Tag: alcohol

Marijuana And Alcohol Businesses Should Join The Hemp Industry In The Fight For Regulation Instead Of Prohibition

In recent months, leading organizations and companies in the alcohol and marijuana space have jumped into the hemp sector, offering their support for clear federal legalization and robust oversight of hemp products.

The U.S. Hemp Roundtable, the hemp industry’s national advocacy organization, welcomes them—but asks them to join us in a framework that rejects prohibition, embraces regulation, prevents access by minors and protects retail and e-commerce for all elements of the diverse hemp industry.

Since the 2018 Farm Bill federally legalized hemp, it’s been a rollercoaster ride. After a brief gold rush, the Food and Drug Administration’s (FDA) refusal to regulate CBD led to a crash in prices and widespread disruption. But with a hemp industry as resilient as its stalk, innovators pioneered direct-to-consumer (DTC) sales and developed a new market for adult health and wellness products–including a hemp beverage boom which now meets growing demand for non-alcoholic options.

Today, the hemp extract market has surged to $28.4 billion, creating 328,000 agriculture and retail jobs, with a $13.2 billion employment impact and $1.5 billion generated in state tax revenues. Its popularity is not surprising—hemp products are made in the USA, harvested from crops grown by American farmers, manufactured by innovative U.S. entrepreneurs and sold by small businesses dotting the nation.

Competing interests have taken note of hemp’s success. A few marijuana multi-state operators (MSOs) have led efforts at the state and federal level to ban hemp products, and/or seek monopoly control over distribution. But the majority of marijuana advocates support regulation, not prohibition. In fact, many cannabis companies have found new life via hemp. We’re excited to join an emerging new effort to bring the entire cannabis family together in a united policy-making venture.

More recently, the alcohol industry is weighing in as hemp beverages have gained space on shelves previously reserved for liquor. Leading organizations such as the Wine & Spirits Wholesalers of America and the American Beverage Licensees have called for Congress and state legislators to explicitly legalize and regulate hemp beverages, which in 2024 boasted $380 million in revenues.

But warning clouds loom. In some states, efforts to regulate beverages include bans on other types of hemp products, such as edibles or CBD tinctures fully 85 percent of the hemp product marketplace). In others, there is a rush to ban DTC sales—a lifeline to hundreds of thousands of adult consumers.

Texas has emerged as a key battleground. In response to Lt. Gov. Dan Patrick’s (R) crusade to criminalize all hemp products, HB 28 was introduced as a hemp beverage carveout. Unfortunately, that bill would ban nearly all non-beverage hemp products, criminalize DTC and dramatically reduce the number of retailers who can sell these products.

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Using Marijuana Reduces Alcohol Cravings In People Who Drink A Lot, Federally Funded Study Shows

New federally funded research into the effects of cannabis on alcohol use finds that people who used marijuana immediately before drinking subsequently consumed fewer alcoholic beverages and reported lower cravings for alcohol.

“We found that across the entire sample, self-administering cannabis before alcohol significantly reduced alcohol consumption compared to when alcohol was offered without cannabis,” authors wrote in a study preprint published late last month on the open-access website PsyArXiv.

“Furthermore,” they continued, “we found that cannabis and alcohol co-administration was associated with significant acute reduction in alcohol craving compared to alcohol administration alone.”

The study, funded by the National Institutes of Health’s National Institute of Alcohol Abuse and Alcoholism, provides further evidence of a substitution effect, in which users report replacing some or all of their alcohol use with cannabis.

An eight-person research team from Colorado State University and the University of Colorado looked at the behavior of 62 adults who used both marijuana and alcohol and who engaged in heavy drinking for at least three months.

Each person participated in two separate sessions in which they could drink up to five alcoholic beverages—an initial priming drink, followed by up to four more optional drinks offered at 15-minute intervals.

In one of the two sessions, participants were first directed to consume marijuana in a manner of their choosing and at their typical dose, which was weighed and recorded.

When subjects used alcohol alone, they drank on average two self-administered beverages. With cannabis added to the mix, the average number of self-administered drinks was 1.5—roughly 25 percent lower.

And while not every participant drank less after using marijuana, those who did “reported reductions in alcohol craving at several timepoints after consuming cannabis and alcohol compared to alcohol alone,” the report says.

Alcohol cravings among those who drank more or the same after consuming cannabis either stayed level or increased, it notes.

The study concludes that “for some individuals who drink heavily, cannabis may serve as a substitute for alcohol, and craving reduction may be the mechanism through which this occurs.”

