Alcohol Industry Pushes for Federal Regulation of Hemp THC Beverages to Preserve Market Access

As the federal government prepares to implement a ban on hemp-derived THC beverages, major alcohol industry groups are actively campaigning to keep these products legal—under a system that closely mirrors alcohol regulation. The Wine & Spirits Wholesalers of America (WSWA) has launched a high-profile campaign urging Congress to adopt a federal framework that would regulate intoxicating hemp drinks with the same rigor as alcoholic beverages. This push comes as the current hemp beverage market has rapidly expanded and begun encroaching on traditional alcohol sales, prompting established players to seek a stake in shaping the category's future

WSWA's proposal goes beyond a simple opposition to prohibition. According to High Times, the group is advocating for a comprehensive regulatory structure, including federal licensing for suppliers and distributors, taxation, mandatory testing, trade practice rules, and state-level control over retail access. "It is about whether hemp beverages survive as an independent cannabis-adjacent category, or whether they get folded into an alcohol-style system that favors large distributors, major retailers and companies with the money to navigate federal licensing, tax compliance and state-level access fights," the article notes. This approach would likely benefit large alcohol companies with the resources to comply with complex regulations, potentially sidelining smaller hemp beverage brands

The urgency of the alcohol sector's involvement is partly driven by recent legislative changes. Last year, a federal law set a strict 0.4 milligram total THC per container limit for hemp-derived consumer products, a threshold that would eliminate most current hemp beverages from the market. As THC-infused drinks gained traction in mainstream retail, alcohol companies recognized them as both a competitive threat and a commercial opportunity, leading to increased lobbying efforts from firms like Total Wine & More

State and local governments across the U.S. are grappling with how to respond to the rise of intoxicating hemp beverages. In February, Chicago Mayor Brandon Johnson vetoed a proposed citywide ban on these products, stating the move was premature without a comprehensive statewide framework. Other jurisdictions have opted for tighter restrictions or have begun crafting their own regulatory systems, highlighting the fragmented and rapidly evolving legal landscape for hemp-derived THC drinks

For hemp beverage producers, this shifting environment presents both promise and peril. While support from powerful alcohol interests could help prevent an outright ban and establish a path to regulation, it also raises concerns about market domination by established players. As High Times observes, "Support is support, and in a moment like this it matters. But there is a difference between protecting a category and positioning yourself to dominate it."

From the OG Lab newsroom perspective, the alcohol lobby’s move to shape hemp THC beverage regulation is a pivotal development for the cannabis-adjacent drinks sector. It signals that mainstream industry actors see serious potential in this market and are willing to fight for its survival—but also to steer its future. Industry stakeholders should closely monitor how federal and state rules evolve, as the outcome will determine whether hemp beverages remain accessible and diverse, or become another tightly controlled extension of the alcohol industry