Ohio brewers await lawmakers' green light for THC drinks
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Local breweries are trying to capitalize on the emerging THC drink market, but face uncertain and rapidly changing regulations that threaten to ban the beverages.
Why it matters: Breweries are struggling as alcohol consumption nosedives. THC drinks could provide a critical new revenue stream for local companies — if state lawmakers can provide clear guidelines for them.
Driving the news: The conversation around THC drinks heated up when Gov. Mike DeWine issued an Oct. 8 executive order temporarily banning the sale of "intoxicating hemp products."
- DeWine aimed his order at unregulated products like candies sold in gas stations, but THC drinks were swept up in the push.
Days later, a lawsuit led a judge to pause the ban.
- Now state lawmakers are grappling with proposed legislation aiming to regulate drinks and banning sales to those under 21.
State of play: Various companies have recently launched THC beverages in Central Ohio and beyond, including Land-Grant, Seventh Son and Great Lakes.
- It's a logical — and increasingly necessary — market opportunity for brewers who are seeing a rapid decline of alcohol consumption while customers still want something to sip with friends.
- "I almost think this category has more in common with (non-alcoholic) beverages than beer, in a weird way," Seventh Son co-founder Collin Castore tells Axios.
How it works: Breweries typically use Delta-9 THC, the naturally occurring compound in marijuana, purchased from "heavily tested and regulated" suppliers in drinks that are 21+ only, Castore says.
- "It's not chemically synthesized … it's the same THC that's in anything at a dispensary," says Castore, who even obtained a hemp processing license.
What they're saying: That's why many bristled at DeWine's assertion that "intoxicating hemp is not regulated and is legal for anyone, including children, to purchase."
- "For beverages, that's not true," Castore says. "You have to know where it comes from. It does get tested when it gets to you, and then we test again."
Yes, but: The terms can be complicated. THC drinks' inclusion in DeWine's order created a period of confusion and frustration for brewers and distributors who didn't know whether to keep drinks on the shelves.
Case in point: Art Oestrike, owner of Athens-based Jackie O's, tells Axios he created an entirely separate company to handle THC drinks because of the uncertainty and was ready for launch before DeWine's announcement. Now, the product is sitting around.
- "We were about to launch, and then kind of put that to the side. We're still doing our research and development, but we have [the drinks] in our walls."
What we're watching: Whenever Ohio's laws around THC drinks are finalized, brewers expect a bit of a gold rush as they go more mainstream — appearing in grocery stores, gas stations, bars and elsewhere.
- "Everybody's going to jump in the game very, very quickly," Castore says. "It's going to be kind of a huge opportunity."