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.
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