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Illinois Reaches New Adult-Use Cannabis Sales Record

1/06/2022

Adult-use cannabis sales in Illinois reached a new record last month at nearly $138 million — a 14% increase from November 2021, according to the Department of Financial and Professional Regulation outlined by the Chicago Tribune. The previous record was $128 million set last July, which analysts say was bolstered by the Lollapalooza music festival.

For the year, sales in the Land of Lincoln topped $1.38 billion — more than doubling totals from 2020, the first year of adult-use cannabis sales in the state. In 2021, the state’s 110 dispensaries sold more than 30 million cannabis products and nearly a third of Illinois’ cannabis sales were generated by out-of-state residents, the report says.

The state has not reported medical cannabis sales for December, but through 11 months of 2021, the sector had generated $362 million.

In 2020, combined medical and adult-use sales in Illinois totaled $1.03 billion, including $669 in adult-use sales and $366 in medical cannabis sales, the report says.

Last month, Gov. JB Pritzker (D) announced the state would inject $45 million from cannabis-derived taxes into Restore, Reinvest, and Renew (R3) grants, which are earmarked for communities most impacted by the war on drugs. The program is funded using 25% of adult-use cannabis tax revenues. In July, the state appropriated $31 million in funds collected from the state’s cannabis tax for the program.

Last summer, Illinois held three lotteries and awarded 185 new licenses with a social equity focus; however, a Cook County lawsuit challenging that process has delayed the rollout of the licensing round.

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Connecticut Approves Cannabis Social Equity Rules in Time to Accept Industry License Applications

1/06/2022

The Connecticut Department of Consumer Protection has approved the state’s social equity rules for the cannabis industry and the agency is set to begin accepting many industry license applications next month, the Hartford Courant reports. The Social Equity Council approved a workforce development plan, proof of residency, income requirements, ownership control, and other equity-focused rules and regulations.

Ginne-Rae Clay, interim executive director of the council, called the approvals “a huge deal.”

The 56 first-round licenses will be evenly split among social equity and general licenses and are available for retailers, micro-cultivators, delivery services, food and beverage businesses, manufacturers, and transporters, the report says. Social equity license hopefuls will have a one-time 90-day application period beginning on February 3 and ending on May 4.

Under the plan, social equity applicants are defined as a business seeking a cannabis license that’s at least 65% owned and controlled by an individual or individuals who had an average household income of less than 300% of the state median household income, which was about $74,000 in 2021, over three years.

The Department of Consumer Protection will schedule several lotteries for the remaining licenses and expects a second licensing round in the second half of the year. Applicants selected for the social equity licenses are subject to review by the Social Equity Council.

In November, workforce and economic development organizations the Connecticut Community Outreach Revitalization Program (ConnCORP) and The WorkPlace announced the creation of the Alliance for Cannabis Equity (ACE), which will focus on social equity and the economic opportunities for Black and Brown entrepreneurs and minority workers throughout the state’s cannabis industry.

State lawmakers approved the reforms last year and parts of the law, including possession by adults, took effect on July 1, 2021. Officials had expected retail sales would begin sometime this year; however, in September, Commissioner for the Department of Consumer Protection Michelle Seagull has indicated the rollout could be delayed.

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Massachusetts Cannabis at Lowest Average Price Per Ounce Since Pandemic Lockdown

1/06/2022

The average price per ounce of cannabis in Massachusetts last month was $340.62 — the lowest it’s been since the start of adult-use sales in the state — excepting the first two months of the pandemic, the Worcester Business Journal reports. The price has consistently fallen since July when the average ounce price was $371, according to Cannabis Control Commission (CCC) data outlined by the Journal.

When adult-use sales first launched in Massachusetts in November 2018, the average cost per ounce was $390.81. The price reached its all-time high at $405 an ounce in February 2019, the report says. The lowest the price per ounce has ever been in Massachusetts was $299.08 in April 2020, and the price spiked the following month to $320.30.

The Bay State had sold $2.3 billion worth of cannabis in the first three years of the program, according to CCC data from November 2021.

Commission Chairman Steven Hoffman called the sales figures “pretty phenomenal.”

The state has 945 licensed cannabis businesses, including 176 open retailers, 62 operating cultivators, and 55 operational processors, according to CCC data. The adult-use sector employs more than 17,000 employees, while the medical cannabis industry employs about 8,800.

A recent the University of Massachusetts-Amherst and WCVB poll published in November found the reforms remain popular by Massachusetts residents, with 61% expressing a favorable view of legalization with 37% reporting a “very positive” view along with 24% who had a “somewhat positive” view.

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LOWD: Driving Demand with Premium Cannabis Flower

1/05/2022

LOWD is a Portland, Oregon-based cultivator of premium cannabis products. Established in 2019, the company was founded with a mission of bringing only the highest-quality cannabis products to consumers.

Founder Jesce Horton got his start growing cannabis the old-fashioned way: with a small-scale medical cannabis grow based out of his own basement. Before becoming a professional cannabis grower and company leader, Horton held a corporate engineering job in Munich, Germany. That position followed him through a move to Portland in 2011 but within a year after moving to Oregon, Horton had left his corporate position and found his true calling as a cannabis entrepreneur. When his first commercial cannabis operation was uprooted by a change in local regulations that banned cannabis businesses, LOWD — which stands for Love Our Weed Daily — moved to its current location: a renovated warehouse facility in Northeast Portland.

Between the company’s premium cannabis offerings and a driving emphasis on positive culture and sustainability, the LOWD brand today faithfully represents Portland’s unique juxtaposition of urban culture — the growing city continues to attract more people, typically young and loudly progressive, each year — and the Pacific Northwest’s natural beauty, which encompasses impressive mountains, rivers, rainforests, and more.

LOWD Founder Jesce Horton poses between rows of cannabis plants in the company’s Portland facility. *Photo credit: Sam Gehrke*

Coming from an engineering background, Horton has worked closely with his team and outside professionals to maximize efficiency in the LOWD cultivation facility’s energy, heat, and water systems. LOWD demonstrates that effort to reduce the waste and overall environmental impact of its facility through a number of power-saving and efficiency-driving business decisions.

