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Massachusetts’ Harpoon Brewery Launches its First THC Beverage

Harpoon Brewery has launched its first THC-based beverage, Rec. Weed, in partnership with Novel Beverage Company. The company describes Rec. Weed as “hop-forward yet approachable.” It contains no alcohol, 5 milligrams of THC, real passionfruit puree, green tea, and hops. 

Dan Kenary, CEO and co-founder of Harpoon, said it partnered with Novel on the product because of its “vast knowledge” of the cannabis industry and “strong New England roots.” Both companies are based in Massachusetts.

“The adult beverage space is constantly evolving. With THC now legalized in states across much of the country – especially here in the Northeast – we saw not only high demand for a THC-based beverage, but an opportunity to experiment in a way that would uniquely leverage our strengths in the beer world.” — Kenary in a press release 

Rec. Weed is the second cannabis-inspired product from Harpoon’s parent company, Mass. Bay Brewing Company, after previously launching Long Trail’s CBD Seltzer. The CBD Seltzer is available in Connecticut, Massachusetts, New Jersey, Rhode Island, and Vermont.  

Rec. Weed is currently only available at adult-use dispensaries in Massachusetts. Novel products are available at adult-use cannabis dispensaries in Maine and Massachusetts. Novel has also worked with Shipyard Brewing and Sea Dog Brewing on cannabis beverages.  

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Report: Zero Medical Cannabis Markets Are Fully Meeting Patients’ Needs

In its annual “State of the States” report, Americans for Safe Access (ASA) issued 13 failing grades to state medical cannabis programs, with Idaho and Nebraska both receiving a zero as the last two remaining states with no medical cannabis access. 

In the report, ASA gave failing grades to Georgia, Idaho, Indiana, Kansas, Kentucky, Mississippi, Nebraska, North Carolina, South Carolina, Tennessee, Texas, Wisconsin, and Wyoming. 

No state received an “A” grade, with Connecticut, Illinois, Maryland, Michigan, and Rhode Island earning B-pluses – the highest grade given on the ASA report card.  

The ASA also issued grades for the medical cannabis programs of U.S. territories, including the Commonwealth of the Northern Marina Islands (D+), Guam (C-), Puerto Rico (D), and the Virgin Islands (D+).

“While we can acknowledge that we have come a long way since the first medical cannabis law passed in 1996, we must also recognize that none of the state laws adopted thus far can be considered ideal from a patient’s standpoint.” — ASA, “State of the States” 2022

The group notes that “even in states with full medical cannabis programs, each state differs greatly in how patients can access their medicine, where they can access it, or even what types of products they can access.” Adding that because medical cannabis remains prohibited federally “most state programs leave out millions of potential patients due to issues with affordability, patient rights, and civil protections, or product safety standardization.” 

None of the states earned above a B-plus grade by the ASA because none “include the entire range of protections and rights that should be afforded to patients under the law, with some lagging far behind others.”  

“Because of the differences and deficiencies in legislation and regulations in the states, patients argue that the laws do not function equitably and are often poorly designed, poorly implemented, or both,” the ASA says in the report. “Even well-organized programs can fail to deliver safe or legal access in states with laws that allow local governments to ban medical cannabis businesses from operating, leaving thousands of patients without the access state laws were intended to create.”

The ASA estimates the number of medical cannabis patients in the U.S. exceeds 6 million, an increase of about 1 million from its 2021 report.   

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First Day Cannabis Sales in Connecticut Exceed $350K

Cannabis sales in Connecticut reached $359,130 during the first day of the market’s rollout, according to Department of Consumer Protection data outlined by CT Insider. In all, there were seven dispensaries operating throughout the state on Tuesday, the first day of adult-use cannabis in the Constitution State.  

Consumers were reportedly met with prices higher than those in neighboring Massachusetts. A review of online pricing found a 100-milligram package of gummies at a Stamford dispensary cost $40 before tax, while a similar product also containing 100 milligrams of THC cost $25 at the company’s Rowley, Massachusetts dispensary. Insider also found similar products cost $25 at a New Jersey dispensary and $35 at a Rhode Island dispensary. 

New adult-use cannabis markets usually roll out with higher-than-average prices but prices often come down and stabilize as the market matures. 

Most Connecticut dispensaries were selling 3.5-gram containers of flower for $50, which usually cost about $5 less at Massachusetts retail shops.   

Adam Wood, president of the Connecticut Cannabis Chamber of Commerce, told Insider he expects that “prices will fluctuate” as supply and demand change. Currently, there are just four licensed cultivators in the state. Wood estimates as many as 30 to more than 40 cultivators could receive state licenses. 

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Adult-Use Cannabis Sales Begin in Vermont

Adult-use cannabis sales in Vermont launched over the weekend with three shops opening to the public. Mountain Girl Cannabis in Rutland, FLŌRA Cannabis in Middlebury, and Ceres in Burlington all started retail sales on Saturday, the first day sales were allowed.  

Russ Todia, chief operating officer at Ceres told MyNBC5 on Friday that the rollout of adult-use sales in the state was a “real monumental for the state” and for his company. 

In all, at least 70 Vermont municipalities have opted in to allow retail cannabis sales. Other adult-use license hopefuls throughout the state are expected to get licensed in the coming weeks and months.  

The reforms were approved by state lawmakers in October 2020 after Gov. Phil Scott (R) allowed the legislation to become law without his signature. Cannabis had already been legal for medical and personal use in the state. 

Earlier this year, Rhode Island lawmakers approved a bill to legalize adult-use cannabis sales, making New Hampshire the only New England state to not have approved adult-use cannabis reforms.  

In an October 2021 report, the Vermont Cannabis Control Board estimates that spending on adult-use cannabis in the Green Mountain State could reach $225 million annually by 2025, equating to nearly $46 million in new state taxes. Vermont imposes a 14% excise tax on adult-use cannabis products sold to the public but does not impose a tax on the sale from cultivator to retail. Municipalities can also impose a 6% tax on sales that occur within their jurisdiction. 

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Medical Cannabis Now Tax Free in New Jersey

Medical cannabis is now tax-free in New Jersey as provisions of the Jake Honig Compassionate Use Medical Cannabis Act implementing the tax cut took effect on July 1, NJ Biz reports. Prior to the final reductions, medical cannabis was the only medicine in the state subject to tax.  

Before July 1, 2020, medical cannabis in New Jersey was subject to a 6.625% tax, which is the state’s sales tax. Jake’s Law reduced that tax to 4% on July 1, 2020; 2% on July 1, 2021; and fully reduced the tax on July 1, 2022. 

Honig was a 7-year-old New Jersey boy with brain cancer whose symptoms were partially relieved by medical cannabis. He passed away in 2018 following a five-year cancer battle and state lawmakers passed the bill with his namesake on July 2, 2019.  

Adult-use cannabis taxes are not affected by Jake’s Law.  

Several other states, including Alaska, Delaware, Louisiana, Maryland, Massachusetts, Minnesota, New Hampshire, Oregon, Pennsylvania, Utah, Vermont, and Washington do not levy sales taxes on medical cannabis sales. Medical cannabis sales in Arizona, Arkansas, California, Colorado, Connecticut, Florida, Hawaii, Illinois, Iowa, Maine, Michigan, Mississippi, Missouri, Montana, Nevada, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Washington, D.C., and West Virginia are either subject to state taxes, excise taxes – or a combination of both – or businesses are required to pay gross receipts taxes and that cost could be passed on to patients. 

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This episode of The Ganjapreneur Podcast features Tara Rosenblum, an investigative reporter for News 12, who has recently released a compelling documentary titled “Cannabis Contest.” The documentary offers an in-depth look at the social equity aspects of cannabis licensing in New York City, showcasing the challenges and triumphs of hopeful licensees within the evolving legal… Read More

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Green Thumb Industries Acquires One of Two Minnesota Vertical Licensees

Chicago, Illinois-based Green Thumb Industries Inc. last week closed on its acquisition of LeafLine Industries, marking the firm’s expansion into Minnesota. The deal gives Green Thrumb one of two vertical licenses in Minnesota, an operating cultivation facility, and five open retail locations.

The takeover also increases Green Thumb’s national presence to 15 states with a total of 73 operational retail locations. The deal gives Green Thumb the opportunity to open up three more additional retail locations in Minnesota.

In a statement, Green Thumb Founder and CEO Ben Kovler noted that Minnesota regulators had recently approved infused cannabis products, including gummies and chews, for the state’s medical cannabis program. State officials have also indicated that rulemaking for flower products is currently underway.

Green Thumb said there are about 29,000 registered medical cannabis patients in the state.

“We are excited to enter the Minnesota medical market and broaden access to cannabis products for Minnesota patients. We look forward to caring for LeafLine’s existing patients while ensuring a seamless transition.”  Kovler in a press release

Green Thumb indicated that, with the acquisition, the company has cannabis operations to serve more than half of the U.S. population, including California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Virginia.

Last summer, Green Thumb acquired Dharma Industries one of Virginia’s four medical cannabis processing companies.

The terms of neither the LeafLine nor the Dharma transactions were disclosed.

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Cannabis Stocks Soar After Cannabis Rescheduling News

Cannabis company stocks surged on Tuesday following reports that the Drug Enforcement Administration (DEA) would move to reschedule cannabis from Schedule I to Schedule III under the Controlled Substances Act (CSA), Forbes reports. Canopy Growth Corporation shares surged more than 65% to… Read More

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Ganjapreneur: your source for daily cannabis news and business insights.

Welcome to Ganjapreneur, your go-to platform for the latest cannabis industry news. Our mission is to provide operators in the legal cannabis space with the information they need to succeed in this rapidly-evolving industry. Since 2014, we have been dedicated to keeping cannabis founders, activists, and investors up-to-date on the latest policy news from the US and internationally, as well as providing a wealth of resources to help them navigate the complex landscape of legal cannabis.

At Ganjapreneur, we believe that the legalization movement is about much more than just generating profits. Cannabis has been used as a medicine for thousands of years, and its legalization is an important step towards correcting the historical wrongs of cannabis prohibition, and could provide safe and affordable relief to people around the world suffering from a wide variety of health conditions. In addition to keeping the product accessible and affordable for those who need it, we believe that cannabis commerce should be accessible to people who have been persecuted by the War on Drugs, and that cannabis prisoners around the world should be released and have their records expunged.

Want to join the cannabis industry? First, understand its context.

The history of cannabis prohibition in the USA is a long and complex one, with roots stretching back to the early 20th century. One of the earliest attempts to criminalize cannabis in the US came in the form of the 1915 Harrison Narcotics Tax Act, which regulated opiates and cocaine but also included cannabis as a taxable drug. However, it wasn’t until the 1930s that cannabis began to be widely demonized in the media, with newspapers like William Randolph Hearst’s San Francisco Examiner publishing sensationalized stories linking the drug to violent crime and insanity.