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Alcohol Retailers Say Only They Should Be Able To Legally Sell Marijuana Products

A new policy memo from an American alcohol retail industry group argues that marijuana should be regulated more like booze—including by requiring that intoxicating cannabis products be sold only by businesses licensed to sell alcohol.

“States should restrict the sale of intoxicating THC products to businesses licensed to sell beverage alcohol and that are regularly inspected for compliance with laws aimed at preventing sales to individuals under 21,” says the memo, published this month by the American Beverage Licensees (ABL) trade association.

The group contends that alcohol retailers, “with many decades of proven compliance, are best positioned to sell these products.”

Regulators should also treat cannabis similar to alcohol, the two-page policy memo says, such as by establishing licensing requirements, clear labeling standards and restrictions on advertising. “It may also include limits on potency per serving,” the alcohol trade group asserted.

THC products should also be lab tested for safety, purity and potency, the paper says. “Testing should verify the absence of harmful contaminants including but not limited to heavy metals, pesticides, mold and residual solvents, and confirm THC potency to prevent unintentional harmful effects.”

ABL, which represents on-premise sellers of beer, wine and spirits such as bars, taverns, restaurants and casinos, as well as off-premise retailers like package stores, is further calling for a “fair and transparent” tax structure for THC products, with production and retail tax rates “similar to those for beverage alcohol in the state.”

To ensure a working system, the memo also urges enforcement of laws and regulations. “This includes penalties for selling to underage individuals, failure to comply with testing and labeling requirements, and operating without a license,” the document says.

It also advises that states “should work with financial institutions, insurance providers, and regulatory authorities” to ensure that marijuana retailers have access to insurance and financial services.

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Be Skeptical of ‘Beneficially Coercive’ New Rules for Booze

A new warning from Surgeon General Vivek Murthy that links alcohol to cancer ought to raise questions about the purpose of such public health edicts—especially in the wake of the COVID-19 pandemic, which saw a dramatic decline in Americans’ willingness to trust such expertise.

Is the goal of public health to provide scientifically accurate information so Americans can understand the risks and trade-offs that are an inevitable part of life?

Or is the goal to change public behavior to eliminate risk, and to force that change if people are unwilling to go along?

Writing in The New York Times, physician Rachael Bedard argues for the latter. She likens Murthy’s new warning about alcohol to vaccine mandates: A “beneficially coercive” policy that “can evolve over time as people get used to new expectations and restrictions.”

“The way that public health most effectively helps people change their habits is by changing the incentives, pressures, and opportunities in the culture around them,” she writes—as if human beings were wild animals that the state is charged with domesticating, rather than rational actors with free will.

But Bedard is merely stating the quiet part out loud—even as she admits that “a majority of Americans might not be in the mood for the surgeon general’s advice.” Indeed, she also acknowledges that the surgeon general’s report isn’t meant to convince ordinary Americans to change their behavior—like her husband, who apparently rolled his eyes when told about the advisory. Rather, these “recommendations, like the one to change alcohol labeling to highlight cancer risk, are policy ideas.”

In other words, they’re not meant to convince you to do anything differently. They are meant to convince policymakers, who will then make the decision for you.

It’s a safe bet that Americans are in no mood to be scolded by public health officials these days, when the noble lies, shifting science, and officially authorized misinformation from the pandemic is still fresh in mind.

That would be true even if Murthy’s edict was based on sound science.

It’s not. Murthy’s report claims that drinking beer, wine, and liquor is “a leading preventable cause of cancer in the United States” and that “evidence shows that this risk may start to increase around one or fewer drinks per day.”

The evidence actually tells a far more complex story. Of the more than 740,000 cases of cancer worldwide in 2020 that Murthy says could have been prevented by abstaining from alcohol, more than 75 percent were attributable to people who had more than two drinks per day. 

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Beer Lobby Wants Restrictions and Higher Taxes on Intoxicating Hemp Products

A trade group representing the American brewing industry released proposals on how Congress should regulate its competitors. Unsurprisingly, they recommend a heavy hand.

The Beer Institute is a trade organization that “represents the beer industry before Congress, state legislatures and public forums across the country…as the recognized and authoritative source of information on aspects of the industry.” Last week, it released a list of “guiding principles” calling for restrictions on intoxicating CBD products.