In terms of lighting: LOWD’s vertically integrated expansion facility will be primarily LED lighting but in the meantime, LOWD utilizes a mixed-spectrum lighting system with traditional double-ended lighting for 70-80% of the day and a plasma light for the remaining 20-30%.

And in terms of water, the team has put in significant effort to minimize their water use. LOWD’s plants are grown in smaller pots than those used by many other cultivators, which reduces water requirements and runoff. Additionally, the facility actually uses a custom-built system to reroute the condensation that builds up in its dehumidifying, HVAC, and AC systems into a filtration system that recycles the condensation as water for the plants. According to Horton, the system can provide “sometimes as high as 50% … and typically at least 20-30%” of the facility’s daily water usage.

Another strategy that LOWD uses to maximize efficiency — both in terms of heat and in facility cleanliness — is the use of fabric ventilation ducts: “Fabric ducting helps make our cooling a little more uniform, and helps us reduce the amount of fans needed to mix up that air and make sure there aren’t any heating or cooling pockets,” Horton said during an on-site interview.

“It also helps with cleanliness,” he said, because the ducts can be brought down and washed regularly to prevent any buildup of spores or powdery mildew, “which are often found in metal ducting or HVAC.”

These fabric ventilation ducts improve the LOWD facility’s heating efficiency and also make it easier to handle duct cleaning and other maintenance tasks.

LOWD’s work to streamline the cannabis production process also goes beyond its energy, heat, and water considerations: the company’s trimmers are provided ergonomic workstations designed by Horton and LOWD’s Post Production Director Sarah Morse, which can be raised or lowered at the workers’ whim and not only make trimming easier but also maintain worker safety, as the trimming process can carry a serious risk for carpal tunnel syndrome.

The head-turning quality of LOWD cannabis has earned the company a dedicated following in Portland. The company embraces its tagline, “Smoke like a grower,” with SLAG — a highly coveted line of flower products that are hand-selected by the company’s admins and head growers. These top-tier buds are stick-trimmed to perfection so that by the time they are touched by a human hand for the first time, it’s the consumer themself. LOWD’s SLAG product line is so well-known throughout Portland for its quality that each order — packaged in one ounce, half-ounce, and quarter-ounce collectible, ultraviolet, resistant glass jars — is often already claimed and waitlisted by the time it enters the curing process.

A Dope Cup trophy is on display in LOWD’s curing room. Several nearby jars of SLAG have been reserved with sticky note labels.

When it comes to hiring and expanding the company, Horton said he prioritizes people who faithfully represent cannabis culture because it’s important for both the industry and society in general to recognize that traditional cannabis culture, or “stoner culture,” is not taboo and should be considered an important part of the movement. Horton said the other considerations for building LOWD’s team are an emphasis on personal accountability — “People who come in understanding the opportunity that we have here in the industry,” — and people who will bring passion for their work on a daily basis.

LOWD Head Grower Greg Billingsly inspecting plants in the cultivation facility.

The successful team building at LOWD speaks for itself through both the quality of their products and the company’s genuinely pleasant, and professional, workforce. Horton did not hesitate to express his extreme satisfaction: “We’ve got literally what I believe — this is not hyperbole at all: I know some of the best teams, I know some of the best people out there in cannabis — we have the best team in cannabis, period, when you look at all of our crew,” he said.

While LOWD’s reputation and popularity continues to grow, Horton is already eyeing huge expansions for the brand including plans for a new, vertically-integrated facility in North Portland. The new compound would contain a cultivation facility, retail location, and (assuming that state and local laws will eventually permit it) a cannabis lounge for public consumption.

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Report: US Cannabis Industry Has $45.8B Potential by 2025

1/05/2022

Headset, a cannabis industry data and analytics firm, is forecasting the U.S. industry has the potential to reach $45.8 billion by 2025 with compound annual growth rates between 2% and 8% annually.

The firm estimates in its “Cannabis sales projections for US markets in 2025” report that by 2025, Florida will be the nation’s second-largest market — behind California — with $3.2 billion in total sales. The report estimates that New York, where adult-use licenses are expected next year, will be the third-largest market by 2025 with $2.8 billion in sales.

The firm suggests that newly-legal states New Jersey and Virginia — which will have similar populations of individuals 21-and-older by 2025 — will produce $1.6 billion and $1.3 billion, respectively, in sales. Neither state has issued adult-use licenses having only passed the reforms last year.

Cy Scott, CEO and co-founder of Headset, said that “within the last decade, opportunities for growth and development within the market have accelerated after Colorado, Washington, and several other states legalized adult-use cannabis.”

“Despite the country’s piecemeal approach to legalization, individual states have created optimal conditions for improved scalability and sophisticated operations across distinct markets. With record levels of public and regulatory support for the regulated cannabis industry, the value of the domestic market will increase significantly over the next three years.” — Scott in a statement

The company also pinpoints Ohio as an emerging market, predicting sales of $1.6 billion by 2025; however, legalization efforts have recently stalled as the campaign did not submit enough signatures to force lawmakers to act on the reforms this session.

The Headset report notes that the Buckeye State’s medical cannabis market “is steadily growing with potential to reach half a billion in sales by the end of 2021 despite being a limited license market.”

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Montana Sells $1.5M of Cannabis During Program’s Opening Weekend

1/05/2022

Montana, the latest state to launch its adult-use cannabis program, saw more than $1.5 million worth of cannabis sales during the program’s first two days, KTVH reports.

Dispensaries officially opened to anyone 21 or older last Saturday, January 1, and combined cannabis sales from the state’s approximately 380 dispensaries reached $1,566,980 over the weekend, according to Montana Department of Revenue numbers outlined in the report.

NORML Deputy Director Paul Armentano lauded the market launch in a press release:

“Adults in Montana voted to regulate the retail marijuana marketplace so that these transactions can be above-ground and transparent, and so that consumers can have access to lab-tested, quality-controlled products. Such a system is certainly preferable to the status quo of marijuana prohibition, which is why no state to enact legalization has ever moved to repeal these policies.” — Armentano, in a statement

Montana voters approved the state’s cannabis legalization plan in November 2020. Voters had approved two initiatives at the time: one to legalize the possession, use, and home cultivation of cannabis — which took effect one year ago on January 1, 2020 — and the other to legalize the state’s adult-use cannabis marketplace exactly one year later.

