The Hemp Beverage Distributors of New York (and beyond!)

In a world where many distributors hesitate to embrace hemp-infused beverages, one independent company has chosen to be a leader in the industry.

"We know the hemp beverage landscape," said Joe Grabowski, co-founder of Sarene Craft Beer Distributors. "We operate in five states so we know the laws, state by state, and are able to guide new brands as they enter multiple markets. This gives us a competitive edge when we talk to brands, and helps ensure success for our brand partners."

Sarene is more than just a distributor. Part brand builder and part guidance counselor, the team is proud of their ability to support and counsel brands as they navigate the often tricky regulatory landscape.

Sarene cut its teeth in the craft beer market, starting with a few trucks and an attitude that knowledge and agility can be powerful competitive advantages.

“I think one of the reasons we are a leader in this space is that these hemp beverages are extremely akin to the craft beer products we already sell. Our sales team isn't foreign to new or different products. They haven't been selling “RED case, BLUE case” for 20 years and are able to convey some of those finer details to the buyer."

“From a velocity standpoint, hemp beverages are simply amazing. They're flying off the shelves in ways that no one has seen before with any other beverage.” Joe Grabowski (far left)

Based in New York, Sarene Craft Beer is a family-owned company founded in 2014 by two brothers, one cousin and a buddy from college.

"I'm the buddy of the team," Grabowski laughs. "But after marrying my wife (the sister of fellow co-founder Matt Schulman’s wife), we're now all very much a family company in every way."

Sarene Craft Beer now employs over 100 people in five states, servicing more than 6,800 accounts with a fleet of 30 trucks . Now, every day those trucks are being filled with more and more hemp beverages.

"From a velocity standpoint, hemp beverages are simply amazing," said Grabowski. "They're flying off the shelves in ways that no one has seen before with any other beverage."

Sarene credits their relationships with small, independent retailers throughout the Northeast as their key to success in the hemp beverage market. While large corporate chains have been hesistant to carry them, family-owned operations are much quicker to see their value.

"A lot of these mom-and-pop shops are getting hit by the downturn in alcohol consumption," said Grabowski. "Hemp beverages have really been a boon for them."

And while onerous regulations in New York and elsewhere continue to befuddle the industry, the team at Sarene is confident that hemp beverages are the future.

"We see a future where hemp beverages are on every liquor store shelf in the Northeast. And every one of those shelves is stocked with a Sarene Craft brand."

Alliance update

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The #futureofdrinking is #hempinfused

Thank you to everyone who joined our most recent meeting. Special shout-out to our members in Maryland, Pennsylvania and New York who provided the most recent updates on the regulations, challenges and opportunities happening in those states. 

MEMBERSHIP HITS 77
In less than five months, we’ve gone from a small consortium of startups to more than 77 brands, service providers, manufacturers and ingredient makers. Check out the entire list on our website. 

- We also have 688 followers on LinkedIn. With your help, we can get to 689.

ADVOCACY
- Read our response to Congress’ RFI for information on how best to regulate CBD. We also signed onto a larger response in coordination with several CBD brands and manufacturers.
- We recently met with trade associations representing beer, wine and spirits distributors; state hemp farmers and manufacturers; and cannabis companies. Our goal is to build bridges and gather support for a framework that allows low-dose, hemp-derived THC beverages to be sold in conventional retail stores and be regulated by the Alcohol and Tobacco Tax and Trade Bureau (TTB).

MEMBER BENEFITS
We have a robust Slack channel now, a growing list of distributors and co-packers, and an educational deck for members to use. And as anyone who attends our bi-monthly calls can attest, we are becoming experts on crowd-sourcing the latest regulatory changes in each state. Dues-paying members are highly encouraged to join Slack, as a lot of information is being compiled and discussed there.

DISCUSSIONS AND SHOUT OUTS
We’ve had a great series of presentations from financial institutions, insurance brokerages, co-packers, and can manufacturers. We’ve got several presenters lined up for the fall but there’s still room for more.

Hunter+Esquire and The Hart Group are the first two Alliance members to be profiled on our website. Please check out their stories (here and here) and reach out to them if you need their help.

National Beer Wholesalers Association Trade Show - Oct. 8-11
We’ll be walking the floor at this event (and probably hanging around Cycling Frog’s booth when we get tired). Give us a shout if you’re going to be there… we’d love to meet up in person.

