Major players in the U.S. alcohol industry are choosing sides in the debate over hemp-derived THC and whether it should be sold in various products including beverages.
Last week, 39 state attorneys general (AG) sent a letter to federal lawmakers, asking them to "clarify the federal definition of 'hemp,' which bad actors have exploited due to a perceived loophole in the 2018 Farm Bill." They called for hemp-derived THC products to be pulled from the market until an effective regulatory framework is in place.
Shortly after, the American Distilled Spirits Alliance (ADSA), Beer Institute (BI), Distilled Spirits Council of the U.S. (DISCUS), Wine America, and Wine Institute, which said they represent thousands of brewers, distillers and wine makers, shared a joint statement in support of that letter.
But now, a group of more than 50 alcohol distributors from across the country have sent a letter to House Speaker Mike Johnson and other lawmakers, urging them to avoid language that would create a prohibition on intoxicating hemp consumable products. Instead, the group said it would support an effort by Congress to effectively regulate and tax these products like alcohol.
"The debate on hemp-derived products is very analogous to the debate our forefathers endured at the beginning of the 20th Century. The 18th Amendment banned alcohol in 1919, but the ensuing 14 years of prohibition only created a thriving illicit market and a significant number of bad actors. Our forefathers realized the only way to eliminate these bad actors was to establish a robust regulatory framework where each State was given the authority to regulate products safely within its borders in a manner that respected the ethos of the citizens," they wrote.
Hemp-derived THC products are becoming increasingly mainstream, with major cannabis MSOs like Trulieve and huge retailers like Target tentatively wading into the market. At the same time, states like California and Texas have been actively working to stop distribution.
But as liquor sales slide, the industry could be seeking alternatives. Through the first half of 2025, U.S. beer volumes were down 6%, and wine and spirits sales were down 5.6% and 9%, respectively.
That may be contributing to large alcohol companies looking for a way into THC.
According to Reuters, several companies including cannabis brands, suppliers and manufacturers confirmed meetings with some of the largest booze brands. Constellation Brands, maker of popular brands like Modelo and Corona, is actively looking into incorporating hemp-derived THC drinks into its portfolio.
Pernod Ricard, maker of Absolut vodka, reportedly met with THC drinks brand Brez about a possible investment, which was confirmed by Brez Founder Aaron Nosbisch.
"They did not invest now but are circling,” he told the publication.
