Spurred by Alcohol Distributors, CBD Continues to Expand Despite FDA Objections

(Photo: Kindel Media/Pexels)

Last month, the Denver-based CBD (cannabis-derived products) company, Charlotte’s Web signed a distribution agreement with Southern Glazer’s Wine & Spirits. Southern Glazer’s is the world’s premier distributor of wine and spirits with operations in 44 US states, the District of Columbia, and Canada. 

Vice President of New Ventures for Southern Glazer’s Wine & Spirits, Kariff Rhooms said, “we’ve continued to build on our expertise in CBD by providing our suppliers and customers with a trusted distribution experience that enables us to grow this category.” 

Southern Glazer’s also has signed an agreement with New York-based Tilray Brands to distribute products from its wellness division Fresh Hemp Foods in August. Last year another agreement was signed with Canopy Growth Corporation, diversified cannabis, CBD and vaporization device company. 

The 2018 Farm Bill legalized the sale of hemp plants and compound extracts at the federal level. However, states have the right to impose their own laws. 

In 2018, the Food and Drug Administration also approved Epidiolex, a pharmaceutical-grade CBD oral solution. As an additional consequence of this approval, adding CBD to food that would be involved in interstate commerce became illegal. 

As reported by Stat News, companies like Coors are eager to sell CBD-filled food and drinks, but the FDA is opposed to any addition of CBD to food and beverages. 

In statements on the FDA website, they say, “FDA recognizes that some companies are marketing products containing cannabis and cannabis-derived compounds in ways that violate the Federal Food, Drug and Cosmetic Act and that may put the health and safety of consumers at risk.”

However, alcohol falls under the Alcohol and Tobacco Tax and Trade Bureau (TTB). Therefore, companies may be taking advantage of this regulator loophole to expand quickly with the help of existing alcohol distributors like Southern Glazer’s. 

Last month, US Representatives H. Morgan Griffith and Brett Guthrie sent a letter to FDA Commissioner Dr. Robert Califf to advocate for clear standards for companies to follow. 

“Recent controversies resulting from failed regulatory frameworks, as you yourself described it, have caused significant marketplace disruptions and regulatory uncertainly,” they said.

The future of CBD appears in flux as regulators, like the FDA, try to catch up. This situation is further complicated by confusion surrounding alcohol regulations that fall under the US Treasury and not the FDA. 

Here at The Daily Pour, we do more than write about current events in spirit. We are the only media property reviewing spirits and aggregating the scores and reviews of other significant voices in the spirit world in one place. If you’re interested in getting a shot of spirit in your morning email, sign up for our Whiskey Deal of the Day Newsletter