Viola founder says hemp ban crushes companies following rules

This is part of a regular series of MJBizDaily interviews with major THC industry players. To be considered for an interview, contact editorial@mjbizdaily.com.

Al Harrington doesn’t expect a federal hemp ban, but he’s bracing for it anyway.

Harrington, co-founder of cannabis company Viola and the force behind hemp THC beverage brand Tempters, has watched the pressure build from inside the business.

“It’s very challenging to operate our companies when there’s so much indecision out there,” said Harrington, who co-founded Viola with fellow former NBA player Allen Iverson.

What scenarios could play out for hemp products?

Three threats are closing in at once:

• Congress could cap THC potency in beverages at no more than 5 milligrams per serving.
• It could pass a full national prohibition that pulls all hemp products off shelves overnight.
• State-level crackdowns are already reshaping the market before Washington acts.

Harrington started Viola with concentrates in 2011 and expanded as consumers moved toward more accessible formats. Pre-rolls, edibles and beverages have pulled in new consumers, with drinks standing out as a format built for social occasions.

Harrington anticipates a cap of 3 mg to 5 mg of hemp-derived THC per serving, with some states pushing to set their own limits.

But Harrington is accustomed to dealing with variations in cannabis regulations. He’s spent years navigating state-by-state rules on the THC side of his business.

“If we have to make changes state by state, we’ve been doing that on the THC side of the business,” he said. “It’s not something we’re not used to.”

The real threat to the $28 billion hemp industry is full national prohibition. If that passes, hemp beverages disappear from the shelves where they’re currently sold – regardless of whether individual states want them.

Harrington’s four hemp beverage brands – Iverson Soda, Sun Baby and Viola Pop – would all be affected.

What does a hemp ban look like in practice?

Texas demonstrates how fast a crackdown can reshape a market and what national prohibition could mean.

Texas reinstated hemp restrictions on July 31, prohibiting smoke shops and other retailers from selling products containing substances like delta-8 THC and delta-10 THC.

The law swept through a market of more than 30 million residents with no transition period.

The beverage category has been spared, for now. Specs Wines, Spirits & Finer Foods still sells more THC beverages than any other retailer in Texas, Harrington said. And Tempters, now available in 16 markets, is rolling out in 4,000 Circle K convenience stores by the end of the year.

But beverages have tracking and labeling that regulators find easier to verify, he said.

Other conservative states likely will follow Texas’ lead if the state creates a program that makes sense, Harrington said.

Who does prohibition hurt most?

Sweeping bans punish companies that follow the rules, not the ones that don’t, Harrington said.

Harrington said bad actors are responsible for state crackdowns on hemp-derived products.

“People were using hemp as a loophole to sell any product they wanted to,” he said.

“It crushes a responsible company. All the things we have to do to enter a market are expensive – it’s very expensive to acquire customers. If it becomes restrictive, it goes away.”

If hemp is banned, the alternative Harrington describes isn’t abstinence. It’s an unregulated illicit market.

“It opens up the black market, which is not good for anybody. Product that comes into the market that’s not regulated and not safe,” he said. “Everybody loses in this situation – especially the licensed operators operating legally.”

What would federal action fix?

Inaction in Washington is the root problem. Without a federal framework, operators face a national ban on one side and a patchwork of conflicting state rules on the other, forcing companies to redesign packaging market by market, down to warning label shapes and colors.

Federal rules would provide operators a playbook, allowing them to develop solid business strategies and a framework to compete to win customers, Harrington said.

“If we can get something federally that we can all operate under so we can bring these things together, it would be cost-effective, and everybody wouldn’t be trying to figure out what the rules are for every state,” he said.

Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.