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Beer Industry Trade Group Calls Out Hemp THC Sector’s ‘Bad Actors’ For Allegedly Marketing To Children

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6 months ago

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“You’ll never see a beer ad featuring Santa Claus or the Easter Bunny.”

By Ana Radelat, MinnPost

The US beer industry is targeting makers of THC-infused drinks and edibles in a campaign that could have repercussions in Minnesota, the state that sparked a national explosion in sales of hemp-derived beverages.

The beer industry, which has seen declining sales — especially among younger consumers — has joined the marijuana industry. in seeking federal rule of THC-infused beverages, currently regulated only by state laws.

Minnesota Attorney General Keith Ellison (D) recently shocked the hemp and THC beverage industries when he signed a letter to Congressional leaders with 38 other state attorneys general asking Congress to clarify the federal definition of hemp.

the letter said that “bad actors” have taken advantage of a “loophole” in the 2018 Farm Bill that allowed the sale of potent, unregulated THC products that pose a threat to the general public and children in particular.

“Unless Congress acts, this gross distortion of the hemp provision in the 2018 Farm Bill will continue to fuel the rapid growth of an underserved industry that threatens public health and safety and undermines law enforcement nationwide,” the letter said.

At a recent Semafor-sponsored conference, Brian Crawford, CEO of the Beer Institute, a trade association that advocates for the industry, said beer is heavily regulated by federal agencies. He said brewers are subject to marketing, advertising and labeling regulations and must seek federal approval for their formulas.

Age restrictions are also strictly enforced, Crawford said, and the sale of beer to those under 21 is prohibited.

However, Crawford said there are no federal restrictions on THC-infused products. He said these “bad actors” in the THC drink and gummy industries are packaging and marketing products that appeal to children, including THC Nerd candies, which are ultra-high-potency THC edibles.

“You’ll never see a beer ad featuring Santa Claus or the Easter Bunny,” Crawford said.

“Natural Social Tonic”

An amendment passed in the House Agriculture Committee last year as a major Farm Bill consideration would change the federal definition of legal hemp to include only “natural, derived and non-intoxicating cannabinoids.”

This means that any cannabinoid manufactured outside of the hemp plant would be outlawed, criminalizing the production of hemp-based gummies, drinks and other edibles, as well as oils, soaps and other products made from hemp.

A Minnesota state law passed in 2022 allows the production and consumption of hemp-based edibles and other products. But the now stalled House Farm Bill’s hemp amendment would make these products illegal under federal law.

The partisan gridlock in Congress has made it unlikely that there would be a new Farm Bill this year. So the fight against THC-infused products has shifted to the agriculture spending bill, which Congress is likely to pass once the federal shutdown ends.

Jake Bullock, the maker of Cann THC drinks, which are marketed as “all natural social tonics,” said he joins Ellison and other state attorneys general in defending rules that prevent “bad actors” from making highly potent synthetic products and marketing THC-infused products to children.

But he also said overly broad regulations would hurt the $30 billion industry, which employs 330,000 Americans.

“We would be throwing the baby out with the bathwater,” Cann told MinnPost.

Cann’s success represents exponential growth in the multi-billion dollar market for hemp-derived intoxicants.

Bullock said he started his business in Venice Beach, California, and then produced his drinks in Minnesota after the state passed a law allowing the sale of hemp-infused products.

Today, it sells its beverages in about 30 states and Cann products can be found in many liquor stores and other outlets in Minnesota. It recently joined Target.

“The reason consumers like the products is that they work like alcohol,” Bullock said. “If you like it, you can have another one an hour later.”

Bullock said drinking several cans of Cann can be intoxicating, but there is no hangover. He also said that many drinkers have reduced their alcohol consumption in favor of his drinks.

Bullock also said Gen Z favors their drink over alcohol because they socialize differently than older Americans and are less likely to spend money at bars.

The need to address “bad actors”.

The potency of a THC infused drink depends on how many milligrams of THC the product contains. State laws vary. In Minnesota, it is limited to no more than 10 milligrams. Other states are stricter. Virginia and Connecticut cover it at 2 milligrams.

However, Crawford said “bad actors” make drinks with as much as 200 milligrams of THC “in a 12-ounce can.”

“That needs to be addressed,” he said.

