An Interesting Cannabis Company in Texas

I became aware of Houston-based Bayou Hemp in 2024. I reached out to CEO Ben Meggs by email on 4/18/24, and he got back to me quickly. We spoke on the phone on 4/22. Meggs, who has been CEO since 2023, when he co-founded Beach Break, came from the energy industry. He has made a great transition, and I liked what he said to me!

Meggs was very loudly against the proposed ban of THC products in Texas, and he threatened to move his company to Florida after the legislature approved the laws, which were later vetoed by Governor Abbott.

In April 2028, Meggs was on Fox News in Houston regarding the potential legislation, and he argued for regulation rather than prohibition. He called out "bad actors" and also discussed how catastrophic prohibition would be for his 60 employees, suggesting that the company might need to move to Florida.

After the legislation passed, Meggs was quoted in a Houston Business Journal article:

We'll see if the governor continues to allow Texas to be open for entrepreneurs and business, but it's truly devastating on so many levels. Most of our employees, they're not going to be able to move their families to Florida, which is where we will likely move our operations because Florida is open for business.

Ben Meggs, Bayou City Hemp CEO

Bayou City Hemp, which is privately held, was founded in 2019, and it bought 8th Wonder Brewery in Houston in May 2023. It offers more than just cannabis, and it has variety of THC edibles across three different brands: 8th Wonder, Howdy, and Third Coast. These products are apparently sold not only in Texas but in other states too, like Florida, Louisiana and Tennessee with direct sales. Total Wine sells them in Florida, Louisiana, New Jersey and Texas and perhaps more states. On the Bayou City Hemp website, I saw that one can ship directly to other states, like Illinois and New York.

8th Wonder, which started as a beer brewery in 2013, has a Fun Time Factory located near downtown Houston (1/2 mile from Daikon Park, where the Astros play and 1/2 mile from the Houston Convention Center), and I have walked by there before.

The company was using Delta-8 THC but no longer does. It is all derived from hemp. The company shares its mission: "To bring the best and most reliable cannabinoid products to the market; through a commitment to innovation, expertise and quality."

Their process is described on the website:

What caught my attention initially was that Spec's partnered with Bayou City Hemp in March 2024. Spec's has long been a favorite wine store of mine. The downtown location is massive, and the chain now operates over 200 locations across Texas after forming in 1962. I learned also that Silver Eagle Distributors Houston, part of Redwood Management, had started distributing cannabis products from Bayou City Hemp in February 2024. Silver Eagle is a massive alcohol distributor and is focused on Texas as a major distributor for Anheuser Busch. Finally, the day before I reached out to Meggs, I saw that Ninfa's, an old and very good Mexican restaurant chain in Houston, was carrying Bayou City Hemp's THC drinks. I had no idea that THC beverages were federally legal then, but I saw good companies getting involved with them. I wanted to learn more!

I wish Bayou City Hemp the best. They are a private company, and I am limited as far as what I can learn about it, but I do like what I see.