Updated November 8, 2026. This article was written at the end of September 2024, after the California Department of Public Health (CDPH) published emergency regulations on intoxicating hemp products and before ABC’s follow-up enforcement. Later developments are described separately at the end. It is general information, not legal advice.
The shelf next to the beer cooler
Walk into many California liquor stores, convenience stores, and markets in 2024 and you would find more than beer, wine, and spirits. Hemp-derived drinks, gummies, and syrups advertising THC content had become common, often near the register or the cooler. Many of those businesses hold ABC licenses, such as a Type 20 off-sale beer and wine license or a Type 21 off-sale general license, and some bars and restaurants with on-sale licenses carried hemp beverages too.
In September 2024, the state moved to clear those shelves. This article explains what ABC told licensees, what the CDPH emergency regulations target, and how store and bar managers can audit inventory and train staff.
ABC’s earlier warning
The issue did not appear overnight. On April 26, 2024, ABC issued a warning to licensees concerning illegal hemp products. ABC said it had been made aware of the growing prevalence of potentially illegal hemp products, and that many licensees selling hemp products were at risk of liability.
ABC explained that consumer food, beverage, and dietary supplement products made with industrial hemp are governed by the Sherman Food, Drug, and Cosmetic Laws in the Health and Safety Code. Violations of the Sherman Act are misdemeanors, and ABC may pursue administrative discipline, including suspension or revocation, against licenses of businesses selling noncompliant hemp products.
ABC offered practical steps:
- Be cautious of manufacturers’ or distributors’ claims about legality, because they often do not stand behind their products if a retailer is investigated.
- Check CDPH’s list of industrial hemp businesses registered with its Food and Drug Branch, while recognizing that registration does not mean every product is compliant.
- Scrutinize packaging. ABC listed labeling requirements under Health and Safety Code section 111926.2, including a link or code to a certificate of analysis from an independent testing laboratory showing the product name, manufacturer contact details, batch number, cannabinoid concentration including total THC, and contaminant levels; an expiration or best-by date where applicable; and required warning statements.
- Verify that phone numbers, QR codes, and websites on the label actually work.
- Treat packaging that might appeal to children with particular caution, because manufacturers are prohibited from marketing to children.
ABC also noted that Delta-9 THC is listed as a chemical subject to Proposition 65 warnings.
The September emergency regulations
On September 6, 2024, ABC issued an industry advisory after Governor Newsom announced that CDPH was pursuing emergency regulations. ABC said the regulations would clearly prohibit the marketing, offering for sale, or sale of industrial hemp products intended for human use, including food, beverages, and dietary supplements, that contain a detectable level of total THC or other intoxicating cannabinoids.
ABC’s advisory said that when the regulations go into effect, ABC-licensed businesses may not carry, market, offer for sale, or sell noncompliant products, and doing so will subject the license to administrative disciplinary action. ABC added that products that promote or indicate that they contain THC will not comply, and recommended that licensees immediately stop marketing or selling such products once the regulations take effect.
CDPH published the emergency regulations on September 24, 2024. As this article was written, licensees were being told to prepare to remove noncompliant products and to watch ABC’s advisories for confirmation of the effective date.
What “detectable” means for a store
The standard described by ABC is not a dosage limit. A product does not need to be high in THC to be covered; any detectable level of total THC or other intoxicating cannabinoids in a hemp product intended for human consumption falls within the prohibition. Products advertising “2 mg THC” or “5 mg THC” on the label are the clearest examples, because ABC said products that promote or indicate THC content will not comply.
This article does not address products sold through licensed cannabis retailers under California’s separate cannabis licensing system, which is regulated by a different agency. ABC-licensed alcohol retailers are not cannabis retailers.
An inventory audit checklist
Pull every hemp product
List every product on shelves, in coolers, behind the counter, and in the stockroom that contains or mentions hemp, CBD, THC, Delta-8, Delta-9, or other cannabinoids.
Separate THC-labeled items
Any product whose label promotes or indicates THC content should be set aside for removal, consistent with ABC’s guidance.
Review remaining products
For products that do not advertise THC, check the certificate of analysis for total THC and other intoxicating cannabinoids, confirm the label elements ABC listed in April, and verify the manufacturer’s registration with CDPH. When in doubt, remove the product and ask the supplier for documentation.
Contact suppliers
Ask distributors about returns or credits for products you remove. Keep copies of correspondence.
Update point-of-sale systems
Deactivate removed products in the register so they cannot be sold by mistake if a stray unit is found.
Document the audit
Record the date, the products removed, quantities, and who conducted the audit. Documentation shows good faith if ABC agents visit.
Training staff
Clerks and bartenders are often the first to hear customer questions about hemp products. Brief them on:
- Which products have been removed and why.
- Not restocking removed products found in storage.
- How to answer customers simply: “We no longer carry products with THC because of new state rules.”