Around the same time, Harry J. Anslinger, the first commissioner of the US Treasury Department’s Federal Bureau of Narcotics, launched a campaign to criminalize cannabis on a federal level. Anslinger noted that cannabis use was more common among minority communities and stated that their appreciation of “Satanic music” (i.e. jazz and swing) was a direct result of marijuana use. He also believed that marijuana use could cause white women to “seek sexual relations with Negroes, entertainers and any others.” In 1937, the Marijuana Tax Act was passed, which effectively made cannabis illegal on a federal level.

Despite these efforts, cannabis use continued to be relatively widespread throughout the 20th century, particularly among marginalized communities. In the 1960s and 70s, the counterculture movement helped to popularize cannabis use among a wider swath of the population, leading to increased pressure to decriminalize or legalize the drug. However, it wasn’t until the late 1990s and early 2000s that the first states began to seriously consider legalizing cannabis for medical use.

Cannabis Legalization Timeline:
  • 1996: California becomes the first state to legalize cannabis for medical use
  • 2001: Canada legalizes medical cannabis for authorized patients
  • 2012: Colorado and Washington become the first states to legalize cannabis for recreational use
  • 2013: Uruguay becomes the first country to fully legalize cannabis
  • 2014: Oregon and Alaska legalize recreational cannabis; Illinois becomes the 20th state to legalize medical cannabis
  • 2015: Puerto Rico legalizes medical cannabis
  • 2016: California, Nevada, Maine, and Massachusetts legalize recreational cannabis; Ohio, Pennsylvania, and Florida legalize medical cannabis
  • 2017: West Virginia and Louisiana legalize medical cannabis
  • 2018: Vermont becomes the first state to legalize cannabis for recreational use through the state legislature, rather than a ballot initiative; Oklahoma legalizes medical cannabis
  • 2019: Illinois becomes the first state to legalize recreational cannabis through the state legislature; New Jersey, New Mexico, and New York legalize medical cannabis; Colombia legalizes medical cannabis exports
  • 2020: Arizona, Montana, New Jersey, and South Dakota legalize recreational cannabis; Israel legalizes medical cannabis exports
  • 2021: Virginia becomes the first southern state to legalize recreational cannabis; Mexico legalizes recreational cannabis, becoming the world’s largest legal cannabis market by population; Ireland legalizes medical cannabis
  • 2022: France legalizes medical cannabis

Despite the growing momentum towards legalization, the US federal government has yet to fully embrace the movement. Cannabis remains illegal on a federal level, and businesses operating in the industry face significant legal and financial hurdles as a result. However, with more and more states legalizing cannabis each year, it seems only a matter of time before the federal government takes action as well.

Want to stay informed about the latest legalization news?

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Social Equity: What Is It, And Is It Working?

In the cannabis industry, we often read about “social equity” and we see countless headlines discussing cannabis prohibition, America’s long history of injustice against marginalized communities, and thoughts for rectifying the past through equity programs. But while understanding our past and providing solutions for the future is core to change, I often wonder if a… Read More

How to Get the Most Out of B2B Cannabis Events

Business-to-business (B2B) cannabis conferences are an extremely useful resource for cannabis entrepreneurs at any stage of launching and/or operating their business. Whether you are attending your first-ever cannabis conference this year or you are returning to the events circuit after a pandemic-driven hiatus, this is a guide to help you get the most out of… Read More

Live Resin vs. Live Rosin: What’s the Difference?

Cannabis concentrates have proven to be one of the most rapidly-growing segments of the cannabis industry. Over the years, discoveries in cannabis extraction have largely driven industry expectations when it comes to determining a high-quality product — for example, the first CO2 extracts were praised as a replacement for butane-based products, while those same butane… Read More

Thailand Legalizes Kratom

Thailand on Tuesday legalized the possession and sale of Kratom, which is often used as a painkiller and mild stimulant, the Associated Press reports. The reforms will see thousands of pending criminal cases in Thailand dropped and 121 inmates convicted of kratom possession released from prison.

Ramdin Areeabdulsorma, a politician in Pattani province, told the AP that kratom has historically been a part of the daily lives of Thai people.

“To decriminalize kratom is the right thing to do. Local people or patients who need it will be able to access it more easily. However, I am concerned that teenagers will use it in a wrong way, for example, mixing kratom with other narcotics. We have to control this strictly, otherwise, it can cause damage.” Areeabdulsorma to the AP

Nimu Makaje, a Muslim community leader in Yala province, said that the nation needs “to have proper controlling measures” of kratom now that it has been decriminalized.

“Currently, a lot of people have lost their jobs and they may use it to reduce their stress,” Makaje said to the AP. “This is very dangerous.”

In the U.S., kratom is considered a “drug of concern” by the Drug Enforcement Administration but it is not federally outlawed. Kratom is banned in Alabama, Arkansas, Indiana, Rhode Island, Vermont, and Wisconsin, according to Kraoma, which notes there is pending legislation on kratom in Hawaii, Louisiana, Michigan, New Hampshire, and New Jersey.

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Connecticut Gov. Signs Legalization Bill Into Law

Connecticut Gov. Ned Lamont (D) signed the state’s cannabis legalization bill into law today, closing out a multi-year effort by pro-cannabis advocates and lawmakers.

Under the new law, adults aged 21 or older will be allowed to use and possess cannabis starting July 1. Legal purchases and possession will be capped at one and a half ounces on someone’s person but up to five ounces can be legally stored at home or in a vehicle’s trunk or glove box. Regulated cannabis sales are not expected to roll out until May 2022.

During the signing ceremony, the governor said the bill was public health- and equity-focused.

“People have been working on this for 10 years. It’s been a long time coming. I think we have a good bill that puts public health first.” — Gov. Lamont, during the bill’s signing ceremony

The law was approved last Thursday during a special session after House lawmakers failed to take up the Senate-approved legalization bill in the final days of the legislative session. In a twist of irony, Connecticut’s legalization bill was formally approved by lawmakers on the 50th anniversary of President Richard Nixon’s declaration of the drug war.

With the signing, Connecticut is officially the fifth state to legalize adult-use cannabis in 2021, following in the footsteps of New Jersey, New York, New Mexico, and Virginia. Additionally, New Hampshire and Rhode Island are now the only remaining New England states that have not yet adopted the reforms.

 

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Connecticut Passes Adult-Use Cannabis Legalization

The Connecticut Senate on Thursday passed a bill to legalize adult-use cannabis in the state, WFSB reports. The legislation was approved on Tuesday by the House and moves next to Democratic Gov. Ned Lamont who is expected to sign the reforms into law.

In a statement, Lamont noted that the bill passed the Legislature on the 50-year anniversary of President Richard Nixon’s declaration of the War on Drugs.

“The war on cannabis, which was at its core a war on people in Black and Brown communities, not only caused injustices and increased disparities in our state, it did little to protect public health and safety. That’s why I introduced a bill and worked hard with our partners in the legislature and other stakeholders to create a comprehensive framework for a securely regulated market that prioritizes public health, public safety, social justice, and equity. It will help eliminate the dangerous unregulated market and support a new, growing sector of our economy which will create jobs. … By allowing adults to possess cannabis, regulating its sale and content, training police officers in the latest techniques of detecting and preventing impaired driving, and expunging the criminal records of people with certain cannabis crimes, we’re not only effectively modernizing our laws and addressing inequities, we’re keeping Connecticut economically competitive with our neighboring states.  … This measure is comprehensive, protects our children and the most vulnerable in our communities, and will be viewed as a national model for regulating the adult-use cannabis marketplace.”Lamont in a statement

Cannabis use and possession for adults 21-and-older will be legal on July 1 and retail sales are expected to roll out by May 2022. The law allows adults to purchase and possess up to 1.5 ounces of cannabis, including up to five ounces at home or in a vehicle’s glove box or trunk.

Once signed by the governor, Connecticut will be the 19th state to end cannabis prohibition and the fifth state this year to pass the reforms.

The bill passed 16-11 with four Democrats joining all of the Republicans in voting against the proposal. Nine senators were absent for the vote.

Once the bill is signed into law, New Hampshire and Rhode Island will be the only New England states where cannabis remains prohibited.

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Vermont Joins List of States to Ban Delta-8 THC

The Vermont Agency of Agriculture, Farms, and Markets (AAFM) informed all registered hemp cultivators that Delta-8 THC products are not regarded as legal hemp products in an email sent out last Friday, April 23.

With this statute, Vermont joins 12 other states that have categorized the manufacturing and sale of Delta-8 THC products as illegal under state law; Delta-8 THC has also been banned in Alaska, Arizona, Arkansas, Colorado, Delaware, Idaho, Iowa, Mississippi, Montana, Rhode Island, and Utah.

On their website, Vermont AAFM clarifies the state’s position further by acknowledging that hemp plants naturally produce Delta-8 THC in trace amounts. However, products with intoxicating levels of the cannabinoid are created using isomerization, which synthetically converts CBD to THC.

The Vermont Hemp Rules state that, “A processor shall not use synthetic cannabinoids in the production of any hemp product or hemp-infused product” (6.3). With this rule, the manufacturing, labeling, or sale of any Delta-8 product in the state of Vermont would violate state law. As such, anyone who distributes, uses, or possesses one of these products may face criminal penalties in the state.

Many CBD retailers have seen great financial gains due to the recent proliferation of Delta-8 throughout the states. This clarification may heavily impact their newfound revenues.

Meanwhile, the hemp industry in Alabama recently praised lawmakers there after they pulled an amendment proposal that would have categorized Delta-8 THC and Delta-10 THC as controlled substances.

Editor’s note: A previous version of this article incorrectly stated that Kentucky was among the states that have banned Delta-8 THC products.

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Report: Montana Has Highest Racial Disparity In Cannabis Arrests

In Montana, Black people are 9.6 times more likely to be arrested for cannabis possession than their white counterparts – the widest disparity in the U.S., according to American Civil Liberties Union data compiled by the Cincinnati, Ohio-based Joslyn Law Firm. Colorado had the lowest racial disparity with Black people 1.5 times more likely to be arrested for possession.

The report uses data from 2010 to 2018.

The largest racial disparities in cannabis possession arrests were in Pickens County, Georgia, where the arrest rate of Black people was 97.3 times higher than the white arrest rate – 321 white people were arrested for marijuana possession during the period analyzed compared to 31,243 Black people. DeKalb County, Alabama was the second-highest county for racial disparities in cannabis arrests at 44.6 to 1, the report found.

Nationally, Black people are 3.6 times more likely to be arrested for cannabis possession than their white counterparts – this despite studies that have found Black and white people use cannabis at similar rates.

