Two years in, Minnesota’s THC market hasn’t lost its buzz
In the two years since Minnesota legalized low-dose cannabis drinks and edibles, there seems to be little indication that the popularity of these products is slowing down. From The Minnesota Star Tribune:
“Minnesota is, in some ways, the Silicon Valley of the hemp-derived economy,” said Brian Vicente, founder of one of the nation’s top cannabis law firms, Vicente LLP. “The brands of the future, I think, are being born in Minneapolis today.”
Read the full article here, which includes quotes from several other members of the Hemp Beverage Alliance.
THC seltzers quietly find a foothold in cannabis-cautious South Dakota
Hemp beverages are being embraced across the country, even in the “Mount Rushmore State.” From the South Dakota Searchlight:
About a year ago, bar owner Justin Henrichsen started offering THC seltzers and cocktails at his four establishments in Rapid City, Spearfish and Sioux Falls.
Since then, he’s watched the libations’ popularity spike with each passing month, across age groups and demographics, sometimes outselling wine and on pace with craft beers.
What he hasn’t seen are problems. A year in, he can say something about cannabis drinkers he can’t say about beer drinkers.
“We’ve never had to cut anyone off, we’ve never had a bro come in and try to pound 15 of them, and we’ve never had to kick anybody out,” Henrichsen said. “It’s a non-issue.”
Read the full article here, which includes Hemp Beverage Alliance best practices for serving size, label requirements, and serving only to adults 21 years or older.
Submit your comments to the Georgia Department of Agriculture
As we discussed this week, HBA will be submitting comments to the Georgia Department of Agriculture regarding their proposed comments for hemp beverages.
We strongly encourage HBA members (and non-members) to amplify our recommendations by submitting comments of your own that 1) reflect your perspective and 2) encourage the solutions proposed by HBA.
HOW TO SUBMIT YOUR COMMENT
Click here for suggested language and copy/paste it into an email.
At the beginning of the message, add a paragraph or two about your personal/professional experience, concerns, commitment to safety, etc. The more you can personalize/tell your own story, the better. Here are some ideas to get you started:
Suppliers - How are you making quality products and marketing them in a responsible manner?
Retailers - How are customers reacting when they hear about this new product?
Distributors - How will hemp beverages help your business?
Supply chain - How are you taking steps to make sure products are safe and of the highest possible quality?
Once you’ve added your personal story, send your message to: hemp@agr.georgia.gov
Please note: If you do not include a personal touch to the email, you can still just send it as is. The important thing is that you send it out in a timely manner.
WHEN TO SUBMIT YOUR COMMENT
Do not delay in sending your comments. Please make this a priority and send as soon as possible. In a perfect world, you’d send out your comments shortly after we submit our comments on August 22.
The deadline to submit comments is 4:30p eastern time on Friday September 6.
WHY YOU SHOULD SUBMIT COMMENTS
The Georgia Department of Agriculture is very interested in the hemp beverage industry’s recommendations. Our conversations with them indicate that they will be receptive to what we have to say.
If we collectively support common solutions, there is a greater chance that they will be implemented.
The rule-making process is an important part of the process but it only works when we all participate.
WHO SHOULD SUBMIT COMMENTS
Public comments are open to everyone. You don’t need to be part of the industry to make a comment. That said,
Everyone who is in the industry absolutely should take a moment to make a comment.
CAN I GIVE MY COMMENTS IN PERSON?
In addition to accepting written comments, the Georgia Department of Agriculture will hold a public hearing at 1pm eastern on September 9, 2024 at 19 MLK Drive SW, Room 201, Atlanta, GA 30334
It is very important that you submit your written comments before the hearing.
NEED MORE INFORMATION?
Visit https://agr.georgia.gov/legal/notice-intent-amend-repeal-and-adopt-hemp-and-hemp-product-rules
https://agr.georgia.gov/legal/notice-intent-adopt-consumable-hemp-product-rule
Hit up our #georgia Slack channel
Email chris@hempbeveragealliance.org
HBA on WIOD News Radio
Minnesota is often seen as the land of hemp beverages. But Florida also is quickly establishing itself as a strong marketplace for the cateogory.
The Alliance sat down with News Radio 610 WIOD’s Manny Munoz to discuss what these drinks are, why they should only be sold to adults 21 years or older, and how “starting low and going slow” is the key to success.
