Texas Opening Applications for More Medical Cannabis Dispensaries

1/16/2023

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The Texas Department of Public Safety (DPS) is opening an application process to license more medical cannabis dispensaries, the Dallas Morning News reports. Just three dispensaries have been licensed by the state in the past three years.

DPS officials have not indicated how many dispensaries they plan on adding and it’s unlikely a decision will be made before the summer in case lawmakers pass laws this session that change the number of dispensaries allowed, the report says.  

Wayne Mueller, the chief of DPS’ regulatory services division, said in December that opening the licensing process will allow the agency to “help us gauge what the actual interest is” by would-be operators.   

Two of the three dispensaries are now open in Austin and one in Schulenberg, which is about 100 miles west of San Antonio. In Texas, patients do not have access to traditional products, but rather those that are low in THC and high in CBD. 

Nico Richardson, the acting CEO of Compassionate Cultivation, which is one of the three licensed cannabis businesses in the state, explained that adding new licensees may be premature and may not be helpful because licensed producers can only store products in the facility where it is manufactured.

“So if I want to serve a patient in El Paso, and my facility is in Austin, I have to send a driver to El Paso to deliver the product or give it to a patient at a pickup location in El Paso,” Richardson told the Morning News. “And whatever is not picked up has to be driven back… as soon as humanly possible.”

Last November, Mueller said he expects more than 100,000 patients will be enrolled in the medical cannabis program in the next 18 to 24 months, noting that over the previous 18 months, patient registrations have increased by an average of 10% month-over-month.

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Minnesota House Committee Advances Adult-Use Cannabis Bill

1/16/2023

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The Minnesota House Commerce Finance and Policy Committee last week approved Democratic Rep. Zack Stephenson’s proposal to legalize adult-use cannabis, KARE 11 reports. The measure still has 12 House committees and a similar number in the Senate before making it to the floor of either chamber for a final vote.  

Stephenson told KARE 11 that he was “really encouraged and really positive” about how the bill moved through the committee.     

“Our goal in this bill is to foster local and small businesses to give them the tools they need to be successful, much the same way we’ve seen success in the craft industry on the alcohol side.” — Stephenson to KARE 11 

During the hearing, Republicans on the committee tried to add provisions to the legislation to allow municipalities to ban retail cannabis dispensaries or create their own licensing systems.

John Hausladen, of the Minnesota Trucking Association, testified in opposition to the reforms over road safety issues and concerns that legalization would make it harder for the trucking industry to find employees because federal law prohibits cannabis use and requires pre-employment drug screenings for industry applicants. Hausladen said he was also concerned about the lack of “reliable roadside tests to assess (cannabis) impairment.” 

The measure includes language to create an “oral fluid roadside test” pilot program which would first be used to help officials determine how many impaired drivers are on the road and whether the roadside test works.   

The bill is headed next to the House Committee on Capital Investment. 

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Oregon Issues Product Recall Over Synthetic Cannabinoids

1/13/2023

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The Oregon Liquor and Cannabis Commission (OLCC) on Thursday issued a recall of Firefly Extracts vape products over the presence of artificially derived CBN and a synthetic form of the cannabinoid CBC. Under Oregon law, inhalable products cannot contain artificially derived cannabinoids.

The products were manufactured by Plank Road Laboratories, Inc. A preliminary OLCC investigation found that more than 5,000 units of the products were manufactured between August 2021 and February 2022. The agency notes that not all of the products were distributed, and Plank Road has been cooperating with regulators to track down the distributed product.

Plank Road originally distributed vape cartridges to about 80 OLCC-licensed cannabis retailers, the agency said in a press release. About 30 retailers still have nearly 200 units on hand and Plank Road distributed at least 300 units that can be accounted for to six retailers in the general market, including four retailers licensed by the OLCC to sell alcohol.

“The OLCC discovered the prohibited additive issue during a random audit of the Cannabis Tracking System (CTS). Investigators reviewing the Firefly Extracts testing results also determined that at least three of them contained the synthetic cannabinoid CBC. Under the Oregon Board of Pharmacy standards, non-cannabis derived CBC is considered a Schedule 1 substance.” — OLCC in the January 12 recall notice

The agency is encouraging consumers who purchased the products to destroy them but indicated they have not received any health-related complaints from the recalled products.

The recalled products include Firefly branded Strain T1, Special Sauce, Hawaiian Haze, and Cherry Wife vape cartridges.

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Hawaii Could Earn $53M Per Year In Adult-Use Cannabis Tax Revenue

1/13/2023

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Adult-use cannabis tax revenues in Hawaii could reach between $34 million and $53 million annually, according to a report by the Dual Use Cannabis Task Force outlined by the Honolulu Star-Advertiser. The report comes as lawmakers will likely consider a bill this session to enact the reforms. 

Democratic Rep. Jeanna Kapela has drafted legislation to allow adult-use sales and possession which is expected to be introduced this year. 

“It is time to stop making excuses. It is time to stop playing games with the lives of Hawaii’s families who have been harmed by our state’s rabid devotion to prosecuting cannabis use.” — Kapela via the Star-Advertiser 

Cannabis legalization is supported by new Gov. Josh Green (D) but legislative leaders, including House Speaker Scott Saiki and Senate President Ron Kouchi, who are both Democrats.  

“I’m not one that’s very excited about passing marijuana legislation,” Kouchi said during the Star-­Advertiser’s “Spotlight Hawaii” program last month. “But I’m pragmatic if this is the direction of the caucus. The bill will go through if that’s what they see.” 

In 2021, a cannabis legalization bill passed the state Senate easily – 20-5 – but never received a hearing in the House.  

Nikos Leverenz, president of the Drug Policy Forum, told the Star-Advertiser that more than 1,000 arrests were made in Hawaii from 2009 to 2018 for simple cannabis possession and that Native Hawaiians are disproportionately prosecuted for drug offenses. 

