Company behind Edible Arrangements expands hemp, THC product deliveries after Texas launch

AUSTIN, Texas - A recent pilot program to sell consumable hemp products with THC online in Texas has been in place since May from an unexpected source.

Now that same program is being expanded to more states while Texas debates more regulation for hemp-derived THC products.

Edible Brands expands THC hemp product delivery

What we know:

Edible Brands, the parent company of Edible Arrangements, which is best known for unique fruit arrangements, launched the pilot program earlier this year in multiple Texas cities, including Austin, Dallas, Lubbock, and San Antonio.

The program is now expanding to over 65% of the U.S. through direct shipping to all legal states and expanded same-day local delivery in North Carolina, Florida, Georgia, and Texas, said the company in a release on Thursday.

"It was more successful than I think any of us anticipated," said Executive VP/ General Manager Thomas Winstanley.

There is no in-store shopping at this time at Edible Arrangements stores; instead it's shipping and delivery only. The products are also made by other businesses which have been vetted for testing compliance and quality control. The partnership includes Wyld, Kiva, and Wana as core offerings.

"That proof of concept in Texas was instrumental to demonstrating the possibility that we have with a larger marketplace to go for," said Winstanley.

The product performance, according to Winstanley, also inspired political involvement by several of the company's franchise partners in Texas.

"They've offered to jump in and get involved because now that they have skin in the game, they understand the growth of the category and what it means for incremental growth of their bottom line," said Winstanley.

Company officials believe the reputation they built providing edible fruit arraignments will address doubts about a growing hemp industry which has inconsistent rules and questionable players.

Texas looking at regulations for hemp-derived THC products

Local perspective:

Gov. Greg Abbott issued an executive order on Sept. 10 banning the sale of hemp products to anyone under the age of 21. 

The executive order comes after lawmakers in the House and Senate failed to come to an agreement on legislation to ban the sale of hemp products during both special sessions.

Abbott suggested state agencies take an approach similar to what was laid out in House Bill 309 during the second special session. That bill, introduced by state Rep. Briscoe Cain (R-Deer Park), did not make it past the filing stage.

Here is what the order includes:

• Preventing sales to minors now making it a crime to sell hemp-derived products to them.
• Sales near schools, churches and other sensitive locations are not allowed under the executive order.
• Stores are not allowed to operate within 1,000 feet of those facilities.
• Enhanced testing and increased fees include ongoing monitoring for manufacturers, distributors and retailers.
• The State Health Department is to team up with Texas Alcoholic Beverage Commission on regulations.
• Stores who fail to comply could risk losing their licenses.

Abbott had previously vetoed an outright ban on the products passed during the regular session, calling for better regulations then too. This put him at odds with Lt. Gov. Dan Patrick, who has been a major driving force behind a complete ban.

READ MORE

• Dan Patrick, Greg Abbott at odds over THC regulation
• THC vendors look ahead after regulation fails in second special session
• New Texas bill makes it illegal to sell, market THC vape pens

The governor's intervention allowing the sale of THC hemp products in Texas, with some new rules, is supported by state lawmakers like Cain.

"I believe there's a way to do it here in Texas," said Cain. 

In a recent interview with FOX 26 Houston's Greg Groogan, State. Rep. Cain indicated Abbott’s order may not be the last word in the hemp debate.

"And there needs to be things done. We need to ban synthetics; we need to regulate it. We need to make sure it's not anywhere near schools or playgrounds or parks or rehabilitation centers. So, I do think there may be a third-called session. Not that I want one, don't exactly want to be up there, but there may be another one," said Cain.

What they're saying:

The possibility of more regulation debate is why Winstanley is keeping an eye on Texas from his office in Atlanta.

"Obviously the executive order starts to hand off some additional policy framework discussions, which I think are ultimately very helpful," Winstanley said.

The company wants to help regulators design a process for testing and enforcement, according to Winstanley, adding that the platform they built should signal what a compliant, safe and legal marketplace can look like.

"And I think the big one that Texas is addressing is enforcement. We need enforcement. We need to get bad actors out of hands of consumers. And I the enforcement piece has been lacking. And I think Abbott's executive order addresses that. And that's where, again, now the work begins to make sure that everybody stays compliant. We hope to be a steward in that and our door is always open to have those conversations as we see fit," said Winstanley.

"We want to be a leader in what does it look like, to adhere to these rules and these policies. And so every time we see something emerging on a state level, we have a lot of discussions. And at the end of the day, I'm a parent. I do not want these products in the hands of children; I do not want them in the hands of people who shouldn't have them. We will be watching very, very closely. And at any point in which it's within our ability to do so, offer suggestions on how to create that regulatory framework to be successful," he added.

What's next:

On Tuesday, TABC will hold a meeting to consider a set of emergency rules. 

Commissioners are expected to prohibit the sale of hemp products with THC to minors and TABC will require stores to comply with mandatory age verification for all hemp sales. 

The Department of State Health Services is also involved in the rule-making process, but a spokesperson told FOX 7 Austin the agency does not have anything yet to provide to the public.