HBA IN THE NEWS
- Marijuana Moment
- Cannabis Regulator
- Post-Journal (western New York)
- Nutrition Insight
- Read previous updates and news stories on our website

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Nutrition Insights: Hemp Beverage Alliance urges alcohol bureau to regulate THC drinks

The Hemp Beverage Alliance discussed the hopeful future of hemp-infused beverages with Nutrition Insights. From the article:

“The Hemp Beverage Alliance recommends that TTB establish a standard for serving size and a measurement to empower and protect consumers and provide consistency across the country.

“The Hemp Beverage Alliance refers to laws recently enacted in Minnesota as a model for new legislation. This law includes that low-potency hemp edible products or beverages may only be sold to people of 21 and older, containers may not contain more than two servings and no more than 5 mg of THC per serving and 10 mg total THC. “

You can read the full story at Nutrition Insights.

For Hunter+Esquire, executive recruiting is a family affair.

Since 2017, husband and wife team Bryan and Jessica Passman have been leaders in cannabis industry executive recruitment and human capital advisory. Their search firm, Hunter + Esquire, expanded its offerings in 2020 to psychedelics medicine businesses in need of such expertise.

"We were the first executive search firm that focused exclusively on the cannabis plant," said Bryan. "We're now recognized as a trusted go-to firm for businesses seeking to hire experienced professionals into their cannabis, hemp or psychedelics organizations."

A few ingredients to Hunter + Esquire's success are their incredible knowledge of the regulatory and political landscape, industry trends, and human capital needs that are required to run a successful company in these nascent industries. Bryan and Jessica also credit their size as an advantage, as it allows them to take more time to understand their clients' needs, now and in the future.

"We're a boutique operation, and that's a superpower for us," said Jessica. "We aren't beholden to any type of big burdensome hierarchy or process. By staying small, we are able to be more thoughtful and strategic in our placements because we can make the very worthwhile time investment that allows us to become experts on our clients’ organizations, which then allows us to partner with them more effectively."

Another strategic advantage is their dedication to the plant itself. Whereas some recruiters see cannabis as a quick opportunity, Hunter + Esquire sees the bigger picture. Their relationship with the plant runs deep and they are passionate believers in the futures of those who have been a part of building the legal industry in recent years.

Jessica and Bryan Passman have been leaders in executive recruitment for the cannabis industry since 2017.

Hunter + Esquire believes that the industry has only just begun to take off, and that the possibilities are endless for how the plant can be incorporated into medicine, food, cosmetics, and more. And because they have significant prior talent acquisition experience and advisement in the life sciences, medical technology, pharmaceuticals, biotechnology, food and beverage and consumer packaged goods, Hunter + Esquire is perfectly positioned to help companies succeed.

"Eventually, well-known major consumer package goods (CPG) companies are going to enter this space. Whether it's hemp, cannabis, CBD or something else, it's almost inevitable that corporations like Coca-Cola, Proctor & Gamble, Unilever and others are going to enter the space. We stand ready to assist them in building out the teams that will create and run their hemp and cannabis business units.”

While that is not likely to be a near-term need, the future of cannabis and hemp is coming pretty fast. Big corporations are going to need a partner who knows the landscape and the players. And when that happens, Hunter + Esquire will be there to partner.

Hemp Beverage Alliance’s comments to FDA mentioned in Marijuana Moment

The industry is taking notice of our position on hemp-derived cannabinoids. We look forward to continuing the discussion with regulators, brands, distributors and other stakeholders.

Scroll down to the bottom to see our mention in this roundup from Marijuana Moment.

“The Hemp Beverage Alliance submitted comments to congressional committees about regulating CBD.”

Hemp Beverage Alliance in Cannabis Regulator

Cannabis Regulator published a story about our letter to Congress to have TTB regulate hemp-derived THC beverages.

Read the whole story on their website.

Hemp Beverage Alliance in Jamestown Post Journal

Western New York media weighed in on our suit against the New York Office of Cannabis Management. Read the full article here.

Alliance to Congress: TTB should regulate THC

(DENVER) — Low-dose, hemp-derived THC beverages should be regulated by the Alcohol Tobacco Tax and Trade Bureau (TTB), according to the Hemp Beverage Alliance.

In response to Congress' request for information about regulating CBD as a food and dietary supplement, the Alliance suggests two separate pathways for hemp-derived CBD and THC:

• CBD is a non-impairing compound and should be allowed to be incorporated into food and dietary supplements and be regulated by the Food and Drug Administration (FDA)

• THC has the potential to impair. Beverages containing potentially impairing levels of THC legally derived from hemp should be regulated by the Alcohol and Tobacco Tax and Trade Bureau (TTB).

