• Age restriction - The sale of cannabinoid-infused beverages should be restricted to adults aged 21 years or older.

  • Safety - The safety of the consumer is paramount and should be a driving force in the industry.

  • Serving size and potency - THC levels should be safe, effective, and provide value to the consumer.

  • Labeling - Clear, consistent labeling is necessary to empower the consumer and build credibility for the industry.

  • Regulatory clarity - Regulations are necessary and should be thoughtful, concise, and support consumer safety and industry growth.

  • Marketplace consistency - In lieu of federal action, state governments should work together to develop guidelines that are consistent across state lines.

See below or click through for more details.

REGULATORY PRINCIPLES

The Hemp Beverage Alliance recommends the following regulatory principles to create a
safe, thriving, and transparent hemp beverage industry.



 AGE RESTRICTION
The sale of cannabinoid-infused beverages should be 
restricted to adults aged 21 years or older.



SUPPLIERS

  • Labels should clearly indicate through text and symbol that the product is for use only by adults aged 21 years or older.

  • Packages should be tamper-evident and consistent with current alcohol containers

RETAIL SALES

  • Hemp beverages should be sold only to adults aged 21 years or older, with age-verification required prior to sales.

  • Retailers should be licensed to ensure compliance in selling only to adults aged 21 years or older.

  • Retailers should be trained to understand the importance of age-gating hemp beverages. Training should include but not be limited to carding/age identification; safe storage of product to prevent theft; safe marketing/shelving/display of product

DISTRIBUTION

  • Wholesale distribution and sales of hemp beverages should be limited to businesses that are appropriately licensed.

  • Distributors should be licensed to ensure hemp beverages are only distributed to properly licensed retailers that comply with 21+ retail sale requirements. 

  • Distributors should reject suppliers that do not adhere to label requirements regarding age gating, COAs, warnings, and other regulatory requirements.

DIRECT-TO-CONSUMER (DTC) SALES

  • Where permitted by state law, businesses engaging in DTC sales should be subject to similar licensing requirements as physical retailers to ensure compliance in selling only to adults aged 21 years or older.

  • Online DTC retailers should be required to implement analogous industry standard protective measures (e.g., DTC alcohol sales) to ensure hemp beverages are only purchased by and delivered to adults aged 21 years or older. 

MARKETING

  • Suppliers and retailers must not target, or otherwise promote hemp beverages to, people below the legal drinking age (LDA). Such restrictions should apply to all methods of marketing and advertising, including social media.

  • Marketing restrictions should reflect current restrictions for the alcohol industry.

  • Product labeling should not include designs, names, or features designed to appeal to children.

  • Product labels and marketing should not be designed to create consumer confusion or infringe on third-party copyright or intellectual property of existing products.


SAFETY

The safety of the consumer is paramount and 
should be a driving force in the industry.


BIOMASS

  • Ingredients must be derived from the hemp plant, as defined by the 2018 Farm Bill.

  • Hemp must be grown in the United States.

  • Hemp material must be traceable from its point of origin to the production facility. This information must be readily available to regulators, suppliers and distributors.

CANNABINOIDS

  • Cannabinoids must be derived from, naturally occurring in, and directly extracted from, the hemp plant (e.g., delta-9-THC). 

  • Hemp cannabinoids that may be converted from other naturally occurring cannabinoids may be used upon review and approval by the appropriate state regulatory agency.

  • Synthetic cannabinoids or other artificially derived cannabinoids should be prohibited from use in beverages.

  • Hemp beverages should not contain quantifiable amounts of HHC, THC-O, THC O-acetate, or delta-10 THC. 

INGREDIENTS

  • Emulsion: Emulsions should be free of contaminants, tested by batch, and with results reported on an easily accessible certificate of analysis (COA).

  • Other ingredients: With the exception of cannabinoid emulsions, all ingredients (including flavorings, preservatives and other ingredients) should be FDA-approved and/or generally recognized as safe (GRAS).

  • Other active ingredients: To the extent permitted, functional ingredients such as caffeine, probiotics, l-theanine, antioxidants, etc., should:

    • Be clearly listed on the label;  and

    • Be limited in dosage in a manner that does not increase the intoxicating effects of THC. 

  • Alcohol: Hemp beverages must not contain any alcohol, and alcohol should not be mixed with hemp beverages. 

