Hemp-THC drinks were the hottest thing in zero-proof culture. Congress just put them on notice

The bill that brought the government back online last month ended the shutdown with an unexpected catch that could crush an entire industry.

A hidden provision slipped into the bill just before it passed has nothing to do with the federal shutdown and everything to do with hemp—the version of cannabis that’s grown as a food, a fiber, and, in recent years, as the active ingredient in an array of sodas, gummies, and snacks crafted to give people an alcohol-free buzz.

Hemp is legally defined as a variety of the plant Cannabis sativa L. that contains less than .3 percent of the most common form of THC, the psychoactive compound from marijuana that gets people high. In 2018, a multiyear agricultural law known as a farm bill created that distinction, removing hemp—the very low-THC version of cannabis—from being lumped in with the controlled substance marijuana. That small shift gave birth to a booming industry of hemp-based THC drinks and snacks, which quickly hit store shelves even where recreational cannabis is illegal.

Now, a provision in the federal spending bill will limit the amount of THC in a beverage or edible to .4 milligrams—well below the 10 milligrams promised by some of the hemp-based drinks found on gas station shelves. While hemp contains much less THC than the high concentrations present in marijuana plants, hemp-based THC can still give people a dose-dependent buzz when ingested. Businesses interested in the THC loophole also began converting CBD, a nonintoxicating compound in hemp, into other forms of THC that were not subject to the same restrictions and bottling it up for customers.

The combination of THC’s recreational appeal and the ease with which businesses could now sell and ship hemp-based THC products inspired a lot of entrepreneurs to jump into the recreational side of the hemp industry. Now that part of the industry is poised to be regulated out of existence over worries that weed by another name was suddenly everywhere. Whether a looming ban on hemp-derived THC drinks is common sense or a terrible misstep depends on your perspective – and your business interests.

Beyond booze

With drinking on the decline as the health impacts of alcohol come to light, a wave of new companies view THC drinks as a future proof, zero-proof alternative to booze. That includes breweries large and small, which began experimenting with THC brews to offset their losses as the craft beer boom fizzles. 

Xander Shepherd, who co-founded Artet, a company that sells THC-infused spritzes and aperitifs, says that he and his cousin went into business “to bring THC to our family’s Thanksgiving dinners.” 

“On a deeper level, we were motivated by the belief that THC has an important role to play in the progression of cocktail culture,” Shepherd told Fast Company. “Our stated mission is to prove to the world that infused drinks belong on the bar cart, or the dining room table, or anywhere else you might find a great bottle of wine or a fine spirit.”

Because the farm bill’s hemp rules appeared to be settled law at the federal level, the regulatory environment looked safe enough for a huge variety of companies to start producing and selling THC-based candies, canned drinks, vape oils and other products. In the face of an uncertain future, Shepherd says Artet hopes to continue to “open people’s minds and palates” about its trendy THC sippables.

The THC trend’s detractors paint a different picture. Kentucky Senator Mitch McConnell quietly pushed through the regulatory change to purposefully undo a loophole he helped create. McConnell emphasized that the change wouldn’t affect the industrial hemp industry, which grows the plant for products like biofuels, fiber and paper, and was designed to rein in the “rise of intoxicating and synthetic THC products.”

“…I am proud to have championed this language that keeps these products out of the hands of children, secures the future of regulated hemp businesses, and keeps our promise to American farmers and law enforcement by clarifying the intention in the 2018 Farm Bill,” McConnell said of the bill. 

An uncertain future

States are also wrestling with the issue, weighing their worries against the success of a young industry that’s creating jobs and pulling in substantial tax revenue. Prior to the bill’s passage, a group of attorneys general from almost 40 states wrote Congress with their concerns about the proliferation of widely-available THC products, cautioning that convenience stores and gas stations are “stocked to the brim” with psychoactive THC products. 

For Artet, the gameplan is to continue being a good steward in an industry that’s increasingly attracting scrutiny. “We feel that providing a good example for consumers and legislators is one way we can help undo this potentially looming prohibition,” Shepherd said, noting that many brands in the space work hard to keep their THC products safe. Artet’s bottles come with a special child-resistant cap and a shot glass for pouring precise servings, two measures it takes to keep customers safe and sipping as intended.

“Ultimately, those bad actors are wildly outnumbered by business owners and brands who are trying to do things the right way, even when it makes the job harder,” Shepherd said. “We do these things because we believe they’re the right thing to do, and we’re not alone in our efforts.”

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