Citing U.S. Food and Drug Administration’s (FDA) guidance prohibiting the sale of CBD-infused food and beverage products, the Minnesota Department of Agriculture (MDA) last week issued cease and desist notices to CBD beverage manufacturers and has embargoed sales for at least one beverage company.
Garret McCormick, CEO of CBD-infused lemonade maker Groov, told BevNET that state regulators embargoed sales of the company’s hemp-infused products following an on-site inspection last week.
According to McCormick, who also owns coconut water kefir brand Thirty-Two Degrees, he received a call from the MDA on Friday, July 19 requesting an inspection of the inventory warehouse used by both brands. Upon arriving on Monday, July 22, regulators told McCormick he needed to immediately cease all sales of Groov.
On Friday, McCormick said he received a follow-up call from the MDA and was told he could keep his current stock until it reaches its sell-by date this fall. However, unless regulations change before then, McCormick cannot remove the product from his warehouse unless it is designated for destruction or personal consumption. He currently has about 100 cases in stock, he said.
“They seem to be only approaching manufacturers at this point, but are not approaching retailers or distributors,” McCormick told BevNET. “But the MDA did request invoice documents for any customers we’re working with.”