Bullock, who also spoke at the Semafor event, told MinnPost that he would support lowering the THC level nationally to about 5 milligrams. He said eliminating synthetic THC was also fine, along with eliminating lab-made chemicals designed to mimic the effects of delta-9 THC, the main psychoactive compound in natural cannabis.

He said he believes Ellison has been “misled” into signing a letter asking Congress to “act decisively in the (2018) Farm Bill to clarify the definition of hemp to ensure that intoxicating THC products are taken off the market.”

Analysts say that would kill Minnesota’s market for THC-infused beverages and edibles.

Ellison attempted to clarify his position in a headline statement “Protecting Minnesota’s THC Industry”. In it, Ellison said he did no He wants a ban on all THC-infused products, but has sought federal regulations “to help out-of-state companies ignore Minnesota’s carefully crafted THC rules and sell harmful products in our state.”

“Minnesota’s legalization of edible THC was smart and safety-conscious, and unfortunately the loophole created by the federal government is anything but,” Ellison wrote. “As a result, there are very strong THC products coming into Minnesota that are marketed to children, and I’m not going to stop out-of-state businesses from preying on young Minnesotans.”

However, public comments on the attorney general’s statement indicated that the letter he signed would also ban intoxicating THC-infused products and outlaw a lucrative industry in Minnesota.

“The letter you signed explicitly calls for a ‘ban on products with intoxicating levels of THC, of ​​any kind and no matter how it’s derived,'” wrote one commenter. Your letter would undo all the good work done by Minnesota lawmakers over the past five years, recriminalize access to THC for people who want to get over alcohol, and crack down on one of the few brewers.

While the beer industry may seek a crackdown on THC beverages, small brewers, facing a shrinking market, are increasingly getting involved in the hemp beverage market by creating alcohol-free THC-infused beverages.

Meanwhile, Sen. Rand Paul, R-Kentucky, is asking Congress to delay any changes for 18 months in order to conduct a comprehensive study on the best ways to regulate the hemp industry.

It’s unclear how Paul’s congressional colleagues will respond.

This the article appeared for the first time MinnPost and is republished here under a Creative Commons Attribution-NoDerivs 4.0 International License.

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Cannabis operators report mixed results as rescheduling reshapes the financial outlook

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10 hours ago

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May 14, 2026

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The rescheduling came mid-quarter and rewrote the tax math for each medical sales operator, but the underlying revenue picture remained uneven in early 2026, with acquisitions driven at one end of the scale and continued top-line compression at the other.

Vireo Growth: Back on $106 million deal
Vireo Growth Inc. reported Q1 GAAP revenue of $106.2 million, up 333.5% year-over-year, driven almost entirely by recent acquisitions rather than organic growth. The company completed the Schwazze acquisition in March, adding 45 dispensaries and two manufacturing facilities in Colorado and New Mexico. At the end of the quarter, it closed Eaze and Hawthorne Gardening, FLUENT Corp. announced an acquisition agreement and executed a California dispensary joint venture with Glass House Brands. Treating all acquisitions as closed on January 1, 2025 on a pro forma basis, revenue was $210.2 million and adjusted EBITDA was $42.2 million. The company ended the quarter with $137.8 million in cash.

John Mazarakis, CEO of Vireo, said: “Performance in the first quarter met our expectations and we are excited to welcome Schwazze, Eaze and Hawthorne to Vireo. We are focused on integration and optimization across the platform, while remaining opportunistic regarding growth opportunities associated with further acquisitions.”

Cresco Labs: $151 million, 280E relief and Texas license
Cresco Labs reported Q1 revenue of $151 million, down from $165.8 million in Q1 2025. Adjusted gross margin was 50.7% and adjusted EBITDA margin of $33 million was 21.7%. Cash at the end of the quarter was $67 million against a $310 million secured term loan. The company was conditionally granted a Texas Compassionate Use Program license after the quarter ended and opened two new dispensaries in Ohio.

Management said, “Moving the state’s legal medical cannabis from Schedule I to Schedule III is the most impactful reform this industry has seen, and it validates the work we’ve been executing for years. We’ve built the operational foundation and balance sheet discipline to reap the immediate benefits of rescheduling, and position Cresco to take advantage of the broader path to normalization.”

