Ganjapreneur.com

Delaware House Votes for Medical Cannabis Program Expansions

1/29/2024

Lawmakers in the Delaware House of Representatives voted this week in favor of a proposal that would expand the state’s medical cannabis program by letting patients aged 65 or older self-certify for the program, Marijuana Moment reports. The self-certification process would not require a doctor’s input.

The bill would also remove the program’s medical condition-based eligibility requirements in favor of allowing doctors to certify for medical cannabis access anyone that they believe would benefit from the program.

The bill’s sponsor, Rep. Ed Osienski (D), said that the bill was crafted according to feedback from the state’s cannabis patients.

“Drawing from their insights, we identified numerous ways to improve our medical marijuana program. HB 285 recognizes the need to remove outdated restrictions and breaks down the barriers that hinder patients who could truly benefit from improved access to medical marijuana.” — Rep. Osienski, via Marijuana Moment

The bill passed the House in a 22-10 vote on Thursday and moves next to the state Senate for consideration, where a companion version of the bill has been sponsored by Sen. Kyra Hoffner (D).

“…It is time to update our medical marijuana law and make it easier for the people who rely on these products to get the therapy that they need,” Hoffner said in the report.

Adult-use cannabis was legalized last year in Delaware but state-licensed stores are not expected until 2025. Lawmakers voted last year to set an initial $4.1 million budget for rolling out the state’s adult-use cannabis industry.

End

CDC Suggests Cannabis Legalization Reduced Underage Access

1/26/2024

Teenage cannabis use in the Seattle, Washington area has dropped significantly since 2008, according to recent data from the U.S. Centers for Disease Control (CDC), and the state’s 2012 cannabis legalization policy likely played a role.

The report, first outlined by the cannabis advocacy group NORML, noted that the observed decreases in cannabis use among eighth-, tenth-, and twelfth-grade students “might be associated with changes in the availability of cannabis among persons aged ≥21 years as well as limited opportunities to engage in use.”

“Researchers studying the association of cannabis laws with cannabis use among high school students have observed similar declines in cannabis use after legalization of nonmedical cannabis. The legalization of nonmedical cannabis for adults aged ≥21 years in Washington with licensed dispensaries requiring proof of age might have affected availability of cannabis to younger persons as well as their opportunities to engage in its use. This, in turn, might have had an impact on use prevalence.” — CDC analysis excerpt

Links between the legalization of adult-use cannabis and reductions in youth cannabis use have been made in multiple previous studies:

Canadian researchers found in 2020 that teenage cannabis use dropped 50% following the federal legalization of cannabis in Canada.
One year previously, researchers noted in a study published by JAMA Pediatrics an 8% decline in the number of high schoolers who had used cannabis within the last month.

End

Oregon Cannabis Businesses Call for Permanent License Caps

1/26/2024

The Cannabis Industry Alliance of Oregon (CIAO) is calling for lawmakers to make permanent a restriction on the licensing of new cannabis companies that is set to expire in April, according to a KLCC report.

Before the statewide licensing moratorium was enacted in 2018, officials had issued over 3,000 licenses for the production, manufacturing, and retail of adult-use cannabis products, the report said. “There are so many businesses competing for the same amount of market share that it’s just not feasible,” said Mike Getlin, board chair for the CIAO.

Oregon, which was the fourth U.S. state to adopt a cannabis legalization policy, did not initially set a cap on the number of available licenses and the industry has grappled since its launch with issues relating to oversupply, lack of demand, and record-low wholesale and retail cannabis prices.

“What we’re fighting for is not to fix the Oregon system. It is simply to not accidentally have a big old knife stuck in its heart.” — Getlin, via KLCC

Getlin hopes that lawmakers will address the issue during this year’s brief legislative session, which is scheduled from February 5 to March 10, as officials with the Oregon Liquor and Cannabis Commission have stated they may not have the legal authority to extend the licensing moratorium themselves.

The CIAO, which represents more than 500 cannabis operators in the state, was formed last October following the merger of two former cannabis industry organizations: the Oregon Cannabis Association and the Cannabis Industry Alliance of Oregon.

End

Survey: 32% of Cannabis Consumers Would Return to Illicit Market If Schedule III Limits Access

1/25/2024

About one-third (32%) of cannabis consumers say that if a rescheduling action were to restrict the industry by requiring retail sales to be prescription-based via pharmacies, they would risk criminal penalties by reverting to the illicit market, according to a survey reported on by Marijuana Moment. A slight majority (55%) of respondents said that if their only legal option was through pharmacies, they would do so.

The survey — which was conducted by the cannabis telemedicine firm NuggMD — polled 795 respondents via the company’s opt-in email list about multiple topics including their current ability to access consumer cannabis products and potential effects of the Biden Administration’s proposed Schedule III rescheduling action.

NuggMD’s head of legal and policy research Deb Tharp said the results show that consumers are at risk under the proposed rescheduling plan unless lawmakers pass legislation “to preserve existing state markets.”

“According to government estimates, more than 35 million Americans use cannabis on a monthly basis. Pushing more than 10 million people into the unregulated market for cannabis strikes me as a very bad outcome because black market cannabis is not safe. I don’t think the severity of this situation is entirely clear to policymakers.” — Tharp, via Marijuana Moment

28% of respondents said that they believe a shift to Schedule III would make it more difficult to access cannabis, while 25% said it would improve access and 47% said that they did not expect any change in ease of access. Additionally, 77% of respondents said they would prefer using “traditional botanical products” like cannabis flower over an FDA-approved product, and a strong, 70% majority of respondents said that they believed dispensaries “would pass to consumers any tax savings brought about by new regulations.”

Another recent survey found that President Joe Biden (D) stands to boost his favorability by 11% across the country if he were to follow his were he to follow the Federal Department of Health & Human Services’ rescheduling recommendation.

End

How Cannabis Retailers Can Alleviate Pressure from the Illicit Marketplace

1/24/2024

Editor’s note: this article is a guest contribution from Guillermo Rodriguez of Anders CPA.

Cannabis dispensaries play the retail game by a different set of rules. With stringent regulations, sky-high licensing fees and a tax code that doesn’t allow for the deduction of overhead expenses, retailers start with the deck stacked against them. Add to that fierce competition from both licensed and unlicensed operators, it’s no surprise that so few manage to be profitable (only one-third were profitable in 2022, with 31% breaking even, leaving 38% unprofitable, according to a 2023 study).

Pricing pressure – especially in well-established markets – is one of the biggest challenges retailers face. Without nationally recognized brands, certain consumer segments – particularly those buying in the flower category – treat cannabis like a commodity and shop around, in search of the best deal. In response, retailers slash prices, offering overly discounted goods in hope of securing customer loyalty and market share, when in reality, all that does is incentivize consumers to continue to make buying decisions based on price.

So how should cannabis retailers position themselves to resist pressure from the illicit market? While many consumers recognize the inherent advantages of dealing with licensed retailers – product safety, consistency, and convenience – the illicit market’s allure of lower prices exerts a considerable influence on legal sales.

Rather than continue to slash prices, we recommend that licensed cannabis retailers focus on customer experience, educating themselves with local data in order to make the most of every sale.

Losing Strategies: Competing Only on Price and THC Content

Offering steep discounts may seem like the surest way to lure customers, but cannabis retailers need to exercise caution: recent industry surveys reveal that only 30% of consumers are motivated purely by price; the other 70% are open to other avenues for loyalty – those consumers should be your focus.

Excessive discounting can have negative repercussions for both individual operators and the industry as a whole. There is a place for discounting, of course, but it should be done with careful attention to your POS data. Limit discounts to slow moving products or products with higher margins, ideally in collaboration with a vendor who may be willing to shoulder part of the cost of the promotion. Blanket discounting may be putting money back in the customer’s pocket – and putting yourself in the red.

Another losing strategy is to try to compete on THC content, another attribute that price-sensitive consumers tend to favor, as they falsely believe higher THC leads to a better experience. The more educated consumer, however, will be buying based on factors like terpenes, aroma and consistency. That’s where the growth potential lies, and that’s the consumer segment a retailer would be best served to focus on.

