Beer, Wine And Spirits Distributors Tell Congress Not To Ban Hemp THC Products As ‘Demand For Alcohol Has Shifted Downward’

More than 50 alcohol distributors have joined together to oppose efforts in Congress to ban intoxicating hemp products, stressing to lawmakers that as demand for alcohol has “shifted downward,” the cannabis market has helped sustain their industry.

In a letter sent to congressional leaders on Wednesday, the coalition of beer, wine and spirts wholesalers said it’s imperative that lawmakers “avoid language that would create a prohibition on intoxicating hemp consumable products” through the appropriations process.

“Instead, we offer our support to help Congress effectively regulate and tax these products like alcohol,” they wrote.

“As demand for alcohol has shifted downwards in recent years, hemp products have created jobs, driven new investment, and helped us meet changing consumer demand,” the letter says. “If prohibition is enacted, that demand will not disappear—it will simply move into unregulated channels, undermining both public health, safety and legitimate businesses.”

The alcohol companies said that the debate over hemp is “very analogous to the debate our forefathers endured at the beginning of the 20th Century” when the federal government banned alcohol. Following prohibition in 1919, they warned, “the ensuing 14 years of prohibition only created a thriving illicit market and a significant number of bad actors.”

“Our forefathers realized the only way to eliminate these bad actors was to establish a robust regulatory framework where each State was given the authority to regulate products safely within its borders in a manner that respected the ethos of the citizens,” they said.

“We fully appreciate concerns regarding product integrity, underage access, and public safety. We offer nearly 100 years’ experience of safely bringing regulated beverages to market and keeping illicit products out. Adulterated and illicit alcohol is not an issue in America thanks to strong state-based regulations, trade practice rules, and laws that support wholesaler independence. With a century of alcohol experience, we welcome the opportunity to help educate Congress on how best to regulate intoxicating consumable hemp products.”

“We respectfully urge you to oppose efforts to close the so-called “hemp loophole” through any spending package or Farm Bill,” the letter concludes. “Instead, we urge you to work with our industry to create comprehensive rules that protect communities, ensure product safety, and give responsible companies the certainty we need to operate safely and successfully. We stand ready to partner with you in this process.”

This is one of the latest in a series of attempts to influence Congress as it reevaluates federal hemp laws years after the crop and its derivatives were federally legalized under the 2018 Farm Bill.

Interestingly, there’s particular division among alcohol stakeholders, many of which reported lobbying on hemp issues this year. There appears to be disagreement over the path forward as it concerns wholesalers who distribute alcohol and hemp products and major brands marketing their own beverages.

For example, a coalition of major alcohol industry associations recently threw its weight behind a push to get Congress to ban intoxicating hemp products—at least on a temporary basis before the federal government creates a “robust regulatory framework” for the marketplace.

A leading consumer trade association that counts among its members corporations such as Coca-Cola, General Mills, Kraft Heinz and Nestlé is also putting pressure on Congress to ban intoxicating hemp products.

Meanwhile, a bipartisan group of 39 state and territory attorneys general recently called on Congress to clarify the federal definition of hemp and impose regulations preventing the sale of intoxicating cannabinoid products.

Minnesota Attorney General Keith Ellison (D), who helped lead that letter to congressional leaders last month, defended his decision amid criticism from industry stakeholders and advocates who questioned why top prosecutors from states that have robust regulated hemp markets such as Minnesota would encourage the federal recriminalization of such products.

As Congress continues to navigate a path forward on funding legislation to end an ongoing government shutdown, lawmakers are still at work attempting to reach a deal on federal hemp laws—with one GOP senator telling Marijuana Moment that multiple options are on the table, though it will ultimately come down to what leadership wants.

Two GOP lawmakers—Sen. Mitch McConnell (R-KY) Rep. Andy Harris (R-MD)—have pushed aggressively for an outright ban on hemp products containing THC. But others such as Sen. Rand Paul (R-KY) have insisted that such a policy change would devastate the industry. And Paul said recently he’d go so far as to hold up large-scale spending legislation if a full ban was kept intact.

The senator also pushed back against the recent letter from the state and territory attorneys general who implored Republican leaders to fully prevent the marketing of intoxicating hemp products.

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As far as legislative options go, Paul did put forward legislative language recently to require a study and report on state regulatory models for hemp that could inform future revisions to the federal law—rather than prohibit sales altogether, as McConnell would have it.

In August, McConnell–who ushered in the federal legalization of hemp under the 2018 Farm Bill–took to the Senate floor to criticize those who opposed the ban, including Paul.

Meanwhile, Paul recently filed a standalone bill that would go in the opposite direction of the hemp ban, proposing to triple the concentration of THC that the crop could legally contain, while addressing multiple other concerns the industry has expressed about federal regulations.

The senator introduced the legislation, titled the Hemp Economic Mobilization Plan (HEMP) Act, in June. It mirrors versions he’s sponsored over the last several sessions.

Read the alcohol wholesalers’ letter to congressional leaders on the hemp ban proposal below: