Cannonballs at the Alamo (Our Texas Hemp Industry)
On February 20, 2025, two significant regulatory shifts are set to take effect in Texas: the release of Senate Bill 3 (SB3) and the initiation of an intensified inspection protocol under the Texas Department of State Health Services (DSHS) Consumable Hemp Program. While these developments may seem unrelated at first glance, the coinciding timing of their implementation raises critical questions about their potential connection and underlying intent.
The DSHS Consumable Hemp Program Crackdown
Simultaneously, DSHS has announced a wave of inspections targeting consumable hemp manufacturers and retailers. According to an official communication dated February 20, 2025, DSHS has encountered increasing resistance from industry participants regarding inspections. In response, the agency has reaffirmed its authority under Texas Health and Safety Code (HSC) Chapter 431.042, which grants it broad oversight powers, including license revocations and civil penalties up to $25,000 per day.
Notably, the inspections will focus on verifying compliance with pre-existing regulations, and businesses refusing to cooperate risk severe penalties. Given that hemp regulations have remained relatively stable over the past few years, the sudden urgency in enforcement—just as SB3 comes into play—suggests more than mere coincidence.
Conspiracy to Bully . . . an Industry?
The concurrent implementation of SB3 and heightened hemp inspections prompts speculation about whether this is a coordinated effort to reshape the industry landscape. While SB3 introduces new provisions that necessitate increased scrutiny, industry leaders are jumping ship and starting to take sides in the future of the consumable hemp market.
Interestingly enough, today Friday the 21st amidst the industry already noticeably shaken by these two initiatives from Texas authorities; Bayou City Hemp Co. released a flyer in its Capitol visit today agreeing that lawmakers should ban all Smokable Hemp Products.More concerning, is that members of Bayou City Hemp Co. are also part of the Texas Hemp Coalition whose stated goal is to keep these products legal.
Official statement was released the following Tuesday. (UPDATE)
“As an executive board member of the Texas Hemp Coalition, Bayou City Hemp does NOT speak on our behalf nor do we support their efforts to sabotage an entire industry we are all here to protect. An official statement will be made soon.” – Jake Garry stated in an industry stakeholders WhatsApp forum this afternoon.
It is perhaps in lue of the company’s interest and position in its beverage expansion that it no longer needs to support the flower market. Drink brands from Bayou City Hemp have now collaborated with Spec’s Wines, Spirits & Finer Foods and its 238 locations as of March of last year. Now that they are seeking national partners like Total Wine and others it looks like Texas retailers will now have to fend for themselves in the cannon-fire of the 89th Legislature.
While the Alamo (our industry)remainsunder enemy fire, we might be seeing notable differences in lobby teams’ goals with different opinions and strategies. The Texas Business Council is doing their best to work with members of the house and seems to have a good deal of support from many state Hemp Businesses. The move from Bayou City Hemp Co to take sides on the issue against smokable hemp flower is sudden since, traditionally, its leaders have been board members of the Texas Hemp Coalition. I know all these players as I too was a member of that same Board in 2023!
With DSHS Inspections and more bills being filed; the contents of SB3 this week is not a shocker . . . in that we all knew it was seeking the bidding of Dan Patrick’s goal to ban these products. SB3, is filed, which would create criminal offenses for manufacturing, selling, AND possessing hemp products. The first cannon-balls have been fired and the walls of the Alamo (our industry) has shown some cracks and even division amongst her ranks. However, Mark Bordas, Executive Director of Texas Hemp Business Council has stated before “We are early in this fight. We just need to end up on top.”
As the cannon-fire will continue to volley back and forth in the next 100 days of the 89th Texas Legislature in the fight for legal Hemp, you can be sure our team at the Texas Hemp Reporter will be in the thick of its coverage. In the words of Sam Houston “Remember the Alamo”
On Tuesday, August 27th, Allen Police raided nine hemp shops, accusing them of selling illegal
products containing higher-than-allowed levels of THC. Texas Hemp lawyer David Sergi, who
represents eight of the nine store owners, stated that his clients were operating legally under
both Texas and Federal law.
San Marcos-based attorney Sergi emphasized that his clients are being accused of
manufacturing and distributing illegal tetrahydrocannabinol (THC) products, but under current
state and federal guidelines, the products they sell are legally permissible.
