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.