PRODUCTION

  • Production facilities must adhere to minimum levels of quality control and health standards that are required for beverage manufactures under federal and (as applicable) state law (e.g., Certified Good Manufacturing Practices Certificates, FDA facility license, etc). Employees must be trained in the safe storage, handling, and application of hemp ingredients.

  • Emulsions must be stored in a safe area, clearly marked as containing hemp that is not for retail use or sale, and away from the general public.

  • Hemp beverages may be produced in facilities that also produce marijuana or alcoholic products.

  • Finished products can be staged, transported, and stored in a manner consistent with any other adult beverage.

TESTING - CONTAMINANTS

  • Hemp beverages should be free of microbials (e.g., yeast, mold, bacteria, aspergillus, e.coli), mycotoxins, residual solvents, heavy metals, pesticides, and foreign matter.

TESTING - FINISHED PRODUCT

  • Full panel certificates of analysis must attest to the concentrations of at least the following analytes:

  • Total delta-9-THC;

  • Cannabidiol (CBD);

  • Cannabidiolic acid (CBD-A);

  • Cannabigerol (CBG);

  • Cannabigerolic acid (CBG-A);

  • Cannabinol (CBN);

  • Delta-8-tetrahydrocannabinol (D8-THC);

  • The following cannabinoids should be prohibited by statute from use in hemp beverages such that batch testing should not be required. Testing for these cannabinoids is expensive and difficult, and most accredited laboratories lack the equipment needed to accurately test for them as they are very rarely, if at all, used in hemp beverages generally:

  • Delta-9(11) exo-tetrahydrocannabinol (Exo-THC)

  • Delta-10-tetrahydrocannabinol (D10-THC)

  • THC-O acetate (THC-OA);

  • THC-O-phosphate (THC-O)

  • Hexahydrocannabinol (HHC).

TESTING - VARIANCE

  • Similar to other regulated products, a variance between what is listed on the nutrition label and what is present within the product should be allowed. The allowed variance should be the greater of (a) 0.25mg or (b) 10% of the label’s stated cannabinoid dosage.  

TESTING FACILITIES

  • Hemp beverages must be tested by an independent, third-party testing facility. 

  • Testing facilities should be accredited by the state in which it operates, maintain ISO/IEC 17025 accreditation for the facility, and/or be licensed by the state in which it operates to test cannabis products. 

  • Testing facilities must maintain a scope of accreditation for all analytes required to be tested and set forth in COAs.

  • Testing facilities must maintain testing records, validation reports, and standard operating procedures for all testing performed.

  • Testing facilities do not need to be in the state in which the product is produced or sold.


SERVING SIZE AND POTENCY

THC serving and potency levels should be safe, effective, and 
provide value to the consumer.

READY TO DRINK (RTD)

  • Serving: Total delta-9-THC cap of 10 milligrams per container.

  • Size: Container should be a minimum of 150 milliliters

SPIRIT ANALOG / LARGE FORMAT

  • Serving: No more than 5 milligrams of total delta-9-THC per serving

  • Servings per container: Maximum of 1 serving per 47 milliliters of liquid 

  • Size: Containers must be 375 milliliter or greater in volume

  • 375 ml = 8 servings = 40 mg total delta-9-THC

  • 750 ml = 16 servings = 80 mg total delta-9-THC

SPIRIT ANALOG - SMALL FORMAT/MINIATURE

  • Serving: No more than 5 milligrams of total delta-9-THC per serving

  • Servings per container: Maximum of 1 serving per container

  • Size: Containers must be no less than 50 milliliters and no more than 120 milliliters

KEG

  • Serving: Uniform milligram levels of total delta-9-THC per serving

  • Servings per container: n/a

  • Size: servings should be at least 300 milliliters


LABELING

Clear labeling is necessary to empower the consumer and 
build credibility for the industry.

PRINCIPAL DISPLAY PANEL

  • Statement of identify

  • Product identification: To empower the consumer, the label must describe the type of product in a manner consistent with FDA standards.

  • Statement of alcohol content: For spirit analogs or products that mimic/replicate cocktails, the front panel should clearly identify the product as having no alcohol.

  • Total milligram count of all cannabinoids 

  • Net quantity statement: Consistent with FDA standards, the front label must include the total volume of the container in fluid ounces and milliliters. 

INFORMATION PANEL

  • Nutrition facts: Labels must include a nutrition panel consistent with FDA standards.

    • If a product contains more than one serving, the nutritional panel must provide data for single serving and the number of servings in the container.

  • Ingredient listing: Ingredients should be listed in descending order, consistent with FDA standards.

