News Provided by Biz Journals
The craft brewing industry has remained resilient despite facing numerous challenges throughout 2021, including labor and material shortages, the impact of weather events on barley and hops production, and disruptions to supply-chain logistics. The year also provided benefits to the industry through the federal Craft Beverage Modernization and Tax Reform Act, which made permanent lower excise tax rates for small and independent breweries, allowed for the transfer of beer between bonded breweries and offered additional Paycheck Protection Program funding.
With these challenges, the craft brewing industry has also seen new opportunities arise as a result of a diversification of beer consumers and producers in recent years. The craft brewing industry continues to push the envelope on ingredient innovation and product offerings — including the responsible and legal use of cannabis in brewing. Brewpubs and taprooms are introducing spirits in their products, whether through slushies, hard seltzers, or even limited cocktails in a bag like Kickin’It Coolers, and some industrious providers have begun offering cannabidiol (“CBD”) or tetrahydrocannabinol (“THC”) options, like those found at The Holistic Connection or Buds & Brews.
Buds & Brews, Nashville’s first cannabis restaurant, presently offers American fare alongside hemp-derived THC-infused condiments from Craft Cannabis. Craft Cannabis is a vertically integrated cannabis producer, offering locally grown and sourced cannabis products in Nashville. This type of collaboration is made possible by the 2018 Farm Bill, which, in part, removed industrial hemp extracts with no more than 0.3% THC concentration from the list of controlled substances. This change led to exponential growth in the agricultural and cannabis industries, as thousands of hemp producer licenses were issued.
Brewers have noted that hops and hemps are very close relatives and share many chemical characteristics; however, the cannabinoids provide a slightly different kind of bitterness than hops do. Thus, hemp effects the flavor profile of a craft beer, but it does not get the drinker “high.” Now, THC-infused beers are gaining traction in states where marijuana is legal — these beers are brewed like any other craft beer, but with THC added into the yeast. Brewers and industry investors alike are excited to explore new techniques and develop new technologies related to craft brewing and cannabis.
Brewers and industry investors should be aware that cannabis brewing involves a high level of regulatory compliance and navigation beyond what is typically required for its alcoholic beer sales. For instance, at this time, federal laws and regulations prohibit the mixing of CBD and THC with any amount of alcohol, so any cannabis beverage must be nonalcoholic. Brewers and industry investors should remain aware of the developing regulatory trends in order to legally and responsibly enjoy their inventive beers, but should not be deterred from tapping into this growing and lucrative industry.
H/T: Biz Journals