Jushi Holdings: 4% growth, 460 basis point margin expansion
Jushi Holdings reported first-quarter revenue of $66.4 million, up 4% year-over-year, with gross profit margin up 460 basis points to 45%. Adjusted EBITDA was $11.4 million, up 17.2%. The margin improvement was driven by higher production volumes in Ohio, Massachusetts and Pennsylvania and the performance of grower processors. Jushi brand products accounted for 58% of retail revenue in vertical markets. The company refinanced $132.3 million in debt during the quarter, providing $160 million in new debt through 2029.

Jim Cacioppo, president and CEO, said: “The recent scheduling of state-licensed medical marijuana for Schedule III is an important milestone for the industry, eliminating 280E tax limitations for medical operations and supporting a more favorable long-term operating environment.” Medical sales accounted for about 60% of Jushi’s 2025 revenue, making this material relief.

iAnthus Capital: Revenue falls to $33.5 million
iAnthus Capital reported first-quarter revenue of $33.5 million, down $4.6 million from 2025’s first quarter. Gross margin was 47.5%, up 477 basis points from the 2025 quarter. The company did not provide a management comment in the press release.

Country farms: international export record, fourth consecutive quarter of net income
Village Farms International reported first quarter consolidated net sales of $50.2 million, up 27% year-over-year, with net income of $2.9 million and adjusted EBITDA of $9.9 million, up 118% year-over-year. International export sales increased 171% to a record $14.6 million, driven by demand for EU-GMP compliant products in Germany. Pure Sunfarms had the top Canadian market share in dried flowers for the 15th consecutive month. The company started planting the first half of its Delta 2 greenhouse expansion and expects its Phase II facility in the Netherlands to reach full capacity by the end of 2026, which would quadruple Dutch production.

Michael DeGiglio, President and CEO, said: “Our first quarter results reflect a strong start to the year and continued momentum in our largest markets, with adjusted EBITDA growth of 118% year-over-year, significantly outpacing revenue growth of 27%, driven by our international business and continued leadership in Canada.

Cronos Group: Record revenue, $822 million in cash
Cronos Group reported Q1 net income of $45.2 million, up 40% year-over-year and a record quarter, with net income of $15.7 million and adjusted EBITDA of $5.1 million. Israel led growth PEACE NATURALS grew 53% for ninth consecutive record quarter. In Canada, the Spinach brand took first place in vapes with a 9.8% share of the national market, and maintained its top spot in edibles at 20.8%. The company ended the quarter with $821.9 million in cash and authorized a new $50 million stock repurchase program. The deadline to close the acquisition of CanAdelaar, one of the ten licensed growers in the Dutch Controlled Cannabis Supply Chain Experiment, has been extended to September 9, 2026 to allow time for regulatory approvals.

Mike Gorenstein, chairman, president and CEO, said, “Cronos achieved net earnings and gross profit in the first quarter as we continue to execute against our unlimited product strategy and the additional supply from Cronos GrowCo’s expansion fuels the next phase of our growth.”

Org chart: Revenue down 9%, Sanity Group acquisition closes after quarter
Organigram Global reported fiscal second quarter net income of $59.8 million, down 9% year-over-year, with adjusted EBITDA of $0.9 million, down 82%. Lower vape and pre-infusion sales drove the decline, along with a $5.8 billion dent in the U.S. hemp business. The company achieved a record quarterly harvest of over 32,000kg at its Moncton facility, up 56% year-on-year, and launched 10 SKUs in Australia targeting over 4,000 pharmacies. At the end of the quarter, Organigram acquired Sanity Group, one of Germany’s leading cannabis companies, and updated its 2026 guidance to net revenue of more than $350 million.

James Yamanaka, CEO, said: “Q2 reflected our poor performance in vaporizers and temporary challenges in pre-infusion production, compounded by slower industry growth. We have acted quickly to address these issues, and the operational changes and product improvements we have implemented are already beginning to stabilize performance.”

Greg Guyatt, Chief Financial Officer, said: “The financial impact of the competitive and operational challenges encountered earlier in fiscal 2026 is believed to have materialized in the first half of the year, and we are now beginning to stabilize performance. We expect to resume a trajectory of margin expansion and improved profitability during the second half of the year, supported by positive revenue and international sales growth. The Sanity Group.”

