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


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 helped us meet changing consumer demand. If prohibition is enacted, that demand will not disappear. It will simply move into unregulated channels.”

That sentence could have come from a cannabis advocacy group. But it came from beer distributors.

Why alcohol is fighting itself

To understand the split, you have to understand the three-tier alcohol system.

  1. Producers: Breweries, distilleries, brand owners
  2. Distributors/wholesalers: The middlemen who deliver products into stores, bars, music venues
  3. Retailers: Bars, restaurants, grocery chains

The lobbying push against hemp drinks comes primarily from the producer lobby. They want regulatory certainty, FDA blessing, and protection of market position.

The push to keep hemp drinks legal comes from wholesalers. They are already moving hemp beverages. They see what is happening on the ground. Those cans are selling.

To distributors, hemp THC is not a threat. It is inventory.

And their letter makes that very clear:

“All 50 States have implemented laws related to hemp. Additionally, 40 States have established a regulatory framework for consumable hemp products.”

They are not asking for chaos. They are asking for clarity.

The unexpected future

The wildest part of this moment is not that alcohol entered the hemp fight. It is that alcohol entered on both sides.

One side wants hemp drinks paused until Congress writes new rules. The other side wants those drinks legalized, taxed and delivered on trucks tomorrow morning.

More than half of beer wholesalers nationwide are already distributing hemp beverages. They are not theorizing. They are doing it.

A world where interstate THC commerce runs through beer distributors is no longer a fantasy. It is a logistics plan.

It is already happening.

The headline nobody predicted

Cannabis did not force this conversation. Hemp beverages did.

And now a new question hangs over Washington: Will Congress listen to the brand lobbies that want hemp THC paused,
or the distributors who want to keep loading it onto trucks?

The fight is no longer weed vs. booze. The fight is inside Big Alcohol.

And whichever side wins could determine the future of THC beverages in the United States.

Photo: Shutterstock



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