Alcohol Industry Group Launches Push To Regulate Hemp THC Drinks Instead Of Banning Them

A major alcohol industry trade association is launching a new campaign
pushing Congress to call off a scheduled ban on hemp THC beverages and
instead regulate the products for consumer access.

Wine & Spirits Wholesalers of America (WSWA) on Tuesday announced it has
created an educational microsite on the issue that offers resources on the
issue and argues that “the same regulatory system that has worked for
alcohol should be applied to intoxicating hemp products.”

In particular, the group is supporting an approach for hemp drinks that
would include federal licensure of suppliers and distributors, a federal
tax, independent testing requirements and the regulation of trade practices
such as a prohibition on slotting fees, while allowing states to regulate
the products in their own markets.

“This framework should prioritize a safe and reliable marketplace by
supporting public safeguards and consumer choice,” the WSWA microsite says.
“Alcohol regulation has been an unparalleled success and can serve as a
model for the regulation of intoxicating hemp products, including
beverages.”

At the state level, the alcohol lobby group is calling on states to create
their own licensing structures and regulatory systems with components such
as an age limit of 21, excise taxes, bans on synthetic cannabinoids,
testing requirements, marketing restrictions and product tracking.

In the meantime, WSWA wants lawmakers to pass pending legislation to delay
the scheduled ban on hemp THC products for two years, which it says will
provide enough time for a regulatory approach to be crafted. As it stands
now under legislation signed by President Donald Trump late last year, hemp
THC products are set to be federally recriminalized on November 12. They
initially became legal under the 2018 Farm Bill that Trump signed during
his first term.

The wine and spirits group’s microsite also provides facts and figures
about the intoxicating hemp market, saying it supports 320,000 jobs, has
$28.4 billion in potential market activity and $1.5 billion in potential
state tax revenue.

It also has a countdown timer showing how long lawmakers have to act until
the ban goes into effect.

“If Congress fails to act, these products face a real risk of being removed
from the shelves of licensed, responsible retail stores in November, but
would still be available to consumers through multiple other unregulated
channels” WSWA President and CEO Francis Creighton said in a press release.
“Intoxicating products, including hemp beverages, need a clear, workable
framework that protects public health and public safety while allowing
responsible businesses to operate. This resource is designed to inform that
conversation with facts, not confusion.”

Earlier this month, the House Agriculture Committee advanced a Farm Bill
that hemp industry stakeholders hoped could be used to delay the pending
federal ban on cannabinoid products containing THC. But while the legislation
does contain certain hemp provisions aimed at assisting farmers, it did not
include any reforms to the impending recriminalization.

WSWA recently hosted a conference at which industry stakeholders and a
former congressman who owns an alcohol retail chain discussed hemp product
issues.

The group has been closely monitoring federal hemp policy developments, and
the association was among the first in the sector to call on Congress to
dial back language in the now-enacted law set to ban most consumable hemp
products, while proposing to maintain the legalization of naturally derived
cannabinoids from the crop and only prohibit synthetic items.

Other major alcohol retailers came together in January to encourage
Congress to delay the enactment of the law Trump signed that will federally
recriminalize hemp-derived THC beverages and other products.

Members of WSWA also met with lawmakers and staffers last year to advocate
for three key policy priorities that the group says is based on “sound
principles of alcohol distribution.” They include banning synthetic THC,
setting up a federal system for testing and labeling products and
establishing state-level power to regulate retail sales.

In an op-ed for Marijuana Moment last year, WSWA’s Creighton echoed that
point, reiterating the organization’s position that regulation is superior
to prohibition.

A separate newly launched group, the Beverage Alcohol Merchants Coalition
(BAMCO), is also pushing for a delay in the federal recriminalization of
hemp THC products. Its founding members include Total Wine & More, BevMo!
by Gopuff, ABC Fine Wine & Spirits, Spec’s Wine and Spirits & Finer Foods,
as well as a group of hemp product wholesalers.

A 2024 report from Bloomberg Intelligence (BI) called cannabis a
“significant threat” to the alcohol industry, citing survey data that
suggests more people are using cannabis as a substitute for alcoholic
beverages such a beer and wine.

Also that year a beer industry trade group put out a statement of guiding
principles to address what it called “the proliferation of largely
unregulated intoxicating hemp and cannabis products,” warning of risks to
consumers and communities resulting from THC consumption.

A recent government-funded study concluded that alcohol and tobacco cause
far more harms to people who consume them, and to society overall, than
marijuana does.

The post Alcohol Industry Group Launches Push To Regulate Hemp THC Drinks
Instead Of Banning Them appeared first on Marijuana Moment.