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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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5 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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State hemp license applications end April 30

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6 hours ago

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April 19, 2026

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Those wishing to grow and process hemp this year must apply for a license from the Minnesota Department of Agriculture (MDA) by April 30. Each license is valid until December 31 of the year it is issued. Graduates must reapply annually to continue in the program. An MDA license is required for individuals and businesses.

So far, about 30 people have applied for the 2026 MDA license, compared to 84 applicants last year.

These licenses are for the cultivation and processing of industrial hemp only. The hemp license application is not for adult use or for growing or selling medical cannabis. The application is also not intended for the sale of hemp-derived cannabinoid products. Information on adult use and medical cannabis is available Office of Cannabis Management (OCM) website.

There are applications of industrial hemp MDA website. Along with the online form, first-time applicants and authorized representatives must submit fingerprints and pass a criminal background check.

There are also several updates for the 2026 season. The extraction of cannabinoids from hemp is now regulated by the OCM, meaning that anyone interested in this type of processing will need a separate licence. The rates have also changed. The base cost of a hemp license is now $400, with an additional $250 per growing or processing location. The previous $250 processor license fee has been removed, but a 5% surcharge now applies to upgrades to MDA’s technology systems.

All authorized representatives listed on an application must pass a background check before being licensed. In addition, each lot of hemp must undergo THC testing before harvest, and each official sample collected by the MDA costs $100.

Source: Minnesota Department of Agriculture










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Colorado Marijuana Officials Announce Crackdown On Sales Of Hemp Products Amid ‘Risks To Public Safety’

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6 hours ago

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April 18, 2026

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These issues “pose serious risks to public safety, market integrity, and the tax revenue framework that supports Colorado’s regulated cannabis industry.”

By Christopher Osher, ProPublica and Evan Wyloge, The Denver Gazette

This story was originally published by ProPublica.

Colorado regulators announced Monday that they plan to crack down on companies that sell cheaper, potentially dangerous, illegal hemp products as marijuana.

The state’s Division of Marijuana Enforcement said it had identified “compliance issues” that threaten to dismantle the marijuana industry in the nation’s first legal retail market.

These problems “pose serious risks to public safety, market integrity and the tax revenue framework that supports Colorado’s regulated cannabis industry,” the agency said in an industry newsletter.

An investigation by the Denver Gazette and ProPublica in January reported that despite Colorado being one of the first states to ban the sale of intoxicating hemp products, the legislature and regulators. he failed adopting many of the rules that other states have used to keep hemp products off the medical marijuana shelves.

Creating evaporative and edible liquid distillate from hemp is much cheaper than using marijuana, giving companies a competitive advantage.

But regulators say they are concerned that manufacturers are relying on toxic and dangerous chemicals to convert the non-toxic CBD compound that is predominant in hemp into THC, the psychoactive compound that makes people feel high. Regulators have banned this chemical synthesis, saying they fear chemical residues could remain in the finished product, putting consumers at risk.

Colorado manufacturers have taken advantage of loopholes in the state’s testing and enforcement system to continue using hemp to make products marketed as marijuana, even though doing so is against state law, according to regulatory studies, previous agency bulletins and testimony and lab results contained in several lawsuits.

In 2024, state investigators found that a popular brand of marijuana sold at dispensaries was not only derived from hemp, but also contaminated with methylene chloride, the chemical often used to convert CBD from hemp into THC. Marijuana is banned by Colorado regulators and banned for most uses by the US Environmental Protection Agency because it can cause liver and lung cancer and damage the nervous, immune and reproductive systems.

Ware House, the company that manufactured these vaporizers, relinquished its marijuana license in response to the investigation. Ware Hause’s owner, Thanh Hau, and the company’s lawyer declined to comment.

Congress passed a law last November that bans nearly all hemp products nationwide starting this fall, but it’s unclear how the government will enforce the ban, and hemp growers are reeling.

In December, President Donald Trump issued an executive order telling his aides to work with Congress to develop rules that could allow certain hemp products.

The Colorado Division of Marijuana Enforcement made the announcement Monday newsletter agency officials stated that they “identified and investigated evidence” that marijuana companies are using illegal practices and prohibited methods to manufacture products, instead of relying on marijuana, which is supposed to be monitored for safety.

The Colorado Hemp Association and the Colorado Hemp Education Association did not immediately respond to requests for comment.

Beyond safety concerns, the bulletin also noted that some marijuana manufacturers and growers are avoiding marijuana tax obligations through “a pattern of non-compliance” in sales operations they report to the state’s “seed-to-sale” tracking system, which tracks marijuana from the initial planting to the sale of flower, vapes and other products at dispensaries.

Companies misrepresent marijuana sales at nominal prices, in some cases as low as $1 per pound for unprocessed marijuana material, the newsletter said. Those products typically fetch more than $600 per pound on the market, depending on the category of marijuana, according to industry experts.

That fraudulent reporting has stolen millions of dollars in marijuana taxes from state and local governments, industry experts say, though no official estimate is available.

The agency said it will follow emergency rules to address these issues. The bulletin emphasized that suspicious and abnormal transactions and inventories detected by the state will prompt investigations. Companies caught using hemp or other illegal material passed off as marijuana face “immediate product embargo, license suspension or revocation, significant fines and law enforcement,” regulators warned.

The Denver Gazette and ProPublica have tried to track the anomalous transactions, but the Division of Marijuana Enforcement’s sales transaction records, even those that do not identify the companies, are not public.

Marijuana industry representatives met with the division’s regulators late last month to push for a more aggressive response to the agency’s hemp replacement, even though it could affect some companies in the industry. The representatives argued that bad actors are unfairly driving down prices and shifting the tax burden to manufacturers and growers who are trying to comply with the rules. The newsletter was released a couple of weeks after that meeting.

“The division is also considering additional changes to its testing and screening protocols” to detect illegal products and prohibited methods, and may require additional laboratory tests “if needed for products throughout the supply chain,” the agency’s bulletin said.

This article was produced in partnership with ProPublica’s Local Reporting Network Denver Magazine. Sign up for Submissions to receive stories in your inbox every week.

user photo WeedPornDaily.

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Nascent medical cannabis industry aims for growth

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1 day ago

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April 18, 2026

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The medicinal cannabis sector is struggling to take root, and another specialist processing plant is set to close. But with current regulations and a new collective industry in mind, New Zealanders are promising to reduce their reliance on imported medicinals.

There was great excitement when medicinal cannabis was legalized and then regulated in 2020, with the hope of growing the domestic sector and serving patients here and abroad. However, since then, several companies have closed their doors, including Greenfern Industries, Cannasouth and, most recently, Helius Therapeutics.

The latter plans to close the East Tāmaki plant, affecting 65 workers. It is one of the few medicinal cannabis factories in the entire nation that has a specialized processing certificate called “Good Manufacturing Practice” (GMP).

Medical Cannabis Council executive director Sally King said that under current rules, most growers did not have such certification, and could only sell raw ingredients, not processed products such as more profitable cannabis capsules.

Read more at the town










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