Under state law, public cannabis use remains punishable by a civil fine. Customers can purchase up to one ounce of cannabis at a time from dispensaries, or the THC equivalent via other products including up to 800 milligrams of edibles or eight grams of concentrate. Cannabis sales are subject to a 20 percent tax.

18 states plus the District of Columbia now allow for the adult use and possession of cannabis products.

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Virginia Governor-Elect Calls ‘Forced Unionization’ in Cannabis Bill ‘Nonstarter’

1/05/2022

In an interview last week with Virginia Business, Republican Governor-elect Glenn Youngkin said he “will not seek to overturn” the Legislature-approved law on personal cannabis possession but that there “is a lot of work to be done” on retail sales.

The governor added that while he is “not against” the reforms — which were approved by lawmakers last February and signed into law by outgoing Gov. Ralph Northam (D) in March — there are some “nonstarters” in the bill, including “forced unionization.”

“There have been concerns expressed by law enforcement in how the gap in the laws can actually be enforced. Finally, there’s a real need to make sure that we aren’t promoting an anti-competitive industry. I do understand that there are preferences to make sure that all participants in the industry are qualified to do the industry well.” — Youngin to Virginia Business

Youngin indicated support for social equity provisions in the law — which apply to minority communities most impacted by the war on drugs and women- and veteran-owned businesses — and that the state’s cannabis industry rules and regulations needed to make sure “they have the capabilities to compete and thrive in the industry.”

“So, I think there’s work to be done,” he said in the interview. “All of that will be on the table. Again, I don’t look to overturn the bill, but I think we need to make sure that it works.”

With the passage of the law last year, Virginia became the first Southern state to approve broad cannabis legalization. Youngkin has previously expressed doubt regarding the revenues derived from cannabis legalization in states where the reforms have been enacted and described it as “another problem” that would be “dumped at [his] feet.”

“And the reality is, if I had a group of kids here that were asking me about marijuana use, I would tell them don’t use it,” he said in a CNBC interview last May. “The reality is that the industry that everyone used as the rationale for legalizing it, has not performed in other states. They’ve already predicated a bunch of spending on it and the reality is I’m going to have to deal with this when I’m governor.”

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Ohio Advocates Fall Short of Signatures Required to Force Cannabis Legalization Vote

1/05/2022

Ohio adult-use cannabis advocates have fallen short of the number of signatures required to force lawmakers to consider legalization legislation this session, the Associated Press reports. Ohio Attorney General Frank LaRose told the Coalition to Legalize Marijuana Like Alcohol that they were 13,062 valid signatures short of the 133,000-signature benchmark required to force lawmakers to act.

Despite the setback, group spokesperson Tom Haren said they will be able to collect the thousands of signatures needed before a January 14 hard deadline. If successful, the effort could still force lawmakers to take up adult-use legislation this session and if the legislature failed to pass a bill in four months, the group could collect an additional 133,000 signatures to put the issue to voters during the 2022 midterm election.

The petition seeks to legalize the possession of up to 2.5 ounces of flower and allow six plants per adult or 12 per household. Rep. Jamie Callender (R) introduced a bill last month to implement the reforms with a 10% cannabis tax. That rate is included in the group’s petition but Callender admitted his Republican colleagues do not support the bill, the report says.

While other Midwest states such as Michigan and Illinois have passed adult-use cannabis reforms, Ohio has struggled to legalize cannabis. Voters there rejected an initiative to legalize both medical and adult-use cannabis in 2015 due to concerns about an industry monopoly.

Medical cannabis did eventually become legal in Ohio; however, the rollout has been slow and patients have long complained of high prices and lack of product. Only recently have Ohio regulators started seriously addressing things like expanding patient daily allowances and product supply.

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London Mayor Considering Cannabis Decriminalization Program Focused on Youths

1/05/2022

London, England Mayor Sadiq Khan is developing a plan to decriminalize cannabis possession for young people in the city, the Guardian reports. The plan is based on a model from Thames Valley police which offers classes or counseling, rather than arrest, for individuals under 25-years-old who are caught with small quantities of cannabis.

The mayor does not have the power to decriminalize any outlawed substances but the pilot program could be enacted if it receives approval from the mayor’s office for policing and crime, the report says.

A spokesman for Khan described the planned trial as “limited,” “still in development,” and “yet to be approved by City Hall.” The plan would involve three of London’s 32 boroughs and only apply to individuals aged 18-24.

“The idea of the scheme, which is already used by other police forces across the country, would be to divert young people who are found with a small amount of cannabis away from the criminal justice system and instead provide help and support. This has been shown to reduce reoffending. … Reducing crime is the mayor’s top priority and he will continue to explore and implement the most effective solutions to help to divert young people away from drug use and crime for good.” — A spokesman for Khan to the Guardian

The plan, broadly, is opposed by Labor Party Leader Keir Starmer and Prime Minister Boris Johnson.

“We have absolutely no intention of decriminalizing dangerous and harmful substances for recreational use,” a spokesman for Johnson told the Guardian. “Decriminalization would leave organized criminals in control while risking an increase in drug use, which drives crime and violence which blights our streets.”

Starmer said he would “look at” the proposal but that he was “not in favor” of changing the nation’s drug laws “or decriminalization.”

The mayor will receive recommendations from a commission on the proposal for City Hall, the government, the police, the criminal justice system, the National Health Service, and treatment services.

According to the Guardian, about 41,900 people across England and Wales were charged with drug-related offenses last year.

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Perfect Blends Pre-Rolls and Infused Flower Review

1/04/2022

Perfect Blends is a cannabis company that takes the science gathered from medical cannabis patients and applies it to consumer packaged goods. The initial idea for the brand came from Co-Founder and CEO Dean Hollander, who wanted to build three intentional flavors: Happy Camper, Pick Me Up, and Nightcap. The formulations are built by Co-Founder and Chief Product Officer Michael Backes, writer of Cannabis Pharmacy: The Practical Guide to Medical Marijuana. Happy Camper is meant to be “giggle weed” according to Backes, Pick Me Up can bring focus and drive, and Nightcap is intended to calm an active mind. Most recently Perfect released Sexpot, which is formulated to encourage intimacy.

