Alcohol distributors rally in support of hemp beverages.
More than 50 alcohol distributors from across the county sent a letter to Congress today, urging them to regulate hemp beverages. Here’s what they said:
Dear Speaker Johnson, Minority Leader Jeffries, Majority Leader Thune, Minority Leader Schumer,
On behalf of beer, wine, and spirits wholesalers across the United States, we respectfully urge Congress to avoid language that would create a prohibition on intoxicating hemp consumable products. Instead, we offer our support to help Congress effectively regulate and tax these products like alcohol.
We applaud the 2018 Farm Bill for unlocking new opportunities for American farmers, entrepreneurs, manufacturers, and wholesalers, like ourselves. Many of us are 3rd, 4th, and even 5th-generation American family businesses that have responsibly sold alcohol since the repeal of prohibition with the 21st Amendment in 1933. Our collective operations represent over $13 Billion in revenue, 20,000 employees, and span 26 States.
As demand for alcohol has shifted downwards in recent years, hemp products have created jobs, driven new investment, and helped us meet changing consumer demand. If prohibition is enacted, that demand will not disappear—it will simply move into unregulated channels, undermining both public health, safety and legitimate businesses.
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.
After the 2018 Farm Bill’s passing, a significant amount of American ingenuity led to the creation of many of the consumable hemp products on the market today. As a result, States have risen to the occasion to regulate and protect their citizens. As of this writing, all 50 States have implemented laws related to hemp. Additionally, 40 States have established a regulatory framework for consumable hemp products, with others planning debates in their next session.
We fully appreciate concerns regarding product integrity, underage access, and public safety. We offer nearly 100 years’ experience of safely bringing regulated beverages to market and keeping illicit products out. Adulterated and illicit alcohol is not an issue in America thanks to strong state-based regulations, trade practice rules, and laws that support wholesaler independence. With a century of alcohol experience, we welcome the opportunity to help educate Congress on how best to regulate intoxicating consumable hemp products.
We respectfully urge you to oppose efforts to close the so-called “hemp loophole” through any spending package or Farm Bill. Instead, we urge you to work with our industry to create comprehensive rules that protect communities, ensure product safety, and give responsible companies the certainty we need to operate safely and successfully. We stand ready to partner with you in this process.
Thank you for your consideration.
