This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
Major US trade group backs cannabis legalisation
The Wine & Spirits Wholesalers of America (WSWA) has pledged its support for cannabis legalisation in the US and is urging the federal government to “respect the right of states” to permit use of the drug.
The WSWA has said it would be in favour of cannabis legalisation in the US
The national trade body, which represents the wholesale sector of the wine and spirits industry in the US, claims to be the “first and only” alcohol association to have publicly announced its support for the growing legal cannabis sector.
The WSWA has said it supports a “state’s right to establish a legal, well-regulated, adult-use cannabis marketplace” if they adopt similar market regulations to those in place for alcohol.
“Eight decades ago, Americans acknowledged that the Prohibition of alcohol was a failed policy,” said Dawson Hobbs, WSWA acting executive vice president, external affairs.
“The state-based system of regulation, adopted after Prohibition, created a US beverage alcohol market that is the safest, most competitive and best regulated in the world.”
The legal cannabis market generated US$7.2 billion for the US in 2016, according to the WSWA.
While stating its support, the WSWA outlined key points it believes the government must implement for the legal cannabis market, including a minimum age of 21 for purchase, possession and use, and penalties for providing cannabis to those under 21; establishing a ‘driving under the influence’ legislation; licensing of producers, processors, distributors and retailers; labelling requirements; and the creation of a designated agency to oversee cannabis industry regulation in each state.
Drinks groups have already started to branch out into the legal cannabis market. In November last year, Constellation Brands revealed it will develop cannabis-based beverages after agreeing to acquire a minority stake in cannabis producer Canopy Growth Corporation.
Last month, the Canadian senate passed a law that will legalise recreational cannabis use nationwide.
Southern Glazer’s Wine & Spirits became the first drinks distribution company to venture into the cannabis industry in Canada back in May this year.
There have even been calls to legalise cannabis in the UK, after Tory peer William Hague suggested the UK government should consider legalising cannabis as the current law is “inappropriate, ineffective and utterly out of date”.
For an in-depth look at how the legal cannabis market could affect spirits, see the August issue of The Spirits Business magazine.