In Kentucky, Black people were arrested for possession 9.4 times more often than white people, followed by Illinois, Iowa, and West Virginia at 7.5 times and 7.3 times each, respectively. The report does not include post-legalization data from Illinois, which was the first state to legalize cannabis via the Legislature in 2019. Illinois State Police and the governor expunged more than 500,000 cannabis-related criminal records on the final day of 2020.

Minnesota, North Dakota, South Dakota, and Wyoming all saw Black people arrested for cannabis possession at rates at least five times higher than white people, while Utah neared the mark at 4.9 times, the report found. Alabama, Connecticut, Delaware, New Hampshire, Maine Massachusetts, New Mexico, Kansas, Oklahoma, and Wisconsin all saw cannabis arrest rates four-times higher among Black people and of those states only Massachusetts has legalized sales and possession for adults. Idaho was close to the mark with cannabis arrest rates 3.9 times higher for Black people than white people int the state.

Michigan arrest rates were consistent with the national average of disparities, followed by Arizona, Georgia, Indiana, Louisiana, Ohio, Pennsylvania, Nebraska, Nevada New Jersey, Rhode Island, North Carolina, South Carolina, Tennessee, which reached a three-times rate of disparity but fell below the 3.6% average.

Arkansas, Maryland, Mississippi, Missouri, New York, Texas, and Washington state each saw arrest rate disparities between 2.1 and 2.9 times, while Alaska, California, Colorado, Hawaii, and Oregon saw disparate rates between 1.5 and 1.8 times. Three of those four states have legalized cannabis for adults.

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What We Know About Biden’s Cabinet on Cannabis

With Democratic President-Elect Joe Biden set for inauguration next week – and with his party in control of both chambers of Congress (albeit the narrowest of majorities in the Senate) – cannabis legalization could, finally, get at least a debate in both houses.

There are three measures that the 117th U.S. Congress could consider during Biden’s first term: the SAFE Banking and MORE Acts – which were approved by the Democrat-controlled House in 2019 and 2020, respectively, and the STATES Act, a measure which would give states control over cannabis laws without federal interference that never made it to the House floor.

Were any of the reforms approved by Congress, responsibility for enacting and enforcing provisions of the law would be the responsibility of several government agencies led by Biden’s Cabinet picks. The SAFE Act, for example, would require regulation (and buy-in) from the Treasury Department; the MORE Act would likely involve a host of agencies, including but not limited to Health and Human Services, and the departments of Labor, Commerce, and Justice. The STATES Act would also likely hinge on support from the Justice Department and perhaps Commerce.

Many of Biden’s picks are veterans of the Obama Administration – for which the former Senator from Delaware served as vice president – such as Agriculture Secretary nominee Tom Vilsack, former Federal Reserve Chair Janet Yellen, and Domestic Policy Council Chair Susan Rice. Others, including Vice President-Elect Kamala Harris, HHS Secretary nominee Xavier Becerra (California), and Labor Secretary nominee Marty Walsh (Massachusetts), come from states that have legalized cannabis for adult use.

A host of nominees that could play a role were Congress to end federal cannabis prohibition simply have made no public statements on the issue. For example, Veterans Administration secretary pick Denis McDonough, former President Barack Obama’s chief of staff who would be responsible for implementing directives for medical cannabis use for veterans in VA care, has never indicated support or opposition for the reforms. Neither have Council of Economic Advisors Chair nominee Cecilia Rouse, a Harvard-educated economist who serves as dean of the Princeton School of Public and International Affairs; Linda Thomas-Greenfield, who served as assistant secretary of state for African affairs in the State Department’s Bureau of African Affairs from 2013 to 2017 who was tabbed as ambassador to the United Nations which has said cannabis legalization violates international drug treaties; Environmental Protection Agency Secretary nominee and current Secretary of North Carolina’s Department of Environmental Quality Michael S. Regan; nor Isabel Guzman, California’s Small Business Association Advocate nominated to lead the Small Business Administration.

In an interview discussing Biden’s cabinet picks – which still require Senate confirmation – NORML Political Director Justin Strekal explained that cannabis legalization might not be at the forefront of the new administration’s policy agenda as the nation continues to grapple with the coronavirus and the fallout from the waning days of the Trump Administration – including a possible impeachment trial in the first 100 days of the new Congress.

“Remember, there is no such thing as federal legalization, just ending federal prohibition,” Strekal said in a phone interview with Ganjapreneur. “I’d be hard-pressed to believe it will be a priority [for the administration] but I am convinced it will be a priority for the new Congress.”

Attorney General

Attorney General nominee Merrick Garland is likely the cabinet pick that would have the most outsized role on driving the administration’s policy on cannabis and cannabis law enforcement. Garland, who has served as a circuit judge for the Court of Appeals District of Columbia circuit since 1997, has never made public comments on broad legalization leaving us to rely on just one case to gauge how he has approached the issue.

In the 2012 case, Americans For Safe Access v Drug Enforcement Administration which examined whether the DEA had meaningfully considered the potential use for cannabis as a medical therapy, Garland joined the majority opinion which sided with the DEA.

“…because the agency’s factual findings in this case are supported by substantial evidence and because those factual findings reasonably support the agency’s final decision not to reschedule marijuana, we must uphold the agency action,” the opinion concludes.

But in all likelihood, we can expect Garland to be better for cannabis policy than, say Jeff Sessions, who rescinded the Obama-era Cole Memo shortly after assuming the AG role in the Trump Administration. Or a Bill Barr, who allegedly directed the agency’s Antitrust Division merger investigations to target cannabis businesses because of his personal distaste for the industry.

Treasury Secretary

If confirmed as head of Treasury, Yellen, Strekal explained, would set the “dynamics of safe harbor” for cannabis businesses as it relates to industry’s financial rules and “to what scope they are allowed to handle money.”

Yellen has also made no overt public statements related to cannabis reforms; however, she was chair of the Federal Reserve from 2014 to 2018, during which the agency denied Denver, Colorado’s Fourth Corner Credit Union – a non-profit cooperative formed by state-licensed cannabusiness – its application for a master account, Alt-M reported at the time of the decision. That decision forced the state’s cannabis operators to continue doing business on a cash-only basis.

Secretary of Labor

Strekal had a mixed opinion on Boston, Massachusetts Mayor Marty Walsh, who is tabbed to lead the Labor Department. On one hand, Strekal said, Walsh did oppose the 2016 ballot initiative to legalize cannabis in the state but, Strekal admitted, he is “much better [on cannabis] than four years ago.”

The mayor is “very pro-union,” Strekal explained, adding that broad unionization would add “legitimacy” to the industry and help with “buy-in from local communities.” Prior to his election as Mayor of Bean Town, Walsh served as the president of the Laborer’s Union Local 223 and in 2010 was elected as secretary-treasurer and general agent of the Boston Metropolitan District Building Trades Council, a union umbrella group. In 2011, Walsh was named head of the Boston Building Trades.

It should be noted that in a 2019 interview with One37PM, Walsh said his opinions on cannabis “have not changed.”

“I will say though that the legalization has reaffirmed my commitment to making sure that we’re taking proactive steps to create a strong regulatory process that also brings much-needed equity to this new industry. Cities in other states with recreational marijuana have run into serious equity problems, both in who is profiting from the sales and where the stores are located.” – Walsh to One37PM

Agriculture Secretary

Following Vilsack’s nomination to lead the Agriculture Department, Jonathan Miller, the general counsel to the U.S. Hemp Roundtable, described the former Iowa governor as “a long-time champion of hemp” in an interview with Hemp Grower.

“The USDA under Vilsack recognized that ‘market research’ under the 2014 Farm Bill included product sales … and facilitate[ed] the initial growth of the program, setting the table for the 2018 Farm Bill,” Miller said in the report.

“Throughout the administration, senior aides to Vilsack and other USDA officials were always responsive to industry needs, and the U.S. Hemp Roundtable developed a strong relationship and rapport with the Vilsack team. We look forward to renewing that in January.”

In 2016, during an on-stage conversation with former President Bill Clinton at the Clinton Global Initiative, the former president remarked that he had seen a hemp crop in Milwaukee, Wisconsin that he was told sold for $1 million an acre. Vilsack remarked, “With the exception of the state of Colorado and a few other states that have legalized another product, there are not very many commodities that you can plant, Mr. President, and then grow up to get a million bucks.”

However, during his time as governor, Vilsack did adopt the National Governors Association policies on illegal drugs, which included an anti-legalization platform stating the reforms were “not a viable alternative [to enforcement], either as a philosophy or as a practical reality.”

Biden’s Pro-Cannabis Nominees Cover Commerce, Interior, and HHS

Rhode Island Gov. Gina Raimondo, nominated to lead the Commerce Department, actively pushed for legalization in her state and included adult-use legalization in her 2020 budget. The plan would have included provisions opposed by many industry activists – such as the prohibition of home cultivation, a cap on THC, and putting sales in the hand of the state like some states have in place for alcohol.

In an interview last year with the Providence Journal, Raimondo said she supported the state-run model because it is “the most controlled way to do it, arguably the safest, and the way to maximize state revenue.”

The Commerce Department is responsible for promoting economic growth, job creation, and balanced economic development – which would all be enhanced by federal legalization. A 2016 Tax Foundation report suggests a mature cannabis industry could generate up to $28 billion in tax revenues for federal, state, and local governments, including $7 billion in federal revenue: $5.5 billion from business taxes and $1.5 billion from income and payroll taxes. A Leafly report from February found that the legal U.S. cannabis market supports 243,700 jobs – and that’s without any federal changes.

Biden’s Department of Interior nominee Deb Haaland – the first Native American to hold the post – would be charged with managing and sustaining America’s lands, water, wildlife, and energy resources, in addition to upholding treaties with tribal nations. It’s a post that could have a larger role in legalization than many realize, working with the USDA to develop some cultivation rules and overseeing legalization on Tribal lands.

Haaland, who currently serves as Representative of New Mexico in Congress and is a member of the House Cannabis Caucus, voted in favor of the MORE Act last year.

“Minor drug offenses shouldn’t ruin people’s lives, but the failed drug policies in this country tear families apart and target communities of color. I’ve seen the damage done. The MORE Act is the first step to addressing policies that criminalize people of color. As a co-sponsor of this bill, I’m proud to take this step and I hope my colleagues in the Senate will take a stand for justice so it goes to the President’s desk.” – Haaland in a statement

During her first term, she introduced an amendment to protect tribal cannabis programs as part of the Fiscal Year ’20 DOJ funding package, preventing the agency from using funds to interfere with Tribe-approved cannabis reforms. The amendment was the first tribal cannabis amendment ever offered and passed on the House floor.

