Beer Marketer's Insights - States Suits, Health Claims, "Alcohol Bashing" Hurt Fed Hemp Efforts, Bev Coalition Warns, Urging Unity

In week since fed lawmakers passed bill to reopen govt that also put strict limits on intoxicating hemp, advocates for that industry are scrambling to come together, set prior differences aside and find more allies, Diana Eberlein, chair of the Coalition for Adult Beverage Alternatives (CABA) explained during monthly call today. "Lack of collaboration" and alignment among various pieces of hemp biz was key hindrance, she shared. So "the key meetings are happening," with "calls being scheduled with groups who lobbied against us," trying to find the compromises necessary to turn them into allies, she explained. While she and rest of the bev side of the hemp biz "work very closely" with alcohol and WSWA has been "one of our loudest advocates federally" for 2 yrs now, other distrib orgs aren't fully on board and major suppliers lobbied to prohibit products until robust regulation is in place. Listening to feedback about what went wrong federally for hemp this yr, Diana shared top concerns, many of which echo issues voiced by members of alc bev biz. First, suing states over hemp regs cuts against the claim that the industry wants to be regulated. Second, many hemp industry members play too fast and loose with "health and wellness" talk. And finally, "alcohol bashing" doesn't help build either lobbying coalitions or biz partners, she explained.State Lawsuits "Trickling Up," Hindering Fed Progress "The number one thing I hear about," Diana said, is about "state litigation negatively impacting the federal fight." CABA and other bev-focused orgs and suppliers "say they want regulation," but when states enact it, "we are getting sued," they tell her. What's happening in the states is "trickling up, right now," she said. So the biz must be "very careful about what our actions are saying" and make sure "that our actions and our words align." Because "if we're not careful about how we step here," the hemp biz "may do ourselves more harm than good.""Stay Away from Health Claims" In world of THC, cannabis and hemp, some suppliers do make products designed for therapeutic uses, Diana acknowledged. But folks selling intoxicating hemp bevs are actively selling alcohol alternatives. So "they don't want to hear that that's a 'health and wellness' product," she warned. Suppliers must be "clear" about the "intent of our products." And she hears a lot that some folks are using health and wellness terms "a little bit too loosely." While the category is still in a bit of a "gray area" on the research side, it's "absolutely paramount" that "we stay away from health claims. It negates a lot of credibility" that's been built up, she cautioned. Emphasis on health could push the category into "a very different regulatory channel," too, as well a "very different aisle" at retail, with different kinds of retailers.Collaboration Needed, So Stop Saying THC is "Better than Alcohol" Again, major concern for the hemp biz is the "lack of collaboration and strategic action," Diana explained. Finding ways to collaborate is top focus right now. Still, as she and others work to build out the coalition of allies, something she "hear[s] about a lot" is "alcohol bashing" and folks claiming that "hemp and cannabis as a whole is 'better than alcohol.'" But "alcohol is not going away," she reminded. And "our strategic partners are selling alcohol and alcohol is still a majority of their sales." Plus, whether current partners or potential future ones, "they see a lot. They hear a lot." And "they will make strategic decisions based on what they see and hear," Diana cautioned. "We don't need to put down alcohol in any capacity," she urged. And while "that does not mean we're saying we're going to get steamrolled by alcohol and tobacco," she again reminded industry members that they are "working with them."

States Suits, Health Claims, "Alcohol Bashing" Hurt Fed Hemp Efforts, Bev Coalition Warns, Urging Unity

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