WSWA Applauds Congressman Barr’s Hemp Beverage Regulation Framework, Calls for Clear Trade Practice Oversight

WASHINGTON, D.C., 07/22/2026 - Wine & Spirits Wholesalers of America (WSWA) today commended legislation introduced by Representatives Andy Barr (R-KY) and Angie Craig (D-MN) to create a federal regulatory framework for intoxicating hemp-derived products, including hemp-derived beverages.

The Lawful Hemp Production Act recognizes hemp-derived beverages as a distinct product category and would establish federal requirements for permitting, manufacturing, distribution, labeling, testing, taxation, age restrictions and enforcement. WSWA supports this approach because it moves the marketplace away from uncertainty and toward clear, enforceable rules that protect consumers, support compliant businesses and preserve state regulatory authority.

"This legislation takes an important step by recognizing that hemp-derived beverages can be regulated using the principles of the three-tier system that has governed beverage alcohol safely and successfully for more than 90 years," said Dawson Hobbs, EVP of Federal Affairs, WSWA. "WSWA commends the bill's distinct treatment of hemp beverages as a unique category with an established regulatory model. By subjecting these beverages to federal licensing, labeling standards, mandatory age verification, independent testing, excise taxation, and state regulatory authority similar to beverage alcohol, Congress can protect consumers and communities."

Intoxicating hemp-derived products face a potential federal ban set to take effect November 12, 2026. WSWA believes Congress should replace that uncertainty with a regulated pathway for beverage products that meet strong public health, safety and accountability standards.

Importantly, the bill would require hemp-derived beverages to move through a federally permitted three-tier distribution system: manufacturers would sell only to wholesalers, wholesalers would sell only to retailers, and retailers would sell only to consumers.

The legislation also includes key consumer protection measures for hemp-derived cannabinoid products, including clear disclosure of THC content per serving and per package, government warnings, ingredient and serving information, access to certificates of analysis, restrictions on packaging that appeals to minors, mandatory testing by accredited laboratories and a federal age-21 standard. If federal agencies do not establish potency limits within 12 months, the bill would set a default maximum of 5 milligrams of total THC per serving for oral products, including beverages.

• Trade Practices: WSWA supports the bill's prohibition on tied-house and exclusive dealing practices, and urges Congress to clarify the respective roles of the Food and Drug Administration (FDA), the Alcohol and Tobacco Tax and Trade Bureau (TTB) and other federal agencies responsible for implementation and enforcement.
• Potency Limits: WSWA supports federal potency standards for hemp-derived beverages and encourages lawmakers to ensure limits are clear, enforceable and appropriate for beverage products.
• Taxation: The bill would impose a federal excise tax of 5 cents per milligram of THC on hemp-derived beverages, paid by the manufacturer when products are removed for sale or consumption. WSWA looks forward to continued discussion about a tax rate that promotes parity with beverage alcohol and supports effective oversight.

"We don't need to reinvent the wheel," said Hobbs. "The beverage alcohol model has worked for more than 90 years. These beverages are intoxicating products and should be treated like beverage alcohol."

WSWA looks forward to working with Congressman Barr, congressional leaders and federal regulators to refine the proposal and ensure it delivers a balanced, consistent and enforceable framework for hemp-derived beverages-one that preserves a legal marketplace for compliant products while prioritizing public health, preventing youth access and promoting responsible trade practices.

About Wine & Spirits Wholesalers of America

WSWA is the national trade association representing the distribution tier of the wine and spirits industry, advocating on federal, state, regulatory and legal issues impacting distributors and the beverage alcohol industry. Founded in 1943, WSWA member companies are independently owned and operated family businesses and its members distribute more than 80 percent of all wine and spirits sold at wholesale in the United States.

To learn more, please visit www.wswa.org or connect with us on LinkedIn, Facebook or Twitter.

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