September 1, 2025

Delaware’s THC Beverage Whiplash: HB 98 Paused in 2025—What Retailers Should Expect Next

Delaware’s THC Beverage Whiplash: HB 98 Paused in 2025—What Retailers Should Expect Next

Delaware HB 98 THC beverages 2025 was primed to reshape the sales, distribution, and compliance landscape for a rapidly emerging segment: THC-infused beverages. But with the surprise withdrawal and pause of HB 98 late in the 2025 legislative session, Delaware’s hemp and cannabis beverage businesses, along with the broader retail sector, now find themselves navigating a regulatory gray zone. Here’s what this means for retailers, brands, and compliance officers looking ahead to 2026 and beyond.

The HB 98 Proposal: Reshaping the THC Beverage Market

HB 98, as introduced during the 2025 session (bill text), aimed to:

  • Move THC-infused beverages out of hemp shops and into state-regulated alcohol (package stores) and cannabis dispensaries.
  • Cap single-serving THC content at 10 mg and require age-verified sales (21+).
  • Mandate product registration, track-and-trace, and robust labeling comparable to alcohol and cannabis regulations.

Delaware lawmakers highlighted rising concerns about the proliferation of hemp-derived THC seltzers and cocktails in convenience and hemp shops—often accessible to younger consumers and with inconsistent age checks. The proposal thus put much of the regulatory burden on alcohol and cannabis regulators, calling for:

  • Rigid serving size and potency limits
  • Prohibitions on co-packaging or marketing to minors
  • Transfer of most beverage sales to state-licensed package stores and dispensaries

Why Was HB 98 Withdrawn? Key Debates and Advocacy Pressure

Despite initial momentum, the bill faced a sharp pause in late 2025. According to Hemp Supporter and local news coverage, HB 98’s withdrawal came amid several contentious debates, including:

  • Market access: Whether only liquor/package stores and cannabis dispensaries can sell THC drinks, effectively shutting out hemp shops.
  • Youth exposure: Concerns on underage access and marketing tactics, especially given beverage format appeal.
  • Enforcement readiness: Doubts among law enforcement and regulators about their ability to monitor a new class of psychoactive beverages.
  • Stakeholder divide: Beverage brands, hemp retailers, alcohol industry reps, and consumer safety groups all weighed in—some advocating tighter controls, others warning of an unfair market grab.

The bill’s pause signals that consensus could not be reached on how to balance public safety, market competition, and consumer choice.

Where Are THC Beverages Now? Compliance and Enforcement in 2025–26

With HB 98 withdrawn, THC-infused beverages currently occupy a precarious legal gray area in Delaware:

  • Hemp shops and convenience retailers continue selling hemp-derived delta-8, delta-9, and other THC beverages, often without clear, consistent state-level oversight.
  • Enforcement is uneven: Some localities are cracking down on sales near schools or to minors. In other areas, enforcement is minimal, leaving both consumers and retailers in a murky position (see Spotlight Delaware reporting).
  • No established statewide age verification, product registration, or potency testing requirements—though these may be imposed retroactively should regulations land in 2026.

For cannabis and hemp beverage brands, this means 2025–26 is a time of significant uncertainty—but also opportunity for those who proactively bolster their compliance infrastructure.

What’s Next? Likely Changes if HB 98 (or a New Bill) Returns in 2026

All stakeholders agree: This debate isn’t over. Legislative watchers (Delaware Online, Yahoo) anticipate another push in 2026 for:

1. Retail Channel Consolidation

Expect a renewed move to confine sales to regulated channels. If and when new legislation passes:

  • Hemp shops may lose the ability to sell THC beverages.
  • Alcohol (package/liquor) stores and state-licensed cannabis dispensaries would become the sole lawful outlets.
  • Watch for grandfathering provisions or limited carve-outs, but full transition to state-controlled channels is likely.

2. Serving Size, Potency, and Packaging Standards

Previous drafts of HB 98 and stakeholder comments pointed to:

  • 10 mg THC limit per beverage
  • Robust product labeling and child-resistant packaging
  • Mandatory QR codes or batch-tracing

Brands should prepare for potent track-and-trace, as well as clear warnings and batch-level documentation that mirror OR exceed those used for other cannabis products.

3. Age-Gating and In-Store Controls

  • Minimum age: 21, with digital age verification likely mandated for all point-of-sale transactions.
  • No co-mingling with non-THC beverages—expect shelf placement rules, staff training, and strict penalties for violations.

4. Testing, Registration, and Compliance Filings

If the regulatory regime proposed in HB 98 returns, plan for:

  • Pre-market product registration with the state
  • State-mandated potency and contaminant testing, using certified labs
  • Regular regulatory filings listing product formulations and distribution points

5. Taxation

Substitutes and amendments to HB 98 floated a $0.50 per container tax on THC beverages (see BillTrack50 summary). Final rates and procedures remain up for debate, but special excise taxes—parallel to alcohol—are highly probable.

Strategic Takeaways for Retailers and Brands

While Delaware awaits a comprehensive regulatory framework for THC beverages, businesses should not drift into complacency. Instead, companies selling, manufacturing, or distributing hemp or cannabis-derived beverages should:

  • Bolster age-verification and responsible retail protocols: Implement robust in-store and digital age checks NOW, not just when mandated.
  • Standardize product documentation: Begin adopting track-and-trace and batch-level recordkeeping—being proactive could both ease future transitions and demonstrate good-faith compliance.
  • Anticipate channel disruption: For hemp shops and non-licensed cannabis retailers, begin strategizing for potential loss of beverage sales—and explore partnerships with licensed dispensaries or liquor stores.
  • Engage in advocacy: Join conversations with trade organizations and state policymakers to help shape fair, effective rules in 2026.
  • Monitor local enforcement: Stay informed about county or city-level crackdowns and adopt best practices to minimize risk—even as statewide guidance remains lacking.

Consumer Guidance: Safe, Legal Access in a Changing Landscape

Consumers seeking THC-infused beverages in Delaware should be aware of ongoing risks. Not all products are lab-tested, age-verified, or clearly labeled in the state’s current framework.

  • Look for brands disclosing full lab results and robust age checks at point-of-sale.
  • Be wary of convenience shop products lacking clear state or federal compliance labeling.
  • Stay informed: The legal status of these products may change quickly with new legislation or enforcement actions.

2026 Outlook—Prepare for a Pivot

The withdrawal of HB 98 in 2025 does not end Delaware’s THC beverage debate—it’s merely a pause. Retailers, beverage brands, and compliance professionals should use this window to:

  • Harden their compliance systems,
  • Educate staff and customers,
  • Build out the documentation and partnerships needed to pivot rapidly if and when the legislature acts in 2026.

Stay agile, stay informed, and stay compliant—Delaware’s beverage regulations are evolving fast, and proactive businesses will be best positioned for success when the next round of legislation arrives.

For real-time compliance updates, regulatory guidance, and expert resources tailored to the Delaware market, visit CannabisRegulations.ai. Position your business for compliance and adaptability—no matter how the regulatory winds shift.