Major brands, alcohol groups join push to close intoxicating hemp loophole in U.S.

Leading alcohol associations and a major body representing global fast-moving consumer goods (FMCG) companies are escalating pressure on Washington to rein in intoxicating hemp substances. In two recent letters to Congressional leadership, the groups ask lawmakers to shut down products that have slipped through the “hemp loophole” in the 2018 Farm Bill.

Neither letter appears to be publicly available. One, first reported by Cannabis Wire, came from the Consumer Brands Association (CBA), whose members include Coca-Cola, General Mills, Kraft Heinz, Nestlé and Target, among other major national brands.

The other letter, reported in several beverage trade media outlets, was sent by trade associations representing distilled spirits, beer and wine: American Distilled Spirits Alliance (ADSA), Beer Institute, Distilled Spirits Council of the US (DISCUS), WineAmerica, and the Wine Institute.

Risks to consumers

The letters land as intoxicating hemp products have expanded into a multi-billion-dollar gray market. The products are typically made by chemically converting hemp-derived CBD into intoxicating compounds such as delta-8 and delta-10 THC. They are sold outside state-regulated cannabis dispensaries and often avoid standard age controls.

CBA argues that the original definition of hemp in the landmark 2018 Farm Bill that legalized hemp “did not take into account” the possibility that hemp could be turned into “high”-producing substances that have led to an explosion of such products. The hemp-derived intoxicants are widely available in common retail outlets under no age or other restrictions.

The letter said confusing packaging and copycat branding “create risks for consumers who may falsely believe that they are reviewed and regulated for safety and purity.” Producers have drawn criticism for mimicking well-known brands and for packaging that appeals to youth.

‘Act immediately’

The letter from the drinks makers urges Congress to “act immediately to remove hemp-derived THC drinks and other products from the marketplace until a robust federal regulatory framework is established.” The groups say the 2018 Farm Bill was intended to restore hemp as an agricultural commodity — not authorize an unregulated intoxicating-product industry.

Those two letters come after a coalition of 39 state and territorial attorneys general in late October also penned a letter to Congress urging it to tighten the federal definition of hemp to prohibit intoxicating THC products, citing child-targeted packaging and consumer safety concerns.

Patchwork policies

In the absence of federal oversight, several states have moved to restrict, ban, or fold intoxicating hemp under marijuana rules. Congress may ultimately determine whether intoxicating hemp products remain legal under the next Farm Bill or through budget language.

The landmark 2018 Farm Bill legalized hemp and all downstream derivative products that can be made from the plant. But lawmakers at the time were unaware that hemp-derived CBD can be turned into intoxicating substances in the laboratory.