A Hudson Valley CBD company is partnering up with Pepsi for a new locally grown product.

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On Tuesday, a press conference was held outside of Kaycha Labs in Warwick to announce major new initiatives to advance Orange County's hemp industry.

Senator Jen Metzger (SD-42), who chairs the Senate Agriculture Committee, announced the release of draft hemp regulations from the NYS Department of Health as required by her legislation passed last year. The draft regulations allow for CBD-infused beverages and food, and if finalized, would greatly expand opportunities for developing a wider range of CBD products in New York State, officials say.

At the press conference, Senator Metzger also announced $250,000 in state funding to the Town of Warwick to purchase equipment for rent by local farmers diversifying into hemp production.

“During this challenging economic time, it is important that we capitalize on new opportunities for our farmers and businesses, and create the conditions for the hemp industry to grow and thrive," Metzger said in a press release. "New York is well-positioned to be a leader in this promising new industry, and I look forward to continuing to work with our local partners to build on the successful public-private partnership that is well underway here in Warwick."

The 2018 Farm Bill removed cannabidiol, known as CBD, from the Controlled Substances Act, creating new opportunities for New York farmers and businesses. The state law establishes the necessary regulatory framework for growing hemp for CBD and processing, manufacturing, and selling CBD products in New York, creating the certainty the industry needs to invest and the standards consumers need for a safe and high-quality product, officials say.

The draft regulations based on the legislation and released last night by the NYS Department of Health allow for CBD-infused beverages and foods.

At the press conference, Urban Extracts, Rogowski Farms, and Hillview Med announced a new partnership in which locally grown and processed hemp extract will be sourced for a CBD-infused seltzer, Kaló, distributed by Pepsi.

“Now we have the rules of the game, and now we know what we’re shooting for,” Urban Extracts CEO Eran Sherin said, while discussing the opportunities associated with the local manufacturing of hemp, allowing for scale and creating Orange County jobs.