Who is at Fault?
While many argue that the Allen Police Department overstepped by executing search and
seizure warrants, there is a broader context. The DEA had been conducting a joint task force
investigation, targeting similar shops less than a month prior. Subpoenas were issued to several
of these same store owners earlier in the summer, with the DEA seeking access to financial
documents, customer transactions, and supplier lists—requests that Sergi claims violate the
Fourth and Fifth Amendments to the U.S. Constitution.
Sergi, who previously helped overturn a statewide ban on consumable hemp products,
successfully defended his clients against these subpoenas. In that case, a federal judge ruled
that the DEA could not obtain the requested information, marking a significant victory for the
businesses involved.
“This is straight out of a Russian KGB novel or a mafia gangster film,” Sergi remarked,
comparing the heavy-handed tactics to fiction.
The stores recently raided, including Lit Smoke & Vape, Chasing Vapes, and Hazel Sky, are some
of the same businesses Sergi represents in ongoing legal battles with the Allen Hemp Coalition.
Fighting Back
AJ Velador, founder of Hemp Industry Leaders of Texas (HILT), is organizing a GoFundMe page
to assist with bond and legal expenses for those affected by the raids. Velador and his
organization aim to put an end to what they see as unlawful and disruptive actions against legal
hemp operators and retailers in Texas.
Sergi echoed Velador’s concerns, describing the raids as poorly conceived and
counterproductive. The coalition, comprised of small, family-owned businesses, provides
employment to many in the Allen area and serves customers in need of legal cannabinoids,
such as veterans and individuals suffering from pain and PTSD, as alternatives to opioids.
Sergi further warned that the city’s actions could inadvertently open the door for cartels to step
in with unregulated and dangerous products. Industry professionals, he said, strive to work with
law enforcement to ensure that compliant products are sold to adult consumers.
The Bigger Picture for Hemp Operators
The ongoing raids have raised several critical questions for hemp business operators. How is
law enforcement testing these products? Are they using the same standards that certified labs
use to issue Certificates of Analysis (COAs)?
These concerns are especially pressing as the hemp industry faces a new legislative session,
during which lawmakers are expected to address product labeling, packaging, and age
restrictions. The May 2024 hearing of the State Affairs Committee highlighted these issues.
Sergi & Associates Response
David Sergi argues that the actions of the Allen Police Department and the DEA represent a
clear escalation of tactics used across the state to intimidate businesses selling legal hemp-
based products. According to Sergi, the raids resulted in the destruction of products, the seizure
of point-of-sale systems, and the confiscation of personal computers belonging to
employees—all actions that he contends were unlawful.
“These businesses are operating legally under Texas law,” Sergi said. “There is a right way and a
wrong way to address compliance concerns, and they have chosen the wrong way. They will be
held accountable.”
Sergi is no stranger to cases like this. He also defended Sky & Hobbs after their indoor growing facility was raided by Navarro County sheriffs in 2021.
The Allen Hemp Coalition, representing many of the affected businesses, is currently fighting in
court to uphold their legal rights to operate. Sergi and his team have already successfully stayed
a DEA subpoena they deemed a blatant “fishing expedition.”
The Texas Hemp Show podcast will return to the local air-waves this September in time for the NFL Kickoff and 2024 regular season.
Previously airing on both Waterloo Media properties, KLBJ 590 & ESPN Austin 102.7 FM; Dowden and crew will be heard this fall on Sundays from 11am – 12pm just in front of the NFL Gameday syndicated crew at ESPN.
Host Mike Greenberg will join the returning analysts – Super Bowl Champions Teddy Bruschi and Rex Ryan, Pro Football Hall of Famer Randy Moss, three-time Pro Bowl quarterback Alex Smith on most of the regular season programing at the 12 O’Clock hour.
However, ESPN Austin is now home of the Dallas Cowboys radio network and at least 4 regular season games will be heard right after the Texas Hemp Show on the local ESPN affiliate at 12pm!
DALLAS GAMES ON ESPN FOLLOWING THE TEXAS HEMP SHOW ARE:
DALLAS VS. NEW ORLEANS SAINTS SUNDAY SEPT 15TH –
DALLAS @ ATLANTA ON SUNDAY NOV 3RD
SUNDAY NOV 24TH @ WASHINGTON
SUNDAY DEC 15TH @ CAROLINA
The show will air through the 2024 NFL season and consider extending future shows based on sponsors support for the program and availability with media partners at Waterloo Media.
