Representatives from the alcohol industry gathered in Washington, D.C., earlier this month to advocate for a federal regulatory framework governing hemp-derived cannabinoid products, particularly cannabinoid-infused beverages. This market has expanded significantly since the 2018 Farm Bill legalized hemp.
Members of the Wine & Spirits Wholesalers of America (WSWA) engaged with lawmakers to promote three primary policy objectives. These objectives focus on banning synthetic THC, establishing a federal system for testing and labeling products, and granting states the authority to regulate retail sales. The WSWA highlights the importance of these regulations for ensuring responsible industry growth and consumer safety.
Ryan Mosses, CEO of Best Brands and WSWA board member, emphasized the need for this legislative push, stating, “Legislative fly-ins like this are invaluable opportunities for our members to engage directly with lawmakers, share industry insights, and advocate for smart, science-backed regulations that benefit both businesses and consumers.”
Michael Bilello, WSWA’s executive vice president of communications and marketing, reiterated the call for federal regulation, stating, “The message to lawmakers was clear: federal regulation of hemp-derived beverages is essential. Cannabis should be regulated—and enjoyed—responsibly by adult consumers.”
The WSWA urges Congress to clarify hemp-derived cannabinoid product regulations in the upcoming Farm Bill. They propose that the Farm Bill should allow only naturally derived THC products from hemp, specifically Delta-9, while enabling states to regulate distribution and retail sales for consumers over 21.
This lobbying effort follows previous calls from the WSWA for a comprehensive regulatory framework instead of an outright ban, which was being considered last year. The trade association has consistently advocated for clear federal rules to define intoxicating hemp compounds while empowering states to regulate these products.
The alcohol industry has increasingly lobbied on cannabis issues, driven by the competition posed by expanding marijuana markets. This month’s lobbying coincided with a policy memo from another alcohol trade group, the American Beverage Licensees (ABL), which argued that only licensed alcohol retailers should sell intoxicating hemp products. The ABL recommends that states restrict the sale of these products to existing alcohol businesses, which have a long history of compliance with age restrictions.
The ABL’s memo also suggests that cannabis should be regulated similarly to alcohol, with established licensing requirements, labeling standards, and advertising restrictions. They propose limits on potency per serving to ensure consumer safety.
A report from Bloomberg Intelligence noted that cannabis consumption is increasingly viewed as a substitute for alcoholic beverages, with many consumers opting for marijuana over beer and wine. The report anticipates that declining sales in the alcohol market may continue as consumer access to legal cannabis expands.
Previous studies indicate that cannabis use is rising at a faster rate than alcohol consumption. A 2023 report projected that nearly 20 million more individuals will regularly use cannabis in the next five years, creating a formidable challenge for the alcohol sector.
In November, a beer industry trade group recommended imposing a federal excise tax on hemp and cannabis products, suggesting the rate be higher than any alcohol product. They also advocated for a strict approach to THC and driving, underscoring the potential risks associated with THC consumption.
Recent data indicates that daily cannabis consumption has surpassed daily alcohol consumption among Americans. A study highlighted that since 1992, the rate of daily cannabis use has increased nearly 15 times.
At a congressional hearing, a hemp industry expert called for immediate federal regulations, stating that the market is “begging” for clarity on cannabis products. Rep. James Comer (R-KY) criticized the FDA’s inaction on regulations, questioning whether it would take extensive bureaucratic resources to address cannabinoid regulations.
In response to the lack of federal rules, states like California and Florida are redefining their laws regarding consumable hemp products. While the focus has been on intoxicating goods, federally legal CBD businesses are also facing increased scrutiny.
While Congress prepares to address agriculture legislation again, researchers have noted divisions among legislators regarding cannabis policies. The Senate Democrats released a draft of the 2024 Farm Bill, proposing changes to federal hemp laws, including amendments to THC measurement and reducing barriers for farmers.
Despite the challenges, a report indicated that the hemp market in 2022 was larger than all state marijuana markets combined and comparable to national craft beer sales. As the landscape evolves, the alcohol industry’s push for regulation reflects both competitive pressures and a desire for structured oversight in the emerging hemp-derived cannabinoid market.
English 
Spanish 
German 
Czech