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First Day Cannabis Sales in Connecticut Exceed $350K

1/13/2023

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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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Gelato Vegan Sea Salt Dark Chocolate Bars Review

1/12/2023

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I recently had the pleasure of sampling the artisanal Vegan Sea Salt Dark Chocolate Bar crafted by Gelato, the San Diego-based cannabis brand. There may be lots of infused chocolate bars out there in the universe of cannabis products but in my experience, not many are vegan. This bar was also one of the best I’ve tasted — cannabis-infused or otherwise.

The bar contains 100 milligrams of THC and is partitioned into ten 10-milligram servings. The product has a short list of ingredients and the chocolate bar tastes amazing. The THC level is baked in just right so you can easily pick the perfect dose for chilling out at home or going out with friends.

The savory dark chocolate bars come in three varieties: hybrid, sativa, and indica. I had the indica version before going to see The Smile, which led to a nice, chilled-out vibe on the light rail and a vibrant walk over to the venue, followed by an amazing show.

Gelato was started in 2022 by seasoned cannabis entrepreneurs George and Cody Sadler. The family business is founded on transparency, integrity, and accountability and strives to bring cannabis into the mainstream in their Lake Elsinore, CA dispensary with its “Candy Land-themed” wall murals and bright displays. Gelato also offers pre-rolls, 11 strains of concentrates, and a line of vape cartridges. Check their website out for more details on their offerings and where to find their products.

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Arizona Sets New Monthly Adult-Use Cannabis Sales Record

1/12/2023

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Adult-use cannabis sales in Arizona reached a new record in October 2022 – $84.5 million – while medical cannabis sales fell for the eighth straight month to $31.4 million, according to state Department of Revenue data outlined by the Arizona Mirror. Medical sales were more than $1 million less than the previous month, while adult-use sales were up more than $5 million. 

September and October marked the third and fourth time in 2022 that Arizona’s adult-use sales topped $80 million. Through October, the state collected $13.6 million in medical cannabis taxes and $22.5 million in adult-use taxes. 

Throughout October, Arizona sold $1.2 billion worth of cannabis putting sales on track to exceed the $1.4 billion in sales in 2021. Since adult-use sales commenced in the state in January 2021, the state’s dispensaries have sold $2.6 billion in cannabis products. 

As of November 2022, there were 156,647 cannabis cardholders, including patients, caregivers, dispensary agents, facility agents, and laboratory agents, according to Department of Health Services (ADHS) data outlined by the Mirror. 130,696 of the cardholders are medical cannabis patients, while dispensary and facility agent cards totaled 24, 785, the report says.  

ADHS spokesman Tom Herrmann told the Mirror the agency has seen a decrease in the number of dispensary agent cards because “facility agent cards are less expensive and can be used more flexibly.” 

In all, in November medical cannabis patients purchased 5,606 pounds of flower; comparatively, in January 2021, patients purchased 18,708 pounds of flower.     

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Study: 31% of Chronic Pain Patients Use Medical Cannabis to Manage Pain

1/12/2023

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Thirty-one percent of adults with chronic pain in states with legal medical cannabis say they use cannabis to manage their pain, according to a study published January 6 in JAMA Network Open. The study included a representative sample of adults aged 18 or older with chronic pain who lived in the 36 states with active medical cannabis programs and Washington, D.C. from March to April 2022.

Mark C. Bicket, M.D., Ph.D., from the University of Michigan School of Medicine in Ann Arbor, and colleagues used data from the National Opinion Research Center AmeriSpeak panel to assess cannabis use among 1,661 adults with chronic pain in those states and found three in 10 adults used cannabis to manage their pain, with 25.9% reporting using cannabis to manage their chronic pain in the previous 12 months and 23.2% saying they used cannabis in the previous 30 days to manage their pain.

The study found that more than half of adults who used cannabis to manage their chronic pain reported using cannabis led them to decrease their use of prescription opioids, prescription nonopioids, and over-the-counter pain medications. Less than 1% reported that using cannabis increased their use of these medications.

“The high degree of substitution of cannabis with both opioid and nonopioid treatment emphasizes the importance of research to clarify the effectiveness and potential adverse consequences of cannabis for chronic pain,” the authors wrote. “Our results suggest that state cannabis laws have enabled access to cannabis as an analgesic treatment despite knowledge gaps in use as a medical treatment for pain.”

The study was conducted with a grant from the federal National Institute on Drug Abuse.

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Minnesota Cannabis Legalization Proposal Includes Social Equity and 8% Tax

1/12/2023

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The adult-use cannabis legalization bill proposed in Minnesota would allow adults 21 and older to purchase up to two ounces of flower, eight grams of concentrates, and 800 milligrams of edibles at once and the state would impose a special 8% tax on sales in addition to the state’s regular sales tax, the Star Tribune reports. The law includes home grow provisions, allowing cultivation of up to eight plants with no more than four mature. 

The law would require the Bureau of Criminal Apprehension to automatically seal all records of low-level cannabis arrests, trials, convictions, and sentences, while individuals with cannabis-related felonies would see their cases go before a five-member Cannabis Expungement Board, which could expunge the case or resentence the offender to a low-level offense. The bill includes provisions to direct portions of the cannabis tax revenues toward community-building grants in areas disproportionately affected by cannabis law enforcement. The measure also includes social equity provisions that would give people from disadvantaged backgrounds a better chance at obtaining a cannabis business license.     

The bill would create an Office of Cannabis Management which would be responsible for licensing – in all there would be 13 different licenses, including grower, processor, retailer, delivery services, on-site consumption, low-dose edibles, and medical cannabis. 

Under the measure, employers would no longer be allowed to test for cannabis as part of the hiring process, but employers could still implement policies forbidding on-the-clock cannabis use and drug tests could still be conducted in the event of an accident or suspected consumption on company time or property. Some professions, including police, firefighters, teachers, and medical professionals, would be excluded from the ban on pre-employment testing for cannabis. 

