Nick Fede Jr., Executive Director, Rhode Island Liquor Operators Collaborative.
By Nick Fede, Jr., Director, Rhode Island Liquor Operators Collaborative
On March 14, a directive went into effect from the Rhode Island Department of Business Regulation (DBR) that imposed new guidelines regarding hemp-derived delta-9 THC products. This change signifies a massive operational shift for those who operate within the space. The most important change to the guidelines includes a mandate that requires all multi-serving containers to be resealable. RI DBR established a standard of having a 1 mg THC serving size, which makes any vessel containing more than 1 mg THC a multi-serving container. Most hemp-derived THC products on today’s market contain 5 mg THC and are now required to be resealable within Rhode Island. As a result, manufacturers and wholesalers have taken steps to ensure that products available in the marketplace are now compliant with regard to the new regulations. If you are unsure of your compliance status, immediately reach out to your wholesaler representatives.
With a focus on public safety, Rhode Island has a massive opportunity to provide more regulation in the hemp-derived THC space this legislative session. Beverage alcohol retailers, who already specialize in selling intoxicating age-restricted products, are perfectly set up and equipped to ensure that these hemp-derived THC products get to the public in the safest manner possible. They are already trained to detect the effects of intoxicating substances when interacting with consumers and are specialists in regulating when and when not to serve clients. A number of Class A retailers have hopped on board the trend and have found success in selling these regulated products.
Hemp-derived THC continues to be a hot topic across the country, with reports coming from other American Beverage Licensees affiliates. Lance Lively, Executive Director for the Texas Package Stores Association, maintained, “We’re the closest to the consumer with a key role here. It’s our job to make sure that these products, which are highly regulated and for good reason, don’t fall into the hands of minors. We spend a lot of our effort and energy making sure that that’s the singular most important piece of this puzzle, keeping these products out of the hands of kids … At a liquor store in Texas, you have to be 21 to enter the store, so the age-gating issue is at the top of that … We are well-suited to carry these products and sell them from a safety aspect.”
Sean Hughes, Account Director for the Connecticut Package Stores Association, commented, “During the 2023 legislative session, [Connecticut] lawmakers passed a bill that defined hemp-based THC, age-restricted its sale and broke products into categories based on potency. Package stores would be allowed to sell hemp-based THC seltzers to adults aged 21 and over if they contained 5 mg or less of THC per container.” He continued that in the 2024 session, “[Connecticut] legislators decided to restrict hemp-based THC beverage sales to both cannabis dispensaries and package stores, where the monitoring of age-restricted products is top priority.”
As independent Class A retailers, it is up to you to decide whether you want to participate in this emerging segment of the beverage industry. I urge you to take the proper precautions as you consider exploring this new space and to ask any and all questions of RIDBR and Rhode Island Liquor Operators Collaborative (RILOC). Most importantly, verify within Rhode Island’s General Laws the items Class A liquor retailers are allowed to sell and be sure to stay within those guidelines. This new segment will certainly diversify your business. However, do not do anything to jeopardize your Class A liquor license! For more information on licensing, visit dbr.ri.gov/office-cannabis-regulation.
We are in the throes of the 2025 Legislative Session. RILOC is tracking upward of 30 different bills that would have an impact on you and your business. When called upon, it is imperative to show up at the State House and make our voices heard in a unified effort. Swift action is needed often on short notice; it is most important to be mindful of RILOC newsletters arriving in your inbox. If you’re not already subscribed, please reach out to us today at RILiquorOperatorsCollaborative@gmail.com.
Nick Fede Jr. serves as RILOC’s Executive Director, American Beverage Licensees’ Vice President (Off-Premise) and is a third-generation liquor retailer.