California Attorney General Xavier Becerra has defended his state’s legalization and, as head of HHS could oversee orders necessary to reclassify cannabis under the Controlled Substances Act. In a Los Angeles Times interview in 2017, Becerra remarked that the “federal government has to catch up and get into the 21st century” regarding cannabis law – a Secretary Bacerra could help the feds catch up.

“We have to make sure the federal government is helping us, not hindering us, when it comes to coming up with a good way to regulate it. So it behooves the federal government to pull its head from underneath the sand and start to figure out how to do this the right way. There are far more important things to worry about than whether someone’s smoking marijuana for medicinal purposes or not.” – Bacerra to the L.A. Times

On the flipside, in his role as California AG, Becerra’s office prosecuted a number of illegal cultivation cases, saying the illicit cultivation sites damage wildlife habitats, poison water, and hurt communities. In October, Becerra said the office’s Campaign Against Marijuana Planting (CAMP) program eradicated 1.1 million illegally cultivated plants across 455 sites over 13 weeks.

Bercerra also served in the U.S. House from 1993 to 2017 and during his tenure voted in favor of several cannabis-related spending bill amendments, including a 2015 provision preventing the Justice Department from using funds to enforce federal law in states that had approved cannabis reforms.

According to a Marijuana Moment analysis, Becerra voted for a rider to protect state medical cannabis programs each time it came up for a vote while he was in office. He also approved amendments to let the VA recommend medical cannabis to veterans, protect state-approved industrial hemp and CBD programs, give cannabusinesses access to traditional financial services, and boost federal hemp research.

If approved by the Senate, Biden’s cabinet would be the most diverse in the history of the U.S. and that diversity could be advantageous – rather than obstructionist – if Congress passes all (or some) of the major cannabis proposals.

When asked to grade Biden’s proposed cabinet on their cannabis positions, Strekal responded, “The burden is on them to prove themselves.”

End


Connecticut Gov. Calls for Cannabis Legalization

In his State of the State address on Wednesday, Connecticut Gov. Ned Lamont (D) said he planned to work to legalize cannabis in the coming session.

“I am working with our neighboring states and look forward to working with our tribal partners on a path forward to modernize gaming in our state, as well as the legislature on legalization of marijuana. Sports betting, internet gaming, and legalized marijuana are happening all around us. Let’s not surrender these opportunities to out-of-state markets or even worse, underground markets.” – Lamont, January 6, State of the State

In 2019, Lamont and other regional governors, including New York Gov. Andrew Cuomo (D), New Jersey Gov. Phil Murphy (D), Pennsylvania Gov. Tom Wolf (D), and Rhode Island Gov. Gina Raimondo (D) announced a joint regional approach toward legalization. Since then, New Jersey legalized cannabis through a voter-approved ballot initiative in November.

Cuomo this week announced a proposal to create an Office of Cannabis Management – a signal that he would include legalization in his Executive Budget for the third consecutive year. In 2019 and 2020, state lawmakers rebuffed the governor’s move to pass the reforms via the budget.

In August, Wolf called on the Legislature to legalize cannabis for adults, saying the market “might be one way” to bridge the state’s budget gap.

Raimondo might not be around to join the regional push for legalization as President-elect Joe Biden (D) announced on Thursday her as his pick for commerce secretary, the New York Times reports. Raimondo had included legalization revenues in her 2020 Executive Budget and supported legalization efforts.

Lamont unveiled a broad legalization bill last year, which included possession limits up to 1.5 ounces of cannabis and 5 grams of concentrates. The measure would set THC caps, prohibit the use of vitamin E acetate in vape products, create a nine-member equity commission and a social equity licensing program, and allow industry participation for individuals with non-violent misdemeanor drug offenses.

Under the governor’s plan, flower would be taxed at $1.25 per gram, trim at $0.50 per gram, and “wet” cannabis at $0.28 per gram. Retailers would also be taxed 3 percent on total gross revenues. The proposal also includes product marketing restrictions – such as a ban on child-friendly shapes for edibles.

A University of Connecticut analysis last year suggested direct state revenue from cannabis sales in the state could be between $784 million and $952 million over five years, according to a Hartford Courant outline of the study. Professor Fred Carstensen, the study’s author who serves as director of the Connecticut Center for Economic Analysis at UConn’s School of Business, estimated that the number of jobs created by the industry would range from 10,424 to 17,462 by the fifth year.

Connecticut has a medical cannabis program and decriminalized possession.

End


Will Read: Normalizing Cannabis Through Smart Marketing

Between strict regulations that vary from state to state and the long-lasting remnants of anti-cannabis rhetoric and stigmas, cannabis marketing is an inherently tricky job. The challenge, however, has prompted experts like Will Read — whose company CannaPlanners is dedicated to helping cannabis entrepreneurs find success despite the odds stacked against them — to prioritize simple aspects of brand building, such as a professional and inclusive brand experience.

Will recently joined our podcast host TG Branfalt to discuss cannabis marketing strategies, the prospects for an adult-use cannabis market in Vermont and other New England states, Will’s advice for what makes a strong cannabis brand, and more!

Tune in via the media player below or scroll down for a full transcript of this week’s Ganjapreneur.com Podcast episode.


Listen to the podcast:


Read the transcript:

Commercial: At Ganjapreneur, we have heard from dozens of cannabis business owners who have encountered the issue of cannabias, which is when a mainstream business, whether a landlord, bank or some other provider of vital business services refuses to do business with them simply because of their association with cannabis. We have even heard stories of businesses being unable to provide health and life insurance for their employees because the insurance providers were too afraid to work with them. We believe that this fear is totally unreasonable and that cannabis business owners deserve access to the same services and resources that other businesses are afforded, that they should be able to hire consultation to help them follow the letter of the law in their business endeavors, and that they should be able to provide employee benefits without needing to compromise on the quality of coverage they can offer.

This is why we created the Ganjapreneur.com business service directory, a resource for cannabis professionals to find and connect with service providers who are cannabis friendly and who are actively seeking cannabis industry clients. If you are considering hiring a business consultant, lawyer, accountant, web designer, or any other ancillary service for your business, go to Ganjapreneur.com/businesses to browse hundreds of agencies, firms, and organizations who support cannabis legalization, and who want to help you grow your business.

With so many options to choose from in each service category, you will be able to browse company profiles and do research on multiple companies in advance so you can find the provider who is the best fit for your particular need. Our business service directory is intended to be a useful and well-maintained resource, which is why we individually vet each listing that is submitted. If you are a business service provider who wants to work with cannabis clients, you may be a good fit for our service directory. Go to Ganjapreneur.com/businesses to create your profile and start connecting with cannabis entrepreneurs today.

TG Branfalt: Hey there, I’m your host TG Branfalt and thank you for listening to the Ganjapreneur.com podcast, where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today I’m joined by Will Read, he’s the founder and president of CannaPlanners, a Vermont-based website and marketing company specializing in the needs of the cannabis industry and this is Will’s second time on the podcast. And so I guess that makes you a friend of the show.

Will Read: It’s my third time, but who’s counting.

TG Branfalt: We’re not going to talk about the lost ‘second episode.’

Will Read: Yeah the infamous last pizza tapes.

TG Branfalt: So, before we sort of get into this episode, man, just remind people about your background and how you ended up in the space.

Will Read: Sure. It’s great question. I think like a lot of guests I’ve been a casual participant in the cannabis community for almost my entire life, so I’ve always had a passion there. I started CannaPlanners in 2015 after coming out of an agency that was dedicated to sort of supporting a specific part of a specific industry, nothing to do with cannabis, but they were experts in marketing and creating digital experiences around this one part of an industry. So in Vermont, as legalization started to percolate in the early 2010s, I started to do a little more due diligence, a little bit of entrepreneurial research into kind of where I might fit into this thing. I think a lot of people are because there’s no book on this thing and there’s very few people saying, “Hey, come on in and let me show you how to be part of this industry.”

A lot of us have to figure it out on our own. I think we all do. So it was really doing a little due diligence. I took a trip out to Colorado to see what their legal market was looking like and the first thing that hit me was at the time, lack of experience, and this is everything from conceptual branding, packaging design, and especially in-store experience. I had a short career…well, not short. I was with Apple for about six years. So that Kool-Aid, I definitely drank that Kool-Aid about the importance of experience and even the psychology behind opening a package is far more important to the consumer than what’s actually in the package.

So going out to Colorado and now of course, everything everywhere kind of looks like an Apple store, but back then there was nothing but opportunity. So I started CannaPlanners and we started as a web agency — websites are the other biggest part of what we do. And that’s where we really started from, we developed a platform that we could sell affordably to cannabis companies, lots of mom and pop startups, lots of farmers, things like that in order to get them online quickly, right? And efficiently, and then quickly as we started building websites, the thing I immediately saw the need for was the actual creative, because people were still coming to us with subjectively or objectively, depending on your point of view, bad branding. So we started doing a lot of creative work and really helping companies that way. I don’t even know if I answered your question, but there was a bit of it.

TG Branfalt: Yeah. What do you sort of define in your estimation as bad branding?

Will Read: This is a great question. So I don’t want to be flippant in kind of the way I speak about it, but what I really mean is, so our mission, our superhero goal is normalization. We want this market to succeed. We want this industry to succeed and as I’m sure you know and as I’m sure any of your guests would attest or listeners would attest to, the market is still small, it’s very, very boutique. It’s only in a handful of states and of course we’re not even really talking about CBD yet, which is obviously in a boom. So all of these aspects and really the “normalization”, I think a lot of that can be accomplished. And really what I mean is the acceptance by older generations, by younger generations, just people who’ve been “brainwashed,” I’m using air quotes on Zoom, but brainwashed through the war on drugs, through rhetoric, whatever, to have a certain opinion about cannabis.

And traditionally, a lot of businesses have towed the line and really sort of marketed towards themselves towards the stoner culture and I appreciate that. I’m part of the stoner culture. I’m a stoner, but I’m also totally keenly aware of the potential that this industry has as it’s only touching a razor-thin margin of the entire potential marketplace.

So really what I’m saying is how can we move… When I say bad brands, really what I mean is, “How do we make brands more accessible?” That’s all I’m saying. When you see certain imagery and unfortunately it’s things like the cannabis leaf, it’s been stigmatized. The bright green cross, or even that neon green, a lot of these things have, again, we’re talking about psychology here, but they have a certain psychological effect that can do really one of two things, speak to one specific person and/or turn off the rest. Right? So we want to, our goal is just to really create professional, good-looking brands that can be applied to a cannabis space. And hopefully a little bit more broader of a consumer base.

TG Branfalt: Tell me a little bit more about how branding can help normalize cannabis. I mean, I understand what you’re getting at in terms of sort of this imagery, but sort take it a step further for me because this is really, really interesting.

