NEW YORK, Nov 13 (Reuters) - The agreement to end the
longest-ever U.S. government shutdown includes a provision to
stop the spread of intoxicating cannabis-infused beverages sold
in some U.S. states, which pose a threat to alcohol sales.
The provision, introduced by Senator Mitch McConnell, and signed
into law by U.S. President Donald Trump on Thursday, aims to
close a loophole that has allowed some intoxicants to be sold as
"hemp," a legal product under federal law. The new rule excludes
products with more than 0.4 milligrams of tetrahydrocannabinol,
or THC, the mood-altering substance in hemp and marijuana that
is derived from the cannabis plant.
The change, effective in a year, delivers a death blow to the
"low-dose" THC-infused beverages industry, which has rapidly
expanded in U.S. states such as Minnesota and Tennessee that
permitted the drinks. Most have at least 1 milligram of THC,
giving drinkers a buzz.
Liquor stores like Total Wine, supermarkets and convenience
stores sell the beverages, prompting market research firm
Euromonitor to project sales of more than $4 billion in 2028.
Alcohol makers such as Corona brewer Constellation Brands ( STZ )
had been internally researching the drinks to weigh
their next steps in the market segment. Pernod Ricard,
which distills Absolut vodka, met with executives of one of the
brands to discuss a possible investment over the summer, though
it ultimately did not, Reuters reported.
McConnell first legalized hemp in 2018 to support farmers in
his home state of Kentucky but then became concerned about
intoxicating products such as gummies getting into the hands of
children.
Some founders of THC-infused drinks such as Cann are hoping
to find a way in the next year to have the beverages permanently
legalized, co-founder Jake Bullock said in a statement.