Herbal Profiles #93

THC drinks are scaling fast, will the rules catch up before the bans do?

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Prohibition vs. Regulation: Why the Alcohol Playbook Might Be the Best Move Hemp Has

One of the biggest voices calling for regulation in hemp beverages right now is the alcohol industry.

In a recent op-ed, a major alcohol wholesaler laid it out plainly: intoxicating products deserve rules. Age gating. Potency caps. Clear labeling. “This is not new,” the author argued. “It’s not controversial. It’s responsible.”

No Rules vs. Total Ban

As federal and state legislators consider language that could shut down the entire hemp beverage category, the industry is stuck in a dangerous debate. One side sees regulation as a slippery slope to prohibition. The other sees regulation as the only thing standing between legitimacy and collapse. Or they are fine with bans as long as they get their own carve outs specific to them and their special interests.

Big Alcohol Isn’t Coming to Kill Hemp. It’s Offering a Playbook.

Some in the alcohol world are pushing bans. But others, notably from the wholesaler side, are offering a more constructive path: borrow the best of the alcohol regulatory model. Not because it’s perfect, but because it’s already proven.

The three-tier system is built for scale and safety. It separates producers, distributors, and retailers; adds layers of accountability; and ensures age gating and tax compliance. If adapted thoughtfully, it could be the backbone of a national THC beverage framework. It’s a good way to begin to lay the foundation, but fix many of the issues the 3-tier system has, such as some monopolies and lack of DTC in most cases, among other issues.

Meanwhile, the current patchwork is untenable:

  • No unified testing standards

  • Age-gating inconsistencies

  • Zero oversight on marketing, packaging, or retail channel

This is not to say many companies are not already doing things the right way, but there are plenty of bad actors who are doing anything to make a buck, causing instability. And the longer it lasts, the harder it becomes to bring structure without sweeping crackdowns.

Investment Is Here: But Structure Has to Follow

Despite the noise, some beverage brands are attracting fresh capital. And that adds a new wrinkle to the regulation debate.

  • Cali Sober just announced a $1 million round backed by Arsenal Partners and FlightPlan Ventures, a new consumer-focused fund. Their bet? That THC mocktails will win over sober-curious Gen Z and Millennial drinkers looking for functional, 5mg and 10mg options.

  • Nowadays inked a 12-month residency with Palm Tree Crew in Miami, a sign that lifestyle positioning and pop culture integration are taking center stage as brands scale.

These moves are bullish. But they also raise the stakes.

If capital is flowing, regulators will follow. Without clear rules, a misstep, one underage incident, one misleading label, one bad actor, can create political pressure that takes the entire market down with it. And the bigger the brands get, the more exposed the category becomes.

The Real Battle: Inside the Industry

Ironically, some of the loudest resistance to structured regulation isn’t coming from politicians. It’s coming from operators in the space.

Fragmentation is everywhere:

  • Hemp vs. cannabis licensees

  • Beverage vs. edible factions vs. Inhaleable

  • DTC purists vs. distributor-backed brands

Everyone’s fighting for their carve-out. Few are willing to agree on shared terms. And the result? A disjointed industry that can’t present a united front, exactly what regulators and legacy industries are counting on.

So What Could Work?

Borrow what works from the alcohol model. Build what doesn’t exist yet for cannabinoids.

  • Regulate potency, not plant source

  • Permit direct-to-consumer for low-dose SKUs with safeguards

  • Establish universal testing standards

  • Ensure age restrictions, marketing limits, and tax clarity

  • Keep interstate commerce in play

No one’s asking to copy-paste the three-tier system. But we need something legible. Something scalable. Something investors, consumers, and regulators can understand.

Because here’s the truth: the category is growing up. It’s attracting capital. It’s entering mainstream venues. And that means the window to set the rules from within is closing fast.

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Boisson CEO Arie Gurevitch on Building the Future of Non-Alcoholic Beverages | Creator Spotlight

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