hemp or a hemp component and to import an alcohol beverage that contains hemp or a hemp component, including laboratory analysis, specification of THC content, sample submissions and paperwork requirements. The 2000 policy also includes specific label requirements for alcohol product containing hemp. Labels can only contain the term “hemp” when it is specifically stated in an approved statement of composition specifying hemp seeds/oil, etc. Labels are prohibited from (1) containing the term “hemp” in the brand name, fanciful name, text, or anywhere else except the statement of composition; and (2) from using depictions, graphics, designs, devices, puffery, statement, slang, representations, etc. implying or referencing the presence of hemp, marijuana, any other controlled substance; or any psychoactive effects. Since the 2018 Farm Bill excluded hemp from the definition of marijuana under the Controlled Substance Act, the TTB announced on April 25, 2019, by way of Industry Circular 2019-1, that it will update its guidance on the use of hemp ingredients to reflect the change in the law. Industry Circular 2019-1 also stated that:
1) It remains TTB’s policy that it will not approve any formulas for alcohol beverages that contain ingredients that are controlled substances under the Controlled Substance Act.
2) Even if a cannabis ingredient is not a controlled substance because it meets the new definition of “hemp,” TTB will consult with the FDA to determine if the use of hemp ingredients would violate the FDCA.
3) TTB will continue to process applications for formulas for alcohol beverages that contain ingredients derived from hemp seeds and hemp seed oil. However, TTB will return for correction any applications for formulas containing “hemp” ingredients other than ingredients derived from hemp seeds or hemp seed oil. Applicants may resubmit the formula to TTB upon receipt of a favorable individual determination from FDA on the regulatory status of their ingredients.
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Because the law explicitly preserved FDA’s authority to regulate products containing cannabis or cannabis-derived compounds under the FDCA, the FDA will play a new role in approving alcohol product containing hemp ingredients not otherwise hemp seeds and hemp seed oil, which may change the landscape forever for producers.
going green Despite the press, it may be more difficult to get the TTB to approve your alcohol beverage with all forms of legalized hemp than it is to find a weed gummy bear. Stay tuned for more guidance from TTB.
Stacy Kula is Team Leader of the Alcohol Team and the Hospitality and Resort Team at Steptoe & Johnson, PLLC. She practices out of the Lexington and Louisville offices, working closely with distilleries, breweries and retailers helping them navigate through the complex maze of federal and state licensing, enforcement, corporate and contractual issues. Despite practicing in the bourbon epicenter, Stacy’s favorite alcohols are spiced rum, gin and limoncello — but she’s always willing to sample the newest product on the market! She can be reached at (859) 219-8222. As the Team Leader for Steptoe & Johnson's Cannabis Counsel, Ryan Dunne Ewing regularly represents corporate cannabis growers, processors, and wholesale dispensaries throughout the United States. Ryan regularly counsels his clients on an everchanging regulatory landscape, and he ensures continued compliance with various state and federal regulations governing the cannabis industry. Ryan is also a happily retired college football player for the Edinboro Fighting Scots.
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