“The Beer Institute supports efforts underway by lawmakers to close an unintended federal loophole that is enabling the proliferation of unregulated intoxicating hemp products across the country, including those containing synthetically derived THC,” the statement said. “Intoxicating hemp and cannabis products are fundamentally different than beer and the taxation of them by government entities should reflect these stark differences just as governments at all levels in the United States have consistently reaffirmed the different tax treatment between beer, wine and hard liquor.”

While marijuana remains illegal at the federal level, Congress inserted a provision into the 2018 farm bill legalizing hemp by defining it as part of the cannabis plant containing “not more than 0.3 percent” delta-9 THC, the psychoactive ingredient in marijuana. Soon thereafter, chemists began to manufacture intoxicating products with CBD derived from hemp that contained delta-8, a milder form of THC not mentioned in the farm bill.

The industry for intoxicating hemp-derived products exploded, and state laws have struggled to catch up. “State regulations governing hemp products vary widely and are unevenly enforced, creating a patchwork of rules that can change dramatically from one state to the next,” according to a policy brief by Geoffrey Lawrence and Michelle Minton of the Reason Foundation, the nonprofit that publishes this magazine. There are currently no federal laws that specifically address these products, including their legality—they are simply assumed to be legal based on the phrasing of the farm bill, and Congress has struggled to pass an updated version for more than a year.

In its guidelines, the Beer Institute takes no position on marijuana’s legality, merely allowing that “the legalization of consumable cannabis products is for American voters, state legislatures and Congress to decide.” But if and when Congress does get around to addressing intoxicating hemp products, the group recommends it pull no punches.

“If legalized, the Beer Institute supports the establishment of a federal excise tax rate on intoxicating hemp and cannabis, with the tax rate set higher than the highest rate for any beverage alcohol product,” the guidelines stipulate. “Regulators at the federal, state, and local levels should prohibit co-location of the sale of alcohol beverages in the same retail venues as intoxicating hemp and cannabis products, if legalized, and further, to avoid consumer confusion, intoxicating hemp and cannabis products, if legalized, should only be sold in dispensaries.”

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Beer Industry Trade Group Applauds California Governor’s Crackdown On Hemp Products With THC

A major alcohol trade association is applauding California Gov. Gavin Newsom’s (D) newly proposed emergency regulations to outlaw intoxicating hemp-derived cannabinoids and require all CBD products be completely free of THC.

The head of the Beer Association, which represents American brewers, importers and industry suppliers, touted its “longstanding commitment to responsible drinking” in comments issued Monday morning and said Newsom’s proposal will close “an unintended loophole” created with the passage of the 2018 Farm Bill, which legalized hemp federally.

“The Beer Institute thanks Governor Newsom for his leadership in closing an unintended loophole that has enabled the proliferation of unregulated intoxicating hemp products,” Brian Crawford, the group’s president and CEO, said in a statement. “Intoxicating hemp products are being sold as food and beverages, despite not being deemed safe for the U.S. food supply by federal regulators, and in some cases without age restrictions.”

“The beer industry is proud of our longstanding commitment to responsible drinking,” added Crawford, “and to operating in full compliance with a multitude of state and federal regulations.”

The Beer Institute said in an email that its position “aligns with a bipartisan coalition of 21 state attorneys general” who wrote a letter in March urging Congress to amend federal law so that intoxicating cannabinoids are not included in the federal definition of hemp.

More broadly, the Beer Institute has kept its distance from marijuana. It says on a policy page that while members “strongly believe voters should determine whether their state should legalize the sale of marijuana,” the group itself remains neutral on legalization. It further argues that it’s “misleading to compare marijuana to beer.”

“Beer is distinctly different, both as a product and as an industry,” the trade association contends. “Americans welcome beer at nearly every occasion because beer’s moderate alcohol content means it can be enjoyed sensibly. Brewers and beer importers are committed to responsible consumption, advertising, community service and working with law enforcement to promote public safety.”

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Marijuana Legalization Is A ‘Significant Threat’ To Alcohol Industry Because People Substitute Cannabis For Beer And Wine, Analysis Finds

Financial analysts say they expect the expansion of the marijuana legalization movement will continue to post 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.

A report from Bloomberg Intelligence (BI) projects that slumping sales of wine and spirits “may extend indefinitely,” which will “stem largely” from the increased consumer access to “legal cannabis,” as well as rising popularity of made-to-go drinks, for example.

They estimated that the combined influence of cannabis access and shifts in consumer demand for certain alcoholic product types accounts for a 16 percent share valuation discount offered by the beverage company Constellation Brands, which owns major brands including Corona, Modelo, Pacifico and Casa Nobel Tequila.