Will Read: Sure. Yeah. So I think going back to my life at Apple, that unboxing. I can remember when iPad came out and for two weeks before iPad came out it was at a time when the Apple employee would actually unbox the thing for you and draw back the curtain. And there’s this whole allure around consumer products. And I think that’s something that cannabis has to some extent, but it needs even more just in terms of, again, bringing it to a more interesting place, not pigeonholing it or keeping it in line with the ways of the past. We’re just trying to break out of that.

So I think a specific logo for sure is important, but it translates to the whole thing of what we do. So for our retailers. It’s like, okay, we’ve built you this cool logo, and it’s on this awesome website that we’re maybe, excuse me, helping drive traffic to, but what are the rugs in the store? What kind of displays are you getting? How is this whole thing cohesive to an experience as opposed to just being a logo? You know what I mean?

TG Branfalt: Yeah. So since our last interview two years ago, you had started the company in 2015, as you said, our first real conversation was in 2018. You’ve been in the industry for a few years. It was still it was the year that Vermont legalized. And so we had talked quite a bit about that and the CBD and hemp market wasn’t as large as it is now.

Will Read: Oh, man. Yeah.

TG Branfalt: So tell me about how your business has grown since our last interview two years ago.

Will Read: Insanely. And really we’re just busy. Okay, so CBD has fundamentally changed our company. We’re now far more stable than maybe other startups that are kind of point are, luckily people are looking to start and especially during COVID, right?

TG Branfalt: Yeah.

Will Read: We can get into that too, but COVID has actually had a pretty positive impact on CannaPlanners. People are being entrepreneurial because they’ve lost their jobs and they’re stuck at home.

TG Branfalt: Wow.

Will Read: So it’s a big… Yeah. So since the last time we chatted at NECANN or whatever, around the time, yeah. So the CBD industry specific because we’re a Vermont company. So that’s where we started a lot of our clients, a good deal of our clients are in Vermont. A good deal of them are farmers who traded in the dairy cows for hemp fields. So it was about helping them kind of a brand and for people in Vermont, there’s a certain allure to the Vermontiness of kind of how we… So we do plenty of CBD products. We’ve designed, I think in the last… So in 2019, catch me at the end of 2020, which I guess is soon, but last year we probably built around 28 brands, several hundred product designs. I think we launched something like 40 websites.

TG Branfalt: Wow.

Will Read: This year we’re definitely on track to double all of that.

TG Branfalt: Seriously?

Will Read: Oh yeah.

TG Branfalt: That’s immense growth for a small company.

Will Read: I love it. And not for the competition, there’s a competitiveness to being an entrepreneur and having been through my share of 9-5’s and failed entrepreneurial ventures, it’s awesome when something hits and there’s a huge potential market out there that we’re not talking to. So right now our goal is we’re scaling up. So for us that means really new people, new talent, we’ve hired a new designer, we have a new vice president of marketing, we have new salespeople. So we’re trying to expand. Because we’re just a digital company, we have clients all over the place, but we really want to focus on some of these really growing like crazy markets, California, Colorado, all these places.

TG Branfalt: So in the time, since our last two years, as an entrepreneur, what have you learned since our last interview as someone who’s growing business in this industry?

Will Read: Yeah. The one thing, and I don’t even know if this is a good answer to your question, but I would say the most important thing I’ve learned is how and when to step outside of my comfort zone. So for entrepreneurs it’s really, and I guess like anything in life, but for entrepreneurs it’s really easy to get complacent and maybe not be so open to trying new ideas or even doing things like four years ago you would never have caught me on a podcast. Or not four years ago, I was definitely on a podcast four years ago, but prior to CannaPlanners, you wouldn’t catch me doing this. It’s way outside of my comfort zone. It’s not who I was.

So you have to kind of evolve and stepping outside of your comfort zone, getting in front of people, being able to do all this client work and then confidently look back at it when I’m talking to new people and say, “Hey, I’ve built this thing with a team of insanely amazing people who have a incredible level of expertise. How can we help you kind of be better?”

TG Branfalt: What do you look for when building these teams?

Will Read: You’re going to think I’m so lame with this answer. The answer is, “How cool are you?” Seriously, that’s it. If I can’t vibe 20%, you know what I’m saying? If it’s weird, it’s so important, and I’ll tell you why. That is such a lame answer, but it’s true. And the reason is because while I’ve told you how we’re dedicated to normalizing the industry and how I’ve told you about how we’re doing all these cool things, what we really want to do is give good customer service. That’s it. We have these sets of services that we do, but really what we want to do is provide good customer service. Well, you, but maybe you’re not going to be surprised at this, but your listeners might, customer service in the cannabis industry I would say is generally not so great.

You have some people who are doing it right, but because of where the industry is, it’s still very nascent. It’s still very new. People don’t have the same sort of business acumen as maybe other industries you’re accustomed to. There is an opportunity just to be a group of cool people who can empathize with business owners who are trying to do something that’s never been done before. So that’s it. I want to find cool people who understand the vision of what we’re trying to do and who are happy to empathize and relate to our clients. It’s the most important thing.

TG Branfalt: How are you preparing your company’s growth as the Northeast, where you’re based, is on the verge of really blowing up, right? Sales commence in Maine here pretty shortly.

Will Read: Couple days.

TG Branfalt: New Jersey is very likely going to legalize during the election, New York’s going to follow, Connecticut‘s been talking about it, Rhode Island.

Will Read: Yep.

TG Branfalt: I mean, you name it. How are you preparing for that growth?

Will Read: Well, this is another… You’re good at this, Tim. You always have good questions. This is a really good question. I think one of the things, and I’ll answer this as an entrepreneur, one of the things that really attracts me beyond all the stuff I’ve been talking about, one of the things that really attracts me to the cannabis industry specifically is it’s infancy. So we can only scale as quick as the industry does. So I’m happy to take… Not that we are taking it slow, but I’m happy to evolve with California and Colorado and from all these states that have already passed. There’s what? I don’t know what it is now, but 27 medical States and I don’t know, 12 or 13 recs, something like that, whatever it is. There’s 50 total States.

TG Branfalt: Yeah.

Will Read: So, and then a whole world that’s going to follow suit of whatever the United States does. At some point, maybe, I don’t know, we’re maybe losing our edge here, but so yeah. That really excites me. It’s we can scale responsibly as soon as Jersey hits, well, we’ll have a stronger Jersey outreach. Same with same with any of these States. So right now we’re going to focus on New England, or we are focusing on New England. Maine has been very active for us because, like you said, we’re basically two days away. We’ll see what happens. But two days away from the first rec store to open in Maine. There’s plenty more so, yeah.

TG Branfalt: So, I mean, I know that you’re not a company that touches the plant and you don’t have a lot of the challenges that those firms do have. I mean, even hemp businesses face a lot more challenges than sort of ancillary companies, but what are the challenges for you operating a digital marketing business in sort of the gray market that is Vermont. And I don’t want to call New York a gray market, but the hemp only in medical industry here, what are some of the challenges that you face with those?

Will Read: Totally. So any… And I’m using air quotes again here on Zoom, but any kind of let’s say non-cannabis business, just any other industry business has access to, I mean, you name it when it comes to marketing, you want to put a billboard up? Great. You want to buy TV? You want to be on the supe? Whatever. You want to advertise on Facebook and Google? Great. Even CannaPlanners, and it’s because the company’s called CannaPlanners, That’s the only red flag, we don’t touch a plant, but I can’t even advertise on Facebook.

TG Branfalt: Really?

Will Read: Really. Yeah. So I’m okay with that. I’m actually okay with that. But so the answer is there’s plenty of hurdles and that’s part of the excitement of an infant industry is we get to solve a lot of these problems. I would say one that I can speak to fairly recently was the entire CBD industry, retail, consumer market goods, was affected two years ago when the only viable non-high risk payment merchant cut the cord.

TG Branfalt: Yeah.

Will Read: So we took it upon ourselves to form a relationship with Square. This is when they started and quickly canceled their pilot program. So I booked a ticket to San Francisco and went out there and really tried to explain what was going on in this industry to whoever would listen. And not only that, but how CannaPlanners had a level of responsibility before Square in the vetting process. We want to work with reputable people who are doing meaningful work, and we’re only going to work with meaningful people who are doing reputable work.

So how do we iterate that to a big humongous company like square? Luckily for us, it was something they agreed to. So the marketing side of it, it has challenges. So, again, we’re taking it slow. We’re not doing Facebook ads. We can’t. And I don’t want to nefariously circumvent algorithms even, that’s not a standard of kind of doing business that we want to follow. If we’re going to do it, we’re going to do it right. So we focus on really content, building good content for our clients on top of the beautiful websites we build them using the awesome brands that we build for them when it happens.

TG Branfalt: This question might seem a little bit strange, but a lot of people might not know that in Vermont, you’re not actually allowed to, billboards are forbidden on the —

Will Read: It’s the only state without a McDonald’s in the capital city. Did you know that?

TG Branfalt: I did know that.

Will Read: Okay.

TG Branfalt: Do you think that sort of having to deal with that restriction, that long-standing restriction, maybe put you in a sort of unique position to sort of walk this forbidden sort of marketing line?

Will Read: Hmm. I haven’t really considered that. I would say probably, maybe it had a small influence, but probably if I’m being honest, the way that we have been scaling out CannaPlanners has really been a response to our clients. Not so much the things going on outside of our bubble. Of course we’re following regulation where it needs to, we are definitely setting a bar when it comes to that, in terms of what we expect of our clients. We want them to be transparent. We want them to be transparent straight up.

So, yeah. I think all of the things that we’ve done, even creative and then marketing, and then what we’re growing into now, which will be email marketing and social media management and all these other kind of viable digital marketing tactics, we’ll grow into them, but we’re really just responding to the client needs right now. And it’s slow in some cases. The strategies I mean, the strategies are slow.

TG Branfalt: Tell me about sort of building a company in a small Northeastern state, do you think that that is a benefit or a detriment, because people may see, “Oh, this is a small firm in Vermont. Why don’t we go with the big guy in California?” What do you think? Do you think it’s a detriment or?

Will Read: No, not at all. I would say it for-sure works for us. And I think more applicable to your question then where we are in the geography of the country is where we stand in the timing of the industry. So my competition, our competition, there’s agencies doing what we do to some extent or another. There’s not many. With that said, look outside the cannabis industry, there’s a million word press agencies and design, there’s all of these things. There’s a huge creative world out there. It’s all about digital marketing, everybody and their grandmother does… You know what I’m saying?

TG Branfalt: Yeah.

Will Read: So I think it’s about timing. And in some instances we’re also building a brand. I think if I were to be completely honest, being synonymous within this industry for the things that we do would be incredibly amazing.