Since 2020, Texans have been growing legal Hemp and the show is known for its coverage of this new crop in the industry from financial, technology, health, finance and business opportunities in new Texas agricultural laws. The magazine is made available in close to 1,000 plus CBD & Smoke-shop retail locations in Texas!
As the publisher of the Texas Hemp Reporter, I am honored to offer my testimony regarding the pivotal role our publication has played in advancing the understanding and development of the hemp industry in our state. Over the past four years, our comprehensive coverage has spanned across various media platforms, including our magazine, news website, and podcast, all dedicated to the thriving $25+ billion hemp industry.
Beyond our professional endeavors, the impact of hemp products hits close to home for my family. My wife, Jennifer, who battles Lupus and Rheumatoid Arthritis, relies on these products to alleviate swelling and inflammation. Additionally, my mother, Linda, found relief during her battle with lung cancer in 2020 and 2021, using CBD products as a complementary treatment alongside radiation and chemotherapy. Today, she stands cancer-free, a testament to the potential of hemp-derived remedies.
Throughout our journey, our business has served as an educational resource for farmers, entrepreneurs, and the general public, disseminating valuable information on hemp products for four years. We have distributed 350,000 copies of the Texas Hemp Reporter magazine across 26 issues, reaching communities in Houston, Austin, San Antonio, Dallas, McAllen, Lubbock, Midland, and numerous smaller towns across central Texas. Furthermore, our podcast has aired on prominent radio stations such as ESPN and KLBJ, becoming a rare voice in terrestrial radio discussions on hemp-related topics in Texas.
Our efforts have not only informed but also influenced cultural conversations. We have conducted interviews with celebrities, lawmakers, agricultural commissioners, congressmen, industry leaders, and legal experts, shedding light on the burgeoning hemp sector. Our magazine has found its way into over 1,000 CBD stores and smoke shops, including major retailers like HEB, Randalls, and Whole Foods in central Texas.
While acknowledging the potential for improvement in Texas’ hemp and cannabis programs, it is imperative to recognize the state’s leadership alongside Tennessee and North Carolina in this industry. Texas has established a robust hemp program, paving the way for economic growth and job creation, supporting not only my family but also over 50,000 Texans employed in this dynamic field.
In conclusion, we express gratitude for the opportunity to contribute to the review of Chapter 300 and commend your commitment to exploring the vast potential of hemp. As journalists and media professionals, we take pride in our role in covering this topic and showcasing the remarkable benefits that this plant offers to our communities.
Austin, TX – The SXSW Outlaw Party, a beacon of hope and activism in the heart of Austin, is set for March 12th at Pour Choices Bar, from 8 PM to 2 AM. This event, proudly presented by Cheech & Chong’s Cannabis and Dreamz Cannabis Investments, invites attendees to a night dedicated to cannabis culture, advocacy, and the arts.
The event will feature a live mural by Hail Mary Art Collective, creating a poignant and powerful piece on the side of Pour Choices to spotlight the ongoing injustices faced by individuals incarcerated for cannabis-related offenses. Music for the evening will be provided by Ellis Bullard, setting the tone for an unforgettable experience. Catering will be expertly handled by Cheeba Hut, ensuring guests enjoy a taste of Austin’s best.
John Fisher, CEO and Cody Fisher, COO of Dreamz Cannabis Investments and the new Cheech & Chong’s APOTHICARIA share, “Our involvement in this event is a testament to our commitment to cannabis justice reform. It’s an honor to support the Last Prisoner Project and to be part of an evening that promises to make a significant impact.”
Liz Grow of Grow House Media adds, “The Outlaw Party is a pivotal event that grows more impactful each year. With the support of Cheech & Chong’s Cannabis as this year’s presenting sponsor, we’re set to make an even greater mark in the fight against unjust cannabis laws.”
A diverse array of sponsors, including Weedmaps, BucannaLabs, Tejas Tonic, Errganix Hemp Farm, Texas Hill Country Vape & Smoke, Fresh Grown Texas, Wana Brands, Flower by Edie Parker, 4k Pharms, Rare Earth Genomics, GRAV Labs, and many others, are coming together to support this cause, each adding a unique flavor to the night’s festivities.
