New Orleans THC drink makers pump the brakes ahead of federal ban
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New Orleans-area THC drink makers are hitting the brakes on production as legislation that would outlaw their products moves to take effect Dec. 11.
Why it matters: Operating in that kind of limbo makes doing business nearly impossible, says Crescent Canna chief marketing officer David Reich.
- "We're trying to run a business that employs dozens of people, operates in 20-plus states, and we have really no idea what this looks like in like 30 days," he says.
Catch up quick: Hemp products, which include THC-infused drinks like the ones Crescent Canna produces, were federally legalized thanks to a loophole in the 2018 Farm Bill, Axios has reported.
- Sales of the products created a $28 billion industry, but their legal status was reversed in a 2025 spending bill.
- Hemp products were set to become illegal Nov. 12, but last month's spending bill delayed that until December.
Zoom in: The back-and-forth has created additional chaos, Reich says, even as Crescent Canna celebrated selling its 20 millionth can of its THC seltzer.
- "We've laid off half of our workforce. We no longer have distribution orders coming in, and we are just trying to get by with complete uncertainty in the short term," he tells Axios New Orleans.
- The producers of Louie Louie, another New Orleans-crafted THC drink, have already paused their production, the company said on Instagram, citing the looming federal ban.
- Dirty Coast also plans to end sales of its Float THC seltzer.
For now, THC drink fans seem to be stocking up just in case federal lawmakers don't move to legalize the products.
- Louie Louie said last week that its inventory is "extremely limited," and Reich says some Crescent Canna customers have ordered entire pallets of their stock.
Between the lines: Reich contends the hemp industry needs regulation — "it's insane that there is not a federal 21 age limit," he says — but he believes it's possible to create those guardrails without shutting down businesses.
- "The state of the industry was untenable," he says. "We just hope that we can get there before the whole industry is destroyed."