Delta-8 is on the tip of many retailers’ tongues — and for good reason. This THC product has generated over two billion dollars in revenue in the past two years.
Delta-8 THC products promise strong wellness benefits, and many entrepreneurs and convenience store owners see delta-8 and its skyrocketing demand as the perfect cannabis business opportunity to tap into right now.
But how legal is delta-8? Can anyone sell and market these hemp-derived products, or are licenses and regulations involved?
This post covers the basics of delta-8 sales. We’ll discuss state-by-state laws and cover some considerations you should keep in mind should you choose to carry delta-8 THC in your store.
Delta-8, a compound derived from hemp, has been gaining attention for its milder psychoactive effects compared to its well-known cousin, delta-9 THC, which is found in marijuana. Before we answer the question, do you need a license to sell delta-8, it's crucial to understand the key differences between delta-8 and marijuana.
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The Farm Bill of 2018 played a pivotal role in distinguishing hemp from marijuana, making it legal to cultivate and process hemp-derived products. This includes delta-8 in many states. The general rule in these areas is that selling delta-8 is akin to selling CBD products, often not requiring a special license.
In 22 states and Washington D.C., namely Alabama, Arizona, Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Missouri, Nebraska, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Texas, Wisconsin, and Wyoming, delta-8 is currently legal under the Farm Bill. It's crucial to note, however, that the legality of delta-8 is contested in some of these states, and regulatory changes might occur in the future.
On the flip side, delta-8 is outright banned in 17 states, including Alaska, Colorado, Delaware, Hawaii, Idaho, Massachusetts, Mississippi, Montana, Nevada, New York, North Dakota, Oregon, Rhode Island, Utah, Vermont, Washington, and West Virginia. If you're in one of these states, selling delta-8 is a no-go, licensed or not.
In another set of seven states — Iowa, Kansas, Louisiana, Michigan, Minnesota, New Hampshire, and Virginia — there are significant restrictions on delta-8 sales. These restrictions range from THC content limits to specific requirements for marijuana-derived delta-8.
For those looking for clearer guidelines, Tennessee, California, and Connecticut have solid regulations regarding delta-8 sales. It's essential to stay informed about the evolving landscape of delta-8 legality, as changes may occur, impacting your ability to sell this cannabinoid in certain states. Always check the local regulations and consider consulting legal experts to ensure compliance with the latest laws in your area.
Our first tip for C-stores looking to sell delta-8 is to approach marketing efforts related to your delta-8 products with care. Navigating the marketing landscape for delta-8 is like walking a tightrope.
Though delta-8 is officially not categorized as a cannabinoid, this categorization doesn’t always hold true regarding advertising and marketing. For example, Facebook categorizes delta-8 as a cannabis or marijuana product, meaning you cannot run delta-8-related ads on their platform. Even if you manage to sneak an ad through, chances are it'll be flagged and removed.
In this digital age, Google might be your best bet. Utilizing search advertising or optimizing your content for organic search can be surprisingly effective in reaching your target audience. People actively searching for delta-8 are likely to come across your offerings, helping you sidestep the ad restrictions faced on certain social media platforms.
Another note of caution is that stores carrying and advertising delta-8 will need to brace for potential pushback from the community. Not everyone is on board with the delta-8 trend, and some individuals might voice their concerns about your store carrying such products. It's essential to approach these interactions with patience and a well-informed stance, addressing any misconceptions and highlighting the legal and safety aspects of delta-8.
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Understanding your target audience is critical for all sales and marketing efforts, and this holds true when venturing into the world of delta-8 sales as well.
Unlike its more well-known cousin, marijuana-derived delta-9 THC, delta-8 doesn't pack a psychoactive punch. It's like the milder, more relaxed sibling hanging out in the gray area between CBD and traditional cannabis products. This unique positioning opens up a world of possibilities regarding your potential customer base.
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The effects of delta-8 are often associated with calmness and a gentle nudge towards drowsiness. This makes it particularly intriguing for a specific demographic: those searching for alternatives to sleep aids like ZZZQuil or prescription medications. If your store carries over-the-counter sleep aids, consider placing delta-8 products nearby.
Your target customers might be individuals who value the idea of unwinding without the intense sedation that some sleep aids bring. When considering your marketing strategy, highlighting these calming effects and positioning delta-8 as a gentle alternative to traditional sleep aids can be a compelling approach.
Finally, if you consider carrying delta-8 products in your c-store, you must choose your products and suppliers wisely. Delta-8 products come in various forms, from the ever-popular gummies to soft gels and oils.
One pro tip regarding your product mix is to keep your delta-8 product doses low. Steer clear of suppliers that only offer gummies or gels at 100 mg strength. For many customers, this may be too strong — handing them a sledgehammer when all they need is a tap. By offering lower doses, you cater to a broader audience, ensuring that both newbies and seasoned users find something that suits their comfort level.
The advantage of venturing into the delta-8 market is that most products sell at a high margin, around 50 percent. This is a considerable advantage, especially when dealing with a high-risk product like delta-8. So, as you embark on this journey, remember to choose your products and suppliers carefully, focusing on high-quality and diverse options to safely cater to a broader audience.
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This post answers the question, do you need a license to sell delta-8? The frustrating answer is that it depends. Each state has its own set of rules governing the sale of this product in convenience stores and other establishments.
Regardless of whether you decide to carry delta-8 in your c-store, you know that managing the diverse, high-turnover inventory of a convenience store requires the right strategies, processes, and tools. The most critical tool in your arsenal is an advanced point of sale (POS) system.
C-Store POS is tailor-made for convenience stores and is equipped with features that make inventory management a breeze. From age verification to lottery sales to advanced inventory tracking, we've got you covered.
So, why worry about the complexities of high-risk sales when you can streamline your operations with a solution designed specifically for your c-store? Schedule a demo today and see how our POS system can revolutionize the way you manage your convenience store.