Mary Bailey, Managing Director of the Last Prisoner Project, states, “The dedication and support from the SXSW Outlaw Party are invaluable to our mission. Together, we’re not just raising awareness; we’re actively working towards a world where no one is imprisoned for cannabis.”
Event Highlights:
Date & Time: March 12th, 8 PM – 2 AM
Location: Pour Choices Bar, 401 E 6th St, Austin, TX
Join us for a night of music, art, and advocacy. Your support helps us move closer to a future of freedom and justice for all. For tickets and further details, please visit www.growhousemediaevents.com.
About the Last Prisoner Project:
The Last Prisoner Project is at the forefront of the fight against cannabis-related incarcerations, working tirelessly to free those incarcerated due to the War on Drugs, reuniting their families, and helping them rebuild their lives. Any proceeds from the event will directly support the Last Prisoner Project in its ongoing efforts to reform cannabis laws and assist those unjustly affected by them. Learn more about their mission at www.lastprisonerproject.org or text FREEDOM to 24365.
Our friends at ZAR Wellness come on the show and educate our team and listeners on the many products and benefits from CBD and cannabis wellness products, their business, and mission statement. ZAR is a veteran owned family brand and are happy to help many communities through their storefronts and online store.
In this last weeks episode Jerry “J-Man” Joyner appears on the Texas Hemp Show to discuss his brand BUCK A BUZZ gummies, as well as talk about the health benefits of cannabis. Joyner has teamed up with Patriot Media Group to offer marketing services with the Texas Hemp Reporter.
Texas A&M undergraduate student Christian Hunter Spearman has just been awarded the $2,000 Texas Cannabis Hemp Innovation League Scholarship. Sponsored by the Texas Hemp Reporter , The Texas Hemp Coalition & the Cannabis Hemp Innovation League, the scholarship recognizes Spearman’s outstanding essay on the topic of de-stigmatizing cannabis.
Hailing from Plano, Texas, Spearman is an Agricultural Leadership & Development major with a minor in Plant Breeding. He is also a talented athlete, playing for the Texas A&M University Hockey team. The award was presented to him at the last C.H.I.L. meeting of the semester by Clay Moore, the President of CHIL, undergraduate researcher and breeder in the Industrial Hemp Breeding Program at Texas A&M University.
In his winning essay, Spearman delves into the history of cannabis in American society, its harsh criminalization in the 1930s, and the negative reputation it has garnered as a result. He proposes three main methods to destigmatize cannabis: educational awareness, policy reform, and normalization through media.
Spearman advocates for dispelling common misconceptions about cannabis through educational campaigns, conferences, and classes that highlight the benefits and risks of its use. He addresses myths such as cannabis being a gateway drug, highly addictive, and causing lung cancer, which have been debunked over the years.
Policy reform is another key aspect of Spearman’s proposed approach to destigmatizing cannabis. By legalizing cannabis for medical and recreational use, he believes that this will open more business and job opportunities, ultimately contributing to a more accepting and destigmatized view of the plant. Spearman also emphasizes the importance of using media outlets to shift public opinion by promoting the positive effects of cannabis, such as its use for treating inflammation and pain relief.
Congratulations to Christian Hunter Spearman on this well-deserved achievement. His insightful essay highlights the importance of reevaluating societal perceptions of cannabis and offers practical solutions to create a more informed and positive image for this versatile plant. As the push for cannabis legalization and education continues to gain momentum, Spearman’s essay serves as a valuable contribution to this ongoing conversation.
The Texas Hemp Show team is working closely this summer with Weed and Whiskey TV and Jerry “J-Man” Joyner in production of hosting more content with the news network from Dallas. Russell Dowden and his team Rachel Nelson and Carl Robinson will be occasionally hosting the Weed & Whiskey News Austin edition from the new studio in downtown Austin TX.
While the teams will share related cannabis content and news for fellow Texans on the ROKU platform, Joyner and Dowden will offer a “combo” Advertising Package with all their media services put together. The Texas Hemp Show airs on all podcast platforms globally, and its ESPN radio partners in Austin at 102.7 FM on Saturday mornings. Then with print media with the Texas Hemp Reporter statewide delivers to 800 CBD & Smoke-shops across the State 6 editions a year, while Weed & Whiskey.TV has over 90K subscribers watching their programing on ROKU devices and their YouTube platform.
