Vertosa Blog

Hemp and Cannabis Beverage Trade Groups: Charting a Unified & Effective Path Forward

Written by Ben Larson | 7/3/24 1:37 AM

This post originally appeared on Ben's LinkedIn Newsletter, Infused Insights. You can read and leave comments here.

 

You might be thinking that I'm addressing only a small group, given that there are just two or three key organizations involved. However, I frequently interact with Diana Eberlein of the Cannabis Beverage Association, Christopher Lackner of the Hemp Beverage Alliance, and Michael Bronstein of American Trade Association for Cannabis and Hemp, so my comments today are largely intended to create some political cover for the wider audience. Specifically, I am speaking to the boards and the membership of these organizations.

As the landscape of cannabis and hemp reform continues to evolve rapidly, the role of low-dose beverage products becomes increasingly central to our industry’s future. Our organizations, including the Cannabis Beverage Association, the Hemp Beverage Alliance, and the Beverage Council at the American Trade Association for Cannabis and Hemp, stand at a critical juncture. The decisions we make now will shape not just the future of infused beverages but potentially the entire sector.

Collaboration, Unity, and Differentiation

In the diverse political landscapes of different markets, it is essential for our organizations to collaborate and align closely. The dynamic nature of our industry, where opportunities and challenges emerge swiftly, underscores the need for cohesive action not only at the federal level but also locally. By synchronizing our efforts, especially in establishing standards and guidelines, we can advocate more effectively for our products and ensure our perspectives stand out in a competitive and often contentious regulatory framework.

Additionally, it is important to articulate the distinctions between our organizations and justify the necessity of operating independently. If we cannot clearly justify our independence, then we must consider merging. We find ourselves at a critical point where the efficacy of our progress is more important than maintaining separate identities for the sake of popularity.

Leaders of NCIA, HBA, CBA, and ATACH (and me) convene at Benzinga 2024.

Establishing Recommended Standards, Language, and Codes of Conduct

It's imperative that we lead the way in defining the core values and expectations of our association's membership. Establishing trust with regulators is crucial, and a robust and adhered-to Code of Conduct will position our organizations as credible participants in policy discussions. Given the current landscape where legislators and regulators frequently question whom to trust, clarity and integrity in our operations are paramount.

We should also take definitive steps in standardizing terminology and criteria for beverage products, including dosage, packaging limits, and form factors. Proposing these standards and definitions is an active move toward consistency. Detailing the formulation, testing, and shelf stability of our products is vital to gaining consumer and regulatory trust.

While achieving consensus may be difficult, providing specific guidelines will help harmonize regulations across various markets. This endeavor transcends simple operational ease; it's about ensuring safety and uniformity that not only appeals to a wider consumer base but also supports economies of scale and enhances interstate commerce benefits that the hemp industry once boasted.

In discussions with regulatory bodies, including high-level entities like the FDA and TTB, there is a clear desire for standardized guidelines from our industry leaders. However, the current delivery of divergent recommendations hampers progress. We must address this issue promptly to avoid stalling further advancements in our sector.

Members of ATACH and the CBA walking the halls of congress at Lobby Days 2023.

Anchoring to the Broader Beverage Community

It's time for a strategic shift. We need to position infused beverages not merely as alternatives to traditional cannabis and hemp products but as formidable contenders in the broader adult beverage sector. This change is essential as it aligns our initiatives more closely with mainstream beverage associations, rather than with broader cannabis and hemp industry groups that have a wider scope of concerns and products.

This unique positioning presents distinct challenges and opportunities, requiring us to realign our advocacy efforts strategically. This realignment doesn't mean we're stepping back from the collective goals of the broader cannabis and hemp communities. Rather, it highlights the need for specialized attention that our segment of the industry needs to prosper. By aligning ourselves more closely with organizations that share our specific goals, we can create a stronger, more impactful advocacy path. Additionally, leveraging the resources and political influence of major players in the beverage industry can help accelerate the mainstream acceptance of cannabis-infused beverages. While integrating these "big beverage" players might be seen by some as controversial, it's a step I believe is crucial for broader acceptance and integration into the mainstream market.

A Call to Strategic Realignment

This strategic decoupling is not a step back from our collective goals for the cannabis and hemp community but a recognition of the opportunity presented by a specialized approach to realize the full potential of infused beverages. By carving out this distinct space, we can more effectively champion our cause, collaborate with like-minded partners in the beverage industry, and contribute powerfully to the broader movement by opening up doors and minds for mainstream acceptance.

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