The blends are made with chopped, terpene-rich flower with added concentrates that are intended to replenish the terpenes lost in the chopping process. Many pre-rolls are made with cannabis that’s been milled, which is efficient but releases many of the monoterpenes — Perfect Blends uses a chopping process that is more culinary and is being perfected in-house. Extracts are pulled from fresh cuts of the same plants that are being chopped and then added back to the chopped flower. This allows the brand to match each product batch to the panel-tested, pharmacologically-driven formulations.

Each flavor can be enjoyed in a couple of ways. The Mini Pre-Rolls packed a delightful little punch, and the size was perfect for one person. Each contained .33g and they’re sold in three-packs to make a total of 1g. The Minis are formed like a familiar pre-roll, but the PERFECTO changes the game. The Perfecto features a filter on both ends and allows you to cut the perfect size for your sesh, with two filters it’s also an amazing way to still share a joint with friends in a new pandemic-conscious landscape. It can also be cut to the length of your liking, so each session is just as long as you need.

The last product category is infused flower which is a 3-gram jar of freshly chopped flower. Both prerolls are novel, but the infused flower products really show the quality of the mix despite not featuring full nugs. I tried the Nightcap and Sexpot freshly chopped, to me the aroma of both was fresh and herbaceous with an essence of mint. When you pop off the child-safe wooden top of the jar the deep forest green color hits your sights at the same time as the terpene-heavy aroma. The Nightcap and Sexpot had similar effects for me, but not identical. The Nightcap took the edge off of my day, allowing me to settle down and relax. Sexpot was also relaxing but accompanied by a pleasant humming body high. The flower comes with a micro-pipe which is a metal one-hitter that will hold 75 mg of Perfect chopped flower. When I sampled these products I didn’t hit the one-hitter but I did use it to pack bowls in a way that actually measured my dosage. It is a useful tool for someone looking to dial in their consumption by inhalation, especially for those using cannabis medically.

The Perfect Blends product line could be enjoyed by anyone, but it is really ideal for the consumer that wants to get the same thing every single time they buy cannabis. Formulations are matched to specs and tested multiple times throughout the process to provide consumers with a cannabis product that can actually promise continuity. Medical patients who find that one of these formulations works for them will be ecstatic to pick up the same thing every time without the quality or effectiveness of the flower changing. Currently, a patient can pick up every pre-packaged eighth of OG Kush, and then when the new crop comes they could be facing an entirely different experience. With that in mind, I believe that Perfect Blends is a wave of the future.

Editor’s note: This piece was updated to include Perfect’s latest formulation, Sexpot.

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Cannabis Industry Leaders Predict 2022 Trends

1/04/2022

Since we just entered a new calendar year, I asked some industry leaders who I trust to move the space forward in a people-focused direction for their insights.

Their answers and shared wisdom are compiled below:

Retail

The People’s Ecosystem // Christine De La Rosa Co-Founder & CEO “If California and Oregon are any indications of the future of retail where mass mob robberies are happening with very little intervention or protection from the state I would say that 2022 is going to see an incredible increase in delivery. It is more practical for small operators to implement delivery rather than face the risk to their safety, their employees’ safety, and their business safety in the current climate. And, based on the actions we’ve seen from law enforcement it does not appear that this type of danger to operators and their business will change anytime soon.”

Indacut // Drayten Howell CEO “I feel like this year will be a year of hope and change for all retailers and operators across the supply chain. With the current nature of the California market change must come! Operators are facing over-regulation, risk of robberies, limited banking options, and limited payment options! Everyone’s been fighting a good fight and we’re gearing up for the biggest round! The best is yet to come – brands and companies are rolling out innovative products, tech, and broadening offerings to consumers. This will be the year to make products more affordable, and easily accessible to consumers across the state. Delivery will play a big role in the way people shop this upcoming year and the trends show it. I believe operators will roll out delivery in some capacity to acclimate to the market!”

Cova // Gary Cohen CEO “We’re seeing a move by dispensaries toward their own eCommerce sites to manage their online presence and orders. This has been fueled by two things: a heightened importance of the web in driving business during COVID restrictions, and the need for a unique site experience that reinforces brand identity and leverages SEO to gain more eyeballs and click-through.”

Cultivation

Dr. Greenthumb & Insane Brands // B-Real “You know, I’m sure there are going to be plenty of new cool products coming out, our culture is just so creative. The one thing that I do see coming, that maybe other people may not see, or that may catch some people off guard, is the return of OG Kush in a big way. The exotics are awesome, the colors and flavors, they are for sure here to stay, but I mean, that bright green weed, that famous kush balanced high, it’s just classic. I’ve seen the pendulum swing so far the other way I just think it’s gonna come back to OG Kush a bit. I think 2022 will be the year, I mean, it’s OG Kush, it’s a living legend.”

Wonderbrett // Brett Feldman Founder “If on paper your investor is telling you to grow a huge amount of cannabis every month, don’t do it. That’s what is forcing brands out of business. You need to go slow with your grow. Make moves that are well thought through. Don’t obligate yourself to high overheads, to a point where it’s a 50/50 chance for you to win. Go in thinking, ‘We can’t afford to get hurt. I can make this product, sell it, and not get hurt by it.’ If you can’t do that, then you’re destined to have it fall apart. Just do what you can and don’t over-obligate.”

Product Formulation

Medically Correct // Rick Scarpello Co-Founder & CEO “Though we operate in a matured legalized state, we can’t assume the majority are frequent consumers. Since 2018, Colorado alone has gained more than 300,000 new users and counting. Companies that solve problems and create diverse brands are those that will succeed in 2022 and beyond. Serve the medical patients and connoisseurs; but also those looking for a nuanced experience. Terpene formulations, novel cannabinoids, and lifestyle-oriented products are sure to be one of the manufacturing sector’s top trends this year.”