The law would require the state’s public safety commissioner to launch a pilot “oral fluid roadside test” program to determine whether a driver is impaired by cannabis. The program would help officials determine how many impaired drivers are on the road and whether the roadside test works.    

The measure would set aside millions from the state’s general fund to set up mandatory middle school and high school drug education, which parents could exempt their children from. A district’s program would need to be in place by the 2026-27 school year and focus on “the health effects on children and adolescents of cannabis use.” The state Department of Health would also get funding to educate pregnant and breastfeeding women about cannabis use. Another $36 million over four years would be budgeted for substance use disorder treatment and prevention grants. 

The measure would also expand the number of medical cannabis producer licenses. Currently, there are just two firms allowed to produce medical cannabis for the state program.

During the midterm elections, Democrats took control of both chambers of the state legislature and Rep. Zack Stephenson is the sponsor of the legalization measure. The measure has support from Democratic Gov. Tim Walz, who said last week he is “ready” to sign a cannabis legalization bill into law.

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Adult-Use Cannabis Sales Begin in Connecticut

1/11/2023

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Adult-use cannabis sales began Tuesday in Connecticut. Gov. Ned Lamont (D), who signed the legalization bill in 2021, said the launch of the market “marks a turning point in the injustices caused by the war on drugs, most notably now that there is a legal alternative to the dangerous, unregulated, underground market for cannabis sales.” 

“Together with our partners in the legislature and our team of professionals at the Department of Consumer Protection, we’ve carefully crafted a securely regulated market that prioritizes public health, public safety, social justice, and equity. I look forward to continuing our efforts to ensure that this industry remains inclusive and safe as it develops.” — Lamont in a press release 

The state’s legalization law includes expungement for low-level cannabis convictions and reserves half of all cannabis business licenses for people from neighborhoods most impacted by the War on Drugs. Additionally, more than half of the revenue from cannabis sales will be dedicated to a new fund that will invest in those neighborhoods.    

In a statement, Lt. Gov. Susan Bysiewicz (D) said the expungement provisions will “help people regain their freedom and the opportunity to pursue the careers and jobs they rightfully deserve.”  

“An old conviction for a low-level cannabis possession shouldn’t hold someone back from pursuing their career, housing, professional, and educational aspirations,” she said. 

The Legislature-approved law also created a Social Equity Council that is tasked with ensuring the adult-use cannabis market is grown equitably. 

Connecticut imposes the state’s 6.35% sales tax on adult-use cannabis purchases along with a 3% sales tax dedicated to the city or town where the sale occurs, and a tax based on THC content that will cost approximately 10% to 15% of the sale price.  

Nine retail dispensaries opened on Tuesday in the towns of Branford, Danbury, Meriden, Montville, New Haven, Newington, Stamford, and Torrington.  

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Illinois Adult-Use Cannabis Sales Reach Record $1.5B in 2022

1/11/2023

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Illinois adult-use cannabis sales topped $1.55 billion in 2022, a new record and 12% more than in 2021 and 131% more than in 2020. There are 113 licensed dispensaries in the state.

In a press release announcing the figure, Gov. JB Pritzker (D) said that when he signed the state’s legalization law in 2019, the Administration “set out on an ambitious goal: to create the most equitable and economically prosperous cannabis industry in the nation.” Last year, the governor said, the state’s first social equity adult-use cannabis dispensaries opened their doors for business, which Pritzker said paves the way “for an even stronger 2023.”    

In all, three social equity adult-use cannabis dispensaries opened their doors in the last year, while another 189 conditional licensees are in the process of receiving their full dispensary license from state regulators. 

Mario Treto, Jr., secretary of the Illinois Department of Financial and Professional Regulation (IDFPR), noted that 2022 marked the second straight year the state’s cannabis industry has seen “record-setting growth.” 

“…We are excited for what the future holds for the most equitable cannabis industry in the country. We are optimistic the industry will only continue to flourish in 2023, as we welcome more dispensaries to Illinois.” — Treto, Jr. in a statement 

Statistics compiled by IDFPR show 2021’s sales totals were all exceeded by November 2022. In total, 36,435,129 items were sold in Illinois adult-use cannabis dispensaries last year, representing an increase of 20% from 2021. Additionally, Illinois resident sales totaled $1,073,132,436, which is an increase of almost 14% from 2021, while sales to out-of-state residents totaled $479,192,383, an increase of almost 10% from 2021.   

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Court Rules Doctor-Recommended Use of Medical Cannabis While Pregnant Not Considered Child Neglect

1/11/2023

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The Arizona Court of Appeals last week ruled that women who use medical cannabis under the care of a physician while pregnant are not neglecting their unborn child and cannot be put on a list that could limit their employment, AZ Central reports. The ruling reverses a decision by Department of Child Safety (DCS) Director Mike Faust to place Lindsay Ridgell, a former DCS employee, on the agency’s Central Registry.

The DCS Central Registry is a list of people who have been deemed to have neglected or abused their children and serves as a red flag if the person on the list seeks employment that involves children or other vulnerable populations.

Writing for the court, presiding Judge Randall Howe concluded that because Ridgell had a medical cannabis card prescribed by a doctor, her use of cannabis to counteract nausea was the same as taking any other prescription under a doctor’s direction.

Cannabis is legal in Arizona for both medical and adult use.

“Ridgell’s marijuana use was protected by the AMMA (Arizona Medical Marijuana Act), and that protection extends to prenatally exposing her infant to marijuana.” — Howe in the decision

The case stems from 2019 when Ridgell gave birth and the baby tested positive for cannabis which required the hospital to notify DCS. Under state law, a parent is considered neglectful if a child is born substance-exposed, unless the exposure occurred while the mother was under treatment by a medical professional.

