Derek Gould, chief marketing officer of Monarch Emulsions LLC, says that while craft beer and spirit brands continue to roll out their own hemp-infused products to meet current market demands, Rhode Island’s hemp market is still in its infancy.
And that means the state is still trying to work out how best to regulate hemp-derived THC beverages.
“We’ve seen more demographics turn to these ‘euphoric’ and ‘mood-enhancing’ products as a supplement or replacement,” said Gould, whose Pawtucket-based company develops water-soluble THC and hemp emulsions for infused beverages and edibles. “Social drinkers want the ritual and the buzz without the hangover.”
For years, beverages containing THC were considered a niche market, with products sold through state-regulated cannabis dispensaries accounting for just 1% of total U.S. sales of cannabis products, according to Whitney Economics.
But the 2018 Farm Bill allowed for the proliferation of THC beverages by decoupling hemp from marijuana, which enabled ingredients derived from hemp processing to be manufactured and sold directly to consumers.
The federal law defined hemp as having less than 0.3% of delta-9, a specific type of THC that produces a high, meaning beverages could meet that threshold and still give users a buzz.
In Rhode Island, regulations initially permitted licensed liquor stores, bars and restaurants to legally sell low-level hemp-derived delta-9 THC drinks. But in July, the Cannabis Control Commission issued a moratorium on new licenses for on-site sales and consumption.
Today, only a small number of bars, restaurants and liquor stores are allowed to sell hemp beverages.
During the 2025 legislative session, some Rhode Island lawmakers tried to take charge of the situation.
A bill sponsored by Rep. Jacquelyn Baginski, D-Cranston, would have established rules for who could sell and serve those beverages, how they must be labeled and dosed, and ensured age and safety protections. The bill did not advance out of committee.
Instead, the General Assembly ended up adopting a resolution that “hemp THC-infused beverages warrant careful study and monitoring to understand their effects on individual health and behavior, particularly concerning public health outcomes and potential risks to juveniles.”
The Cannabis Control Commission must complete and file proposed final rules by March 1 on dosage limits, packaging standards, labeling requirements and licensing measures to prevent accidental consumption by children.
Neighboring states have already taken steps to regulate nonalcoholic drinks containing small amounts of hemp-derived THC.
In July, Connecticut mandated that THC-infused drinks be available only at state-licensed liquor stores and cannabis retailers. Massachusetts regulators prohibited intoxicating hemp-based products from being sold outside cannabis retail stores.
But in Rhode Island, there is a disagreement between two groups about how hemp-derived THC beverages should be regulated: One side wants the beverages to be regulated like alcohol; the other side wants them restricted to state-licensed cannabis dispensaries.
Some argue that the delays in setting regulations are hampering an emerging industry and the new small businesses it could bring.
Gould, who supports expansion to restaurants and bars, says 95% of hemp beverage consumers he speaks with prefer to buy from traditional liquor stores rather than dispensaries.
Meanwhile, organizations that will be on the front lines are preparing themselves.
The Rhode Island Hospitality Association has launched the first THC-infused beverage service training program for restaurant and bar staff, an online certification good for three years that covers service, dosing, age verification and compliance.
Farouk Rajab, the association CEO and president, says that whatever the outcome, the industry will need clear guidelines for THC beverages in hospitality settings.
“With THC beverages entering mainstream hospitality settings. ... This certification helps establishments protect their guests, support their staff and stay compliant in a rapidly evolving regulatory environment,” he said. “Hospitality businesses want to do the right thing, and that begins with education. This program gives servers, bartenders, managers and owners the tools they need to navigate this new category confidently and responsibly.”
With millions of dollars invested in the industry, licensed cannabis operators argue for a regulatory framework that requires beverages and drink-mix powders containing hemp-derived delta-9 THC to be sold by businesses licensed under the Rhode Island Cannabis Act, treating them the same as any other adult-use cannabis product.
“The current landscape creates a marketplace that is neither equitable nor safe,” said Joseph Pakuris, co-founder and president of Mother Earth Wellness Inc. in Pawtucket. “This would be a step backwards for the industry as a whole.”
