California ABC declares Kratom and 7-OH illegal on alcohol-licensed premises

Warning: The ABC is coming after your Kratom.

But wait. What is Kratom? Do you know what it is? Do you know anyone who does? First, a brief overview.

· "Kratom" is made from the leaves of the Mitragyna Speciosa tree, native to Southeast Asia.

· The chemical term for the active ingredient in Kratom is "7-hydroxymytragynine," more commonly referred to as "7-OH," and can be either derived from natural leaves or artificially synthesized.

· Products including Kratom or 7-OH, including infused beverages, ointments, candies and others, have recently become popular for their alleged health benefits, such as pain relief, euphoria, mild psychoactive effects and energy boosts.

· Both plant-based Kratom and artificially-synthesized 7-OH have recently been declared harmful drugs or food additives by the California Department of Public Health.

· They have also recently been declared illegal by the California Department of Alcoholic Beverage Control.

Selling Kratom

You've had Kratom and 7-OH products on your shelves for years. Just when Kratom and 7-OH sales are picking up and beginning to fit well into your product mix, the Department of Alcoholic Beverage Control issues a warning: Selling or offering for sale Kratom and 7-OH products in ABC-licensed premises will result in the Department bringing an administrative disciplinary proceeding against your license.

It's déjà vu to those days when the ABC banned marijuana or THC-infused products from ABC-licensed premises all those years ago. Having Kratom and 7-OH products on shelves or counters of liquor stores, gas stations, convenience stores or any other ABC-licensed premises will invite the ABC to seek and secure a suspension or revocation of that license.

Hopeless argument of legality

When ABC agents show up to seize Kratom and 7-OH products you feel a need for a response. You argue hopelessly with those ABC agents that continuing sales of the colorful displays of Kratom gummies, teas, energy drinks and capsules is lawful, because Kratom is not on any governmental or statutory schedule of illegal substances.

ABC's answer is to cite the California Department of Public Health's 2025 classification that Kratom and 7-OH are illegal "poisonous or deleterious substance[s] or food additive[s]," which has resulted in state-wide seizures of Kratom products by health officials. The ABC has also adopted that stance and will subject licensees selling those "illegal" products to license suspension or revocation.

You insist that Kratom is now a billion-dollar industry. The state's answer? "See above." Several California cities and counties also have staked out the illegality of Kratom position. Many other states outside California are similarly aligned. Tobacco regulators are pursuing the same path, and the U.S. FDA has issued its own warning against Kratom and 7-OH use.

ABC license revocation

State law in California provides the statutory machinery for the ABC to revoke a sale of alcohol license for selling Kratom or 7-OH. Business & Professions Code Sect. 24200.5 prohibits a licensee from "knowingly permitting the illegal sale...of controlled substances or dangerous drugs upon his or her licensed premises."

By including "dangerous drugs," this statute could conveniently be the basis for the Department to take administrative action against ABC-licensed purveyors of Kratom and 7-OH. Note that the penalty designated by section 24200.5 is revocation of the license. Note also, as a general proposition, that revocation could be partially stayed to allow for a lessor suspension or a mandated sale of the license. Licensees should not expect leniency.

Of course, all this begs the question of whether Kratom and 7-OH actually are "dangerous drugs" within the meaning of section 24200.5.  Arguments to the contrary may be made in disciplinary proceedings or follow-on litigation. However, for now the ABC believes its adoption of the DPH's position is the last word on the subject.

Be careful with Kratom advertising

Of course, Kratom product websites and advertisements continue to state that Kratom is not illegal. Others may seek to disguise the contents of their products by labelling them with generic terms like "natural leaf," "alkaloid" or "botanical supplements," or by using lesser-known names for the plant Kratom is drawn from, like "maeng da" or "speciosa."

None of the above will have any discernable effect on the ABC's willingness to pursue discipline against your liquor license and to seize Kratom products found on your licensed premises.

These product websites may describe the products as herbal and beneficial. The leaves can be chewed, and the powder can yield all the inviting products mentioned above. Kratom has been consumed locally in Asia for hundreds of years. Today, these products can be found in all manner of stores and from all manner of suppliers, including ABC licensees. Look for Kratom and 7-OH products on the energy drink shelves, among herbal teas and ointments, and even in candy displays.

Manufacturers and boosters tout Kratom and 7-OH products as mood elevators, pain relievers, sources of euphoria, energy boosts and as helpful tools for those customers who are attempting withdrawal from opioid addiction. Still, many scientists remain skeptical of these claims, with studies showing little-to-no health benefits, as well as potential risks of addiction, among other side-effects.

Most importantly for ABC-licensed retailers: accepting the sales pitch and inviting the products into your store is inviting potential regulatory catastrophe.

Bottom line: Kratom and alcohol don't mix (for now)

Studies and research into the uses and dangers of Kratom and 7-OH continue, and the legal environment is continuing to evolve as state and federal legislatures debate adding Kratom and 7-OH to the schedules of unlawful prohibited substances. However, today, be advised the California Department of Alcoholic Beverage Control will administratively pursue discipline against alcohol licensees found to have products containing Kratom or 7-OH available for purchase. Revocation is in play.

Be warned.