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It was auspicious timing for the Craft Brewers Conference's hemp bev panels, coming the day after several 4/20 announcements on that front, from new proposed legislation allowing states to opt out of Nov's impending federal dosage cap of 0.4 mg/container to Breakthru's announcement that expanded its THC drink portfolio beyond Minn into 5 more states. For those gathered in Philadelphia, it still wasn't all puppies and rainbows, especially for craft brewers white-knuckling their way thru an uncertain spring. "It does seem like everybody is interested in solving this problem rather than fall by the wayside," said Hemp Bev Alliance prexy Chris Lackner, who encouraged a robust "regulatory framework" rather than letting the biz "slide into oblivion as a couple people want it to do." Chris was joined by Brewers Assn govt affairs vp Marc Sorini, Minn-based Surly Brewing prexy Omar Ansari and Barnes Bev Group founding partner Shauna Barnes at session called "Hemp Beverages and the Future of Drinking." Every one of them pushed for clear, consistent regs to safeguard the industry and more or less believed that a legalized framework would emerge over the long term. The short term, however, is considerably cloudier.'People Want These Products' Surly's Omar acted quickly following the passage of the 2018 Farm Bill to develop THC bevs and "when last November happened, we were certainly shocked." Despite the popularity of the co's Limelight Lounge, Take Five and Double Take THC-infused products, "as soon as that news hit pretty much all our copackers said stop." So despite continued strong in-state sales, out-of-state distribution is already taking a hit nearly 7 mos out. While relaxed Minn laws "can work for some folks," it "won't likely help us a lot." His frustration was palpable. "Prohibition doesn't work," he said. "People want these products."'The Hemp Industry Has to Lead' Citing that demand, BA's Marc said the org was "not going to be actively advocating for or against legalization but we're looking for a regulatory framework that makes sense," citing several overlapping factors between beer's relationship to grain-based spirits and THC bevs' relationships to full-strength cannabis. The BA's wish list demands federal and state regulatory framework, "resources and political will," a 21-yr-old age floor, steps to discourage overconsumption, mechanisms to promote and preserve competition like alcohol's 3-tier system, safety regs, clear labeling, no unproved health claims and an excise tax. He stressed, however, that "the hemp industry has to lead" and "we're looking for a member of Congress that you have prepped . . . then we can support it." The current proposals were "getting there" even as there are "remaining holes that don't fill all our boxes."'Follow the Friggin' Rules, Please' Barnes said cos operating in this sector would be best served by following some broad guidelines (while repeatedly saying specific legal advice should be sought thru one's own attorney). Given the language of the impending federal ban, she noted that production of hemp-derived THC bevs by unlicensed cannabizzes would become effectively illegal alongside the storage and sale; the 0.4 mg/container dosage cap applies to every step of the process, meaning it would be all but impossible to create a product with that dosage given the higher amounts of THC present earlier in the process. She warned that any craft beer biz was at risk of losing its alcohol permit even if "we don't know what TTB enforcement priorities are going to be." Echoing Omar, she said that while people in the cannabev industry "tend to be a bit more risk-tolerant," distributors are "a bit less risk-tolerant."Should a co decide to continue in the space, Shauna recommended it reach out to its suppliers and start "making a plan." That could involve trying to get in dispensaries, which she noted wasn't ideal, or trying to find new copacking arrangements. Even that's potentially fraught, she said, as distributor agreements often preclude such movement. She also said separating off a THC bev biz from the brewery could "potentially insulate" the core biz from cannabev risks. But her clearest statement was one preaching compliance: "Follow the friggin' rules, please," she implored, noting that bad actors lead to politicians portraying the industry as full of "lunatics that can't be trusted." In closing, she said "please, please, please, please follow the state rules."'Folks Screaming at Other Folks' HBA prexy Lackner surmised that the industry was popular enough that it would eventually become regulated: "America is kind of founded on consumer choice and freedom," he said, and "right now the consumer wants another adult bev in their portfolio of options." To that end, he said it was incumbent on stakeholders to have the consumers themselves doing direct outreach to politicians and make their voices heard. "You take something away that people really like and are really accustomed to, it's not going to be good," he said. "They're gonna get an earful. If you want this category, you need to be active in it. You need to make a phone call. Nothing happens by magic in Congress - the only way things happen is a whole bunch of folks screaming at another whole bunch of folks." (This article ran in our sibling letter Craft Brew News yesterday.)

CRAFT BREWERS CONFERENCE: The Future of THC-Derived Hemp Beverages Looks Far Clearer than the Present

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