So if you aren’t pulling customers into your store for the bargain basement prices or high THC content, how do you get them to come in, spend more, and keep coming back?

Customer Experience is Key

Licensed cannabis retailers must prioritize delivering exceptional customer experience for anyone who comes through their doors.

This goes beyond having a well-designed, welcoming space. We think about customer experience holistically. It starts with educating yourself about your market, which requires a nuanced consideration of various factors, including the local market dynamics, competition, and regional preferences. Tailoring strategies to cater to the unique characteristics of your customer segments can be a game-changer in a highly competitive industry.

Demographics, geographical location, and cultural factors all play a role in shaping your customer profile. For instance, cannabis sales data by Headset from across the United States reveals that Generation Z has a strong preference for selecting pre-rolls as their form factor. If your retail shop is near a college or university, it would be prudent to stock your assortment accordingly.

However, if your dispensary is near a popular tourism hotspot or close to a state border, your customer demographics and shopping behaviors may differ significantly. In Las Vegas, for instance, individuals from out-of-state often visit to purchase cannabis, but their buying patterns may result in higher basket sizes compared to local customers.

Recognizing these unique aspects of your consumer base enables you to adapt your marketing, product selection, and pricing strategies.

Don’t Sleep on Your In-House Sales Data

Looking at industry-wide data trends can give a big-picture understanding of how you fit into the market, but when it comes to increasing profitability, your own sales data is your most valuable asset.

No matter which point-of-sale system you use, your sales data can typically be exported to a separate data visualization program to help you quickly identify your best and highest-impact opportunities for improvement.

Reinforcing Dynamic Sales Forecasting: Leveraging sales data enables retailers to better understand customer behavior and trends, facilitating more confident and precise sales forecasts which provides visibility into future cash flow.
Optimizing Pricing Strategies: Analyzing sales data empowers retailers to make informed pricing decisions, striking a balance between competitiveness and profitability.
Optimizing Basket Size: Sales data can also help retailers increase average basket size at checkout by predicting where a consumer is likely to add additional items into their basket. This empowers budtenders to make personalized recommendations that increase basket size.

If conducting in-depth data analysis seems like a daunting endeavor and you don’t have an in-house CFO, you can always hire an outside financial consultant or Virtual CFO to help you interpret your data and develop strategies to carry forward. A VCFO can also help you manage your dynamic forecasting process and model out future growth based on the strategies you implement.

Optimize Each Sale by Zooming into the Individual

Data analysis gives you the big-picture, but you’ll see the financial impact when you put the numbers to work with each customer who steps up to the register.

Once you have this granular level of detail about a customer, upselling becomes a way to continuously improve client experience, rather than a money grab.

The benefits of upselling are significant: Consider a retailer who successfully upsells one $5 preroll on just 10% of transactions. This seemingly modest effort can lead to an increase in the average transaction size, adding 50 cents per transaction. While this may appear minimal at first glance, its cumulative long-term impact can be substantial: if this retailer is averaging 500 transactions per day, this seemingly insignificant amount adds up to over $90,000 in revenue annually. For a retail chain with five locations, this simple approach could yield over $450,000 in annual revenue.

The key is consistency and discipline in training sales staff continuously, especially given the high turnover in the industry. If a budtender learns to use POS data, they’ll be able to offer the right product to the right client, for example, elderly clients may be more likely to go for edibles rather than pre-rolls, and female customers have a higher affinity for edibles than their male counterparts.

Overcome Upselling Challenges

Upselling for cannabis retailers includes unique hurdles. The current state of cannabis payment processing typically does not allow for payment with popular branded credit cards issued on the two largest payment networks Mastercard and Visa. When customers visit ATMs before their dispensary visits and limit their cash to the intended purchase amount, buying additional items may not be an option for the consumer.

