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In Ohio, the battle for the future of hemp and cannabis is unfolding in this legislative session. If Ohio stakeholders don’t act quickly, the Buckeye State’s emerging hemp industry could be handed to Big Alcohol on a silver platter. And if the takeover of the hemp industry is successful, Big Alcohol will come for the cannabis industry next.
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It starts with a familiar playbook.
Step one: threaten a full ban on hemp-derived products to cause fear and confusion. That’s what we’re seeing in SB86: a sweeping proposal that would effectively ban nearly all hemp products outright.
Step two: Once the threat of prohibition softens the ground, roll out a “solution” in the form of a Trojan horse bill that appears to regulate but actually transfers control of the hemp market to the alcohol industry. That’s exactly what HB198 does. As written, it’s a hostile takeover of the hemp industry by Big Alcohol.
The bill would force all hemp products into Ohio’s archaic three-tier distribution system, a model designed for alcohol nearly a century ago. That means hemp manufacturers would be banned from selling directly to stores. Retailers that carry hemp products would be forced to purchase hemp products through a middleman distributor—regardless of need, efficiency, or cost. This isn’t about public health. It’s a corporate giveaway to distributors, and Ohio consumers will foot the bill through higher prices and reduced access.
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The common stereotype used to justify these restrictions — that hemp products are being abused by reckless teenagers — is deeply misleading. The reality is that most of our hemp product customers are women over 55, often shopping at health-conscious retailers like Fresh Thyme Markets and local supplement shops. They use hemp products for sleep, anxiety, and pain — not to get high at gas stations.
Second, HB198 would ban direct-to-consumer e-commerce for hemp beverages in Ohio. Not because it’s dangerous but because distributors don’t want competition from brands that ship directly to consumers. It’s anti-free market, anti-consumer, and completely out of step with how people actually shop for wellness products today.
Third, the bill would force hemp brands into “franchise” contracts — a legal trap pulled straight from the alcohol industry’s rulebook. These contracts would lock manufacturers into relationships with distributors, even if those distributors fail to perform. That kind of lopsided deal might work in the alcohol world, but startup hemp brands need the flexibility to find partners who truly support them.
If Ohio lawmakers are serious about protecting consumers, then HB198 must be revised in three key ways:
- Protect natural retail: Let health-focused retailers like Fresh Thyme Markets buy direct from hemp manufacturers, bypassing unnecessary distributors.
- Preserve e-commerce: Allow Ohioans to purchase hemp beverages and other products directly from the brands they trust.
- End forced franchise contracts: Give hemp brands the freedom to choose — and to leave — distribution partners without being locked into one-sided deals.
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Ohio has the chance to lead with a thoughtful, modern approach to hemp regulations. But if legislators in Columbus allow the alcohol industry to write the rules for the hemp market, then cannabis will be next. Ohioans deserve better than a bait-and-switch takeover from Big Alcohol.
The hemp industry is not asking for special treatment, just for a fair shot. Ohio can fix HB198 before it’s too late.