The partnership was discussed in on Episode #41 of Weed & Whiskey News recently, kicking off the Austin TX downtown studios with Real News Networks. (see above).
The Texas Hemp Reporter is excited to report on our partnership this Spring with Jerry Joyner aka “JMan” and our friends at the Dallas TX based Weed & Whiskey TV. The ROKU Platform offers cannabis content, and much more from its APP, YouTube channel, and website platforms. Viewers are now be able to access Texas Hemp Show content from the website but the networks staple show Weed & Whiskey News is also shooting weekly content from the new Austin TX based studio.
Joyner and Dowden will frequently appear together as well as separately from the new downtown Austin Texas facilities. Russell appeared on Episode 35 last month and has plans to collaborate on several projects with the Weed & Whiskey TV platform.
Click to watch Episode # 35 here on YouTube.
The Texas Hemp Show has also landed itself back on local air-waves in Austin TX with Waterloo Media and Austin’s ESPN flagship Saturdays from 8am-9am on weekends. The Podcast Audience is already growing on digital platforms, but the new edition of ESPN will only blossom the talk show into more listeners and a budding interest in business and opportunities as cannabis becomes more mainstream in the Lone Star State.
One Project Coming Soon from Weed & Whiskey TV & Patriot Media Group is a new News Program called “Paranoid America”
Texas Hemp Reporter recently wrapped a new delivery vehicle for making deliveries, attending special events and producing live remote podcasts at CBD business’. Another goal is to be present at events at the State Capitol for legislative activism, Cannabis events and to further marketing awareness about the Texas Hemp Reporter in the hemp and cannabis space.
What is The Texas Hemp Show ?
The Texas Hemp Show is the official podcast for the Texas Hemp Reporter Magazine: The Texas Hemp Show is recorded every Wednesday at from 6 -7pm and is released each Friday. For news and the latest information on the growing Hemp & Cannabis industry in the Lone Star State subscribe to our magazine the Texas Hemp Reporter online and follow us wherever podcasts are available.
If you are interested in having a Podcast of the Texas Hemp Show in your Event or Business contact the Texas Hemp Reporter.
Keep an eye out on the road for the Texas Green Machine and be sure to Honk at us for Legal Cannabis!
Russell profiling Tejas Tonic water on the Texas Hemp Show Podcast with Aaron Ownens at Tejas Hemp
The Texas Hemp Reporter attended the first ever Texas Hemp Day at the Capitol and Rachel was there for a report with activity with lawmakers. Written & Produced by Rachel Nelson.
Texas Hemp Day at the Capitol was a huge success, marking the first time that Texas’ hemp industry came together at the capitol. The event provided an opportunity for members to interact with one another, as well as state representatives and senators. The work accomplished at the capitol is expected to benefit the industry in the current legislative session.
The Texas Hemp Coalition expressed their appreciation to all those who came to Austin to show their support for the coalition and the Texas hemp industry, and looks forward to seeing them again soon.
As the 88th Texas Legislature convened on January 10, 2023, the Texas Hemp Coalition’s tenant of “advocacy” is carried out during this session as they continue to fight for the industry’s prosperity. The final day of the legislative session is May 29, 2023, and the coalition encourages industry supporters to reach out to their State Representatives and Senators to voice their concerns and support for the hemp industry in Texas.
The coalition’s federal and state legislative priorities include protecting all cannabinoids for consumable hemp products, ensuring retailers and manufacturers are protected for future cannabinoid products for the market, advancing regulatory efforts towards legalizing hemp feed as a protein for animals for human consumption, urging the FDA to regulate CBD as a dietary supplement, protecting and fighting for farmers to have a more efficient program, updating legislation to reflect changes from USDA rules, passing a 2023 Farm Bill to reflect a more industry-supported hemp program, and giving agencies the ability to update statute per the 2023 Farm Bill.
In terms of Texas legislative priorities, the coalition is supporting SB 264 by Senator Charles Perry, which relates to the production, sale, distribution, delivery, and regulation of consumable hemp products, and SB 321 by Senator Charles Perry, which relates to the production and regulation of hemp, providing administrative penalties, and creating a criminal offense.
