New data suggests alcohol consumption is decreasing across the board. Meanwhile, cannabis use is on the rise. This has led to a rise in the popularity of hemp based THC-infused drinks. People no longer have to step out to consume cannabis or worry about the smell, and some markets even allow consumption at bars among people drinking alcohol.
As intoxicating hemp drinks grow in popularity around the country, lawmakers are scrambling to regulate their sales. The 2018 Farm Bill continues to leave hemp in a perceived grey area. Federally legal hemp is defined as cannabis that contains less than 0.3 percent THC by dry weight, and this hazy definition has caused the regulation of the plant to be virtually impossible—hemp can be legally sold even in many states in which marijuana is illegal, and it’s typically sold outside of dispensaries.
RELATED: Op-ed: Hemp THC isn’t a loophole – it’s the law
Because of this lack of legislation, the hemp industry has thrived, and hemp drinks are its newest phenomenon. According to Euromonitor International, the market is estimated to be worth more than $1 billion, and industry experts project retail sales to reach $30 billion in the next decade. Hemp drinks are being sold at sporting events, regular convenience stores, and bars; Ian Dominguez of Delta Emerald said the company projects hemp drinks to outsell craft beer by 2035. This tension between hemp drinks and long-standing alcohol is one of the main contributors to the proposed regulations of THC beverages.
Alcohol industry eyeing cannabis regulation
This year so far, more than a dozen states have introduced a combined 80+ hemp beverage bills, among them Alabama, Georgia, and Texas. In states like California and New York, the sales of these drinks have been banned or partially banned. In many others, it has been proposed that hemp drinks must go through third-party testing, be sold only to those over the age of 21, and have rigid THC limits.
RELATED: Feds threaten nationwide hemp THC ban
Alcohol wholesalers are among the groups pushing hardest for regulation of the beverages. Steve Barclay, executive director of the Beer and Wine Distributors of Arizona, was the primary drafter of a bill proposing that hemp drink companies must use beer, wine, and liquor wholesalers to distribute their products—the bill was passed by the Senate in March but never reached the House. Others in the alcohol industry feel similarly, arguing that the existing alcohol system works, and hemp drinks should be incorporated into it.
As hemp THC faces an outright federal ban and states are cracking down on its sale, this grey area within the cannabis industry might be closed soon. Until then, though, it seems that hemp drinks will continue to thrive, and the worlds of alcohol and cannabis may continue to collide, creating the potential for a married marketplace.