- Reporting new hemp products offered by sales representatives to a manager before anything goes on the shelf.
The same ID-checking habits that protect alcohol sales matter for any age-restricted product. Our LEAD guide for off-sale retailers covers ID-check routines at the register.
Why this matters for an alcohol license
ABC licensees are expected to comply with all laws affecting their business operations. A violation of health and safety rules can become an ABC disciplinary matter, as ABC’s advisories make clear. Penalties for ABC violations have also become more significant; see our SB 498 explainer. A license is worth far more than the margin on a shelf of hemp drinks.
Bars and restaurants
On-sale licensees should check menus as well as shelves. Hemp-infused beverages, cocktail additions, or desserts advertising THC content raise the same concerns. Mixing alcohol with intoxicating cannabinoids also complicates staff efforts to judge impairment, which is central to responsible beverage service.
A scenario at a corner market
The owner of a market with a Type 21 license reads ABC’s September 6 advisory and schedules an audit. Staff find 14 different hemp beverages and gummies, 11 of which advertise THC in milligrams. The owner removes those, contacts the distributor about credits, deactivates the items in the register, and posts a note in the back room listing removed products. At the next staff meeting, clerks practice a short script for customers asking where the drinks went.
Talking with sales representatives
Hemp product distributors may continue to visit stores with new items after the regulations take effect. Store owners can set a simple rule: no new hemp product goes on the shelf without manager approval and documentation. Questions to ask include:
- Does the product contain any detectable total THC or other intoxicating cannabinoids, according to an independent laboratory certificate of analysis for the specific batch?
- Is the manufacturer registered with CDPH’s Food and Drug Branch?
- Does the label include every element ABC listed in its April advisory?
- Will the distributor accept returns and provide credit if the product is later found to be noncompliant?
Written answers are worth more than verbal assurances, and ABC has warned that distributors often do not stand behind their products when a licensee faces an investigation.
If an ABC agent visits
Agents may visit licensed locations to confirm compliance. Managers should be courteous, cooperate, and be ready to show the audit record, the list of removed products, and correspondence with suppliers. If agents find a product they consider noncompliant, managers should ask what steps are required and consult an attorney about any formal action. Training clerks to call a manager immediately when an agent arrives prevents confusion at the counter.
Complaints from the public
ABC’s advisories note that the public can file complaints about illegal hemp products at licensed locations. A store that has removed noncompliant products and documented the audit is in a much better position if a complaint leads to a visit.
Training clerks on hemp questions
Clerks often get questions before managers do. A short script helps: “We have removed products that do not meet the new state rules. I can show you what we carry now.” Clerks should not offer opinions on whether a product is legal or safe, and should refer detailed questions to a manager. During the audit period, ask clerks to set aside any hemp item they find that is not on the approved list rather than sell it, and to tell a manager the same day. Record what was set aside and why. Clear routines keep a busy counter from becoming the place where a noncompliant product slips through.
Keep the audit binder, supplier letters, and the set-aside log together, and update them each time a new product is considered, so the record stays current rather than becoming a one-time project.
Frequently asked questions
Does this apply only to off-sale stores?
ABC’s advisory refers to ABC-licensed businesses generally, which includes on-sale and off-sale licensees.
Is there a safe low-THC level?
ABC describes the regulations as covering products with a detectable level of total THC or other intoxicating cannabinoids.
Can a distributor’s assurance protect us?
ABC warned in April that distributors often do not stand behind their products if a licensee is investigated.
Current context as of November 8, 2026
On October 3, 2024, ABC issued an advisory stating the emergency regulations were now effective, that licensees must immediately stop marketing or selling noncompliant products, and that lawful industrial hemp products may not be sold to anyone under 21. ABC then conducted statewide sweeps. ABC’s illegal hemp enforcement page reports monthly visits, violations, and seizures beginning in October 2024. Readers should consult ABC and CDPH for current rules, which may have changed since these emergency regulations.
The bottom line
ABC has been clear: hemp products with detectable THC have no place on a licensed shelf once the emergency rules apply. An audit, supplier contact, register updates, documentation, and a short staff briefing protect the license that matters most.
Train the Counter, Not Just the Shelf
Compliance depends on people. ServeTrain’s ABC-approved online RBS course helps California on-premises servers and managers make careful, confident decisions. Before enrolling, register or log in to your RBS Portal account with ABC and confirm your chosen course appears in the portal’s training provider search.
Sources
- ABC: Warning Concerning Illegal Hemp Products (Apr. 26, 2024)
- ABC: CDPH Emergency Regulations Concerning Hemp Products (Sep. 6, 2024)
- ABC: Hemp Emergency Regulations Now Effective (Oct. 3, 2024, current note)
- ABC: Illegal Hemp Enforcement (current note)
This article is general information, not legal advice.