Testing

Trichome Analytical // Kristin Goedde Founder & COO “Standardization is coming! In 2021, there was significant movement from standards organizations on certifying analytical methods for use on cannabis, including several microbiological food testing methods extended to cannabis by the AOAC, one of the world’s leading public health and food safety standards organizations. Spurred by increasing state regulatory pressure for the use of standardized test methods, we can expect to see more and more analytical methods submitted for AOAC certification in 2022.”

SC Labs // Jeff Gray CEO & Co-Founder “I see a lot of change in the regulation of hemp and hemp products in the coming year. While I don’t expect to see any progress at the federal level, I do see the need for parity between cannabis and hemp markets at the state level driving more equitable regulation including and especially testing requirements on parity with cannabis and tax treatment, especially true in California.”

Extraction

Heylo // Lo Friesen CEO “Since mid-2019 cannabis companies in mature markets have faced an exceptionally challenging landscape that has brought an end to a number of high-quality craft growers and processors. As we settle into a new “normal” for the industry, I’m excited by the energy surrounding minor cannabinoids and non-traditional experiences with cannabis. We were shocked by the performance of “The New Workout Plan” in 2021, and hope it sets the stage for additional successes for minor cannabinoid products in 2022. What some call a trend isn’t going away – when people try products with higher concentrations of minor cannabinoids they’re opening a door to a new relationship with cannabis.”

Pure Pressure // Ben Britton CEO & Head of Product Development “2022 will be a pivotal year for solventless extraction as it continues to scale and prove its viability as a commercial extraction solution. Additionally, a sweep of market consolidation should improve the customer experience by seeing complete packaged solutions and training services.”

Tech & Software

Meadow // David Hua Co-Founder “2022 will be the year cannabis delivery really levels up. In 2021, 60% of retail cannabis transactions were delivered, up from 50% in 2020. We foresee this trend accelerating as delivery times, offerings, and overall experience improve for customers, and retailers utilize technology that allows them to expand territory, grow their customer base, and boost sales and margins. Delivery will also be key in competing against the unlicensed market and allowing retailers to reach customers in areas without brick-and-mortar dispensaries.”

Aroya by METER Group // Scott Campbell President & CEO “2022 will be the first year that cultivation productivity increases faster than market growth in unlimited license states. This means that producers who can continually improve cultivation operations will take market share from laggards, especially if wholesale prices drop. The best CFOs and owners will partner with VPs of Cultivation to drive down production costs by increasing yield.”

Node Software // Kevan Mackie CEO “A new trend will be cannabis software platforms prioritizing hardware integrations. Here at Node, we’re integrating our batch tracking software with environmental sensors and machine API’s. Integrations such as these help operators identify environmental fluctuations and understand their impact on the finished product. While this is something that seems elementary, it’s not very common. Imagine what could be accomplished in the future when it is!”

Marketing

Almost Consulting // Kieryn Wang Founder “With all the restrictions, barriers, and lack of control around social media marketing in the cannabis industry, many cannabis companies are realizing that email marketing is the direction of the future for connecting with consumers. Email newsletters allow for more flexibility around communication and, unlike social media, are more guaranteed to be viewed by audience members by landing in each inbox rather than being subjected to the whims of the “algorithms.” Build your email list and get started!”

Studio Linear // Andrea Beaulieu Founder & Creative Director “Looking back at 2021, we saw a shift in cannabis branding and more importantly, who was behind the brands – women and not only white women but women of color. Prior to 2021, there was a small trickle of women emerging in the cannabis space, an industry dominated primarily by men and white men to be more specific. What we saw last year and what we are predicting for 2022 is a real shift in who is BEHIND these new businesses and the message they are delivering. With this much welcome diversity, we are naturally seeing a shift in marketing as it is geared to like-minded female consumers. We are seeing more brands embrace this and showcasing branding, package design, social strategy based on gaining these women as customers.”

Public Relations

Gallery PR // Sonia Hendrix Founder “In 2022, I expect more advanced media reporting and investigative pieces about new minor cannabinoids, increased competition amongst brands in the press for coverage opps, more celebrities and fashion designers getting into the space for the first time, new technology and design innovations that will enhance the dispensary experience and subsequently prominent luxury media coverage, and I also hope to see more news coverage about the very serious threat corporate MSO lobbyists are creating for small operators in the legislative pipeline.”

Events

Black CannaConference & Expo // Kristi Price Founder “2022 is going to be about face time. Navigating Covid has proven to actually be possible in the live event space. It takes a few extra considerations when hosting in-person events but there is truly no better way to bring cannabis communities together. I predict that the organizers that have figured out how to move through the ambiguity of Covid protocols will win big next year.”

Emerald Cup // Tim Blake Founder “With cannabis events being greatly affected by the pandemic over the past two years, 2022 will be the year cannabis is integrated into mainstream events as was imagined when prop 64 was enacted. Small farmers and product makers, as well as large brands, need direct access to consumers. It’s time for the cities, counties, and the state to encourage and permit as many cannabis events as possible. Whether it’s the Emerald Cup or a local farmers market, cannabis events are the key to providing direct access to consumers.”

Hiring & Employment

THC Staffing // Danielle Schumacher Founder “In 2022, licensed cannabis companies will be held accountable for broken promises about diversity hiring and social impact work. Job seekers and equity advocates have been continuously raising awareness of what a diverse and inclusive industry should look like. As system-impacted people and organizations build knowledge and momentum, companies can no longer justify superficial marketing campaigns and misguided “social equity” initiatives. If companies truly want to implement fair chance hiring – intentionally recruiting and retaining people who have been most impacted by drug prohibition – they need to commit to systemic change and invest in real solutions.”

Viridian Staffing // Kara Bradford CEO “Due to a tight labor market and what many are calling ‘The Great Resignation’ or ‘Reshuffling,’ we fully expect that cannabis companies will need to continue leaning on specialty staffing firms, like ours, in order to help secure the talent they need to operate. For companies to avoid production stops or slowdowns, many will likely need to either increase wages, improve working conditions and/or company culture in order to attract talent, and avoid attrition to competitors or other industries.”