Nevertheless, there are several technologies and tools that help overcome these obstacles to upselling:

Non-Credit Payment Gateways: ACH payment platforms like Aeropay offer electronic payment options that can help circumvent the barrier to seamless upselling. Encouraging loyal customers to embrace such platforms can simplify the process by providing them with a more convenient and flexible payment method.
Loyalty Programs: There are numerous cannabis-specific B2C loyalty software platforms that integrate with your point of sale (or are included as part of it). These platforms can help you upsell to your recurring customers through points programs and discounts.
Remarketing: To get the most value out of your customer data and loyalty program, you should be remarketing to them on a consistent basis. Different from customer acquisition, remarketing is simply the process of reaching out to your existing customers to offer them deals, provide useful information, and (for best results) personalized recommendations. Happy Cabbage is an example of a platform designed to help retailers do precisely this. Additionally, an active social media presence and email newsletter can keep your customers engaged so you have a receptive audience to promote upselling offers to.

While banking reform and access to standard financial services for cannabis retailers is hopefully not too far off in the future with the proposed federal rescheduling of cannabis, in the meantime it’s essential to make upselling as frictionless as possible.

Bottom Line: It’s All About Consistency

When a customer enters a dispensary, they might simply be curious to know what all the hype is. But they also might be seeking a specific outcome: pain relief, more energy, better sleep.

Meet that need by staffing your store with knowledgeable budtenders, ready to offer highly consistent products specifically geared to each individual consumer, and you’ll earn customer loyalty and higher profit margins.

End

German Minister Expects Cannabis Legalization This Spring

1/24/2024

German Health Minister Karl Lauterbach says he hopes to submit the nation’s adult-use cannabis legalization proposal for a parliamentary vote this February and see the proposal come into effect by April, according to a DW report.

The proposal was initially agreed upon by Germany‘s three-part government coalition last year, and Lauterbach said that lawmakers’ discussion regarding the Cannabis Act has remained positive.

“I am continuing to assume that the Cannabis Act will be passed by the Bundestag in the week between February 19 and 23 and will go into force from April 1.” — Lauterbach, via the Die Welt newspaper

While legalization critics have pushed back against the proposal, Lauterbach argues that the unregulated market carries risks such as contaminated products and extremely potent products — “Controlled distribution of cannabis is the right way to do this, combined with special protection for children and adolescents,” he said in the report.

Germany is one of five European Union member states that have enacted, introduced, or announced plans to enact adult-use cannabis reforms; the other nations include the Czech Republic, Luxembourg, Malta, and the Netherlands.

Switzerland, which is not a member of the EU but has also enacted cannabis reform policies, licensed Europe‘s first legal — albeit experimental — cannabis dispensary last October as part of a study on adult-use cannabis reforms.

Industry insiders have predicted that once Germany’s policy is active, its neighbors will likely be inspired to move quickly with policies of their own. In a recent statement to Ganjapreneur, Alex Rogers, Founder/CEO of the International Cannabis Business Conference set to be hosted in Berlin this April, said that “leaders in several other European nations have indicated that once Germany legalizes it, they will proceed with similar policy modernization efforts in their respective countries.”

CEO of Bloomwell Group, Niklas Kouparanis, echoed these sentiments, stating that Germany’s roll-out of its legalization proposal would serve as a “major catalyst” for reform across the entire continent. “The year 2024 will likely be deemed a major milestone for cannabis policy in Europe,” he said.

End

New York Regulators to Consider Allowing Cannabis Home Grows

1/24/2024

New York cannabis regulators are set to consider new regulations this week that would allow for the home cultivation of cannabis plants by adults aged 21 or older, the Times Union reports. The rule change would also authorize licensed retailers to sell starter cannabis plants, although they would need to acquire a nursery dealer registration certificate from the New York State Department of Agriculture and Markets.

The right to cannabis home grows was actually established under the legalization law passed by New York lawmakers in 2021, but only following the approval of “regulations governing home cultivation of cannabis, which will occur within 18 months of the first adult-use retail sale” — and New York’s first legal sale took place in December 2022, the report said.

Under the proposed rules, each private residence in the state will be allowed to host up to 12 cannabis plants, including six mature and six immature plants, regardless of the number of adults living there. Additionally, personal possession rates would be increased to up to five pounds of “cannabis flower that has been trimmed from plants, which have been cultivated in or on the grounds of said person’s private residence.”

