New Coalition Advocates for Safe, Legal THC Beverages

Emerging billion-dollar industry seeks pathway to ensure product safety, transparency, and responsible marketing practices

WASHINGTON, Oct. 16, 2024 /PRNewswire/ -- A partnership of industry-leading hemp beverage manufacturers, supply chain partners, and alcohol retailers and distributors today announced the launch of the Coalition for Adult Beverage Alternatives (CABA). The organization will educate and influence federal legislation through a clear code of operating conduct and sensible manufacturing and marketing regulation prioritizing consumer safety. The coalition represents a unified voice across key stakeholders in hemp and alcohol industries allowing for the accessibility and commerce of hemp-derived Delta-9 (THC) beverages through traditional retail locations.

The legal framework for THC beverages was established with the passage of the 2018 Farm Bill, which federally legalized hemp-derived products containing less than 0.3% THC. This landmark legislation opened the door for many U.S. farmers to grow and sell hemp and establish industrial hemp as a lucrative new cash crop.

Since then, a robust multi-billion dollar legal market has taken shape in the form of low-dose hemp-derived THC beverages being distributed across the United States. Minnesota was the first state to regulate the THC beverage industry, providing consumers with access to safe, regulated products and allowing businesses to innovate responsibly within clearly defined boundaries, such as offering on-premise consumption at bars and restaurants where alcohol is also sold and served. Since then, many other states have followed suit to create safe hemp programs.

"Since 2018, the cannabis beverage industry has seen explosive growth and is estimated to reach a market value of $3.8B by 2030," said Diana Eberlein, Chair of the Coalition for Adult Beverage Alternatives & VP of Marketing & Business Development and founding board member, SōRSE Technology. "CABA is united in establishing clear regulatory pathways to ensure product safety, transparency, and responsible marketing practices for these products. We have comprehensive standards for low-dose THC beverages with a focus on consumer health and safety. We look forward to working with Congress toward a future where consumers have access and freedom to choose safe adult beverage alternatives through sensible regulation."

In markets with no regulations, bad actors have taken advantage of the void, selling highly potent products, often marketed to children, and sometimes manufactured with synthetic cannabinoids which lack transparency (into the chemical conversion and manufacturing processes) and purity testing. As a result, the THC beverage industry faces a growing number of statewide orders to bar the sale of its products and mounting pressure from members of Congress to impose a federal ban. If passed, these state and federal regulations would eliminate nearly every ingestible hemp product currently available in markets. Coalition members believe those proposals go beyond what's necessary to ensure consumer safety and would have a devastating effect on the broader hemp industry, which is providing a boon to U.S. farmers struggling to compete with industrial operations, as well as local economies and jobs.

As Congress looks to re-authorize the Farm Bill in 2025, CABA will advocate for proper age restrictions, third-party testing, standardized packaging and labeling requirements, prevention of marketing to minors, transparent ingredient sourcing, and clear THC beverage dosage and serving guidelines. Coalition members have proposed that these products be sold in venues where alcohol is available, while reserving higher-dosed products for regulated marijuana markets.

"Consumers increasingly have a strong preference for healthy and safe adult beverage alternatives," said Jake Bullock, Co-Founder and CEO of Cann, a leading THC-beverage in the U.S. "Our goal is to educate lawmakers on the safety and positive impact of low-dose THC beverages in adult Americans' lives and to demonstrate how different these drinks are from risky, highly intoxicating products marketed to children by bad actors today. Adults expect and should be allowed to buy safe, low-dose THC beverages in the same places that alcohol is sold, with a strict 21+ age restriction."

CABA has hired both Thorn Run Partners and S-3 Group to lobby the federal government on their behalf. Both firms have extensive experience and relationships with relevant committees in Congress and the administration. Their main focus for CABA will be preserving the legal status of naturally occurring cannabinoids, particularly THC (D9) and other hemp derivatives.

Founding Board Members of CABA

• SōRSE Technology
• Vertosa
• Open Book Extracts
• Rebel Rabbit
• Wynk
• Keef
• Pamos
• Cann
• Emergent Beverages
• Spec's
• ABC Fine Wine & Spirits (Florida)
• Eagle Rock Distributor Co
• Tilray

COALITION FOR ADULT BEVERAGE ALTERNATIVES

The Coalition for Adult Beverage Alternatives (CABA) aims to establish a unified voice among key stakeholders in the hemp and alcohol industries, exclusively representing the beverage category. Its mission is to facilitate the accessibility and commerce of hemp-derived Delta-9 (THC) beverages through traditional retail locations. CABA is committed to educating and influencing federal legislation by promoting a clear code of operating conduct and sensible product and marketing regulations that prioritize consumer safety. CABA advocates for the continued legality of naturally occurring cannabinoids under the definition of hemp as established in the Farm Bill and supporting states' rights and standardizing state regulations for the consistent and sensible regulation of low-dose THC beverages.

For more information on how you can champion the future of hemp-derived THC beverages, ensuring a safe and regulated market for consumers while fostering growth and innovation in our industry, please contact Chair Diana Eberlein, [email protected].

SOURCE Cann