Alcohol industry bets on regulation to maintain THC beverage market
Proposal introduced in the United States Congress creates rules for hemp-derived THC beverages, receives support from the alcohol industry, and seeks to prevent the recriminalization of products currently sold in the country
The U.S. market for hemp-derived THC beverages has gained a new ally. The Wine & Spirits Wholesalers of America (WSWA) declared support for the bill introduced in the United States Congress that seeks to keep certain hemp products legal, while establishing new rules for manufacturing, marketing, and taxation.
According to the portal Marijuana Moment, the proposal creates a regulatory model inspired by the system used for decades for alcoholic beverages. The text provides for a minimum purchasing age of 21, independent testing requirements, labeling standards, federal licensing, and state oversight.
Bill introduces new rules for THC beverages
The initiative once again alters the federal definition of hemp and allows products with a concentration of up to 1% THC on a dry-weight basis for adults 21 and older. The bill also mandates the creation of a three-tier system divided among manufacturers, distributors, and retailers, preventing a single company from operating in more than one step of the supply chain.
In a statement released by the organization, Dawson Hobbs, executive vice president of Federal Affairs at WSWA, stated that the proposal represents "an important step forward in recognizing that hemp-derived beverages can be regulated using the principles of the three-tier system that has safely and successfully governed beverage alcohol for over 90 years".
Taxation still divides opinions
Although it supports the proposal, WSWA considers that the taxation outlined in the text still needs adjustments. The bill establishes a tax of five cents per milligram of THC in beverages, in addition to a 5% tax on the annual revenue of hemp-derived product manufacturers.
The debate comes as the administration of President Donald Trump and members of the White House advocate for legislative changes to prevent the recriminalization of certain hemp products currently available on the market. Meanwhile, beverage industry groups, retailers, and industry representatives continue to press Congress for a permanent regulatory framework that balances consumer safety and market predictability.
Source: Marijuana Moment