Big Alcohol asks Congress to ban hemp-derived THC sales for now

Amid an intensifying debate on Capitol Hill whether to recriminalize hemp-derived THC products, federal lawmakers are receiving mixed messages from the alcohol industry.

A coalition of alcohol distributors urged lawmakers in a letter sent to Congressional leadership on Wednesday to regulate and tax intoxicating hemp products like alcohol.

That’s after representatives from some of the biggest alcohol lobbies in the country asked Congress to “immediately remove hemp-derived THC products from the marketplace until” federal rules are imposed.

Government shutdown could end hemp-derived THC

Despite the record-long government shutdown, lobbyists and lawmakers in Washington are also weighing the future of intoxicating hemp-derived THC.

Many Republican lawmakers are pushing for a redefinition of hemp under federal law that critics say would ban most hemp-derived THC products, including the increasingly popular hemp beverages now sold by major retailers.

Observers say that it’s possible language banning hemp could be inserted into the spending bill that, when signed, would end the shutdown.

Alcohol distributors want hemp-derived beverages

On Wednesday, more than 50 alcohol distributors from across the U.S asked Congress to regulate and tax consumable intoxicating hemp products rather than ban them.

In a letter addressed to top Republican and Democratic leadership, the distributors highlighted the economic and public safety benefits of a regulated hemp beverage market.

It praised the 2018 Farm Bill for creating new opportunities for U.S. farmers as well as beverage makers who have pivoted as consumer behavior changed.

“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 read in part.

And it drew parallels to the lessons learned from alcohol Prohibition.

“If prohibition is enacted, that demand will not disappear—it will simply move into unregulated channels, undermining both public health, safety and legitimate businesses.”

Other major alcohol lobbies push for hemp THC ban

That’s in stark contrast to the letter the same Congressional leaders received Tuesday.

In a Nov. 4 letter, alcohol lobbies voiced their support with the 39 state attorneys general who also asked Congress to “address the proliferation of unregulated intoxicating hemp products.”

The latter asks “Congress to act immediately to remove hemp-derived THC products from the marketplace until a robust federal regulatory framework is established.”

The signatories who sent the letter are:

• American Distilled Spirits Alliance
• Beer Institute
• Distilled Spirits Council of the United States
• Wine America
• Wine Institute

The groups’ membership include “some of the world’s most valuable consumer brands,” that “produce virtually all the beer, distilled spirits, and wine available in every state,” according to the letter.

They’re also some of the top alcohol-industry lobbying spenders, according to OpenSecrets.

“Unfortunately, the ambiguous language contained in the 2018 Farm Bill has been manipulated and exploited by certain actors, fueling the rapid growth of a largely unregulated market that is knowingly and willfully ignoring the (Food and Drug Administration’s) position that the addition of intoxicating cannabinoids (like delta-8 THC and delta-9 THC) to food is illegal,” the letter read in part.