Unfulfilled potential? Hemp Beverage Alliance urges alcohol bureau to regulate THC drinks

29 Aug 2023 --- The US Hemp Beverage Alliance is calling for low-dose, hemp-derived delta-9 tetrahydrocannabinol (THC) beverages to be regulated by the Alcohol Tobacco Tax and Trade Bureau (TTB) in response to Congress’ request for information on regulating cannabidiol (CBD) as a food and supplement. 

The organization suggests that CBD should be incorporated into food and supplements regulated by the US Food and Drug Administration (FDA), as it is a non-impairing compound. 

On the other hand, TTB is suitable to regulate beverages containing potentially impairing levels of THC legally derived from hemp as this agency “already provides a robust precedent to ensure quality, safety, taxation, chain-of-custody oversight and fair competition of adult-use beverages,” according to the Hemp Beverage Alliance.

“Because of FDA’s refusal to regulate CBD, the growth of the market for hemp-derived cannabinoid products has been weaker than most people expected,” Christopher Lackner, executive director of the Hemp Beverage Alliance, tells Nutrition Insight. 

“The demand was there, the supply was there, but the regulatory linchpin connecting the two wasn’t. As a result, the industry has not realized its true potential.”

The alliance highlights that regulatory decisions regarding hemp beverages should be guided by consumer safety, age limits, serving size, unambiguous labeling, regulatory clarity and marketplace consistency. 

Regulatory framework
The alliance encourages Congress to appropriate funding to TTB to develop a regulatory framework for beverages infused with THC derived from legal hemp and programs to educate companies, policymakers and the public about these products. 

Education programs should emphasize safety, responsible consumption and the restriction of such products to adults aged 21 and older. 

Moreover, the organization asks Congress to encourage uniformity in labeling requirements among states to empower consumers and reduce state-by-state requirements for beverage companies. 

The Hemp Beverage Alliance supports labeling restrictions consistent with alcohol.Congress should also develop a framework to tax hemp-derived THC beverages similarly to alcohol to provide market regulation and oversight funding. 

“The industry wants consistent regulations, age restrictions so children can’t access these products and a taxation system that is fair and easy to navigate. TTB is perfectly suited to handle these issues as they already similarly manage alcohol,” underscores Lackner.

US industry stakeholders recently also urged CBD products to be regulated as a supplement instead of developing a new regulatory pathway as the FDA proposed. 

Labeling consistent with alcohol 
The Hemp Beverage Alliance sets down specific recommendations for labeling beverages, supporting restrictions consistent with alcohol. 

Although the organization notes no new labels are needed for CBD products, it does support clear labeling on beverages to empower consumers to make informed choices, such as listing THC content. 

In addition, the Hemp Beverage Alliance suggests the adoption of ASTM Standards’ Cannabinoid Labeling Standards (D8449) and using ASTM iconography to empower consumers in their decision-making. 

The ASTM D8449 standard includes necessary consumer safety requirements such as cannabinoid levels on the front panel, an FDA disclaimer, medical and pregnancy warnings, an intoxicating Cannabinoid Universal Symbol and a link to a Certificate of Analysis (either a URL or QR code). 

Moreover, the standard helps to provide consumer safety through consistency in advertising. 

Meanwhile, Avery Dennison has unveiled four labeling papers developed from recycled pulp, such as hemp fibers. The company notes that hemp paper offers a sustainable alternative to traditional wood pulp-only paper. 

Serving size and advertising 
The Hemp Beverage Alliance recommends that TTB establish a standard for serving size and a measurement to empower and protect consumers and provide consistency across the country. 

The Hemp Beverage Alliance refers to laws recently enacted in Minnesota as a model for new legislation. This law includes that low-potency hemp edible products or beverages may only be sold to people of 21 and older, containers may not contain more than two servings and no more than 5 mg of THC per serving and 10 mg total THC. 

US citizens are drinking less alcohol and turning to hemp-infused products for recreation and relaxation, notes the alliance.Moreover, this legislation states a product cannot be a commercially available candy or snack food item where CBD or hemp THC has been applied to or added, nor can it be packaged in a container that includes a statement, artwork or design that could reasonably mislead any person to believe that the package contains anything other than an edible cannabinoid product.

Similarly, the Federal Trade Commission and the FDA sent cease and desist letters to six companies selling edible products that contain delta-8 THC in packaging that were, in some cases, nearly identical to typical snacks for children. 

Market potential 
Five years ago, with the passage of the 2018 Farm Bill, hemp-derived cannabinoids entered the market as tinctures, topicals, edibles and beverages, explains Lackner at the Hemp Beverage Alliance. 

“US citizens are drinking less alcohol and turning to hemp-infused products for recreation and relaxation. As demand for these products skyrocket, we envision more and more distributors taking on these products, more well-known brands entering the market and hopefully more streamlined regulations to make the market more efficient,” he says.

In Europe, French beverage start-up Naka launched a product this year targeting relaxation and reduced alcohol consumption, noting a growing demand for “NOLO” (no-alcohol or low-alcohol) drinks. 

“The Alliance continues to grow as more and more beverage manufacturers realize the demand for low-dose hemp-derived products. Together, we hope to work with regulators, elected officials and stakeholders nationwide to develop a thriving marketplace emphasizing safety, quality and consumer choice,” adds Lackner. 

He expects TTB regulations to increase consumer confidence in this new industry, essential for industry growth. 

“Right now, we have a hodge-podge of regulations, confusion as to what can and cannot be sold and an artificially restrained market as many retailers are hesitant to stock these products.” 

He concludes: “TTB regulation would be the stamp of approval needed to assure consumers, retailers and everyone up and down the production supply chain that these products are safe, controlled and high-quality.”

By Jolanda van Hal