DCS investigators determined that while Ridgell had a valid medical cannabis card, she did not inform the physicians that were involved in her pregnancy care about her cannabis use. They did not move to remove the child from her care but did move to place her on the registry – a listing that lasts 25 years.

Ridgell appealed the DCS decision to a state administrative law judge, who sided with her but Faust, as allowed under law, reversed that decision, saying Ridgell’s lack of communication with her other doctors made her guilty of neglect and again referred her to the registry, the report says. In her appeal, Ridgell argued the cannabis exposure resulted from a medical treatment administered by a doctor, since she received her medical cannabis card with a doctor’s permission.

Judges Brian Furuya and Michael Brown joined in Howe’s decision, and the court determined that “her marijuana use is the equivalent of taking any other medication under the direction of a physician.” The state Supreme Court has declined to hear any further challenges to the ruling.

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Cannabis Sales in Maine Nearly Doubled from 2021 to 2022

1/10/2023

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Adult-use cannabis sales in Maine last year nearly doubled those from 2021, the first full year of sales, the Portland Press Herald reports. In 2022, adult-use sales topped $158.9 million, according to Maine Office of Cannabis Policy (OCP) data outlined by the Press Herald. In 2021, the total was $82 million. In all, Maine retailers reported nearly 2.5 million transactions last year. 

The state saw about $16 million in tax revenue derived from adult-use sales last year. The state has licensed 114 retailers, 56 manufacturing facilities, 87 cultivation sites, and three testing laboratories. There are another 97 stores, 48 manufacturing facilities, 75 cultivation sites, and two labs in various stages of the approval process, the report says.  

John Hudak, director of the OCP, told the Press Herald that the growth “reflects the significant economic impact that legal cannabis continues to have in the communities that have opted into the system.”  

“The system is creating jobs, helping revitalize communities, and having a positive economic impact on businesses that help the industry function.” — Hudak to the Press Herald 

As the state’s industry matures, prices have started to fall – the average price of flower fell from $16.68 per gram at market launch to $8.18 per gram as of December.  

Maine’s adult-use rollout was one of the slowest since states began enacting the reforms, taking nearly four years to commence after voters approved a ballot initiative in 2016.  

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Missouri Releases Sample Home Grow Application

1/10/2023

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The Missouri Department of Health on Saturday released the sample application for personal cultivation of cannabis plants, the first step in allowing individuals to grow their own cannabis under the state’s voter-approved legalization law, 5 On Your Side reports. The agency has not yet started accepting the applications, however, but John Payne, campaign manager of Legal MO 2022, the campaign behind the successful initiative, suggested the state could begin accepting the applications next month.

Under the law, Missourians aged 21 or older can grow up to 18 plants, including six mature, six immature up to 14 inches, and six seedlings or clones shorter than 14 inches. Home-grow license fees are set at $100 for adult-use growers and $50 for medical cannabis home cultivators. Missouri NORML Attorney Dan Viets told 5 On Your Side that there are already about 20,000 Missourians growing for medical use.  

Star Buds Dispensary Owner Chris Chesley noted that the campaign organizers weighed the pros and cons of a registration process for home grows and decided registration would provide legal cover for growers. 

“We wanted to make sure that before police could get a warrant just for somebody growing cannabis, that they had to check that list. And if somebody is on that list, then the department is going to go knock on the door and say, ‘hey, can we see your grow operation and make sure that you’re doing this within regulation’ instead of potentially having a SWAT team come to your door.” — Chesley to 5 On Your Side 

Home-cultivated cannabis cannot be sold but growers can share up to three ounces with other adults. 

Adult-use sales are expected to commence in Missouri on February 6. Additional licensing, including microbusiness licenses, is expected to open in June and be awarded in 2024 and 2025. 

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Oregon Farmers Accuse Chalice Brands of Unpaid Bills

1/10/2023

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Four Oregon cannabis farmers are accusing Chalice Brands, a publicly traded Canadian cannabis company, of failing to pay for flower, pre-rolls, edibles, and other products placed in its Oregon dispensaries, Willamette Week reports. According to the growers and invoices shared with WW, the unpaid bills by Chalice add up to well over $100,000.

Marianne Cursetjee, the owner of Alibi Cannabis, told WW that Chalice owes her farm $5,350 for flower and pre-rolls it purchased in July. 

“Chalice is financing its business on the backs of small farmers. People are too afraid of saying things out loud because we have no power to collect anything outstanding. I really, truly feel that Chalice is a house of cards.” — Cursetjee to WW 

Chalice was founded in 2014 by William Simpson, who sold the company to Canadian-based and publicly traded cannabis company Golden Leaf in 2017. Lee served as the company’s CEO for a time. Chalice is headquartered in Toronto, Ontario but most of its operations are still run out of its Portland office, the report says. Chalice purchases products from more than 20 Oregon cannabis farms and product makers for its dispensaries. The company also owns some of its own brands and product lines. From 2019 to 2021, Chalice acquired a number of dispensaries, a California-based CBD makeup brand, and launched new product lines. 

A Medford-based manufacturer told WW that it is owed $48,000 from Chalice dating back to October 2021, while a Corvallis-based wholesaler and producer is owed about $70,000 dating back to March 2022, according to invoices outlined by WW. Vincent Deschamps, owner of 54 Green Acres, estimates he’s owed more than $50,000 by Chalice. In October, Bend-based producer Kush Originals sued Chalice over $51,330 in unpaid bills. Chalice never responded to the lawsuit and Kush requested a default judgment in the case. 

In a January 5 statement to WW, Chalice Brands Executive Board Liaison Faviola Bishop said that “Taking aim at anyone in the industry today doesn’t help small farmers, it can potentially hurt them.”