“The use of cannabis among consumers is on the rise, and we believe it’s being substituted for alcoholic beverages” based on an August 21 survey from BI involving 1,000 adults, it said. “We also anticipate that increasing US consumer access to recreational marijuana will be a significant threat to all alcoholic drinks, particularly beer and wine, given their lower price points relative to liquor.”

According to the survey, nearly half of respondents reported using cannabis as an alcohol substitute at least once per week. Additionally, 22 percent said they use marijuana more often than alcohol.

Meanwhile, a multinational investment bank similarly said in a report late last year that marijuana has become a “formidable competitor” to alcohol, projecting that nearly 20 million more people will regularly consume cannabis over the next five years as booze loses a couple million drinkers. It also says marijuana sales are estimated to reach $37 billion in 2027 in the U.S. as more state markets come online.

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Psychedelics Have ‘Demonstrated Potential For Treating Drug Addiction’ And Alcoholism, New Research Shows

Two new studies on psychedelics and alcoholism—including one with contributions from a top federal drug official—offer hope for new ways to treat alcohol use disorder (AUD).

One says a single dose of psilocybin “was safe and effective in reducing alcohol consumption in AUD patients,” while the other concludes that classic psychedelics like psilocybin and LSD “have demonstrated potential for treating drug addiction, especially AUD.”

The first study looked at 10 treatment-seeking adults “with severe AUD,” according to a preprint version of the research published online at Research Square. After a single 25 milligram dose of psilocybin, “alcohol consumption significantly decreased” during a 12-week period, the team found.

Coauthored by National Institute on Drug Abuse (NIDA) Director Nora Volkow—in her role at the National Institute on Alcohol Abuse and Alcoholism’s neuroimaging laboratory—along with 10 researchers at the University of Copenhagen, in Denmark, the open-label study found that most participants craved alcohol less and consumed fewer drinks following treatment with psilocybin.

“Participants reported a decrease from baseline to week 1 in alcohol craving,” the paper says—a decrease that was sustained four weeks and 12 weeks after the psychedelic was administered. “Further, participants reported an immediate change from baseline to week 1 in self-efficacy, i.e. confidence in the ability to abstain from alcohol.”

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Major Alcohol Industry Group Pushes Congress For ‘Critical Action’ To Regulate Consumable Hemp Products, Rather Than Ban Them

A major alcohol industry association is calling on congressional leaders to create a regulatory framework for hemp-based intoxicating cannabinoids—rather than impose an outright ban as is proposed under a large-scale agriculture bill that’s advancing in the House.

In a letter sent to House and Senate Agriculture Committee leaders on Wednesday, Wine & Spirits Wholesalers of America (WSWA) urged “critical action to ensure that intoxicating hemp products sold across the country are safe for consumers” as lawmakers work to advance the 2024 Farm Bill.

“We strongly advocate for clear federal rules and regulations that define intoxicating hemp compounds and to grant states the authority to regulate these products within their borders,” the alcohol trade association said.

The letter comes about a week after the House Agriculture Committee approved an amendment to the 2024 Farm Bill that would effectively ban most consumable hemp products—a proposal that saw some ideological splintering within the cannabis sector.

Ahead of that vote, WSWA said the “attempt to ban intoxicating hemp products is merely doubling down on the failed federal policy of prohibition.” But in this latest letter, the association used more tempered language. While it said a regulatory framework would be ideal, it also suggested Congress could enact legislation that also allows individual states to ban the products altogether.

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San Francisco buys vodka shots for homeless alcoholics in taxpayer-funded program

The City of San Francisco is providing free beer and vodka shots to homeless alcoholics at taxpayer expense under a little-known pilot program. 

The “Managed Alcohol Program” operated by San Francisco’s Department of Public Health serves regimented doses of alcohol to voluntary participants with alcohol addiction in an effort to keep the homeless off the streets and relieve the city’s emergency services. Experts say the program can save or extend lives, but critics wonder if the government would be better off funding treatment and sobriety programs instead.

“Established in countries such as Canada and Australia, a managed alcohol program is usually administered by a nurse and trained support staff in a facility such as a homeless shelter or a transitional or permanent home, and is one method to minimize harm for those with alcohol use disorder,” the California Health Care Foundation explains in an 2020 article describing the pilot program. 

“By prescribing limited quantities of alcohol, the model aims to prevent potentially life-threatening effects of alcohol withdrawal, such as seizures and injuries.” 

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