Willie Nelson / Marco Bello / REUTERS
In recent months, one stony issue has pitted Senator Mitch McConnell (R-KY) against counterculture titans like singer Willie Nelson and Cheech & Chong. What’s more, their battle is coming to a head as December brings a fast-approaching deadline.
The fight is over the $1.5 billion hemp drink market, which Bloomberg reports faces an “existential crisis” unless lawmakers in Washington strike a deal overturning legislation that will make the psychoactive-infused seltzers and sodas illegal. Longtime cannabis advocates Willie Nelson, Tommy Chong, and Cheech Marin were pioneers in the industry, which has exploded in popularity thanks to a loophole in an agriculture bill originally drafted by McConnell that legalized hemp for commercial purposes. But the Senator has since changed his stance, arguing that the products endanger children, and added a provision to subsequent legislation that will outlaw the beverages. As Bloomberg explains, however, “that’s put him at odds with other Republican lawmakers — and even potentially the White House — who worry that the new restrictions will hurt the hemp industry. They also know they’re risking the wrath of constituents used to grabbing THC and CBD products at breweries, restaurants and gas stations across the country.” As Bloomberg elaborates, over 58 percent of THC drink users are 45 years old or more, with more than half of respondents saying the drinks help them unwind or get to sleep, while three out of four report having decreased or eliminated alcohol consumption outright because of canned cannabis. Older voters historically are far more likely to vote, which means the elimination of a favorite beverage could cause political headaches.
The “nascent but quickly growing industry” at the center of the fight warns that if lawmakers can’t strike some sort of deal before the December 11 deadline, their companies will face an extinction-level event. According to Bloomberg, “JuneShine Inc., which produces ‘Willie’s Remedy,' an assortment of ‘social tonics' featuring the country music icon, would consider shutting down the line if lawmakers fail to act, company co-founder Greg Serrao said in an interview. That’s despite the spirits, sodas, and gummies being ‘wildly profitable,' projected to bring in roughly $200 million in sales this year — up from $30 million when the company launched last year.” Brandon Harshbarger – head of a commercial holding company for the comedy duo Cheech and Chong – says 80 percent of his company’s business is THC products that would be banned. As he told Bloomberg, “It’s just crazy that we’ve been living in this world where, in theory, something that has been so robust and so positive from our perspective as a business, and so well received by the broad public” could be shut down.
“Ironically,” explains Bloomberg, “it was McConnell who opened the door to the new industry, when he helped push a provision in the 2018 farm bill that legalized the cultivation of industrial hemp. The idea was that the plant — which is the same species as marijuana, but harvested with lower levels of THC, the chemical responsible for users’ high — could be a boon for farmers in his home state of Kentucky. Hemp grows fast and produces durable fibers that can make rope, cloth, and paper that is longer-lasting. But the law included a significant omission. While it defined hemp as having less than 0.3 percent of a certain type of THC, called delta-9, producers found that beverages could fly under that threshold and still get consumers high.” A massive retail industry sprang up, making such products widely available as a result, so McConnell and other lawmakers who became opposed to the market moved to end it.
While President Donald Trump signed the bill banning the products into law, he later posted to social media that Congress should pass legislation “to ensure that Americans can continue to access the full-spectrum CBD products they have come to rely on, and that help them, while preserving Congress’s intent to restrict the sale of products that pose Health risks.” McConnell and his allies on the matter, however, continue to argue that the products could endanger children. Proponents say a ban isn’t the answer, instead pushing for greater regulation. “The good operators want regulation,” Cheech & Chong’s Harshbarger said, adding that is the best way to protect consumer safety. Senators Amy Klobuchar (D-MN) and Tim Sheehy (R-MT) are drafting a bill that would provide the industry a bridge until full regulation is implemented. It would limit the sale of THC products to those over 21 years old but also raise the amount of the psychoactive compound permitted in harvested plants. But according to Bloomberg, the infrastructure around hemp has already begun to contract, with companies laying off staff and producing in dwindling quantities. As one brand put it, it may be the “last call” for ordering such beverages.
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