“The harsh reality is that 2022 was one of the most, if not THE most, challenging years the industry has ever faced. The challenge has been felt in all markets, with mature markets like Oregon feeling the greatest impact,” the statement says. “We are facing declining demand, oversupply, and over-penetration of stores. Oregon has more stores per capita than most markets. On top of all these challenges, Congress’s inability to pass the SAFE Banking Act, along with 280E, limits the industry’s access to capital and puts incredible financial pressure on all licensed cannabis businesses.”

The statement says the company is “in survival mode” and that industry operators “will only make it through this by working together.”

“We are completely committed to getting all of our partners paid what they are owed and feel their pain,” the statement says. “Chalice is also owed a great deal of money from our wholesale partners and understand firsthand the challenges all of us are facing.”

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Jones Soda Expands THC-Infused Mary Jones Products to Washington

1/10/2023

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Jones Soda Co. announced the expansion of its THC-infused Mary Jones beverages brand into Washington state, one of the nation’s oldest adult-use cannabis markets, according to a press release.

The products will officially launch in the Washington market in early 2023, the release said, featuring infused beverages and edible products made with both high- and low-THC contents. While Mary Jones has already sorted the brand’s flavors and product development processes, the brand will be partnering with licensed cannabis companies CompCanna Inc. and Dogtown Pioneers, Inc. to handle the product manufacturing and distribution processes.

Jones Soda Co. is a Seattle-based company but its Mary Jones-branded beverage infusions launched first in the California market last year.

“Our home state of Washington is one of the country’s most robust recreational marijuana markets with annual sales of roughly $1.5 in 2021 and a projected $2.5 billion in annual sales by 2025. Now that our Mary Jones business is off and running in California, bringing Mary Jones to Washington with a strong strategic partner like CompCanna makes perfect sense as we pursue our plans for international rollout in all recreational use markets.” — Jones Soda Co.’s President & CEO Mark Murray, via press release

Jones Soda’s Marketing Chief Bohb Blair told CNBC ahead of its launch last year that the beverages brand intends to be “the biggest national player” in terms of consumer-packaged cannabis goods carrying widespread recognition.

“If we crack it in California, we’re going to do gangbusters as we go through the Midwest and East,” he said.

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New Mexico Sets New Monthly Cannabis Sales Record With $43M in December

1/09/2023

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New Mexico’s adult-use cannabis sales reached yet another record in December with $28 million in sales, KOAT 7 reports. The total breaks the state’s previous $25 million sales record from October 2022. In all of 2022, combined medical and adult-use cannabis sales by the state’s 563 dispensaries topped $352 million. 

Trishelle Kirk, CEO of Everest Cannabis Co., said her company “doubled in size” last year, adding 100 jobs and opening five new stores. 

“We saw an enormous amount of expansion in the cannabis industry in 2022. Now, the industry is going to mature. We’re going to see prices come down as the market matures and expands. We’re going to see even more customers saying this is a good option for their families.” — Kirk to KOAT 7 

Medical cannabis sales in New Mexico reached $15.1 million in December, according to Cannabis Control Division (CCD) data outlined by the Albuquerque Journal – the highest total in four months and $1.1 million more than November’s totals.   

CCD Acting Director Andrew Vallejos told the Journal that he was unsure was caused the bump in cannabis sales in December and described the “robust” numbers as “kind of surprising.” 

“The sales (numbers) are interesting in and of themselves,” Vallejos told the Journal, “but what I’m encouraged by is the fact that it means a steady cash flow for (businesses) to stay open and to make a profit.” 

Albuquerque led the state in sales with $8.4 million in adult-use transactions and $6 million in medical sales. In December, medical cannabis patients spent on average $52.57 compared to $45.31 for adult-use customers. 

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Scottish National Investment Bank Invests £2M in Hemp Insulation Company

1/09/2023

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The Scottish National Investment Bank is investing £2 million ($2.4 million) in IndiNature Mill, which produces IndiTherm, a hemp-based insulation, after an initial £3 million ($3.6 million) investment in 2021, Insider reports. The 2021 investment unlocked another £800,000 ($971,248) in grant funding from Zero Waste Scotland’s Circular Economy Investment Fund and £250,000 ($303,515) from South of Scotland Enterprise.

Andy Clapp, executive director for investment portfolio management at the Scottish National Investment Bank, told Insider the firm has “seen IndiNature go from strength to strength” since its initial investment in the company and the firm is “delighted to continue to support them through this planned scale-up stage.” 

IndiNature chief executive and co-founder Scott Simpson said the company is “grateful to have an impact investor like the bank following on their original investment for this next stage of growth – an investor aligned with our mission to make positive impacts on scale for the climate and people’s health.”  

“More than ever we need to urgently insulate homes in the UK with appropriate materials – natural products like ours not only insulate, the materials they’re made from are also carbon negative. This investment is speeding up our ability to deliver healthy, low carbon products at high capacity to the market.” — Simpson to Insider 

IndiTherm, a flexible thermal insulation, is made using industrial hemp sourced from farms throughout the United Kingdom. The bio-based insulation is manufactured for retrofit, new and offsite construction. 

The company’s high-density thermal and acoustic IndiBoards and its full IndiBreathe system are set to be launched this year. 

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ASRA Pain Medicine: All Patients Should Be Screened for Cannabis Before Surgery

1/09/2023

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New guidelines released last week by the American Society of Regional Anesthesia and Pain Medicine (ASRA Pain Medicine) recommend that all patients should be screened for cannabis use prior to surgery as studies have shown that regular cannabis consumers often have more pain and nausea after surgery.

The guidelines are the first issued by ASRA Pain Medicine related to cannabis consumers and surgery. The guidelines recommend anesthesiologists screen all patients for cannabis consumption, including asking about the type of cannabis product consumed, the amount and how it was consumed or used, how recently it was consumed, and at what frequency.

