Makes Me Want To Scromit
Alcohol Industry's Dual Approach: Regulation and Acquisition of Cannabis
The alcohol industry (encompassing beer, wine, and spirits producers, distributors, and trade associations) has adopted a two-pronged strategy toward the cannabis sector: aggressively lobbying for stricter federal and state regulations (often to limit competition from unregulated hemp-derived THC products like beverages) while pouring billions into direct investments to acquire stakes in cannabis companies.
This allows them to shape the market in their favor—potentially capturing distribution rights, imposing alcohol-like taxes, and integrating cannabis products into their existing supply chains.
Below, I'll break down the spending based on available data from lobbying disclosures, campaign finance reports, and investment announcements. Note that exact figures for cannabis-specific spending are often bundled with broader advocacy, making precise totals challenging, but estimates and examples provide a clear picture.
1. Lobbying and Campaign Spending to Regulate (or Restrict) Cannabis
The alcohol industry views unregulated cannabis—especially hemp-derived THC drinks—as a direct threat to their $250+ billion U.S. market, with studies showing up to 15% drops in alcohol sales in legalized states. Their lobbying focuses on:
- Banning or capping intoxicating hemp products (e.g., Delta-8/Delta-9 THC beverages) until federal rules mirror alcohol regulations (age limits, taxes, distribution via alcohol wholesalers).
- Opposing broader legalization or rescheduling to avoid "unfair" competition.
- Pushing for state-level restrictions that route cannabis sales through alcohol licensees.
Key Spending Highlights (2024–2025):
Overall Alcohol Lobbying Powerhouse: The Beer Institute, Distilled Spirits Council of the U.S. (DISCUS), Wine Institute, and Wine & Spirits Wholesalers of America (WSWA) are among the top U.S. lobbying spenders, per OpenSecrets.org. In 2024 alone, the alcohol sector spent over $30 million on federal lobbying, with a "surge" in Q3 2025 disclosures specifically targeting hemp/cannabis regulations (e.g., Farm Bill reauthorization, appropriations bills).
Cannabis issues were a core focus for groups like Anheuser-Busch (differentiating beer from hemp in taxes) and Molson Coors (educating on hemp beverage regulations).
Recent Federal Push (2025): In November 2025, a coalition including DISCUS, Beer Institute, and Wine America lobbied Congress to temporarily ban hemp-derived THC products in a government funding bill, citing FDA non-compliance. This followed Q3 disclosures showing increased spending on hemp bans, rescheduling opposition, and THC beverage caps (e.g., 0.4 mg THC per container). Exact cannabis-specific amounts aren't broken out, but the effort involved high-profile letters to leaders like Sens. Mitch McConnell and John Thune.
State-Level Anti-Legalization Campaigns:
- Massachusetts (2016): Beer Distributors PAC donated $25,000 to the Campaign for a Safe and Healthy Massachusetts, a top anti-legalization group.
- Arizona (2016): Arizona Wine & Spirits Wholesale Association gave $10,000 to oppose Prop 205.
- California: Beer & Beverage Distributors contributed to anti-legalization/taxation committees.
Broader 2016 Cycle: The alcohol industry funneled over $17 million to federal candidates, with portions funding state ballot fights against marijuana.
Historical Context: From 2018 onward, alcohol trade groups like DISCUS began cannabis lobbying for the first time, spending millions annually to ensure "comparable" taxation and regulation. In Colorado (2010–2021), alcohol lobbyists often allied with cannabis opponents, obscuring funding sources in 48% of reports.
These efforts have influenced bills like the HEMP Act (S. 2113) and Prepare Act (H.R. 2935), aiming to redefine hemp and empower states to prohibit sales.
2. Investments to "Get Cannabis in Their Hands"
Rather than purely fighting legalization, many alcohol giants are buying into the $30–$85 billion U.S. cannabis market (legal + illicit sales in 2020–2025) to develop THC/CBD-infused products, especially beverages. This "if you can't beat 'em, buy 'em" tactic positions them to control production and distribution as federal rescheduling (proposed in 2024) advances.
Major Investments (2017–2025):
- Constellation Brands (Corona, Modelo): Invested $4 billion in Canopy Growth (Canada's largest cannabis producer) starting in 2017, increasing to a 38% stake by 2019. Despite losses (e.g., $1.4 billion write-down in 2023), they continue developing cannabis beverages. In 2025, they advocated for THC drink regulations favoring alcohol-style frameworks.
- Molson Coors: $100 million+ joint venture with HEXO (now Tilray) for Truss Beverage Co., launching THC-infused drinks in Canada (2020). Sold stake to Tilray in 2023 but lobbied U.S. Congress in 2025 on hemp regulations.
- AB InBev (Budweiser): $100 million in Tilray (2018) for CBD non-alcoholic drinks; expanded to THC products.
- Heineken (Lagunitas): Launched Hi-Fi Hops THC seltzers (2018–ongoing), with undisclosed millions in R&D.
Overall Sector Investments: Alcohol firms drove over $15 billion in cannabis mergers/acquisitions in 2018 alone (e.g., Altria's $1.8 billion in Cronos, though tobacco-led). By 2022, cumulative investments exceeded $5–$6 billion from alcohol companies, per industry reports. The cannabis drinks segment alone is projected to hit $24.6 billion globally by 2035, with alcohol companies like Pabst Labs and Southern Glazer's (distribution deals) capturing share.
Investment & Lobbying Summary Table
| Category | Estimated Spending/Investment | Key Players | Focus |
|---|---|---|---|
| Federal Lobbying (2024–Q3 2025) | $30M+ (sector total; cannabis ~10–20% based on disclosures) | DISCUS, Beer Institute, WSWA | Hemp bans, Farm Bill, THC caps |
| State Campaigns (2016–2025 examples) | $50K+ per state fight; $17M federal cycle | Beer Distributors PAC, Wine Associations | Anti-legalization ballots |
| Direct Investments (2017–2025) | $5–6B+ cumulative | Constellation ($4B), Molson Coors ($100M+), AB InBev ($100M) | Stakes in Canopy, HEXO, Tilray; THC beverages |
Why This Matters and What's Next
Alcohol's spending—likely tens of millions on lobbying and billions in investments—reflects a pragmatic pivot: regulate to protect legacy profits, invest to dominate the future. With 70%+ public support for legalization (2024 Gallup) and Biden's 2024 rescheduling push, expect more hybrid products (e.g., THC-alcohol crossovers) and fights over the 2026 Farm Bill.
Critics argue this corporate capture prioritizes profits over equity and health, echoing tobacco/alcohol's past tactics. For deeper dives, check OpenSecrets.org for real-time lobbying data or industry trackers like MJBizDaily.
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