Federal hemp regulation could open up beverage innovation opportunities

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 Alliance. “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.” 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. 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.”

Federal hemp regulation could open up beverage innovation opportunities

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

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