While CBD is a valuable cannabinoid with tremendous potential, it is the low-dose, hemp-derived delta-9 tetrahydrocannabinol (THC) and full spectrum products that truly are in demand by the American consumer.

Since its legalization in the 2018 Farm Bill, low-dose hemp-derived full spectrum beverages have been embraced by adult consumers seeking relaxation and relief.

This is where the hemp marketplace is poised for significant growth, and this is where Congress has the opportunity to support farmers, small businesses, veterans, seniors, and countless others who benefit from the production, distribution, sale and consumption of regulated, hemp-derived products.

The Alliance also encourages Congress to:

• Appropriate funding to TTB to develop a regulatory framework for beverages infused with THC derived from legal hemp.

• Appropriate funding to TTB to develop programs to educate distributors, retailers, state regulators and the general public about hemp-derived THC beverages. Educational programs should emphasize safety, responsible consumption, and the restriction of products to adults aged 21 years or older.

• Develop a framework to tax hemp-derived THC beverages in a manner similar to alcohol. This will benefit taxpayers and provide funding for market regulation and oversight.

• Encourage uniformity in labeling requirements among the states. This will empower consumers and free beverage companies from onerous, state-by-state requirements.

• Work with the hemp beverage industry to create a sensible, thriving, safe industry. Together, we can create a strong hemp beverage marketplace that protects children, creates jobs, stimulates local economies, and provides adult consumers with products they enjoy and demand.

"Adult consumers throughout the country want low-dose THC products that are safe, effective, age-restricted, and available where they buy alcohol," said Christopher Lackner, executive director, Hemp Beverage Alliance. "TTB is the right agency to create a sensible framework that grows the industry and keeps these products away from children."

Click here to read the full response to Congress' RFI.

ABOUT
The mission of the Hemp Beverage Alliance is to create a safe and thriving industry through education, advocacy, best practices and partnership. We achieve this by providing consumers, retailers, and distributors with the information they need to better understand the industry; developing best practices to create consistency in labeling and manufacturing, boosting consumer confidence; working with elected officials and regulators to encourage common-sense regulation; and collaborating with cannabis and alcohol industries to create a marketplace that benefits everyone. More at hempbeveragealliance.org.

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Hemp beverages create community. That why he's creating a hemp beverage company.

A few years ago, Texas entrepreneur Brian Hart noticed how society was becoming less connected, especially as the pandemic wore on.

"I spent three and a half years traveling around the world and the one thing that became clear was a decline in community and communication here in America," said Hart. "It's something I think is really missing. And it's something I want to change,"

Brian's travels throughout Africa, Asia, North and South America, Australia and Europe was punctuated by shared experiences with strangers, young and old, who connected with him via the plant.

"You go around the world and enjoy cannabis with people, and I really feel it breaks down barriers. It creates shared experiences that deeply connect people," said Hart. "And so I thought, 'If I can create a product that makes the world just a little bit better, that would mean the world to me.’"

A businessman at heart (his MBA thesis focused on a neoclassical economic modular analysis of the Colorado cannabis industry), Brian ultimately identified hemp beverages as the industry that could achieve this goal. Although the product he affectionately calls “Project V” is still in development, he already has plans for working with community groups to help people connect.

“If I can create a product that makes the world just a little bit better, that would mean the world to me.”
Brian Hart, Hemp Beverage Alliance member

"Loneliness and mental health are a part of many big issues in our society. It's at a crisis level," said Hart. "That's why I'm going to donate 10% of my inventory to community groups that bring people together and help us regain that sense of community that we all miss."

Brian says he decided to focus on hemp instead of cannabis because "the hemp beverage industry seems to have endless possibilities, not only because of its legal status [under the 2018 Farm Bill] but because the market size is so much larger than cannabis."

And since becoming a member of the Hemp Beverage Alliance in July 2023, Brian is already seeing success in creating community and connections within the industry.

"Alliance members work together to create an industry that is solid and safe. I even have a blossoming mentor relationship with a guy who many would consider my competition. But right now, we're all interested in building each other up."

To learn more about Brian Hart, visit his LinkedIn page.

Hemp Beverage Alliance in MG Magazine

MG Magazine picked up our press release about our efforts in New York. Read the whole thing here.