TG Branfalt: And so you mentioned that you personally can’t market because of your name and these sort of issues.

Will Read: Yeah.

TG Branfalt: So what do you do to get your name out there?

Will Read: Totally. Well, we work with people like you. We work with the team at Ganjapreneur, for sure. It’s an amazing resource for us. We’ve done an incredible amount of outreach just through some very passive marketing through Ganjapreneur, it’s been great. So there are a couple of hubs like this that allow us to sort of put our name out there. Of course, we’re not at NECANN this year, we’re not at BizCon this year. We’re not at CannaCon, we’re not at any of these this year.

TG Branfalt: Yeah.

Will Read: So I think a large part of what we’re going into for ourselves is kind of practicing what we preach. And we’re starting to expand our content creation. We’ll be building out more video resources just to sort of engage directly with whatever our community, but also to have a lasting resource for other entrepreneurs who are looking for these types of things.

When I first started off, I was going to the old Ganjapreneur website and doing that whole thing and you go on Reddit and you know what I’m saying? You try to network, and this goes back to stepping outside of the comfort zone. You got to go meet new people. You got to, for sure. It’s the most important thing. So right now, we’re doing advertising through you guys. Most of our marketing dollars have kind of pushed back, have been drawn back in so that we can use them for sales outreach and doing more proactive sales outreach. But, yeah.

TG Branfalt: How big of a loss — and the events that you had mentioned they’ve been canceled because of the coronavirus, how big of a loss has that been? Because when I went to NECANN, and I had met you prior to NECANN anyway. I mean, it was massive.

Will Read: Yeah. Massive.

TG Branfalt: And it was full and it was bustling. I mean, how big of a loss has that been you think?

Will Read: Well, financially, those things are expensive, but it’s important to again, get out there and meet people and try to retain business. But for us in this industry, it’s more than that. We’ve got this burgeoning community of a lot of great people who are trying to do cool stuff. And that’s kind of what I miss is I’ve got a group of friends who I only see, it’s like fish shows or dead shows or whatever. You only got the group of friends that you see at those shows or at the trade shows or whatever. So that part I miss.

TG Branfalt: So when somebody gets in touch with you, what’s the most common question that you get on that first sort of outreach?

Will Read: Well, if it’s not, “How can we start building our brand?” We’ve been getting a lot of outreach regarding social media, paid social media and yeah. It leads to a larger conversation about those rules and regulations, those terms of services, that those kinds of companies enact, but also, “What are other companies doing? What are they doing in place of this? Can I talk to you about SEO? How’s your website? Do you even have a social media account? Do you have an Instagram account?” So a lot of these things, the industry is ripe with eager business people. And a lot of them are jumping in for the first time. Right? So there’s a lot of just basic consulting work that we get hit up for. Just, “How do I start a company?” I can’t help you there, but I can help you make it look awesome.

TG Branfalt: So what’s your advice for those really early-stage entrepreneurs who reach out to you with these sort of issues?

Will Read: Can’t stop, won’t stop. You’re going to run into your haters, you’re going to fail, you’re going to have days where you’re like, “What the hell am I doing?” And it’s about pushing through those days. And my perspective is purely in the cannabis industry, man. This is what I know. We’ve been doing this for a little while. And I-

TG Branfalt: Five years is a lifetime in this industry.

Will Read: Yeah, it feels like that. For sure. But I think that you have to have that mentality as an entrepreneur, but you have to especially have that mentality as a cannabis entrepreneur, because the odds are stacked against you. I don’t know if everybody has forgotten this, but cannabis is federally illegal.

TG Branfalt: Is it?

Will Read: Right. Did you know?

TG Branfalt: I seem to forget that quite frequently.

Will Read: Oh, yeah. On the regular, but that’s a big thing. This could come crashing down at any second and it’s about, excuse me, but not giving a fuck about that. You have to get beyond that and dig into the work because it is meaningful. This is happening. So can’t stop, won’t stop.

TG Branfalt: Man, we’ve known each other for a while and then it’s not like we speak on a very regular basis.

Will Read: Yeah, sure.

TG Branfalt: But you offer this sort of very forthcoming, very solid insight, that a lot of people they try to dance around sort of their strategies and that sort of thing.

Will Read: No.

TG Branfalt: And you’re just like, “Here it is, guy.”

Will Read: Yeah.

TG Branfalt: So I really appreciate that about you.

Will Read: Well, thank you. That’s a very nice thing for you to say. And I think that there’s value to me being direct. It’s not wasting time, it’s display. I mean, you’re looking at me and we’ve had this conversation a few times at this point, I’m still passionate. I love what I do. I’m excited to end this podcast so I can go back to work. Not really, but that’s the thing is I love what I do and I have experience in it. So I want people to understand that or part of just my directness or just my enthusiasm is that there’s a bit of a fluctuating formula that can be applied to this industry. And we got a good track record. Let’s go and crush it. Let’s go get it. It’s out there. Let’s make a thing.

TG Branfalt: So I am going to let you go and let you get back to your work, but before I do, man, tell the people how they can find out more about you and give the people what they want.

Will Read: Yeah. We’re on Myspace, we’re on Friendster. You can get my Tinder. No. You can find us on Instagram. We’re @CannaPlanners, CannaPlanners.com. Those are great places to find us and we’d love to hear from you, for sure.

TG Branfalt: Cool, man. Hey man, I really appreciate your time today and hopefully we’ll have another conversation in less than two years and there’ll be a bustling industry in Vermont and we can meet on the boat and just chief out. And even though they probably won’t allow that, because we’ll still be going.

Will Read: Oh, I’ve been doing that since the nineties.

TG Branfalt: Oh, man. That’s Will Read, he’s the founder and president of CannaPlanners, a Vermont-based website and marketing company that’s specializing in the needs of the cannabis industry. Man, thank you so much for being on the show and…

Will Read: My absolute pleasure. Thank you for having me.

TG Branfalt: You can find more episodes of the Ganjapreneur.com podcast in the podcast section of Ganjapreneur.com on Spotify and in the Apple iTunes store. On the Ganjapreneur.com website, you will find the latest cannabis news and cannabis jobs updated daily, along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google play. This episode was engineered by Trim Media House. I’ve been your host, TG Branfalt. (Silence)

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Cannabis Officials from 19 States Create Regulators Association

Cannabis regulators from 19 states have formed the Cannabis Regulators Association (CANNRA) – an effort to link regulators across states to collaborate on industry policies and best practices. The nonpartisan group will share regulation resources and expertise on medical and adult-use cannabis and hemp.

The group’s founding members include regulators from Colorado, Delaware, Hawaii, Illinois, Iowa, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Dakota, Oregon, Rhode Island, Utah, and Washington state.

Norman Birenbaum, director of Cannabis Programs for New York State, will serve as the inaugural president of the association. Birenbaum previously served as the top cannabis industry regulator in Rhode Island before taking the New York job last year.

“The association will strive to create and promote harmony and standardization across jurisdictions which choose to legalize and regulate cannabis. [It] will also work to ensure federal officials benefit from the vast experiences of states across the nation to ensure any changes to federal law adequately address states’ needs and priorities.” – Birenbaum in a statement

The organization’s executive officers will include Andrew Brisbo, executive director of Michigan’s Marijuana Regulatory Agency; Jim Burack, director of Colorado’s Marijuana Enforcement Division; and Rick Garza, director of the Washington State Liquor and Cannabis Board, as vice presidents. Tyler Klimas, executive director of Nevada’s Cannabis Compliance Board will serve as secretary-treasurer.

In a statement, CANNRA said the group aims to “facilitate communication and information sharing between subject matter experts in regulatory approaches for industrial hemp, medical cannabis, and adult-use cannabis.”

“This will include exchanges with research organizations, public health officials, policymakers, legal authorities, advocacy groups, and cannabis industry participants,” the group said.

The group emphasized that it is not an advocacy group and would not take a formal position for or against legalization.

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Catharine Dockery: How Cannabis Complements Traditional ‘Vice’ Industries

Catharine recently joined host TG Branfalt for our latest podcast episode to discuss the investment strategy behind Vice Ventures, how she transitioned into specifically working with businesses that other investors frequently avoid, her advice for finding and building a successful brand, and more.

Tune in to the interview via the media player below or scroll further down to read a full transcript of this week’s podcast episode.


Listen to the podcast:


Read the transcript:

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TG Branfalt: Hey there, I’m your host TG Branfalt. Thank you for listening to the Ganjapreneur.com Podcast, where we try to bring you actionable information and normalize cannabis through the stories of entrepreneurs, activists, and industry stakeholders. Today I’m joined by Catharine Dockery. She’s a founding partner of Vice Ventures, a venture-capital fund that has raised about 25 million in its first round and invests exclusively in nontraditional, quote, bad-for-you verticals, such as cannabis, alcohol, sex tech, CBD, and more. How are you doing this afternoon, Catharine?

Catharine Dockery: I’m doing well. Thank you. How are you?

TG Branfalt: I’m great. You’re the first person that I’ve ever interviewed or even really known about that is focused on the sort of bad-for-you industries. So I think we have a lot of ground to cover up, but before we do tell me about yourself. Tell me about your background and how did you end up launching a VC firm focused on vice?

Catharine Dockery: That’s a fantastic question. I grew up in the New York City with my dad, went to NYU, studied a combination of neuroscience and finance. Then my first job out of college was trading high-yield debt. I absolutely hated that job. So I quit after my second bonus, spent nine months contracting for different hedge funds, trying to figure out exactly what I wanted to do. Met up with a PR agency, ran their research team two days a week for two and a half weeks.

Then that’s when I met Andy Dunn, who’s the founder of Bonobos. I was presenting research. We got along really, really well. We decided to get dinner afterwards. We decided I should work for him, which is an incredible opportunity, and manage his venture portfolio and just finances in general.

So when Walmart acquired Bonobos, I followed Andy to Walmart. Kind of realized very quickly that Walmart M&A was not for me, despite some people absolutely loving the job. So I interviewed to leave. I had personally invested in the canned-wine business. So when I was interviewing at this consumer venture firms, I kept pitching the company. All these fund managers were like, “We love the founder. We love the brand. We love what she’s doing, but we can’t invest in alcohol. So it’s a pass for us.”

I just couldn’t believe that they couldn’t invest alcohol. I just kind of kept asking, “Why, why, why?” Finally, someone was very honest with me and they’re like, “We have a vice clause.” And I was like, “Well what’s a vice clause? And they’re like, “It just prohibits us from investing in cannabis, alcohol, and nicotine, sex tech, online gambling, sports gambling.” There’s just this whole wide range of categories I thought both had highly … just huge growth potential. Then the other one had just high multiple exit potential. And I was like, “There’s something wrong here.” So that’s how I came up with the idea.