In a press release, Samer Narouze, MD, PhD, ASRA Pain Medicine president, said prior to surgery “anesthesiologists should ask patients if they use cannabis – whether medicinally or recreationally – and be prepared to possibly change the anesthesia plan or delay the procedure in certain situations.”

“They also need to counsel patients about the possible risks and effects of cannabis. For example, even though some people use cannabis therapeutically to help relieve pain, studies have shown regular users may have more pain and nausea after surgery, not less, and may need more medications, including opioids, to manage the discomfort. We hope the guidelines will serve as roadmap to help better care for patients who use cannabis and need surgery.” — Narouze in a statement

The guidelines are based on a literature review and experiences from the organization’s “Perioperative Use of Cannabis and Cannabinoids Guidelines Committee,” which is comprised of 13 experts, including anesthesiologists, chronic pain physicians, and a patient advocate.

The organization also released an infographic to explain the methodology or recommendations for the management of perioperative patients who consume cannabis.

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2023 Cannabis Industry Predictions: Retail, Marketing, Branding, CPG, and Education

1/08/2023

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Between a host of new cannabis industry inventions, the first-ever federally approved cannabis reforms bill, and President Biden’s landmark step of pardoning all federal cannabis possession charges — and calling on governors around the U.S. to follow suit — 2022 was an important year for cannabis reforms and the growth of the cannabis industry.

But despite these exciting successes and developments, the industry is poised to have an even more incredible year in 2023. So we asked a wide group of cannabis experts, entrepreneurs, and other professionals to weigh in with their predictions for the industry next year. This is the first installment of our 2023 Cannabis Industry Predictions series: scroll down for the reactions and predictions we received from cannabis retail, marketing and branding, CPG, and education specialists.

And stay tuned for Parts 2, 3, and 4 coming later this month!

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Mark Kuhn, CEO of Oat Foundry LLC
“More states will legalize recreational use and it will become more and more important for dispensaries to differentiate with not only new and exciting products, but also beautiful and engaging experiences for their customers (Armed guards? Bars on windows? come on!). Similarly, we will see a wider adoption of terpene data by inventory management and POS systems – knowledge of terps will become mainstream and used by customers when they discuss their desired products. Finally – like in more mature industries – the observation and use of customer data to drive more profit for MSOs and vertically integrated dispensaries will be paramount.”
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Branding


Lilli Keinaenen, Packaging and Branding Designer at Changemaker Creative
“The marketplace is more fragmented than ever – so your product needs a strong, memorable brand message to stand out on crowded shelves and gain consumer loyalty. Personally I’d love it if 2023 is the year when conscious consumerism becomes mainstream in cannabis, and packaging goes sustainable… In consumer goods, sustainably marketed products are the fastest growing with terrific ROI – so maybe there’s room for optimism! Sustainable packaging trending in newly legal states like Vermont and New York, and reuse in Colorado gets me excited as a sustainable cannabis packaging + brand designer!”
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Patrick Toste, Creative Director for Highopes
“With the increase in traction of niche product categories (i.e. beverages, infused pre-rolls, and fast-acting gummies) we anticipate a strategic shift in brands being built around specific target consumer segments. Rather than employing a traditional “catch-all” approach, we’re finding that brands that understand and cater to the unique wants, needs, and desires of a focused audience are experiencing the most success. It’s all about knowing your customer better than they know themselves!”
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Consumer Packaged Goods (CPG)


Lulu Tsui, Co-founder and Chief Experience Officer at On The Revel
“As we are harvesting our first crop in New York, the sentiment is that our flower is going to be sub-par because it is grown outdoors. What’s currently popular in the unregulated market is high potency hype strains that come with the elaborate bag game. As consumers become exposed to different types of flower strains, products, brands, I think the narrative that high potency is the only indicator of quality cannabis will change.”
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Christine De La Rosa – CEO & Co-founder at The People’s Ecosystem
“In 2023, a prominent cannabis trend we’ll see is consumers more interested in how cannabis products, outside of flower, are made and produced. Consumers will be looking for organic, vegan, and all-natural made ingredients. Any cannabis company still using masking agents, chemicals, emulsions, and surfactants to create products is behind the times. All natural delivery systems using proteins to organically deliver cannabis to your system in clean and repeatable experiences is the next BIG thing. With the new technology coming out across the U.S., I predict edibles will have hockey stick growth in 2023.”
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Darnell Smith – CEO & Co-founder of Mxxn
“Despite wider economic headwinds, cannabis-infused beverages will continue its growth trajectory in 2023. There will be an increased focus on collaborations that help build the category, as well as building the infrastructure to allow for true scale. Beverage has such a unique opportunity to expand the reach of the plant and it’s exciting to see the overall quality of the category improve exponentially year over year.  As consumers and their consumption habits continue to evolve, the infused beverage segment is in a great position for long-term success.”
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Melanie Davis – COO at The People’s Ecosystem
“In 2023, a cannabis trend we are expecting to see is more BIPOC and women-owned brands edging out CPG’s subpar weed products. This will be the year BIPOC and women-owned brands begin dominating the shelve space and invite the masses into the cannabis culture we carry forward with our pure ancestral medicine.”
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Lex Corwin – Founder & CEO of Stone Road
“I think 2023 will be a pivotal year for cannabis. Not only are we expecting SAFE banking to pass in the next 12 months but federal rescheduling of cannabis will usher in the third wave of badly needed cannabis investment. This influx of fresh capital will allow brands that have proven themselves in their home market to expand out into new states. We will continue to see a wave of M&A activity as companies prepare for the eventual entry of the alcohol, tobacco, and pharmaceutical industries.”
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Daryn Medwid – Chief Revenue Officer of West Blvd Cannabis
“Legal cannabis in 2023 will lean into its future as a true CPG business. Leading companies are already digging into consumer insight data and creating innovations tailored to specific consumer occasions and need states. Those that continue to launch products without doing the consumer work are doomed to fail. Trying to achieve market share without a full understanding of the consumer lead to the insolvencies, M&A and predatory financing that we’ve experienced over the past year. Creating an innovation pipeline supported by consumer insights, tight overheads and the flexibility to adapt provide an opportunity for brands to sidestep the extinction event we’re experiencing now.”
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Imelda Walavalkar – CEO of Pure Beauty
“2023 will be a year of conservation and expansion. Finding efficient business practices, being financially conservative – don’t overspend, don’t overbuild. We all know times are tough, so making smart choices and being resourceful is essential. However, there are unprecedented opportunities for those with strong brands and quality products. For example, New York–for all its craziness–feels more meritocratic than many other states. Many legal states have become oligopolies, so the NY market could be game changing for those of us without heaps of VC cash to pay lobbyists to attain license-monopolies. Entering a state of such great cultural importance as well as being such a big market is an exciting prospect for those of us wanting to participate more in a more democratic way.”
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Education