On the federal level, the coalition is supporting H.R. 6645: The Hemp Advancement Act of 2022 by Rep. Chellie Pingree, which aims to make it easier and more profitable for U.S. farmers to grow hemp while ensuring consumers of hemp are protected against unsafe products, the Safe Banking Act by Rep. Ed Perlmutter, which would protect institutions administering financial services to all legal cannabis businesses by preventing any penalization from federal regulators, and the Hemp and Hemp Derived CBD Consumer Protection and Market Stabilization Act of 2021 by Rep. Kurt Schrader, which would ensure that hemp-derived CBD and other non-intoxicating hemp ingredients could be lawfully marketed as dietary supplements.
Overall, the Texas Hemp Coalition’s legislative efforts are focused on supporting the growth and prosperity of the hemp industry in Texas, and they are actively engaging with lawmakers and stakeholders to achieve these goals.
Clay talks with us about his research in this Hemp Sciences at TAMU. He also contributes to the magazine with a few articles a month.
What is The Texas Hemp Show ?
The Texas Hemp Show is the official podcast for the Texas Hemp Reporter Magazine: The Texas Hemp Show is recorded every Thursday at from 6 -7pm and is released each Friday. For news and the latest information on the growing Hemp & Cannabis industry in the Lone Star State subscribe to our magazine the Texas Hemp Reporter online and follow us wherever podcasts are available.
HOUSTON, TX, March 5th, 2023 -Pharmacology University and ZAR Wellness is currently contacting Texas legislators to get its medical cannabis Bill sponsored and presented during this legislative session. Contrary to the current cannabis laws of the state of Texas, this proposal would add the following medical conditions: • Cancer • AIDS and Human immunodeficiency viruses (HIV) • Multiple Sclerosis • Epilepsy or other seizure disorders • Glaucoma • Alzheimer • Autism • Incurable neurodegenerative diseases • Parkinson’s Disease • Crohn’s Disease • Fibromyalgia • Inflammatory Bowel Disease or Ulcerative Colitis • Substance Use Disorder (SUD) • Hepatitis C with debilitating nausea or intractable pain unrelieved by standard treatments or medications • Anxiety disorders, including anorexia, muscle spasms, spasticity, sleep disorders, and obesity. • Post-traumatic stress disorder
• Intractable pain, unrelieved by standard medical treatments and medications endometriosis, traumatic brain injury, migraine headaches and tension headaches, rheumatoid arthritis, degenerative disc disease, central pain syndrome and neuropathic pain.
“Though we are incredibly grateful to our Texas legislators for providing cannabis laws allowing some Texas patients to be able to receive cannabis medication for their illnesses, we cannot ignore the fact that the law in its present form is definitely not working” says Anne Graham, Legal Counsel for Pharmacology.
The Bill also segregates the licenses into different categories, if passed the law would create four different licenses: manufacturing, growing, research and a dispensary license. This would help diversify the industry as it would be easier for new actors to participate in the market with a smaller budget.
In conclusion, the Bill is filthy rich with ideas that could help millions of people/patients in the state of Texas, create a great amount of employment, small business opportunities, involve minorities and expand medical research possibilities. It’s time for Texas to medically and scientifically lead the nation with alternative medication in an honest and reputable process, the way Texas is accustomed to be: #1 and Texans are ready for proper leadership and big change.
For more information please contact: Dante Picazo, CEO (214) 733-0868 Anne Graham (832) 548 5857 www.pharmacologyuniversity.com [email protected]
Native Austinite Embraces The Budding Hemp Industry
By Rachel Nelson
Marco Krause began experimenting with cannabidiols after a high school baseball injury left him with chronic shoulder pain. Today, he’s an entrepreneur, hemp activist and aspiring chemist.
Krause launched Dr. MAK’s Apothecary, an Austin-based e-commerce store, in 2019. With his chemistry background and help from his dad’s lab — Krause Analytical — he has formulated an assortment of natural therapeutic products.
Dr. MAK’s signature formula is its Magic Pain Juice (MPJ), a mixture of natural monoterpenes, alcohols and herbal extracts that provides several hours of pain relief. Eventually, Krause decided to add a hemp extract to the formula and dubbed it MPJ Extra Strength, or MPJXS.