TG Branfalt: So, I mean, that’s a really broad sort of thing. It’s sort of interesting to me if we talk about cannabis and also sort of online gambling, which is being re-legalized or legalized in many cases through the United States. So is there sort of a trend going on of this sort of, I don’t know, acceptance or normalization of vice culture?

Catharine Dockery: So that’s exactly what my Vice Ventures is trying to do. That’s the mission, besides delivering superior returns to the people who believed in us. But we also want to change culture and change stigma and prove that these quote, bad companies, actually aren’t bad at all.

TG Branfalt: What’s been the response to your fund by the venture capital community at large?

Catharine Dockery: Great question. I think some people love it and get it and understand it. I think some people are laser focused on environmental funds or they think social impact is more important, without really realizing that Vice Ventures is also a social impact fund, in a way.

TG Branfalt: Can you elaborate on why you would consider it a social impact fund?

Catharine Dockery: Yes. Because, I mean, just look at the portfolio. All our portfolio companies are harm-reduction companies, whether it’s, we just announced recently a big investment in Lucy, which is a harm-reduction nicotine business. I would call that social impact, educating people that nicotine would not … and consumed in a carcinogenic fashion, i.e. through vapes or through combustible cigarettes, it’s actually no worse than coffee, which is just as addictive as caffeine.

TG Branfalt: So what do you look for specifically when investing in the crowded cannabis space? Are you focused on the same sort of thing that you’d be focused on, say, with the nicotine cessation with Lucy?

Catharine Dockery: So really quick, Lucy isn’t nicotine cessation for the record.

TG Branfalt: My apologies.

Catharine Dockery: They’re a recreational brand. No, it’s okay. Just legally it’s important to specify. When it comes to cannabis, I looked pretty exclusively at cannabis brands, whether that’s edible, company is lower-dose THC, joints. I think it’s really important to invest in really, really sharp brands. I just don’t think we’re there yet.

TG Branfalt: What do you mean by that?

Catharine Dockery: I think we’re very early stages in the cannabis brand section. I think in the next few months, a lot of these companies will run out of money and we’ll be able to see kind of which brands stand the test of time, if you will. I think then it would be a great time to invest in them.

TG Branfalt: So you mentioned low THC. I’m a huge sort of proponent of low THC products. Massachusetts has actually a cap for recreational five milligrams, which a lot of people are like … they’ll boo and hiss at it. But for me, I’m like, “This is fantastic.” Are you seeing more and more companies offer these low-THC or are developing these low-THC products?

Catharine Dockery: Yeah, definitely. I would say almost every cannabis deal I’ve seen in the past week or two weeks or so have been all low-dose products, whether it’s low-dose beverages, low-dose chocolates, it’s low dose is definitely the future.

TG Branfalt: So do you give particular attention maybe to crossover businesses, such as companies that make THC-infused lube?

Catherine Dockery: I mean, I’m all about crossover businesses and I think as long as it fits the Vice thesis, it is definitely worth looking at. But I just think a THC lube or vice lube is a very difficult business to be in, just because it’s so niche.

TG Branfalt: So is there anything else that you … because THC lube, when it first sort of came out, and I worked in the adult shop industry for a very long time.

Catharine Dockery: Awesome.

TG Branfalt: So I saw what lubes worked and what lubes didn’t. So I have this sort of perspective there. My question is are you seeing a lot more companies trying to maybe cross over? I mean, we see beer companies getting involved in the cannabis space, big time. Are you seeing more of this sort of corporate crossover or these partnerships happening from your perspective?

Catharine Dockery: Yes, actually, which is why I think vice investing and the venture capital space is so exciting because I think because of all the crossover, there’s a lot more exit potential than say a normal CBG grocery company. You could, like a CBD beverage, for example, could get bought by Pepsi. It could get bought by AB InBev, by Constellation, by Coca Cola, by Nestle, literally by anyone. So I think that’s what’s so exciting about it.

TG Branfalt: It sounds like you’re half expecting these sort of major deals to occur.

Catharine Dockery: I think some of them will be, for sure. I think a lot of this is brand new products to the market, more so than in any other industry, in a way.

TG Branfalt: So I mean, your firm balances this social responsibility and taboo. How do you think other companies, large companies, such as the ones you mentioned, Coca Cola, Nestle, are going to be able to sort of jive that with their investors?

Catharine Dockery: I think it just comes down to overcoming stigmas. I think a lot of these companies will kind of go wherever is making the most money, as proved by the Canopy-Constellation deal.

TG Branfalt: Which is, I mean, was shocking.

Catharine Dockery: It’s huge. It’s massive.

TG Branfalt: And now they own, they’re majority stakeholders in that company.

Catharine Dockery: Yes.

TG Branfalt: Right. Yeah. Speaking of stocks, last year was not a great year for cannabis stocks. Some of the biggest players, Aurora, Canopy didn’t do particularly well towards the end of the year. What’s your take on that and sort of expectations for 2020?

Catharine Dockery: I think, I don’t know. It’s a weird analogy to me. But I think it’s very similar to Donald Trump getting elected, everybody just thinking that the market is so much bigger than it is. Then people just not admitting that they participate or don’t participate or anything. So I think that’s kind of what happened is people realized that people actually didn’t really smoke, especially when they say that they did. I think that will have some effect on cannabis exits, which is why I think a lot of these companies will go under the next 6 to 12 months. I think we’ll really see which brands resonated with consumers and all that.

TG Branfalt: What makes for a successful brand in your opinion? I mean, does it involve sort of that sort of celebrity, which we just saw Whoopi & Maya decided to close. But we do see a lot of celebrities sort of coming in the space. Or is it leadership? What sort of draws you in with regard to brands?

Catharine Dockery: So I’ll give you example a great brand. Are you familiar with the CBD water called Recess?

TG Branfalt: I am familiar with the name.

Catharine Dockery: Yes. We were early into Recess. They’ve launched in multiple cities across the country in a short 16-month period. We invested in Recess just because of the brand itself. We didn’t even test the product before making a commitment. Just the brand, the idea of taking a recess, that is a nostalgia to every single American who’s taken a recess as a kid.

TG Branfalt: Interesting.

Catharine Dockery: So that to me is a great example of a really strong brand.

TG Branfalt: Something that sort of sticks out in your head, where you hear that and you think of that.

Catharine Dockery: Yeah, exactly.

TG Branfalt: So what are the risks in investing in these industries, sort of aside from the sort of obvious ones. Right? I’m not an investor, a lot of our listeners are. They probably have a better idea on what those risks are than I do, in many ways. But aside from the basic, “You can lose money,” what really are the potential rewards here, sort of the abstract bigger picture, I guess?

Catharine Dockery: I think some of the biggest risks are definitely regulatory, especially for CBD. Nobody knows if it’s going to be outlawed in food and bev or not. I would say also this isn’t a rant, but for cannabis, it’s definitely regulatory as well. So the laws change every three months on that. The alcohol, you need to make sure you comply with the three-tier system. Some people swear by drawing it to alcohol. But that’s even more difficult. I don’t know. There’s a lot of risks.

TG Branfalt: What do you tell your investors are the rewards in this space aside from sort of the returns? You know what I’m saying?

Catharine Dockery: No. What do you mean?

TG Branfalt: So this idea of social responsibility and this idea of sort of ending stigma, is this something when you are making that pitch to your investors that intrigues them just as much as the profits in many cases? Or is it purely profit-driven?

Catharine Dockery: I think any investment should probably be profit driven, just because you have a fiduciary responsibility to help your investors make more money than they had when they put in. Besides that, I think there’s also a social responsibility to make sure that you’re investing in really intellectually honest operators, who know exactly their products, the harm that it can give to the users and just didn’t hide it.

TG Branfalt: I like the term intellectually interesting.

Catharine Dockery: Yeah.

TG Branfalt: Several states expected to legalize this year. Where we are in New York, which we know it happened last year. You’re a lifelong New Yorker like I am, basically. We know Cuomo’s history and the legislature here is a mess. New Jersey, Connecticut, Rhode Island, Vermont lawmakers are right now in the middle of bringing in a taxed and regulated system. Does one state or a couple of states stand out to you as most ripe for investment?

Catharine Dockery: I think Oregon is a really interesting one, just because I think it’s less fragmented than the other states. I mean, tons of people are pouring money into California brands. I’m not sure that makes sense yet.

TG Branfalt: What about as far as the ones that we sort of expect this year?

Catharine Dockery: Give me an example.

TG Branfalt: Like New York, Jersey, Connecticut, Rhode Island.

Catharine Dockery: I think New York would be a great place. I think brands are built in New York City. I mean, look, you have Away, Glossier, Bonobos, Warby Parker. Really strong brands are built here.

TG Branfalt: I mean, and the other thing too, that we have to consider, is the way the medical licensing is set up. It’s really going to be a prime opportunity, I think, the way they’re going to set it up, for branding.

Catharine Dockery: Yep.

TG Branfalt: In your experience thus far with your fund, has there been a particular state that has proven to be a solid enough industry investment? Maybe Nevada, considering it is pure vice?

Catharine Dockery: Yeah. Not yet. Most of our investments to date have been between East LA and New York. Which I don’t know, maybe that’s because that’s where I spend most of my time. But definitely looking at Vice in a every state.

TG Branfalt: So what advice do you have for entrepreneurs who are looking to enter this space as far as brands go?

Catharine Dockery: Well, depends which category. I mean, nicotine is arguably more difficult than cannabis, I would say. But I think it’s all about just pairing up with somebody who’s really good at branding, finding somebody who can do operations and just going out there and doing it, finding distribution and finding partners that can help you.

TG Branfalt: Awesome. Where can people find out more about you, about the firm? Give us the plugs.

Catharine Dockery: Viceventures.com. There’s an email address on there, that’ll link you to me.

TG Branfalt: Brilliant. Thank you so much, Catherine. It’s really been nice to have you on the show, pick your brain a little bit. Like I said, it’s a super sort of interesting angle that you’ve taken there and I really appreciate your insight.

Catharine Dockery: Thank you so much.

TG Branfalt: That was Catherine Dockery. She’s a founding partner of Vice Ventures, a venture capital fund that has raised about 25 million in its first round. Invests in vice, such as alcohol, cannabis, and more.

You can find more episodes of the Ganjapreneur.com Podcast in the podcast section of ganjapreneur.com and in the Apple iTunes Store. On the Ganjapreneur.com website, you’ll find the latest cannabis news and cannabis jobs, updated daily, along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Trim Media House. I’ve been your host, TG Branfalt.