Martine F. Pierre – Founder and President of Cannalution
“As the United States cannabis market continues to develop further and legalization spreads, we will see a new influx of inspiring entrepreneurs, people wanting to transition careers, and advocates emerge. So expect to see more Universities and Colleges creating programs to meet the explosive demand for a skilled workforce in the cannabis industry. I also believe that more people will be looking for alternative ways to learn more about getting started in cannabis without securing a degree or certification. On the advocacy side, all eyes are on NYS, watching to see if they will be one of the very few states to get social equity right.”
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Marketing


Kieryn Wang, Founder of ALMOSTCONSULTING
“With all that happened in 2022 and the consumer behavior shift that started at the beginning of the pandemic, transparency is going to be key in 2023. Transparency in processes, regulations, what people are putting in/on their bodies and who they’re giving their money to. Consumers want access to this information. They want to know they can trust the product and the company. Especially what happened with the tragedy at Trulieve, it’s more and more important for companies to be forthcoming in how they’re keeping their staff and their consumers and communities safe.”
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Victor Karpenko, CEO of MjSEOAgency
Organic search traffic will be even more valuable in the cannabis niche in most verticals, because so far it shows the highest return on investment in marketing. The competition will grow not only with marketplaces, but with local dispensaries and seed stores. All the problems will stay the same: not enough understanding in basic business processes, that slows down companies with growth. I think because of the niche perspective and predicted growth, even if the recession comes, we will see a lot of new players on the market next year.
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Nicholas Paschal – CEO of AlpineIQ
“There is more competition than ever before for retailers and brands. As we face recessionary pressure they will have to use data to speak to individuals, connect customers with the right products, and create a truly unique digital experience. Without having real time data to inform them, operators are left to create that strategy blindly.”
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Retail


Arshad Lasi – CEO of The Nirvana Group
“Cannabis retail stores will continue to adapt to a more educated and experienced consumer base, as cannabis is rapidly becoming ubiquitous and entering mainstream shopping and lifestyle experiences. In the coming year, I expect more distinct styles of dispensaries to open, attracting particular customer bases, rather than a one size fits all retail approach. Dispensaries will approach their shopping models in a similar fashion as grocery stores; for example, grocery stores and super markets may operate in the same region and offer the same categories of items, but they cater to different demographics, and shoppers expect to find different brands, product styles and price points within each store. Targeting different consumer demographics will be crucial, and branding will be key even in the retail sector.”
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Drayten Howell – Founder and CEO of indacut
“The market is and will continue to consolidate as our industry matures. Although there are many hopeful laws and bills that will assist operators – the main goal is too last to see the change. Operators including myself need to focus on value add, customer retention, and differentiation overall. In addition your operation must generate lasting cash flow. This will be the year when operators who break out of their comfort zone, run lean and mean, with the primary goal of turning profitable will excel. New markets are turning on, people are getting back out and wanting to experience new things. Having a physical experience in parallel with a seamless virtual experience will be key in attracting customers. The delivery component of retail operations can and will set you apart if done right. I’m hoping for a breakout year for everyone fighting the good fight. It’s not always fair, right, or rewarding but the pioneering by each individual in this industry is what is pushing us forward TOGETHER with hopes of real change.”
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Lauren Carpenter – Co-founder and CEO of Embarc
“There’s been focus on the potential of east coast markets, but with regulatory implementation in states like New York we’re seeing some of the same mistakes playing out again. This gives California operators significant strategic advantage – if you’re surviving here, you can survive anywhere. We need to remain heads down, finding strength and support in our community to continue delivering the best products and experiences in cannabis today. This also means pushing the boundaries of how we interact with the plant, including meaningfully integrating it in festivals and events as part of a broader effort to destigmatize at scale.”
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Ivan Suslov – COO of IndicaOnline
“As consumers are becoming more sophisticated in purchasing decisions, dispensaries will adapt by bringing more diverse product lines onto their shelves. We will see more innovation in the infused products which will gain bigger market share. Contactless purchases will be on the rise as well. Delivery, curbside and online purchases will become even more popular and dispensaries will have to cater to their customers in order to stay relevant.”
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Federal Survey Finds 52.5M Americans Used Cannabis in 2021

1/06/2023

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In its 2021 National Survey on Drug Use and Health (NSDUH), the federal Substance Abuse and Menal Health Services Administration (SAMHSA) found 52.5 million – or one in five – people aged 12 and older used cannabis over the past year, making it the most used substance considered an illicit drug by the U.S. government. 

The survey found 35.4% of individuals – or 11.8 million people – aged 18 to 25 used cannabis in 2021, along with 17.2% of those 26-and-older (37.9 million), and 10.5% of adolescents aged 12 to 17 (2.7 million).

Comparatively, 133.1 million people 12 and older consumed alcohol in 2021, with 45.1% considered binge drinkers (60 million). Individuals 18 to 25 reported the highest rate of binge drinking (29.2% or 9.8 million people), followed by individuals 26 or older (22.4% or 49.3 million people), then by those 12 to 17 years old. (3.8% or 995,000 people).    

