Climbing Kites launches new four milligram drink to comply with Iowa hemp restrictions

After several weeks off the market amid regulatory uncertainty and litigation, the Climbing Kites THC beverage is for sale in Iowa once again.

Solon's Big Grove Brewery and Des Moines' Lua Brewing, the partners behind the brand, have created a reformulated version of the flavored sparkling water, made with hemp-derived tetrahydrocannabinol, that they say has received approval from the Iowa Department of Health and Human Services.

The DHHS, which is in charge of regulating the beverages under a new state law, did not respond to a message seeking comment.

The new formula comes in two versions: one with 4 mg of THC in mixed berry, passion fruit-pineapple and peach-prickly pear flavors, and the other with 2.5 mg in orange-mango flavor. Previously, the drink came in 10-, 5- and 2.5-mg versions. The serving size, 12 ounces, remains unchanged.

The beverage also contains CBD, or cannabidiol, a non-psychoactive ingredient believed to have health benefits, in a one-to-one ratio with the THC content in the 4-mg version. In the previous version, the CBD-THC ratio was 2:1. Climbing Kites in an Instagram post did not specify the CBD content on the 2.5-mg version.

Climbing Kites co-owner Dave Moore said in an email to the Des Moines Register the Climbing Kites "is already back in stores and by the end of this week every retailer will have had a delivery. Consumers should be able to find our products at any of the previous retailers they frequented before the new rules went into effect."

The confusion that led to the withdrawal of Climbing Kites and other THC-infused beverages from the Iowa market was the result of a law passed by the Legislature this year that took effect July 1. Known as the Hemp Amendments, it allows up to 10 milligrams of THC in a container as long as no serving size contains more than 4 milligrams of THC. But it left the decision about what constituted a serving size up to the DHHS, which failed to finalize the details before the law went into force.

The law also affects the sale of edibles, such as gummies, containing THC.

Unclear Iowa requirements spark lawsuit

Climbing Kites is among 10 companies that sued to block enforcement of the law , arguing in part it is at odds with federal legalization of beverages and edibles containing hemp-derived THC. But a federal judge has twice declined to grant an injunction, saying the state had the power to impose the new rules.

In June, the DHHS released preliminary rules that would require the THC drinks to be marketed in a container no smaller than 12 ounces. That's in keeping with the standard federal serving size for carbonated and noncarbonated beverages, although attorneys for the companies argued that in the past, state regulators have approved products labeled to have as many as 10 servings in one 12-ounce can. Also, the federal law on hemp-derived THC does not define serving sizes.

"Thank you for hanging in there with us as we navigate the evolving legislative landscape in our home state. We wouldn't be here without you all, and we thank you," Climbing Kites said in its Instagram post. "We look forward to continuing to change the narrative and misconceptions about THC in Iowa, and we know you'll be right there with us."

Moore in his email, citing point-of-sale data from retail monitoring company SPINS, said Climbing Kites is the fastest-growing hemp THC beverage in the country and has the fourth-most revenues of any beverage in the category.

The drink currently is made under contract in Minnesota, Texas and Ohio, and distributed in Iowa, with Tennessee recently added and online orders available for shipping nationwide. Moore said the company is planning to expand its distribution this year to North Carolina, Minnesota, Kansas, South Dakota, Nebraska, Georgia, Florida, Ohio, South Carolina, California, Illinois, Pennsylvania and Wisconsin, adding that only Iowa bans the 10-mg version.

Moore ruled out moving production or warehousing to Iowa for now, given the state's regulatory climate.

"The idea was to produce in Iowa, but under the current landscape that is pretty difficult," he said.

Philip Joens covers retail and real estate for the Des Moines Register. He can be reached at 515-284-8184, pjoens@registermedia.com or on Twitter @Philip_Joens.

This article originally appeared on Des Moines Register: Climbing Kites launches new four milligram drink to comply with Iowa hemp restrictions