FlowerHire // David Belsky CEO “The cannabis sector has been one of the few bright spots in light industrial and retail job growth across the country, and since the majority of the US markets have yet to reach maturity, we’ll continue to see explosive job growth as organizations scale up to meet demand. Vertically-integrated organizations have the unparalleled ability to create a diversity of job types no other industry can, bringing hundreds of jobs at a time to regions left behind by globalization.”

Data

Mainstem // Alen Nguyen Co-founder & CEO “The pandemic has permanently changed the retail experience by expediting consumer movement to the already occurring progression of digital/online shopping. We’re seeing this with the rise of such cannabis tech companies as Dutchie, iHeartjane, Weedmaps, etc. Along with anything digital comes data. The holistic consumer data generated by the customer digital experience will be a much bigger part of how brands and retailers interact with their customers. I also believe that digital consumer data will be utilized throughout the supply chain all the way down to those folks who are actually cultivating the plant.”

AlpineIQ // Nicholas Paschal Co-Founder & CEO “The cannabis category continues to grow, but at the same time retailers are at risk of losing control of their customers’ journey. In 2022, it will be more important than ever to avoid marketplace mechanics that can drive customers closer to your competition, and focus on leveraging data to engage customers on a personal level, keeping them locked in on your business.”

Real Estate

Zoned Properties // Bryan McLaren CEO “Over the past decade, we’ve witnessed an exponential increase in public debate related to legalized cannabis regulations and codes that directly impact the development of cannabis real estate in our local communities. As we look to 2022 and beyond, these multi-billion-dollar conversations, being held at city council meetings nationwide, will directly impact a community’s ability to attract real estate investment capital to subsequently realize changes to economic development, tax revenue, and increased prosperity for community members.”

Policy

The People’s Ecosystem // Frederika Easley Director of Strategic Initiatives “In 2022 we’ll continue to see a rising of the people! From ballot measures fighting for regulation and equity program accountability to operators fighting for the services and protection they deserve. Cannabis consumption and business is mainstreaming and the people are pushing back against politics as usual.”

Parabola Center // Shaleen Title CEO “In 2022, more people will recognize the distinction between policies that benefit cannabis consumers and patients versus policies that maximize corporate profits. That line has been blurred until now because legalization in general is good for everyone. But the conversation about federal legislation is elevating the policy dialogue, because now we have detailed data from state markets. I think we’ll see more discussion about how monopolies and oligopolies harm consumers and patients in the long term and what policy decisions might prevent them.”

Thank you to all of the cannabis professionals that provided insight for this Spotlight on the New Year as we step into 2022.

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Pharma Firm That Recently Entered Cannabis Industry Found Guilty for Role in Opioid Crisis

1/04/2022

The U.S. arm of a pharmaceutical firm that last month announced an international partnership with an Israel-based medical cannabis company was found guilty by a Suffolk County, New York jury last week of contributing to the region’s opioid crisis, the Associated Press reports.

In their verdict against Teva Pharmaceuticals USA Inc., the jury found the drug company played a role in the opioid crisis — which is legally called a public nuisance but contributed to more than 500,000 deaths in the U.S. over the past 20 years.

New York Attorney General Letitia James (D), called the verdict a “significant day” for the state, nation, and “for every family and community torn apart by opioids.”

“Teva Pharmaceuticals USA and others misled the American people about the true dangers of opioids, which is why, in 2019, I made a promise that our team would hold them and the other manufacturers and distributors responsible for the opioid epidemic accountable for the suffering that they have caused.” — James in a press release

A separate trial will determine what Teva will have to pay in the case and James’ office indicated that the payment would be on top of the $1.5 billion for New York from settlements with drugmakers already negotiated by the attorney general. Teva was the sole manufacturing defendant left in the lawsuit, which targeted several opioid producers and distributors.

Teva told the AP that it “strongly disagrees” with the verdict and plans to appeal.

“The plaintiffs presented no evidence of medically unnecessary prescriptions, suspicious or diverted orders, no evidence of oversupply by the defendants — or any indication of what volumes were appropriate — and no causal relationship between Teva’s conduct including its marketing and any harm to the public in the state,” the company said in a statement following the verdict.

The company noted that as recently as last month, a California court issued a decision finding that Teva did not cause a public nuisance in Orange County, Los Angeles County, Santa Clara County, and the City of Oakland and that the firm did not make any false or misleading statements in connection with marketing prescription opioids in California.

Last month, Teva Israel announced a partnership with Cannabit-Tikun Olam on a marketing and distribution deal for medical cannabis products in Israel, Palestine, and eventually Ukraine.

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Green Thumb Industries Acquires One of Two Minnesota Vertical Licensees

1/04/2022

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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Ireland’s Cannabis Possession Charges Drop Nearly 50% Following Criminal Reforms

1/04/2022

The number of people in Ireland who were issued a summons or charged with cannabis possession fell nearly 50% following reforms that allow for possession to be dealt with by way of caution, rather than prosecution, the Irish Times reports. According to the Garda Press Office, by December 14, 2021, 5,957 people were issued a summons or charged with simple possession in Ireland, down from 11,127 in 2020, and 9,923 in 2019.

Figures from the Garda from last year report that as of December 14, there were 60 charges related to the cultivation of cannabis or poppy plants — which are used in opium production — a decline from 178 the previous year. There were 1,283 charges or summonses for possession of drugs for sale issued in 2021, compared to 1,968 in 2020, according to Garda data outlined by the Times.

The reforms were enacted in December 2020 and only covers simple possession of cannabis flower or concentrates. The program is operated by the Office of the Director of Public Prosecutions.

Ireland legalized cannabis for medical use in 2020, and the first product allowed under the program – CannEpil, an oral-based solution intended for drug-resistant epilepsy – was introduced last October, according to the Times.

When Irish Health Minister Simon Harris last year announced the five-year medical cannabis pilot program he indicated there were “no plans” to legalize cannabis in the nation.

In December, Malta became the first European Union nation to fully legalize cannabis. Lawmakers in Germany, Luxembourg, and Switzerland are considering their own reforms, while Italy is expected to hold a referendum on the issue.

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THC-Rich Cannabis Oil Could Be Effective Autism Treatment

1/03/2022

Researchers at Tel Aviv University alleviated autism symptoms in animal models using medical cannabis oil, according to a study published in the journal Translational Psychiatry outlined by Israel 21c. Shani Poleg, the Ph.D. candidate who led the research, said the team found that cannabis oil had “a favorable effect on compulsive and anxious behaviors in model animals.”

