Big Alcohol’s Hemp Civil War: Brands Want A Pause. Distributors Want To Sell THC.

in Culture

The cannabis industry has spent the past year battling lawmakers, attorneys general and FDA ambiguity over intoxicating hemp beverages. Then something unexpected happened.

Not from cannabis. From alcohol.

And not in a united front. A split. A civil war.

Earlier this month, several of the most powerful alcohol trade lobbies in the country asked Congress to remove hemp-derived intoxicating products from the marketplace until federal rules exist.

These groups include the Distilled Spirits Council, the Beer Institute and the Wine Institute, representing some of the biggest brand portfolios in the world. They want a pause. A freeze. Take hemp drinks off shelves until the federal government decides what to do with them.

They are backed by serious money. According to lobbying data from OpenSecrets, alcohol companies spent nearly $30 million on federal lobbying in the last election cycle.

To them, hemp beverages are a regulatory liability. A problem to be contained.

But the alcohol industry is not speaking with one voice.

Because 48 hours later, a different faction inside the same industry sent Congress a different message.

The wholesalers flip the narrative

On November 5, a coalition of 54 beer, wine and spirits distributors across twenty six states sent lawmakers a letter urging them to keep hemp beverages legal and regulate and tax them like alcohol.

This letter represents 20,000 employees and $13 billion in annual revenue, including third, fourth and fifth generation family-run businesses that have been distributing alcohol since the repeal of Prohibition.

Their tone is not subtle:

“We respectfully urge Congress to avoid language that would create a prohibition on intoxicating hemp consumable products. Instead, we offer our support to help Congress effectively regulate and tax these products like alcohol.”

Another line hits harder:

“As demand for alcohol has shifted downwards in recent years, hemp products have created jobs, driven new investment, and …

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Author: Javier Hasse / High Times

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