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Considering New England’s 2020 Legalization Landscape

Four years ago, it seemed like cannabis legalization was a foregone conclusion for New England. Both Maine and Massachusetts legalized adult-use that year, and then in 2018 Vermont became the first state to legalize possession through the legislative process. Given their proximity, many thought that the three remaining states would sooner legalize than lose out on tax revenue from residents crossing the border to source legal weed. 

Yet, Vermont still has not legalized commercial sales, Massachusetts’ recreational rollout has been plagued with delays, and Maine is just now accepting applications for recreational facilities. 

It seems that the region may finally see some momentum in 2020 after last week saw three key bills progress in Connecticut, New Hampshire, and Vermont.

Connecticut

Last Thursday was also a big day for cannabis legislation in Connecticut, where a governor-backed legalization bill was introduced by top lawmakers. The bill would allow for adults 21 and older to possess and purchase up to one and a half ounces of cannabis from a licensed retailer. The legislation also includes broad social equity provisions, including the establishment of a “Cannabis Equity Commission” tasked with “promoting and encouraging participation in the cannabis industry by persons from communities that have been disproportionately harmed by cannabis prohibition and enforcement.” The bill also includes automatic expungement of low-level possession offenses and mechanisms for petition-based expungements for a range of other cannabis offenses. 

New Hampshire

Last Thursday also saw the passage of the aptly named SB 420 in the New Hampshire Senate, which allows for homegrow for the state’s medicinal patients and caregivers. Home cultivation is currently a felony offense. The bill will now proceed to the House of Representatives for consideration.

Vermont

Last week, the Vermont Ways and Means Committee approved S 54, a bill to fully legalize, regulate, and tax cannabis sales. The Vermont Senate passed a similar bill last year, but it died in the House. The bill is expected to receive a vote in the full House this month, and if successful, would proceed to a conference committee, where members of the House and Senate would work to draft a final version of the bill for the Governor’s approval.

Rhode Island

Feeling the pressure from surrounding states, Rhode Island Governor Gina Raimondo said she was looking more closely at legalization efforts in 2020, noting “Our hand is being forced by all of our neighbors.”

Editor’s note: This article is an editorial contribution from the Last Prisoner Project. Learn more at LastPrisonerProject.org.

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New York Gov. Includes Legalization in 2021 Budget

New York Gov. Andrew Cuomo (D) has included cannabis legalization in his 2021 budget, proposing a 20 percent excise tax, a 2 percent locality tax, and cultivation taxes of $1 per gram of flower, $.25 per gram of trim, and $.14 of “wet” cannabis. The governor estimates cannabis taxes would raise $20 million in taxes in 2021 and $63 million in 2022.

“The proposal will administer social equity licensing opportunities, develop an egalitarian adult-use market structure and facilitate market entry through access to capital, technical assistance and incubation of equity entrepreneurs. The proposal will also correct past harms to individuals and communities that have disproportionally been impacted by prohibition.” – The governor’s office in a press release

The plan also calls for New York to work with neighboring states that have yet to legalize cannabis – Connecticut, New Jersey, and Pennsylvania – on packaging, labeling, and advertising rules for cannabis products. Lawmakers from each of those states are considering broad cannabis reforms and the governors have voiced support for legalization.

Cuomo’s plan would create the Office for Cannabis Management, which would administer the industry’s regulations, once promulgated, and would centralize both medical and recreational cannabis operations and oversight. In December, Cuomo hired Norman Birenbaum, the former top cannabis regulator in Rhode Island. Birenbaum is expected to assume the role as head of the OCM once the agency is, officially, created.

Cuomo’s budget also includes a proposal to ban flavored vaping products, vape product advertising “targeted to youth,” vape oils that could carry health risks, and a restriction on buying vape products online, over the phone, and through the mail.

Last year, Cuomo included legalization in his budget bill but legislative leaders pushed for the reforms to be passed the traditional way; ultimately, however, they did not take that step. Lawmakers did approve sweeping decriminalization and expungement reforms in lieu of full legalization.

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New York Gov. Renews Legalization Pledge for 2020

New York Gov. Andrew Cuomo (D) pushed for cannabis legalization during his 2020 State of the State Address on Wednesday. Cuomo had included legalization in his 2021 budget last year; however, the proposal was pulled after legislative leaders said they would prefer the measure be approved by lawmakers rather than through the omnibus budget bill.

New York faces a $6 billion budget shortfall and during his speech, Cuomo indicated cannabis-derived revenues could bring in $300 million a year in tax revenues.

“For decades, communities of color were disproportionately affected by the unequal enforcement of marijuana laws. Let’s legalize adult use of marijuana.” – Cuomo, during his State of the State address, January 8, 2020

It’s unclear whether Cuomo will again try to include the reforms in broad budget legislation but during his remarks acknowledged his office would create a new Office of Cannabis Management; last month Cuomo hired Norman Birenbaum – the former top cannabis regulator in Rhode Island – to help craft legalization policies and oversee the adult-use, medical cannabis, hemp, and CBD industries.

In a press release, Cuomo’s office promised any legalization proposal would “administer social equity licensing opportunities, develop an egalitarian adult-use market structure and facilitate market entry through access to capital, technical assistance and incubation of equity entrepreneurs.”

Additionally, the governor’s office said that it planned to work with its neighboring states that have yet to legalize cannabis – Connecticut, New Jersey, and Pennsylvania – on quality and safety controls for the adult-use cannabis industry. Last year, Cuomo met with governors from those states to discuss regional cannabis policies. New York is already bordered by cannabis legalization in Vermont, Massachusetts, and Canada.

The Governor also plans on creating a Global Cannabis and Hemp Center for Science, Research and Education with the State University of New York “other expert partners.”

Last session, cannabis legalization fell apart in the 11th hour after lawmakers could not agree how cannabis funds would be distributed – the Legislature and governor’s office are both controlled by Democrats – and ultimately lawmakers settled on expanding the state’s decriminalization policies and establishing a process for expunging low-level cannabis-related charges.

Morgan Fox of the National Cannabis Industry Association told CNN that New York‘s cannabis market could be “gigantic” and would “have rippled in global policy when it comes to cannabis.”

BDS Analytics and Arcview Market Research estimate New York as a $1.6 billion cannabis market in 2024. Brightfield Group suggests that if the state were to legalize cannabis in 2021, it could be the nation’s second-largest cannabis industry at $2.2 billion in sales by 2023.

Last session, the reforms were opposed by law enforcement organizations and many downstate Democrats. The village board of Islandia, which is on Long Island, has threatened to sue the state if cannabis is legalized.

If Cuomo is successful, New York would become the 12th state to legalize cannabis for adults and the second to legalize a taxed-and-regulated industry via the Legislature.

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Cannabis Media Company Offers $36K Annual Salary for Cannabis Reviewer

American Marijuana is seeking a cannabis product reviewer who could earn up to $36,000 a year. Applicants must be 18-years-old live in a U.S. state with legalized medical cannabis or Canada, be “physically fit and healthy” and have “extensive knowledge” of cannabis.

“The applicant will then test the products in person and write about their experience with the product from unboxing to everything they’ll be doing with the product. It has to also be noted that the applicant will be required to record their experience in film.” – American Marijuana, Nov. 19, 2019, “Cannabis Product Reviewer Wanted: Smoke Weed and Get Paid Up to $36,000 a Year”

According to the company, the job pays 3,000 a month along with free cannabis products for use with the reviews. Applicants must include a bio and/or resume, a 60-second introduction video talking about their passion for cannabis (or a headshot), links to existing social media accounts, and at least six slang terms for cannabis.

“This job is 100% for real and it’s an important job that includes more than just getting paid to smoke weed,” the company says in the post.

In the U.S., medical cannabis is currently legal in Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida Hawaii, Illinois, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, Utah, Vermont, Washington, Washington D.C., and West Virginia.

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Maine Adopts Massachusetts’ Cannabis Warning Labels

Cannabis regulators in Maine have adopted the warning symbols for cannabis products from Massachusetts, the State House News Service reports. The adoption could be a preview of how New England states unify some cannabis regulations in lieu of federal legalization. Maine’s rules require all products to have cannabis warning labels that read “contains THC” and “Not Safe for Kids.”

Erik Gundersen, director of the Maine Office of Marijuana Policy, said using the “same universal symbol will ensure that customers can clearly recognize products that contain THC whether in Massachusetts or Maine.”

Three of the six New England states – Maine, Massachusetts, and Vermont – have legalized cannabis for adult use, although Vermont has not yet legalized sales or a regulated industry. Legalization legislation has been introduced in New Hampshire, Connecticut, and Rhode Island but has not yet been voted on by lawmakers.

Maine officials said regulators “identified the CCC’s symbol as a potential opportunity for collaboration and were pleased with how warmly the suggestion of utilizing the same symbol was received by their counterparts in Massachusetts.”

Earlier this month, governors from New York, Connecticut, New Jersey, and Pennsylvania met to discuss regional cannabis legalization policy. In a statement on the summit, Connecticut Gov. Ned Lamont (D) said that eastern states “not only share borders” but “economic interests” and that “when states work together collaboratively, carefully and thoughtfully [they] can create better policies.”

According to the State House News report, Maine officials expect to begin accepting cannabusiness licenses by the end of the year.

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Rob Gronkowski Credits CBD with Being ‘Pain-Free’ After NFL

Former New England Patriots tight end Rob Gronkowski is taking an ownership stake in Abacus Health Products, a Rhode Island-based company that produces CBDMedic and is publicly traded on the Canadian Securities Exchange, WBUR reports. At a news conference yesterday, Gronkowski – a three-time Super Bowl champion and five-time Pro Bowl selection – credited CBD with making him “pain-free” for the first time in a decade.

“I’m here today to appeal to the sports governing bodies of the world to update their position on CBD, whether that’s the NBA, MLB or NFL. It’s just time.” – Gronkowski, during a news conference, via WBUR

Gronkowski, who is just 30-years-old, retired from the National Football League after last season following a career plagued by injuries and nine surgeries.

“[The injuries] took an absolute beating on my mind and my soul. I was hurt both mentally and physically, day in and day out,” Gronkowski said during the conference. “I decided to walk away from the game for one reason: I had to recover.”

During his remarks, Gronkowski indicated if his health continues to improve he would consider returning to the league; however, as Dan Roche of WBZ-TV points out, CBD is still banned by the NFL and Gronkowski would be facing a suspension if he continued using CBD products and returned to football. The league did announce in May that it, along with the NFL Player’s Association, is including medical cannabis and cannabinoids to its pain management research.

Abacus makes topical CBD products and plans to partner with Gronkowski on a line of edibles next year.

Several other former NFL players have either launched, or expressed interest in launching, cannabis-related businesses post-retirement, including Ricky Williams, Calvin Johnson and Rob Sims, and Troy Smith and Eric Metcalf.

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