Dear Client:

We’ve read (and written) a lot about the burgeoning hemp space in recent years, particularly as it relates to beverages and the ever-changing legality around the products and its possible variations, e.g. D-9.

An area of growing interest that we haven’t touched on as much is the hemp-infused space. Currently, the TTB allows bev alc brands to use parts of the cannabis plant that are excluded from the definition of marijuana in the Controlled Substances Act. That includes hemp seed, hemp seed oil, and non-resinous mature hemp stalks – containing less than 0.3% of THC.

Importer, distributor and service provider MHW is leaning into the hemp-infused spirits space and supporting the rising category. MHW director of growth marketing Brigid McCabe and evp Scott Saul shared insights on compliance in the space, and what’s driving interest.

SEEING “SIGNIFICANT INCREASE” IN SUPPLIER INTEREST. When asked how often brands inquire about hemp-infused bev alc, Scott said “that number has only increased in recent years.”

“We’re inbounding more hemp-related compliance inquiries every year, but particularly in the last year, we have seen a significant increase,” he adds.

Aside from what the TTB legally allows bev alc to be infused with as it relates to hemp, Scott notes that there are additional requisite permits and requirements needed before production and operations can commence for hemp-infused brands.

“There is always a risk that individual US states can walk back regulation on beverage alcohol infusions,” Scott warns. “We also constantly look at changes at the FDA level about THC and CBD in beverage alcohol.”

Indeed, there’s been a lot of movement on that front, with differing opinions on whether or not to include a ban on intoxicating hemp products in the latest Farm Bill. Most recently, Senators agreed to remove hemp banning language from the pending agricultural appropriations funding bill [see WSD 07-30-2025].

GEN Z DRIVING DEMAND. From the consumer standpoint, Brigid notes that a lot of interest in the hemp-infused space is driven by gen Z consumers.

“Gen Z’s demand for innovation and variety is pushing the industry to offer a broader range of products, including infused spirits, RTDs, and of course, non-alcoholic drinks that resemble cocktails in look, feel, and taste,” says Brigid.

“They also prefer more ‘naturally’ derived ingredients,” she adds. “Infusions like hemp seed, matcha, adaptogenic mushrooms, and elderberries are popular and much preferable to artificial or chemical flavorings.”

TAPPING INTO NEW OCCASIONS & CONSUMERS. Brigid also pointed to the proliferation of plant-based products across CPG categories. “We also have other categories, such as beauty and food, to thank for decades of education and clarity around this category,” she says.

So bringing hemp into the bev alc space can also appeal to those consumers that prefer plant-based products and already have a basic understanding of non-intoxicating hemp. MHW highlighted a couple clients that are seeing a lot of success in the hemp-infused space: Cask 420 Spiced Rum and Lucky Stash Tequila.

For Cask 420, “their vision was to merge their Puerto Rican family’s cherished spiced rum recipe with the lively potential of cannabis and hemp infusion,” according to Brigid, adding that they “have converted countless consumers who ordinarily may not have ever tried rum without the unique branding.”

Lucky Stash is a hemp-infused tequila “known for its herbal flavor and vibrant green hue,” she notes. The family behind the brand has worked in the tequila category for 30+ years,” so “they bring a level of respect and expertise about the category, while adding their own edge.”

“Our clients have embraced the beverage alcohol industry and want to be a part of this traditional culture, working with distributors and retailers just as non-infused spirits would,” says Brigid. “That said, these alcoholic infused brands are taking advantage of new opportunities to resonate across multiple verticals and open new consumption occasions for consumers.”

“And at the end of the day, a rising tide lifts all boats – these infused spirits brands are introducing new LDA consumer bases and new possibilities for the industry,” she says.