million acquisition of assets from The Cannabist Co. This move underscores the company's focus on regulated cannabis markets, which have been less volatile than the hemp sector. "Hemp doesn’t move the needle for Curaleaf," Jordan noted, highlighting that the hemp business was a minor part of their operations

Despite its exit, Curaleaf's foray into the hemp market provided valuable insights. The company gained experience in building a national brand presence, particularly in states lacking regulated marijuana markets. However, challenges in the retail environment, such as competition from less regulated outlets, made the venture less successful than anticipated. "To be honest, it wasn’t a great experience," Jordan admitted, citing constraints from self-imposed rules that competitors did not follow

The federal ban on hemp THC is part of a larger legislative effort to close loopholes in the 2018 Farm Bill that allowed intoxicating hemp products to thrive. While the cannabis industry and its opponents in Washington have both claimed some credit for this legislative shift, Jordan attributes the change to the hemp THC industry's own actions. "I put the blame squarely on the industry, not on Congress," he stated, suggesting that the unregulated growth of the market prompted a necessary response

Looking ahead, Curaleaf plans to continue its advocacy for comprehensive cannabinoid regulation. Jordan believes that any reversal of the hemp THC ban will require collaboration across industries, particularly with the alcohol sector, which has also been affected by these regulatory changes. "A reversal will only happen if we can unite all of the industries," he said, pointing to the need for a collective approach to lobbying for new regulations. Despite the uncertainty, Curaleaf remains committed to adapting to the evolving regulatory landscape