  • Cannabinoid milligram count: Label must clearly indicate how many milligrams per serving and how many total servings per container.

  • Listing of any functional ingredients, if applicable

  • Percentage of juice, if applicable

OTHER

  • Label must include a URL link or QR code to the COA for that batch. 

  • Labels or container must list the batch number.

  • Labels, containers, and packaging must not contain any health claims.

  • Labels should include instructions for use that encourage the smart and responsible use and consumption of hemp-derived THC beverages, e.g.:.

    • “Start low, go slow”

    • “Please consume responsibly”

  • Labels must appropriately advise consumers of the presence of THC

  • Labels should include advisement of possible impacts of consuming hemp beverages:

    • “Keep out of reach of children and pets” or similar

    • “This product has not been evaluated by the Food and Drug Administration for safety or efficacy” or similar

    • “Consuming this product may result in a positive drug test for THC.”  or similar

    • “Do not consume this product if you are nursing or pregnant.” or similar

    • “Do not operate a motor vehicle or heavy machinery if under the influence of THC or using this product” or similar

  • Font sizes, word positioning and other design considerations should be based on current FDA guidelines for labeling. 

  • Labels must contain all other information required by local and state law.


REGULATORY CLARITY
Regulations are necessary and should be thoughtful, concise, and 
support consumer safety and industry growth.

LICENSURE AND CHAIN OF CUSTODY

  • Hemp specific licensure should be required for hemp ingredient providers, suppliers, distributors and retailers within the states in which they operate to ensure compliance with hemp laws, enable regulators to enforce laws, and ensure swift response to any health and safety concern or need to recall.

MANUFACTURING

  • Manufacturers of hemp ingredients and hemp beverages should be limited to state-licensed hemp manufacturers.  

  • States should have an application process for manufacturers, including inspection procedures, that ensure proper food safety protocols are followed by all hemp manufacturers. Applications should be timely reviewed and, where appropriate, approved. 

  • Licensed alcohol manufacturers (including breweries) should be allowed to produce hemp products.  

DISTRIBUTION

  • Active state-licensed alcohol distributors (and cannabis, if applicable by state) should be automatically granted hemp distributor licensure upon application, whereas others may apply for and obtain hemp distribution licenses upon review and timely approval by state.    

  • Self-distributors, to the extent permitted by state-law, should be subject to the same taxation, quality control, and chain of custody protocols as third-party distribution.

RETAIL SALES

  • Hemp beverage retail sales should be limited to state-licensed hemp retailers

  • Active state-licensed alcohol (and cannabis, if applicable by state) retailers should be automatically granted hemp retail licensure upon application, whereas others may apply for and obtain hemp retail licenses upon review and timely approval by state.

  • Taxation: Taxation systems must be put in place to gather sales and excise tax revenue from retail sales, supporting state regulatory and enforcement efforts around a new category.

DIRECT-TO-CONSUMER (DTC) SALES

  • Where permitted by state law, businesses engaging in online DTC sales should be subject to similar licensing requirements as physical retailers.

  • Age-gating: Age-gating systems consistent with analogous industry standards must be in place for suppliers to sell hemp beverages directly to consumers

  • Taxation: Taxation systems must be put in place to gather sales and excise tax revenue from DTC sales, supporting state regulatory and enforcement efforts around a new category.

TAXATION

  • States should realize new tax revenue streams from a new product category with significant volume potential.

  • A reasonable excise tax structure (e.g., 3-5% of retail sale price) is imperative to provide regulators with the resources needed to properly address the growth of a new category and industry, and enforce applicable laws.

FRANCHISE LAWS

  • The Alliance is aware that alcoholic beverage franchise laws tend to vary by state, and generally were implemented in states following decades of consideration and growth of a commercial alcohol marketplace without reference to hemp or THC products, markets, supply chains, or related factors.  

  • As such, franchise agreements should be at the contract level and not incorporated into state law; however, while the Alliance does not strictly oppose implementation of franchise related provisions into state hemp laws, any such laws should allow contracting parties to agree that the terms of their contract govern the relationship.


MARKETPLACE CONSISTENCY

In lieu of federal action, state governments should work together to
develop guidelines that are consistent across state lines.

  • States regulators should work together to create consistency in license requirements, labeling, testing, and potency to reduce consumer confusion

  • State regulators should allow for “substantially similar” label verbiage requirements, avoiding explicit verbiage requirements which are specific to one state while incompatible or inconsistent with others.