Experts Link Florida's Cannabis Legalization Effort To 'Monopolistic Goals,' Offer A Blueprint For Hemp Regulation

Zuanic & Associates hosted an online panel, “The Hemp Derivatives Advocates” that brought together key players in the hemp industry to discuss the regulatory challenges around hemp-derived products.

In the midst of this national discussion, Christopher Lackner, president of the Hemp Beverage Alliance, JD McCormick, chairman of the American Healthy Alternatives Association, and Jonathan Miller, general counsel of the U.S. Hemp Roundtable, advocated a united front to face growing hemp restrictions. The situation in Florida got particular attention.

McCormick emphasized the impressive growth of hemp-derived products. Citing a sales report from Whitney Economics, he estimated the industry in the zone of $2.8 billion dollars a year.

“Many hemp retailers in states like Florida, Georgia, Tennessee, North and South Carolina are doing hundreds of thousands of dollars in sales at the retail level a month, many millions of dollars a year,” he said.

Read Also: Strategy Shift In The Works? Are Cannabis Giants Getting Into The Hemp Derived-THC Market?

Proliferation Of THC Beverages

Lackner spoke about the potential of the hemp beverage market, which continues to gain momentum despite its relatively small size.

“There isn’t a Budweiser or a PepsiCo out there quite yet,” Lackner said, “but we are seeing a lot of national and international brands really beginning to eke their way out.” He referenced emerging brands such as Rebel Rabbit, Cycling Frog and Mary Jones Soda, predicting they’ll soon be common names in stores across the country.

He added that hemp-derived THC beverages are finding their way into new markets. “New liquor stores, new chains…they’re coming for THC beverages.” he said, emphasizing the category’s potential to revolutionize the adult beverage sector.

Can Hemp Thrive In Legal Cannabis Markets?

“Absolutely not,” said McCormick when asked if cannabis prohibition was beneficial to hemp derivatives products.

“Probably the best example of this is the state of Illinois. Some of the largest recreational marijuana operators in the country exist in Chicago, Illinois. You also have thousands and thousands of hemp retailers, and distributors, some of the largest distributors in the United States in the hemp space are based there," he said.

Despite its growth, the hemp industry is grappling with regulatory threats in several states.

Miller addressed the situation in Missouri and California where authorities are restricting or banning hemp products. He introduced the idea of a coalition of big cannabis players being behind some of these hemp bans.

Florida’s Governor Ron DeSantis recently vetoed legislation that would have severely restricted hemp activity. Hemp groups are actively opposing a cannabis legalization initiative, knows as Amendment 3.

McCormick linked Amendment 3 to what he called a cannabis monopoly and criticized the market domination of large cannabis companies, arguing that they use their influence to rig the market at the expense of smaller hemp operators.

“There are dozens upon dozens of marijuana lobbyists in the state of Florida. And so if you think that the limited licenses and monopolistic privileges of some of these companies…if you think that Tiger is going to change its stripes after they get recreational marijuana, I would argue that the opposite is true,” McCormick said. “They’re going to say, okay, we’ve got constitutional protection. Now let’s double and triple the lobbying efforts. Let’s solidify our monopolistic goals here.”

• Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. You can’t afford to miss out if you're serious about the business.

A Call For Thoughtful Hemp Regulation

Looking ahead, the panelists agreed on the need for clear and fair federal regulation.

They pointed to Senator Ron Wyden's Cannabinoid Safety and Regulation Act as a potential guide for managing hemp-derived products.

“It would ensure that products are properly, appropriately age-gated…and provide transparency when it comes to what’s in the product,” Miller explained.

“That’s the blueprint,” he added.

• Read Next: Navigating Hemp Vs. Cannabis Debate: One Agenda For All? US Cannabis Council’s David Culver Weighs In

Cover: AI generated image