While Krause admits that he laughed about the concept at the time — saying the name sounded like a gimmick — the product quickly gained popularity.
“It blew up like crazy,” Krause said. “So we started thinking, why not sell it to the CBD stores?”
Currently, MPJXS is sold at several central Texas locations.
After MPJXS took off, Krause said he began to experiment with making cannabidiol-infused gummies. Because he heard many horror stories about gummies melting in cars and warehouses, Krause said he saw the need to create a heat-resistant product. He formulated gummies that are able to withstand temperatures of up to 170-degrees fahrenheit.
“Even though they’re heat-resistant, they do dissolve, and people can digest them,” Krause said.
Perfecting his gummy formula, combined with the release of MPJXS, led to the launch of Krause’s hemp-focused brand — Underground Alchemy. In addition to specializing in the business-to-business wholesale of its own products, Underground Alchemy helps other businesses create and manufacture their own custom product formulations.
“We’re very small, but we end up doing what five- to 10-man companies do with custom formulations, and we can do it cheaper because we have less overhead,” Krause said.
To date, Underground Alchemy has helped hemp entrepreneurs create high-quality tinctures and edibles.
Beyond running his two businesses and working to complete a chemistry degree, Krause has championed hemp farming at the state level. In 2021, he testified in front of the Texas Senate Committee on Water, Agriculture and Rural Affairs, speaking out against a bill that would have placed stricter guidelines on hemp faming in Texas (like limiting THC levels to 1% rather than 3%).
“Thankfully, that never made it through,” Krause said.
Moving forward, Krause plans to continue making a name for himself as a pioneer in the Texas hemp space.
“It’s been fun navigating the waters and finding out exactly what’s coming forward,” he said. “It’s impossible to stay ahead of this market.”
In March 2020, before anyone knew the pandemic would drastically change the world, three Austinites launched CBD Delivery ATX. According to co-owner Liz Pruett, timing was on their side.
“Delivery became a more important part of everyday life,” she said. “A lot of our customers have been with us since the beginning because for whatever reason, they can’t leave the house, don’t want to leave the house or feel intimidated about going into a head shop. So I think it does kind of fill a niche market of people who want to stay closer to home.”
Pruett and the other co-owners — brothers Rob and TJ Leonard — received their first delivery order a week prior to the COVID shutdown and say the phone has not stopped ringing since. Initially, the trio said they went with a delivery business model to save money on leasing a storefront, but they hoped to eventually grow into a brick-and-mortar location. However, they soon realized that “delivery was kind of the way to go,” Pruett said.
“In the early days of our business we kind of thought it was going to die off when the pandemic was over, but it kind of went the other way,” Rob Leonard said. “It just became more, so I guess this is what so many businesses are doing because people love the convenience of it.”
The owners of CBD Delivery Service tout their assortment of locally sourced products as well as their diverse customer mix — from war veterans to soccer moms and massage therapists.
“We have some people that order bath bombs and others that want every type of THC that we carry that’s legal,” Rob Leonard said.
Compliance is a priority at CBD Delivery Service, and every customer must show their ID upon arrival.
“We always ensure that it doesn’t get into the wrong person’s hands,” Rob Leonard said.
While the owners of CBD Delivery Service steer clear of making medical claims about their products, their customers have boasted many healing effects — such as relief from pain and anxiety.
TJ Leonard said his business motivation stems from wanting to help people consume hemp legally. He grew up in Maine and later moved to California — both legal states. Now that he lives in Texas, he said he hopes the business helps keep people out of legal trouble. Additionally, CBD Delivery Service aims to be fast and discreet.
“When you go into a head shop, it kind of feels like you’re doing something illegal, even though everything’s legal,” TJ Leonard said. “With us, it’s as discreet as you can make it. We don’t wear uniforms, our cars aren’t decorated.”
The owners all say they are pleasnatly surprised at how busy they have been since the pandemic cooled off, and their delivery area extends beyond the Austin city limits. A map of the service area can be found at cbddeliveryatx.com, and everyone who orders can expect to receive their products in two hours or less.
Standard delivery is $10 but jumps to $20 for the extended delivery region. However, all customers who spend $100 or more receive free delivery. Additionally, every new customer receives 25% off of their order total.
