Federal hemp regulation could open up beverage innovation opportunities

Close-up of Marijuana Leaves on Plant
The new bill would make regulation clearer and consistent across the US (Getty Images)

The Cannabinoid Safety and Regulation Act (CSRA) would regulate – rather than ban – hemp derived beverages

Key takeaways

  • The Cannabinoid Safety and Regulation Act (CSRA) would create clear rules for hemp-derived beverages in the US
  • The legislation proposes a minimum purchasing age of 21 and sets serving size limits
  • States would retain the authority to impose stricter regulations on hemp-derived products beyond the federal provisions.
  • Hemp-derived beverages are generally ‘microdosed’ beverages with low levels of THC: and offer an interesting avenue of diversification for alcohol and other beverage manufacturers

Last month’s government funding bill – which ended the government shutdown - contained a provision to outlaw hemp products across the US.

But last week, US Senators Ron Wyden (D) and Jeff Merkley (D) reintroduced legislation that instead sets out national standards for such products via the Cannabinoid Safety and Regulation Act.

Those standards would include a 21+ age limit, and a limit for the intoxicating content in each serving size.

Hemp-derived THC beverages have the potential to get consumers ‘high’ but are generally considered as ‘micro-dosed’ or ‘sessionable’.

Most hemp-derived THC beverages incorporate between two and ten milligrams of THC (for perspective, most states that have legalized cannabis consider ten milligrams to be one serving).

Yet uncertainty around regulations has hampered the category from reaching its potential: while the plans laid out in the November government funding bill could have dealt a final blow. Instead, the CSRA hopes to create structured and consistent rules for products.

“This bill further demonstrates the desire for a clear federal regulatory framework for hemp-derived products, including beverages,” explained Christopher Lackner, president of the Hemp Beverage Association.

“The bill would set a national standard for certain regulatory aspects, rather than a patchwork of state rules, while still maintaining deference to those states with established regulations, particularly established milligram limits per product.”

The Cannabinoid Safety and Regulation Act (CSRA)

  • The bill would mandate a minimum age of 21 to buy and set a serving size limit for intoxicating content in hemp-derived products where states do not have their own limits in place.
  • It would also require all hemp-derived products to be tested for safety and manufactured using a clean and safe process.The CSRA would require truth The Food and Drug Administration (FDA) would be tasked with recalling or banning any hemp-derived products that contain too much THC, dangerous chemicals, byproducts or additives.
  • Beyond these provisions, the legislation would explicitly allow states to prohibit, limit or otherwise regulate hemp-derived products beyond the bill’s provisions.
  • The bill is endorsed by the U.S. Hemp Roundtable and the Wine and Spirits Wholesalers of America.

While the 2018 Farm Bill saw hemp (defined as Cannabis sativa L.) removed from the definition of marijuana in the Controlled Substances Act, it’s remained a grey zone many beverage producers are reluctant to enter.

But for those who have, it offers an exciting diversification opportunity: particular when it comes to creating alternatives for alcohol.

Hemp beverages can come in the form of seltzers, sodas, mocktails, coffees, teas, and other non-alcoholic drinks: which contain a small infusion of hemp-derived cannabinoids.

That can be a lifeline for smaller businesses who are adapting to new consumer trends.

Cannabis and hemp beverages

While cannabis beverages (and other edibles) have made their way onto shelves across select states, many Americans remain uneasy about the substance and confused about different cannabinoids.

That’s led to a pushback against these beverages and pressure from some consumer groups to ban them.

But Senator Ron Wyden says that an outright ban on hemp products simply wouldn’t work. “We learned from the failed war on drugs that a one-size-fits all approach banning hemp products from the market outright does nothing to protect kids and consumers, and will be a gut-punch to thousands of jobs and small businesses across the country,” he said.

Senator Jeff Merkley adds that hemp beverages should be treated like other products: “The FDA must establish clear, commonsense guidelines – as it does for other foods, drinks and products – to protect the health of all Americans and prevent children from purchasing these hemp products”

The CSRA would help open up these innovation opportunties.

“The Hemp Beverage Alliance welcomes this legislation, as it creates a framework that ensures products are tested, that potency limits are reasonable, that there is a consistent labeling protocol, and that all hemp products are kept away from children,” said Lackner. “These are consistent with HBA’s regulatory principles.

“But with any major federal bill, there will be details that deserve further refinement, such as how serving limits apply across various product types or how to align hemp beverages with the existing state alcohol and cannabis rules. HBA looks forward to offering technical feedback as the bill moves forward.”