SACRAMENTO, Calif.- Governor Jerry Brown has signed a new bill overseeing the cannabis industry.
AB2914 addresses the sale of cannabis-infused beverages. Unfortunately for some cannabis product producers, CBD and Hemp derived products were also addressed in the bill. AB2914 forbids “an alcoholic beverage licensee from, at its licensed premises, selling, offering, or providing cannabis or cannabis products, including an alcoholic beverage that contains cannabis or cannabis products, and would provide that no alcoholic beverage shall be manufactured, sold, or offered for sale if it contains tetrahydrocannabinol or cannabinoids, regardless of source.”
If businesses do not comply with the new regulations they can face disciplinary action and even lose their business license.
The bill seeks to keep the alcohol and cannabis industries separate. Dispensaries are forbidden from selling any products that include alcohol and bars and liquor stores cannot sell any items that infused with any cannabinoids.
Since Prop. 64 went into effect in January, and legal recreational cannabis sales started, some bars, especially in the Los Angeles area, have been introducing cocktails infused with CBD. Although CBD does not produce the psychedelic effect associated with THC, combining it with alcohol veers into uncharted waters. There is little to no research on how these drinks impact consumers.
It is unclear how the new bill will impact the cannabis industry. AB2914 was passed with little fanfare and it was signed by the governor on the same day he signed several dozen other bills. Brown’s final term as governor will end in January.
Cannabiniers, makers of several different cannabis-infused beverages, including Two Roots, a cannabis beer that does not include alcohol, is not reliant on sales through alcohol retailers.
“We never anticipated liquor stores carrying our product. All of our forecasting was based on dispensary sales exclusively,” Kevin Love, Director of Product Development at Cannabiniers told mg.
If the legal atmosphere changes in the future, Cannabiniers may consider selling their product to additional retailers.
“We expect these laws to reverse which will open up greater economies for sell-through opportunities. Until then, our focus lives solely at the dispensary level,” Love said.
The news may be good for dispensaries and consumer safety. Cannabis products should be lab-tested and sold by knowledgeable licensed retailers. It could also help businesses as consumers may not skip a dispensary visit for an infused cocktail at a local bar.