Alcohol Lobby Intensifies Efforts to Shape Federal Rules for Hemp-Derived Cannabinoids
In a striking display of political engagement, leading figures from the U.S. alcohol industry recently converged on Capitol Hill, urging lawmakers to establish a comprehensive federal framework for regulating intoxicating hemp-derived cannabinoid products. This lobbying campaign comes as the market for beverages and consumables infused with hemp-based cannabinoids—such as Delta-9 THC—has surged since the 2018 Farm Bill legalized hemp cultivation and production.
The Wine & Spirits Wholesalers of America (WSWA), a prominent trade association representing alcohol distributors, spearheaded the advocacy effort. During a series of meetings with congressional offices, WSWA members pressed for three major policy reforms: banning synthetic THC, implementing national standards for product testing and labeling, and empowering states to control retail sales and distribution. These proposals, the group argues, are modeled on the “sound principles” that have long governed the alcohol sector.
Central Priorities for the Industry Include Regulatory Clarity, Public Safety, and State-Level Autonomy
WSWA’s leadership emphasized that their goal is not to prohibit hemp-derived THC products outright, but to ensure their responsible regulation. The association is calling for:
- A federal ban on synthetic THC variants to limit unregulated and potentially unsafe products.
- Uniform testing and labeling requirements to protect consumers and ensure product consistency.
State-level regulatory power so individual states can decide how, or if, these products are sold within their borders—including the right to prohibit sales entirely.
According to Ryan Mosses, CEO of Best Brands and WSWA board member, legislative fly-ins are more than just meetings—they’re powerful platforms to shape policy. “They allow our members to bring real-world expertise to the table and advocate for smart, science-driven regulation that supports the entire industry.”
Competing Interests: Alcohol vs. Cannabis
The alcohol industry’s growing involvement in cannabis policy is not coincidental. As legal cannabis markets expand, they are increasingly viewed as direct competitors to beer, wine, and spirits. A recent Bloomberg Intelligence report described cannabis as a “significant threat” to alcohol sales, with survey data indicating that more Americans are substituting marijuana for alcoholic beverages, especially beer and wine. The report predicts that declining wine and spirits sales could persist as cannabis becomes more accessible and accepted nationwide.
Other Alcohol Trade Groups Weigh In
The WSWA is not alone in its push for tighter regulation. The American Beverage Licensees (ABL), representing bars, taverns, and liquor stores, released a policy memo this month recommending that only businesses already licensed to sell alcohol should be permitted to sell intoxicating hemp products. The memo advocates for:
Restricting THC product sales to licensed alcohol retailers.
- Applying similar licensing, labeling, and advertising rules as those used for alcoholic beverages.
- Enforcing age restrictions, potency limits per serving, and stringent product testing for safety and purity.
Similarly, the Beer Institute—another influential trade group—has called for federal and state governments to prioritize consumer safety, responsible marketing, and research when crafting cannabis regulations. The group also supports the idea of excise taxes on hemp and cannabis products, potentially at rates higher than those for alcohol.
The Push for Federal Clarity and State Flexibility
A major theme in the alcohol industry’s advocacy is the need for clearer federal guidance while preserving state authority. WSWA’s Dawson Hobbs didn’t mince words—he pointed out that the patchwork of current laws creates unnecessary confusion for everyone involved, from business owners to government officials. Since the 2018 Farm Bill, which legalized hemp, a patchwork of state laws has emerged, with some states facing lawsuits over their attempts to restrict hemp-derived THC products.
WSWA argues that Congress should explicitly grant states the power to regulate or ban these products as they see fit, much like they do with alcohol. “Federal regulation is the path forward—not prohibition,” emphasized WSWA President Francis Creighton. “History has shown us, particularly in the beverage alcohol sector, that prohibition is ineffective and counterproductive.”
Why the Alcohol Industry Cares
The alcohol sector’s push for regulation is motivated by both public safety and market competition. With the rapid proliferation of hemp-derived THC products—often sold with little oversight or age restriction—industry leaders warn of risks to consumers and communities. They argue that the robust regulatory and taxation systems governing alcohol sales should serve as a model for the emerging cannabinoid market.
- Simultaneously, the alcohol industry remains highly attuned to evolving consumer trends and behaviors.
- New research reveals a significant rise in daily cannabis consumption across the U.S., now surpassing daily alcohol use for the first time.
- Analysts’ project that marijuana sales could reach $37 billion by 2027, further eroding alcohol’s market share.
Lawmakers and Regulators Respond
As Congress prepares to debate the next Farm Bill and consider broader agricultural policy, the question of how to regulate hemp-derived cannabinoids has become increasingly urgent. Some lawmakers have expressed frustration with the Food and Drug Administration’s slow pace in issuing rules for products like CBD and Delta-8 THC, leaving states to fill the regulatory void on their own.
Meanwhile, the alcohol industry’s proposals have found a receptive audience among many legislators, who see value in leveraging established alcohol regulatory frameworks to manage new intoxicating products. However, there is also debate about whether restricting sales to alcohol retailers is the best approach for consumer access and market competition.
Looking Ahead: The Future of Hemp-Derived THC Regulation
The debate over how to regulate hemp-derived cannabinoids is far from settled. As the market continues to grow and evolve, the alcohol industry is likely to remain a powerful voice in shaping policy. Their central message to lawmakers is clear: adopt a regulatory approach that mirrors the proven systems used for alcohol, prioritize safety and transparency, and give states the flexibility to address local concerns.
For now, the future of hemp-derived THC products—and their relationship to the alcohol industry—will be shaped by the ongoing tug-of-war between federal oversight, state autonomy, and the demands of a rapidly changing marketplace.
This analysis is based on recent developments and official statements from industry groups, trade associations, and legislative sources as of April 2025.
Source:-
https://www.sciencedirect.com/science/article/pii/S0955395923001615
https://www.bevnet.com/magazine/issue/2024/hemp-derived-satisfies-consumer-thirst-for-thc-beverages