“According to the prevailing theory, autism involves overarousal of the brain, which causes compulsive behavior. In the lab, in addition to the behavioral results, we saw a significant decrease in the concentration of the arousing neurotransmitter glutamate in the spinal fluid — which can explain the reduction in behavioral symptoms.” — Poleg to Israel21c

The researchers found that CBD treatment alone had no impact on the behavior of the animal models, while THC-rich cannabis oil produced “equal or even better behavioral and biochemical effects.”

“We observed significant improvement in behavioral tests following treatments with cannabis oil containing small amounts of THC,” Poleg said in the interview, “and observed no long-term effects in cognitive or emotional tests conducted a month and a half after the treatment began.”

The study authors note that treating children with autism spectrum disorder using cannabis products “raises medical and ethical questions” since many patients are young children.

“During young childhood and adolescence, multiple neurological systems, such as the glutamatergic, dopaminergic and endocannabinoid systems, rearrange and maturate,” the authors write. “Data show that some cannabinoids, THC among them, might harm the developing brain.”

The authors said the study results “question the necessity of high doses of CBD in medical cannabis oils designated for alleviating [autism spectrum disorder] core symptoms, and suggest that a medical cannabis oil that contains relatively small doses of THC is preferable, due to an additional plausible effect on social behavior.”

A separate study conducted by researchers at Israel’s Ben-Gurion University of the Negev and Soroka University Medical Center published last year found more than 80% of parents of autistic children reported significant or moderate improvement in their child while using CBD-rich cannabis oils.

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Missouri Medical Cannabis Sales Reach $200M in 14 Months

1/03/2022

Medical cannabis sales in Missouri have surpassed $200 million during the program’s first 14 months, according to state Department of Health and Senior Services data outlined by the eMissourian. In all, there are more than 160,000 medical cannabis patients in the state.

So far, there are 180 dispensaries, 58 manufacturing facilities, 41 cultivators, 19 transportation-related businesses, and eight testing laboratories licensed by the state. In 2020, however, 85% of 2,200 medical cannabis commercial license applications in the state were denied, hemp farmer Michael Desmond wrote in an op-ed in the Missouri Independent.

Kathleen Beebe, a spokeswoman with Missouri Health and Wellness, told eMissourian that the industry has, so far, created 6,000 jobs in the state. She added that she expects the number of registered patients in the state to “dramatically increase” as people gain an understanding of how the cannabis plant could help them.

Legal cannabis advocates in the state, led by Legal Missouri 2022, are campaigning to put an adult-use question on this year’s midterm ballots and must collect 175,000 signatures to put the issue to voters. The medical cannabis initiative was approved by 66% of Missouri voters in 2018.

The legalization proposal, a constitutional amendment, would create an automatic expungement program for citizens convicted of nonviolent cannabis-related offenses. It would tax adult-use cannabis sales at 6%, with revenues earmarked for the state health department, veteran care, drug addiction treatment, and the state’s public defenders program. Under the proposal, cities could add an additional 3% sales tax if they choose.

The amendment would grant 144 new cannabis business licenses via lottery, with 66% of them set aside for cultivation companies and 33% for dispensaries.

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Colorado Gov. Pardons More Than 1,300 Cannabis Convictions

12/31/2021

Colorado Gov. Jared Polis (D) announced yesterday that he signed an executive order to pardon 1,351 individuals who had been convicted of cannabis possession prior to the state’s historic legalization reforms in 2012.

“Adults can legally possess marijuana in Colorado, just as they can beer or wine. It’s unfair that 1,351 additional Coloradans had permanent blemishes on their record that interfered with employment, credit, and gun ownership, but today we have fixed that by pardoning their possession of small amounts of marijuana that occurred during the failed prohibition era.” — Gov. Polis, in a press release

The cannabis pardons covered state-level convictions for people who were caught possessing up to two ounces of cannabis, which coincided with an update to Colorado’s cannabis laws earlier this year that raised the legal purchasing and possession limit for adults from one to two ounces. The pardons do not cover people who were convicted of municipal cannabis crimes or people who were arrested — or issued a summons — for cannabis possession but who were not convicted.

People who are unsure whether a conviction on their record was pardoned can request confirmation of a pardon through the Colorado Bureau of Investigations website, according to the release. If they receive a pardon, individuals who were once convicted of cannabis possession will no longer see the conviction on their criminal history through the state’s records checking system.

Colorado voters opted to legalize adult-use cannabis in 2012. The reforms took effect in 2014, making Colorado the first state to end cannabis prohibition.

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Study: Cannabis Decriminalization Reduces Arrest Rate Racial Disparity

12/31/2021

A new study published in the journal Social Science & Medicine found that cannabis decriminalization policies reduce racial disparity in cannabis possession arrests, Forbes reports.

Researchers at the University of California San Diego based the study on the Federal Bureau of Investigation’s Uniform Crime Report from 37 states between 2000 and 2019. The researchers found that in 11 states with new cannabis decriminalization policies, possession arrest rates dropped 70% for adults and 40% for youth. These reductions coincided with a 17% drop in the racial disparity in cannabis possession arrests for adults; however, while youth arrests dropped, there was no positive adjustment between Black and white youth cannabis possession arrests.

It has been proven that Black people are more likely to be arrested for cannabis-related crimes than white people, despite Blacks and whites consuming cannabis at similar rates.

“Cannabis decriminalization seemed to be particularly beneficial to Blacks, who were suffering the most from the adverse consequences of criminal penalties. Taken together, we recommend that lawmakers and public health researchers reconsider cannabis decriminalization as an option of cannabis liberalization, particularly in states concerning the unintended consequences and implementation costs of medical and recreational cannabis legalization.” – “Cannabis decriminalization and racial disparity in arrests for cannabis possession,” Social Science & Medicine, Jan. 2022

When the researchers looked at medical cannabis and adult-use laws, they found medical cannabis laws had no effect on overall arrest rates but adult-use laws did lead to a drop in possession arrests for both white and Black people. However, the researchers found adult-use laws did not have an effect on the racial divide as it relates to cannabis possession arrests. This may be because many states decriminalized cannabis before their adult-use laws were enacted, while another reason may be because most states legalized cannabis sometime after 2016 and the study only uses data through 2019, according to the report.