In a statement, U.S. Department of Health and Human Services (HHS) Secretary Xavier Becerra said the survey’s findings “make clear” that “millions of Americans young and old faced mental health and substance use challenges – sometimes both at once – during the second year of the pandemic.” 

“As we work to improve behavioral health across the nation, HHS is committed to ensuring that all people facing mental health or substance use challenges are connected to appropriate services and supports.” — Becerra in a press release 

The survey found that 3.3% of individuals aged 12 or older in 2021, (or 9.2 million people) misused opioids (heroin or prescription pain relievers) in the past year and among those, 8.7 million people misused prescription pain relievers compared with 1.1 million people who used heroin. The numbers include 574,000 people who both misused prescription pain relievers and used heroin in the past year.

In a key piece of legislation passed last year, the American Rescue Plan, $3.8 billion was earmarked to address the nation’s mental health crisis and drug overdose epidemic, HHS said in the release. Another $800 million was earmarked through the Bipartisan Safer Communities Act for SAMHSA grant programs.     

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Vermont Physician Groups Urge Lawmakers to Maintain THC Potency Caps

1/06/2023

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Physicians’ organizations in Vermont are urging lawmakers to maintain the current THC limits on cannabis flower and concentrates as the state Cannabis Control Board (CCB) is considering dropping the caps. The groups include the Vermont Medical Society (VMS), the American Academy of Pediatrics Vermont Chapter (AAPVT), the Vermont Psychiatric Association (VPA), and the Vermont Academy of Family Physicians (VTAFP). 

In a press release, the organizations said they were “successful in defeating a similar proposal” to raise or eliminate the caps last session as lawmakers voted to retain the 30% THC cap on flower and the 60% THC cap on concentrates.   

“Our organizations believe it is premature to reopen this debate when Vermont’s cannabis sales just came online, initial revenue estimates appear to be meeting their targets, and states like CO and WA are currently seeking stronger regulation of solid concentrates because of the negative health impacts on their users.” — VMS, AAPVT, VPA, VTAFP in a statement 

The organizations cite a CCB report submitted to the Legislature this week that claims cannabis and cannabis products with THC concentrations greater than 15% “are more likely to produce psychosis, suicidality, anxiety, and uncontrollable vomiting.”   

In a statement, Ryan Sexton, M.D., an emergency medicine physician and president of the VMS, said “Vermonters already have a very low perception of harm from the use of cannabis” and the state “has the opportunity to benefit from information coming out of other states and to build a safer cannabis market.”     

Adult-use cannabis sales commenced in the Green Mountain State last October. 

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Minnesota Democrats Pushing for Cannabis Legalization After Taking Control of Legislature

1/06/2023

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After gaining majorities in both chambers of the legislature during the midterm elections, Minnesota Democrats are planning to legalize cannabis for adult use during this year’s legislative session, CBS News Minnesota reports. Rep. Zack Stephenson (DFL), the author of a bill to implement the reforms, told CBS News he believes 2023 is the year the reforms will be enacted after Republicans had blocked legalization efforts for at least two years.

“Cannabis should not be illegal in Minnesota. Minnesotans deserve the freedom and respect to make responsible decisions about cannabis themselves. Our current laws are doing more harm than good.” — Stephenson via CBS News

Stephenson’s proposal would legalize cannabis sales to adults 21 and older and allows for the expungement of low-level cannabis convictions. The measure was introduced on Thursday and referred to the House Commerce, Finance, and Policy Committee.

Last summer, lawmakers passed a bill legalizing low-dose cannabis edibles up to 5 milligrams of THC, although GOP lawmakers may have voted for the measure without understanding the bill’s full scope. A MinnPost/Embold Research poll released in October found 60% of Minnesotans supported the reforms. Stephenson’s proposal includes language to implement licensing requirements and additional taxes on the now-legal edibles.

On Thursday, Gov. Tim Walz (DFL) said on Twitter that he is “ready” to sign a cannabis legalization bill into law.

“It’s time to legalize adult-use cannabis,” he wrote, “and expunge cannabis convictions in Minnesota.”

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USDA Awards Nearly $5 Million to Tennessee Hemp Project

1/05/2023

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The U.S. Department of Agriculture (USDA) has awarded nearly $5 million in grant money to a partnership between Tennessee State University (TSU), the Hemp Alliance of Tennessee, the University of Tennessee (UT), and the Tennessee Department of Agriculture for hemp-focused projects, the Rogersville Review reports.

The project aims to develop new markets for the Tennessee hemp industry.

Dubbed the “Climate-Smart Fiber Hemp: A Versatile Thread Connecting the Nation’s Underserved Farmers, Climate Change Mitigation and Novel Market Opportunities,” the project hopes to expand the production of industrial hemp as a climate-smart commodity, evaluate its greenhouse gas benefits, and promote the value of market development to a cross-section of production agriculture, including small, medium, and underserved producers across the state.

The cohort is planning special efforts to identify and recruit underserved producers, including minorities, women, veterans, and farmers from the nine most economically distressed counties in the state along with those in the 30 counties most at risk for becoming economically distressed.

Frederick Cawthon, President of the Hemp Alliance of Tennessee, told the Review that the state “can become the leading producer of hemp in the Southeast United States.”

“We are committed to growing this industry responsibly, and we encourage all industries to examine how they can utilize this climate-smart and regenerative raw material.” — Cawthorn to the Review

Agriculture Commissioner Charlie Hatcher, D.V.M. added that state officials are “eager to increase support of new and existing hemp producers through this USDA grant award.”

The project was one of 71 projects selected as part of the second Partnerships for Climate-Smart Commodities funding pool, and one of just five hemp-related projects to receive funding as part of the program. In all, the funding ceiling for the project is $4,972,800.

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