Meeting recap
We had a bit of a Google Chat bungle today so we’re posting the meeting recap on the blog. Enjoy!
Welcome and call to order
Click here for agenda. We’ve got a lot of new members in the group, including new distributors, brands, and service providers. Check out our website to see the full list of brands, distributors, ingredient providers, can/label/package makers, co-packers, supply chain partners, professional service providers, retailers and associations.Treasury Department reporting requirements for small businesses
Brian Wolski gave a presentation on important requirements from the Department of Treasury. This is a new law with potentially significant penalties. We encourage everyone to be aware of this issue and talk with your legal counsel about it (HBA does not provide legal counsel or advice). Click here for Brian’s presentation.Trade show branding opportunities
Matt Strumpf/Strike Visuals are new members but have already been very active in helping folks out with trade show materials and other visual elements. Matt gave a great overview of best practices in trade show presentations. He’ll send out some information later this week to everyone so you can see what they can do for you.State advocacy
Ted W. gave an update on California (still plugging away), Adam T. gave an update on New Jersey (nothing new from last week), Eapen and others weighed in on Iowa (lawsuits will be decided end of the week). Missouri advocates have a call on Thursday July 25 @ 10am if you want an update on what’s going on there. To participate in this call, fill out this Google form.Up-to-date information on these and other states can be found in our Slack channels. Shoot me a note if you want to discuss in further detail.
Midwest Hemp Fest
Tara Falk invited Midwest brands to participate in the Great Midwest Hemp Fest in Madison, Wisconsin - September 28 & 29. Tara expects several thousand people to attend this event, which will include a hemp beverage pavilion/tent showcasing drinks from Wisconsin, Illinois, Michigan, Indiana, Iowa and Minnesota. Click here for an application to participate. Email tara@rrproductionsgroup.com to learn more.Benzinga Capital Conference
Javier Hasse spoke about Benzinga’s event in Chicago on October 8 & 9. They’re organizing a hemp/THC beverage contest and are offering $100 off for HBA members. Click here for details. Email javierhasse@benzinga.com for details and to get that $100 code.Data gathering
There is an increasing need for real data on the size of the hemp beverage industry. Matt Kurtzman talked to the group about moving forward with a strategy to aggregate data from HBA brands and put it to good use for advocacy, marketing, and investors. The first step is to fill out this form to determine who is interested. From there, we’ll fashion a strategy to make this happen.Membership
Please renew your membership if you haven’t already. Be sure to fill out the form that you’re directed to after you pay. Please note: We’ve heard from a few folks that Chase credit cards may bounce back with a “fraud alert.” Let us know if you’re having trouble paying and we’ll help you resolve. If you need a proper invoice sent first, you can email accounting@hempbeveragealliance.org. Todd Miller (“Miller”) is our bookkeeper and can take care of that. If you want to mail us a check, please send to PO Box 12664, Denver CO 80212. Just give us a heads up so we know it’s coming.
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HBA member spotlighted in Spectrum News - North Carolina
Our good friend Reilly Dunn is doing the hard work in North Carolina.
All across the country, hemp beverage companies like Reilly's are starting small businesses, investing in equipment, hiring people, and contributing to the economic vitality of their communities. With a focus on quality, safety, and transparency, these companies welcome smart regulation and are working with legislators to keep products away from children, ensure products are safe & contaminant-free, and provide a tax structure benefits the entire state.
Thank you, Reilly and Sasha, for your dedication to our industry (and for the shout out in this local story).
Conference and Festival in review
It’s been a little over a month since our inaugural Hemp Beverage Conference & Festival. Looking back, it’s amazing what we achieved as an organization and as an industry.
More than 250 people attended the June 7 conference, some coming from as far away as Arizona and California. And while the agenda was packed with great information from industry leaders, the key takeaway was the positivity, collaboration, support and camaraderie on display throughout the whole event.
The festival took place on June 8 at Minneapolis Cider Co, home of Trail Magic. More than 500 people showed up to celebrate the category with food, music, and more than 30 hemp beverage brands from across the state and the country. The feedback from guests was wonderful with the top comments being about both quality and quantity of brands, the feeling of safety at the event, and the excitement that such an event existed.
Thank you to everyone who participated, volunteered, played the banjo, served the beignets, and otherwise helped create such a successful event. And of course, special thank you to Minneapolis Mayor Jacob Frey for proclaiming June 8 “Hemp Beverage Day” in the city.
