Former foe advocates for major changes in cannabis market

Watching the new legal cannabis industry evolve has been interesting, to say the least. From bud served deli-style to pharmacy-level retail experiences, how consumers shop for weed runs the gamut. THC-infused drinks are exploding in popularity, and adults in many states are seeing cannabis bevs available at both dispensaries and liquor stores alike. Now, one group is advocating to align these two worlds for a better future.
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American Beverage Licensees (ABL), a nationwide trade group representing alcohol retailers, recently released a memo on the subject of THC drinks. The group recommended that states move to regulate infused beverages like alcohol—and sell them exclusively in places already licensed to sell booze.
“Given their considerable experience with beverage alcohol regulation, beverage alcohol retailers are best positioned to not only sell these products, but also to provide practical advice to states on how to implement a robust regulatory model that inherently balances public safety, business interests, and consumer access,” ABL executive director John Bodnovich said in the statement.
The ABL is also asking lawmakers to ensure that cannabis drinks are held to the same standards as alcohol. This includes areas such as licensing, advertising, taxation, product testing, and compliance.
It’s a double-edged sword for the cannabis industry. On the one hand, pot operators are typically held to stricter regulatory policy than alcohol and often decry the double standard. However, mandating the novel approach that THC drinks be sold only by alcohol license holders could be detrimental to the fledgling cannabis market—especially when the products are experiencing unprecedented growth.
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A mutually-beneficial approach
The uptick in sales of THC drinks comes as consumers move away from alcohol. Seeing the trend, many in the adult beverage industry understand the potential for cannabis and alcohol to align. At the recent Wine and Spirits Wholesalers of America (WSWA) conference, market leaders suggested the two industries would soon be one.
States like Minnesota are adopting a hybrid model. The compromise allows the sale of hemp-derived THC drinks at liquor stores while cannabis-derived products are available at dispensaries. John Dugas, founder of Minnesota-based Superior Molecular, helped lobby his state to create the groundbreaking hemp edible law in 2022. He told GreenState policy should be about benefitting the marketplace in a mutually beneficial way.
“Mainstream adoption of common sense regulations helps our category provide stability through the entire supply chain, from ingredient producers to beverage manufacturers to retailers,” Dugas said.
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Despite the success in the Midwest, other states are opting to ban hemp THC altogether. The ABL proposal may be a pendulum swing too far in the other direction. Perhaps the Minnesota model is the deal needed to level the playing field between bud and booze—only time will tell.