As the cannabis industry eagerly anticipates changes in scheduling regulations and a new Farm Bill, the question of how hemp and marijuana can coexist is at the forefront of discussions. With emerging hemp-derived THC beverages making a mark in liquor stores and bars, consumers are presented with an alternative in the adult beverage market that is continuing to grow.
Many industry insiders believe that hemp may offer a more lucrative business path compared to marijuana due to lower production costs and fewer regulatory hurdles. Kyle Neathery, CEO of Samson Extracts, emphasized the need for companies to choose between the two unless they can effectively separate their production processes—a feat that would require significant manufacturing space. He pointed out that marijuana cultivation is generally more expensive than hemp farming, and when initial prices drop, many businesses struggle because they don't plan for such fluctuations.
Jonathan Miller of the U.S. Hemp Roundtable highlighted the ambiguity surrounding potential future regulations. While he doesn’t expect full marijuana legalization immediately, he noted that differentiating between hemp and marijuana will become crucial amid possible regulatory changes. He advised hemp business owners to maintain high standards and follow state regulations to thrive in a competitive landscape.
With consumers increasingly favoring THC beverages, brands like Cheech and Chong’s Global Holding Co. are exploring various expansion strategies in anticipation of broader legalization. Their chief beverage officer, Ted Whitney, emphasizes the importance of integration between both hemp and marijuana sectors as cannabis laws evolve.
Additionally, companies like Cantrip, which transitioned from marijuana-infused products to hemp beverages, have positioned themselves firmly in the hemp market, asserting that the costs of marijuana production are unsustainable. As the landscapes of hemp and marijuana continue to unfold, the future remains promising for both sectors as they seek to coexist.
