Earlier this month, a partnership of industry-leading hemp beverage manufacturers, supply chain partners and alcohol retailers and distributors announced the launch of the Coalition for Adult Beverage Alternatives (CABA). The organization’s goal is to educate and influence federal legislation through a clear code of operating conduct, sensible manufacturing and marketing regulation, prioritizing consumer safety.
CABA represents a unified voice across key stakeholders in hemp and alcohol industries allowing for the accessibility and commerce of hemp-derived Delta-9 (THC) beverages through traditional retail locations, according to the organization.
The Start of the Legal Hemp Market
The legal framework for THC beverages was established with the passage of the 2018 Farm Bill, which federally legalized hemp-derived products containing less than 0.3% THC. This landmark legislation opened the door for many U.S. farmers to grow and sell hemp and establish industrial hemp as a lucrative new cash crop, according to CABA.
Since then, a robust multi-billion dollar legal market has taken shape in the form of low-dose hemp-derived THC beverages being distributed across the U.S. Minnesota was the first state to regulate the THC beverage industry, providing consumers with access to these products and allowing businesses to get creative with their offerings, such as on-premise consumption at bars and restaurants where alcohol is also sold and served.
Since then, many other states have followed suit to create safe hemp programs.
“Since 2018, the cannabis beverage industry has seen explosive growth and is estimated to reach a market value of $3.8B by 2030,” said Diana Eberlein, chair of the CABA and VP of marketing & business development and founding board member, SōRSE Technology, in a statement. “CABA is united in establishing clear regulatory pathways to ensure product safety, transparency and responsible marketing practices for these products. We look forward to working with Congress toward a future where consumers have access and freedom to choose safe adult beverage alternatives through sensible regulation.”
Unsafe Hemp Products Leaking Into the Market
As the cannabis and hemp industries continue to grow, with new innovations debuting almost every week, bad actors are releasing unsafe, highly potent products. Many times, these items are being marketed to children, being packaged in wrappings similar to those of popular candy brands. Some products are also being manufactured with synthetic cannabinoids which lack transparency and purity testing.
These bad actors are getting away with selling these products due to all the loopholes in the 2018 Farm Bill. The definition of hemp is very vague, and with how little was known about cannabinoids and the different products it could be infused into, there’s no clear regulations telling brands how to go about making them.
As a result, the THC beverage industry faces a growing number of statewide orders to bar the sale of its products and mounting pressure from members of Congress to impose a federal ban. If passed, these state and federal regulations would eliminate nearly every ingestible hemp product currently available in markets, according to CABA. Coalition members believe those proposals go beyond what’s necessary to ensure consumer safety and would have a devastating effect on the broader hemp industry, which is providing a boon to U.S. farmers struggling to compete with industrial operations, as well as local economies and jobs.
Advocating for a Safer Hemp Industry
As Congress looks to re-authorize the Farm Bill in 2025, CABA will advocate for proper age restrictions, third-party testing, standardized packaging and labeling requirements, prevention of marketing to minors, transparent ingredient sourcing, and clear THC beverage dosage and serving guidelines. Coalition members have proposed that these products be sold in venues where alcohol is available, while reserving higher-dosed products for regulated marijuana markets.
“Consumers increasingly have a strong preference for healthy and safe adult beverage alternatives,” said Jake Bullock, co-founder and CEO of Cann, in a statement. “Our goal is to educate lawmakers on the safety and positive impact of low-dose THC beverages in adult Americans’ lives and to demonstrate how different these drinks are from risky, highly intoxicating products marketed to children by bad actors today. Adults expect and should be allowed to buy safe, low-dose THC beverages in the same places that alcohol is sold, with a strict 21+ age restriction.”
CABA has hired both Thorn Run Partners and S-3 Group to lobby the federal government on their behalf, according to the organization. Both firms have extensive experience and relationships with relevant committees in Congress and the administration. Their main focus for CABA will be preserving the legal status of naturally occurring cannabinoids, particularly THC (D9) and other hemp derivatives.
