Nascent hemp industry interests across the country are fighting legislative proposals that would restrict hemp-derived THC products, while at the same time, the legislators behind those proposals are lining up exceptions for some of the nation’s biggest vice corporations, according to a Kansas City, Missouri-based lobbyist who has worked in cannabis policy for 16 years.
Green Market Report caught up with Eapen Thampy, who represents Missouri’s hemp industry, last Thursday to discuss what has become a busy political scene these days. Established marijuana industry interests are pushing for restrictions on hemp products to protect their state-siloed market shares ahead of a potential federal rescheduling of marijuana.
“Part of why you’re seeing all these bills that are trying to restrict hemp products, at least in part, is because the marijuana industry, which is largely a state-by-state kind of deal, those guys understand that when Schedule III comes down federally and interstate commerce and marijuana becomes legal, then their state-by-state licensing monopolies are over,” Thampy said.
This year many of the proposed bans have a different look than in the past, including specific carve outs, where winners and losers are split between the more egalitarian hemp side of things and politically well-connected major MSOs. Alcohol distributors are part of the equation, too.
Thampy described the as a coordinated effort by larger cannabis companies to “advantage for as long as possible their licensing monopolies on the marijuana side” and “capture as much market share as possible right now.” Those efforts are playing out in several states, he said, including Florida, Missouri and Texas.
In Missouri specifically, Thampy noted this is the third consecutive year that proposals to ban THC products have emerged, though it’s the first year the legislature has also considered bills to regulate rather than prohibit the category.
“There’s kind of an industry split right now,” Thampy explained, describing how the Missouri Hemp Trade Association has taken what he called a “no compromise posture,” while businesses he represents have been “trying to be proactive about working with lawmakers.”
In addition, the lobbying landscape has become increasingly layered, with different alcohol industry factions pushing their own legislative language. Thampy described the situation with a touch of wry humor: “There’s language in a marijuana industry bill that would carve out the beverage side. But then this week we’re hearing there’s other alcohol interests that are pushing their own language … at this point I might as well just make some popcorn.”
According to Thampy, Missouri’s marijuana market “is going to be controlled by about 10 companies that own all the licenses through various shell groups” by year’s end, with much of that market share going to out-of-state companies. That differs from the hemp industry, which he characterized as mostly “Missouri-owned small operators” and “mom-and-pop shops.”
The focus on preserving beverage products while restricting other hemp-derived items appears driven mostly by alcohol industry interests.
“If you’re a beer distributor and you’ve got this any brand that’s like really doing well, you probably don’t care about vapes or flower or whatever,” Thampy said. “You’re just like, how can I get more regulatory clarity for my product and expand my distribution?”
With eight weeks remaining in Missouri’s legislative session, Thampy expressed optimism that the marijuana industry’s proposals might be defeated, citing lawmakers’ general preference to “keep people in business” rather than shut them down.
Thampy also believes Gov. Mike Kehoe is sympathetic to the hemp industry’s concerns.
“Gov. Kehoe is really forthright. They’ve been really proactive in helping us and having conversations with us,” he said, describing the governor as business-minded and deal-oriented.
The outcomes of these legislative battles could have far-reaching implications for how the cannabis market develops nationally, especially as the federal government moves toward marijuana rescheduling. Thampy predicts that Schedule III status would create new market opportunities, including international exports and prescription-based delivery methods through compound pharmacies.
“When I can go to a hospital and get a prescribed THC nebulizer product or a transdermal patch, or if I’m in a nursing home those kind of options are available to me – that’s going to have a pretty amount of impact on the existing market space,” Thampy noted, comparing a future to how customized prescription services currently operate.
[[{“value”:”Marijuana, alcohol companies are lobbying want to limit hemp products.
The post Hemp industry, marijuana MSOs vie for market control across statehouses appeared first on Green Market Report.”}]] Read More