PRESS RELEASE: ILLINOIS LEGISLATION WILL ELIMINATE NON-ALCOHOLIC OPTIONS FOR ADULTS, THREATEN CRAFT BREWERS & INDEPENDENT VENUES
Two bills in Springfield could have disastrous ramifications for Illinois adult beverage consumers, the breweries that make them and the venues that want to sell them.
Across the country and around the world, adults are exploring alcohol alternatives, and many are turning to hemp beverages: alcohol-free seltzers, teas, sodas and mocktails that create an adult beverage experience without the booze.
Senate bills 3926 and 0776 would make these adult beverages illegal in the state.
”Hemp-derived adult beverages represent an important new vertical and powerful source of revenue for craft breweries who are still rebounding from COVID and the resulting shift in consumer behavior,” said Ray Stout, executive director, Illinois Craft Brewers Guild. “Hemp beverages are a market innovation that is in great demand, one that dozens of our members are already tapping into to help keep their breweries open and profitable.
“Instead of pulling the rug out from underneath these breweries by banning them from the marketplace, the legislature should create a regulatory framework that allows hemp drinks to be manufactured and sold safely and properly."
Hemp beverages are significantly lower in potency than marijuana cigarettes found in dispensaries and provide a mild experience similar to that of a glass of beer or wine. Marketed as adult beverages and sold only to people 21 years old or older, these products emphasize flavor and experience rather than “getting high.”
In addition to the craft beer industry, Chicago-area venues will benefit from having safe, legal, low-dose hemp beverages available to adults. Most small venues make very little money from ticket sales. Revenue actually comes from bar tabs. Hemp beverages can help improve bar sales and ensure Illinois venues stay open and the performing arts can continue to thrive.
“We need to be able to adapt to changes in consumer habits. That means providing in-demand non-alcoholic options like hemp beverages,” said Katie Tuten, co-owner, the Hideout.
Finally, for Illinois residents, hemp beverages can be a significant contributor to state and local coffers. Reasonable taxation on hemp beverages could result in significant windfalls, which is especially important as revenues from liquor taxes decline.
“The hemp beverage industry strongly supports a regulatory framework that makes these products available to adults only, taxes them appropriately, provides reasonable serving sizes, and allows them to be sold anywhere other adult beverages like beer, wine and hard seltzer are sold,” said Christopher Lackner, president and CEO, Hemp Beverage Alliance.
Hemp beverages are already regulated in several states across the country. Minnesota currently gathers around $1.5 million in taxes per month from consumable hemp products. That is only expected to grow as the market expands.
“Hemp beverages can bring a lot of revenue to the state, keep brewers employed, keep our stages open, and give adults a non-alcoholic option they never had before. It’s a win-win-win-win that the legislature can’t afford to pass up,” said Stout
“If Minnesota can do it, so can we.”
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 mission 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; 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.
The Illinois Craft Brewers Guild (ICBG) is a nonprofit organization dedicated to supporting the development and expansion of the craft beer industry in Illinois. Founded in 1997, ICBG focuses its efforts on member and consumer education, legislative and regulatory advocacy, and the promotion of its member craft breweries. Learn more at www.illinoisbeer.org.
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Conference Agenda
THE HEMP BEVERAGE CONFERENCE
Friday, June 7
9:00 a.m. - 5:00 p.m.
Royal Sonesta Hotel
35 S 7th St, Minneapolis, MN 55402
CALL TO ORDER
9:00 Light breakfast & networking
9:30 Welcome and introductions
THE MINNESOTA EXPERIENCE
10:00 How Minnesota works for hemp beverages - Minnesota Department of Health
10:30 The Minnesota distributor experience - Minn. distributor panel discussion
11:00 Retailer experience - Minn. liquor retailer panel discussion
11:30 On-premise experience - Minn. restaurateur panel discussion
LUNCH
12:00 Lunch, networking, sampling
THE NATIONAL OPPORTUNITY
1:00 National regulatory landscape - State updates, Farm Bill & more
1:30 Midwest markets panel discussion - IL, MO, IA, WI, SD, OH
2:00 National markets panel discussion - Where is the next Minnesota?
SUPPLY CHAIN
2:30 Ingredient manufacturing panel discussion
3:00 Cans & labels, production panel discussion
3:30 Finance and data discussion
ROUNDUP & RECEPTION
4:00 Closing remarks
4:15 Sampling, networking
5:00 Event ends