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Medical Marijuana Helps Pain Patients Reduce Use Of Opioids, New Study Shows

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10 hours ago

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May 14, 2026

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As opioids continue to cause overdose deaths, a new study suggests that making medical cannabis available and affordable could help patients reduce their use of prescription painkillers.

“Although cannabis has historically been characterized as a potential ‘gateway drug,’ it may also serve as a harm reduction tool for some patients seeking to reduce their reliance on higher-risk opioid medications,” researchers at the University of Pennsylvania Perelman School of Medicine found.

The study, a prospective observational trial at the Hospital of the University of Pennsylvania, followed 29 adults over five months. All had been living with chronic pain for years—an average of 11 years—and were already taking opioid medications, but struggled to taper off of them despite other treatments.

The study is unique in its focus on cost as a factor in access to medical marijuana, with the researchers describing their work as “the first prospective observational study evaluating medical cannabis as an alternative to opioids in a setting where cost was removed as a major barrier.”

Participants were recruited from a university outpatient chronic pain clinic and then completed monthly pain assessments using the Numeric Pain Rating Scale (NRS). The researchers measured daily opioid use, measured in milligrams of morphine equivalents (MME).

“Seven patients (24%) were able to completely discontinue opioid therapy at the end of the study, five of whom did so by the second month. Pain levels also decreased over time,” the authors wrote.

Notably, “there was a statistically significant reduction in mean pain scores experienced over the five-month study period,” says the paper published in the Cureus Journal of Medical Science.

“There was also a reduction in average opioid consumption of about 32 MME per day, which remained the same throughout the follow-up. In addition, seven patients were able to completely discontinue opioid therapy during the study.”

“Mean daily opioid consumption decreased from 46.8 MME/day at baseline to 16.2 MME/day at one month and remained low during the five-month follow-up period,” the researchers found.

What set the new study apart was not just the inclusion of medical cannabis, but the deliberate removal of cost as a barrier. Participants “consistently identified cost as a major barrier to initiating medical cannabis” before enrolling in the study, the document says.

Noting the novelty of the study, they added their hypothesis: “Improving access to medical cannabis will allow a subset of patients, especially those with a high cost barrier, to reduce or discontinue opioid use while maintaining adequate pain control.”

“These results suggest that medical cannabis may be a useful adjunctive therapy to reduce opioid use, relieve chronic pain, and improve health-related quality of life,” they concluded.

“The findings of this study add to the body of literature supporting the safety profile and potential therapeutic role of cannabis.”

The studies the authors are cautious in their conclusions, warning of limitations and the need for further research. “The sample size was small and derived from a single clinical site, and there was no control group.” And because “patients self-titrate cannabis products, leading to variability in dosage and frequency of use,” the findings are not standardized.

But the authors concluded that “when used under appropriate medical supervision, medical cannabis may be an effective adjunctive strategy to reduce opioid use among patients receiving long-term opioid therapy.”

This study follows a Recent research shows that using medical marijuana helps people reduce their use of other drugs, including opioids.sleep aids and antidepressants. They also experience fewer negative side effects after switching from prescription drugs to cannabis, according to a study involving more than 3,500 patients.

It also comes from behind President Donald Trump says marijuana ‘can make people feel a lot better’ and serves as a “substitute for addictive and potentially lethal opioids.”

Last month, the Trump administration announced it moving forward with federal reclassification of marijuana medicinal cannabis is classified under Schedule I to III of the Controlled Substances Act.

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Livermore Falls debates cannabis licensing fees

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1 day ago

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May 13, 2026

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Existing medical cannabis licensing fees will be temporarily applied to recreational marijuana businesses, the Select Committee decided on May 5. Board members agreed 4-1 to the temporary change, as long as officials say the fees are higher than necessary and accurately reflect the town’s oversight costs.

Bryce Cobb, Livermore Falls’ code enforcement officer, plumbing inspector, health officer and E-911 dispatcher, said voters approved the amended cannabis ordinance on April 28. Cobb said the amended ordinance allows recreational marijuana businesses and the next step was to establish a fee schedule. Recreational cannabis businesses operating in town would require local licensing approval under the ordinance.

Asked if he had fee schedules from other towns to compare, Cobb said he did not. Additionally, the town’s fee schedule specifically mentions medicinal cannabis.

“So it could be medical and adult use,” Cobb said when discussing whether the existing fee structure could apply to recreational businesses.

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