A group of US beverage-alcohol trade associations has called on Congress to remove hemp-derived THC products from the market.
In a letter seen by Just Drinks, the American Distilled Spirits Alliance (ADSA), Beer Institute, Distilled Spirits Council of the US (DISCUS), WineAmerica and the Wine Institute urged congressional leaders to “act immediately to remove hemp-derived THC products from the marketplace until a robust federal regulatory framework is established”.
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The debate stems from the 2018 Agricultural Improvement Act that legalised industrial hemp at the federal level, provided it contains less than 0.3% THC.
The trade groups’ intervention follows a separate move by a coalition of 39 US state attorneys general, who wrote to Congress seeking a tighter federal definition of hemp to prohibit “intoxicating” hemp-derived THC products sold outside state-regulated cannabis systems.
In their letter, the attorneys general said the definition in the 2018 legislation should be revised “to prevent the continued sale of unregulated, intoxicating THC products”.
In their message, the alcohol-industry groups argued the 2018 farm bill was intended to restore industrial hemp as an agricultural commodity rather than authorise “an entirely new industry of highly intoxicating products”.
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By GlobalDataThey added: “Unfortunately, the ambiguous language contained in the 2018 farm bill has been manipulated and exploited by certain actors, fuelling the rapid growth of a largely unregulated market that is knowingly and willfully ignoring the Federal Drug Administration’s (FDA’s) position that the addition of intoxicating cannabinoids (like delta-8 THC and delta-9 THC) to food is illegal.”
The letter was signed by Amanda Nguyen, president and CEO of ADSA; Beer Institute chief Brian Crawford; Chris Swonger, the president and CEO of DISCUS; Jim Trezise, the president of WineAmerica; and Robert Koch, the president and CEO of the Wine Institute.
While the farm bill permits industrial hemp on a federal level, state laws on THC vary.
According to a report from cannabis consultancy Whitney Economics, THC beverages are legal in 28 states, while they are legal with restrictions in nine, limited to marijuana retailers in seven, and prohibited completely in six.
Reacting to the attorneys general’s letter, THC drinks maker Cann had warned that such federal restrictions would disadvantage small businesses and constrain options for consumers.
Alongside an online petition, the California-based group said: “This isn’t about safety. It’s about consolidating industry at the expense of small businesses and limiting consumer choice.”
The company added: “We believe hemp-derived THC beverages should be treated like other adult-use products like alcohol”.
Whitney Economics has estimated the total potential market value for THC beverages sits between $9.9bn and $14.9bn, with legal sales in 2024 projected to be valued between $1bn and $1.3bn.
The report says there are 500 to 750 operating in the THC drinks space nationwide, around 200 of which sell through marijuana dispensaries.
