OLCC commissioners vote to oppose privatizing cocktails in a can, also announce hemp registry

PORTLAND, Ore. (KTVZ) -- Oregon Liquor and Cannabis Commission members voted Thursday to oppose the privatization of cocktails in a can.

OLCC officials said the proposal to privatize these beverages has recently been circulated to state legislators by the Northwest Grocery Retail Association, in conjunction with a small group of distillers. 

“This proposal makes a false promise of new funding based on flawed economics. There is no new money. Privatizing cocktails in a can would lead to less revenue and higher costs for our communities, narrow the choices of Oregon consumers, and undermine public health and safety by increasing the chance that minors will gain access to these liquor products” said OLCC Chair Dennis Doherty.  

The Commissioners' opposition was based on the analysis presented at the October commission meeting by OLCC staff. In their presentation, staff highlighted the following findings:

• Between 2020 and 2025, Oregon’s way of distributing and selling cocktails in a can raised $11.4 million for communities across the state. Over this same time, privatizing cocktails in a can would only have raised $7.7 million. That is a 32% decrease and a loss of $3.7 million to fund things that Oregonians care about, including parks, schools, public safety, and drug and alcohol treatment. 
• Privatizing cocktails in a can would increased administrative costs. Specifically, administering the new tax would necessitate upgrading the OLCC’s online privilege tax system at a cost of approximately $1.25 million. Further, OLCC would need additional staff to implement and oversee the new tax collection which could cost $660,000 over the next two years. 
• The privatization proposal assumes a 180% volume increase in the first year. Oregonians would have to drink an additional 5.2 million cocktails in a can to realize this increase. This is unrealistic given current market trends and consumption patterns. Pennsylvania, which privatized cocktails in a can in 2024, only saw a 7% increase in sales and a 15% increase in volume sold.
• While the market share of canned cocktails has continued to increase, this growth has slowed significantly since its pandemic peak. There are also clear indications that the market is saturated. As the market has grown, more national manufacturers have entered and have started to crowd Oregon-based distillers out. Privatization would further accelerate this trend as larger manufacturers would push local distillers off store shelves.
• Alcohol consumption continues to decline. The percentage of U.S. adults who say they consume alcohol has fallen to 54%, a record low in polling on this issue.  In this environment, it is highly unlikely that increased sales of canned cocktails will add to the overall sales of alcohol products. What is more likely is that canned cocktail consumers will buy less beer or wine, including those produced in Oregon.
• Oregon liquor stores responsibly provide adult’s access to distilled spirits. Privatization would dispense with this protection as grocery stores lack controlled entry and age-restricted areas. As a result, it would be easier for minors to gain access to cocktails in a can, endangering their health and safety.  

In addition to the formal vote of opposition, Commissioners requested that Commission Chair Dennis Doherty send a letter to legislators outlining the Commission's opposition. Commissioners also directed OLCC staff to prepare a comprehensive analysis of the revenue and cost impacts of privatization for presentation at a future commission meeting. 

In other business, finalized new hemp product registration rules Thursday. These rules, established under House Bill 4121 (HB 4121), take effect January 1, 2026 and require that all cannabinoid hemp products sold to consumers in Oregon, whether online or in brick-and-mortar locations, be registered with the OLCC in a Hemp Registry.

“With the Hemp Registry, consumers will receive needed, clear information about the hemp products that they purchase,” said OLCC Commission Chair Dennis Doherty. “This will include information such as how much CBD and THC is in each serving, thereby increasing trust in the product and the market.”

The Hemp Registry will also require that test results be made accessible to consumers, and that edible products follow the same kinds of labeling requirements that consumers are familiar with from ordinary foods. For retailers, the Hemp Registry makes it easy to check whether products are registered for sale in Oregon.

Recognizing the time needed for manufacturers, distributors, and retailers to adapt, enforcement actions related to the Hemp Registry will be delayed until June 1, 2026. This grace period is designed to help businesses understand the new requirements, complete product registrations, and ensure proper labeling before enforcement begins.

“The OLCC is committed to helping Oregon businesses transition smoothly to the Hemp Registry,” said OLCC Director Tara Wasiak. “By giving the industry time to adjust, we can protect consumers without unnecessary disruption.”

Noncompliant products will need to be removed from store shelves. There is a fee to register, but with some exceptions, similar products can be registered with one fee.

The Hemp Registry applies to all cannabinoid hemp items intended for human or animal consumption or use, such as gummies, beverages, tinctures, capsules, vapes and smokable flower. Topical products like lotions and soaps, as well as hemp grain and fiber products that do not contain cannabinoids are excluded from the registration.

While the OLCC will not penalize businesses solely for failing to register products before June 1, 2026, it will continue enforcing existing state laws. This includes violations such as sales to minors, products with THC exceeding Oregon’s legal limits and items containing intoxicating or adulterated cannabinoids.

Product registration applications will open January 1, 2026. OLCC is offering pre-review of registration materials before formal submission, these can be sent to marijuana.packaging@olcc.oregon.gov.

For more information or assistance with compliance questions, businesses and stakeholders can visit OLCC’s Hemp Registry & Labeling Resource page.