Beer Industry Trade Association Endorses California Governor's Ban On Hemp-Derived THC

California Governor Gavin Newsom's emergency regulations proposed Friday to prohibit the inclusion of intoxicating hemp-derived cannabinoids in any products have received support from an unexpected quarter…the Beer Association, a prominent trade association for the alcohol industry. 

Beer Institute Supports Hemp THC Ban

Brian Crawford, president and CEO of the Beer Institute, expressed gratitude towards Governor Newsom for “his leadership in closing an unintended loophole,” according to Marijuana Moment. Crawford emphasized that such hemp products are often sold as food and beverages without adequate safety checks or age restrictions, posing a significant risk to public safety.

The Beer Institute also noted that its stance "aligns with a bipartisan coalition of 21 state attorneys general" who, in March, urged Congress to amend federal law to exclude intoxicating cannabinoids from the federal definition of hemp. Crawford reiterated that the beer industry has consistently operated under strict state and federal regulations, suggesting hemp products should follow the same stringent standards to ensure public health.

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However, the proposal has sparked fierce backlash from the hemp industry. Stakeholders argue the regulations could obliterate California’s burgeoning billion-dollar hemp market. 

Hemp Industry Pushes Back Against California’s Hemp THC Ban

The U.S. Hemp Roundtable criticized the governor for potentially sacrificing nearly a quarter billion dollars in tax revenue from legitimate businesses. “Today’s 'emergency action' by Governor Newsom is a betrayal of California hemp farmers, small businesses, and adult consumers,” the Roundtable stated to Benzinga, pledging to explore all legal avenues to challenge the action.

Similarly, Cheech and Chong’s Global Holding Company (CCGHC) also voiced concerns, suggesting that low-dose hemp-derived THC products should be regulated akin to alcohol and tobacco, not outright banned.

Meanwhile, David Culver, senior VP of public affairs at the U.S. Cannabis Council highlighted the need for coherent federal and state regulation to address the tension surrounding hemp-derived THC products. In his recent dialogue with Benzinga, Culver advocated for amendments to the Farm Bill that would regulate these products akin to traditional cannabis. He underscored that clearer definitions in the Farm Bill could help unify the regulatory landscape and bolster consumer protection.

Hemp Ban Divide Within Alcohol Industry

The Beer Institute's support of California's ban-based regulation contrasts sharply with the Wine & Spirits Wholesalers of America (WSWA), which argued in June that prohibition isn't the solution. Drawing from the alcohol industry's history, WSWA advocated for federal regulation rather than bans, stressing that established frameworks better ensure public safety.

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