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USDA Approves New York Hemp Plan

12/30/2021

The U.S. Department of Agriculture (USDA) has approved New York’s hemp plan and the agency is now accepting applications under the new regime. All currently licensed growers must reapply under the program to grow hemp next year.

The new rules include a Federal Bureau of Investigation background check requirement within 60 days of application submission; end-product and field reporting; inspections by the state Department of Agriculture; pre-harvest plant and post-harvest laboratory testing; and penalties for cultivating THC-rich products, including license suspension or revocation.

Producers must also send reports to the USDA and the Farm Service Agency (FSA).

In a press release, state Agriculture Commissioner Richard A. Ball said hemp cultivators “will have stability and consistency in regulations moving forward, with continued guidance and support from the department.”

“New York State has been a leader in the hemp industry since the launch of its pilot program, with producers registered to grow industrial hemp on 30,000 acres.” — Ball in a statement

Last year, the New York Agriculture Department said the state would not submit a hemp plan to the USDA until it changed certain program requirements forcing growers to apply to the USDA Agricultural Marketing Service to receive a hemp production license.

Ball had described federal hemp testing and plant disposal regulations outlined in the 2018 federal Farm Bill as “unrealistic” and said they “impose unreasonable burdens on growers and any state interested in administering a compliant program.” Prior to the 2018 reforms, individual states operated their own hemp programs free from federal interference under a plan approved by federal lawmakers in 2014.

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New Oregon Cannabis Rules Include Delta-8 Testing

12/30/2021

The Oregon Liquor and Cannabis Commission (OLCC) on Tuesday approved new rules for some products sold in the state, including limiting hemp-derived edible products to 2 milligrams of THC per serving and up to 20 milligrams of THC per container.

The regulators also approved a rule requiring artificially derived cannabinoids — such as delta-8 products — to go through the ordinary regulatory review required for dietary supplements or food products.

The OLCC said in a press release that it had worked with legal cannabis industry operators over the last 18 months to develop the new regulations, most of which are set to take effect January 1, 2022, while other regulations won’t take effect until 2023.

Steve Marks, OLCC executive director, said that the new regime tries to balance “consumer health and safety, interests of small and large operators in our industry, and public safety concerns around loopholes in the Federal Farm Bill of 2018, and the illicit farm production taking place in Oregon.”

State lawmakers recently passed a bill dedicating $25 million to combat illegal cannabis grows in the state while an October OLCC report found that 54% of hemp farms in southern Oregon were actually producing THC-rich cannabis illegally.

The new rules also increase adult-use purchase limits to up to two ounces of flower – up from one ounce – and increase edible concentrations from 50 milligrams of THC per package to 100 milligrams per package beginning April 1, 2022.

Home delivery will also be allowed across city and county lines as long as local authorities approve of it. Additional rule changes include reducing the time and cost for licensees to report plant tagging and harvests into the state’s Cannabis Tracking System and improving licensees’ ability to self-distribute their products.

In a statement, OLCC Commissioner Matt Maletis said the new rules “may not make everyone happy” but they are “a pathway” that he believes “solves a lot of the issues” currently facing the state’s industry.

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Mississippi Gov. Threatens to Veto Medical Cannabis Reform Bill

12/30/2021

Mississippi Gov. Tate Reeves (R) said he will not support the Legislature’s medical cannabis reform bill because the proposed patient daily limits are too high, WCBI reports. The governor says he would like to see a patient’s daily allowance cut in half from 3.5 grams daily to 1.75 grams.

Mississippi voters passed the medical cannabis initiative in 2019 but it was struck down by the state Supreme Court earlier this year on a signature-gathering technicality. Prior to the Court invalidating the law, lawmakers began work on the backup bill which is now under veto threat by Reeves.

If Reeves does ultimately decide to veto, lawmakers may take action to protect the bill they have spent all summer negotiating.

“It wouldn’t surprise me if the legislature overrode the veto,” Sen. Brice Wiggins, chairman of the Senate Judiciary Committee Division A and a congressional candidate, said in a Y’all Politics report.

Other provisions in the bill include a $5 per ounce excise tax at the point of manufacture and Mississippi’s 7% sales tax would apply to all medical cannabis purchases. Grow facilities would be limited to 100,000 square feet or larger, but the reported square footage must include all vertical shelves and growing areas. Licenses will cost producers $150,000 a year, and be issued through the Department of Health, not the department of Agriculture or Commerce, the Northeast Mississippi Daily Journal reported in October.

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California City Approves Cannabis Events at Parks

12/30/2021

The Lompoc, California City Council last week voted to allow up to two cannabis-related events per year in any of the three city parks: Ken Adam, River Bend, or River, Santa Ynez Valley News reports. No smoking will be permitted at events at Ken Adam Park until the brush can be sufficiently cleared, and city staff will review each event within 90 days after it ends to better understand the impacts of the events.

The city already has an ordinance banning the smoking of any kind in its public parks; however, an exception for cannabis would be made during the events, while tobacco will remain prohibited.

The ordinance, which was approved 3-2, will be reviewed by the city council after one year. It requires event organizers to provide their own security for the events — recommended by city managers — and staff an EMT.

The move by the council follows a September announcement by the California State Fair that the 2022 iteration will include a cannabis flower competition. California Exposition & State Fair Board Director Jess Durfee said state fair officials “are pleased to celebrate” the state’s legal cannabis industry” adding that the fair “has always been a first mover, leading the State Fair circuit with innovative programming and large-scale competitions that celebrate the best the state has to offer.”

New York is the only state to generally allow public cannabis use in its legalization law, which led to its State Fair officials allowing cannabis smoking anywhere on the fairgrounds tobacco smoking was allowed, but with bans on smoking cannabis at select parts of the grounds, including picnic areas, inside buildings, and in kiddie land. However, following complaints, Gov. Kathy Hochul (D) called for a review of that policy for the 2022 event.

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