We are pleased to provide an update to our recent Client Alert regarding Tennessee’s new law transferring oversight of hemp-derived cannabinoid products (HDCPs) from the Department of Agriculture to the Tennessee Alcoholic Beverage Commission (TABC), effective January 1, 2026. TABC has announced that it will honor existing Department of Agriculture licenses for manufacturers and applicable retailers, allowing them to continue selling HDCP beverages without immediately obtaining a new TABC license. This transitional measure—effective until the current Department of Agriculture license expires—offers businesses a valuable opportunity to smoothly adapt to the new regulatory framework.
This update presents a strategic advantage for eligible on premise alcohol establishments to expand their offerings and ensure a seamless start to the new year. We encourage clients to obtain a Department of Agriculture license to extend the transition period, positioning themselves for success in a growing market while minimizing regulatory risk.
Special thanks to Summer Associate Sam Riddle for contributing to this article.
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