While New York formally legalized cannabis about three years ago, state officials opted to delay the home grow rules to give licensed retailers a headstart in the industry. Most of the state’s early cannabis retailers, however, have faced enormous difficulties including competition from unlicensed and illegal retailers and lengthy delays in the licensing process, which was temporarily halted by lawsuits against the state’s cannabis social equity provisions.

End

Cannabis may enhance empathy, according to study

Study: Cannabis Use May Enhance Empathy

1/23/2024

A new study involving brain scans of cannabis users has revealed that regular users may have a heightened ability to understand and empathize with others’ emotions. The research, published in the Journal of Neuroscience Research by Victor E. Olalde-Mathieu and Daniel Atilano-Barbosa, offers a fresh perspective on the cognitive effects of cannabis, challenging mainstream assumptions about the plant’s impact on mental health.

The study compared 85 regular cannabis users with 51 non-users, assessing their empathy levels through psychometric tests. Remarkably, cannabis users displayed a greater ability in Emotional Comprehension, a cognitive empathy trait crucial for understanding others’ emotional states.

“[…] this study found that regular cannabis users have a greater understanding of the emotions of others. Furthermore, the anterior cingulate, a region generally affected by cannabis use and related to empathy, had stronger functional connectivity with brain regions related to sensing the emotional states of others within one’s own body. These findings highlight positive effects of cannabis on interpersonal relationships and potential therapeutic applications.”
– Olalde-Mathieu, Atilano-Barbosa, et al

Intriguingly, the study utilized resting state functional MRI scans for a subset of participants (46 users and 34 controls) to examine brain activity. The scans revealed that cannabis users had increased functional connectivity in the anterior cingulate cortex (ACC), a brain region central to empathy. This area showed stronger connections with the left somatomotor cortex, a region involved in processing and replicating emotional states.

This enhanced connectivity was not limited to these areas alone. Within the broader empathy network of the brain, cannabis users exhibited greater overall connectivity. These findings could suggest that regular cannabis use might actually bolster the brain’s capacity for empathy, particularly in understanding and sharing the emotional states of others.

The study’s results are groundbreaking, and it opens new avenues for understanding how cannabis influences interpersonal relationships and offers potential therapeutic applications, especially in enhancing emotional comprehension. However, the researchers caution that these findings are not conclusive. They note the need for further research to fully understand the relationship between cannabis use and empathy, acknowledging that other factors might also influence the observed effects.

Despite these caveats, this research provides insight into the complex effects of cannabis on the human mind and social interactions, and could help shed light on the prevalence of cannabis use among musicians, artists, and other creatives who need to tap into their understanding of human emotions for their work.

End

Florida Gov. Predicts Voters Will Decide Cannabis Legalization Issue This Year

1/23/2024

Florida Gov. Ron DeSantis (R) said last week that he thinks the Florida Supreme Court will allow an adult-use cannabis legalization proposal to appear on this year’s ballot despite legal challenges brought by the attorney general, Marijuana Moment reports.

DeSantis, who recently ended his longshot campaign in the Republican presidential primaries, was asked during his final campaign event about the ballot initiative. “I think the court is going to approve that,” the governor said, “so it’ll be on the ballot.” It is unclear whether DeSantis knew more than what’s publicly available about the issue or if he was simply making a prediction based on recent observations, the report said.

In either case, the initiative does seem likely to appear before voters after Florida Supreme Court Justice Charles T. Canady said in November that he was “baffled” by the legal challenge brought by Attorney General Ashley Moody’s legal team. The challenge claims the initiative would somehow trick voters into believing they would be protected from federal law, and should be disqualified, even though the initiative explicitly states that it would only apply to Florida law and “does not change, or immunize violations of, federal law.”

Brought by the Smart & Safe Florida campaign, the initiative qualified for the 2024 ballot after advocates submitted about a million voter signatures in support of the legalization bid. The proposal is a constitutional amendment — meaning it will require at least 60% voter approval to pass — and seeks to legalize the possession of up to three ounces of cannabis for personal use and authorize current medical cannabis dispensaries to retail cannabis for adult use.

End

Survey: Rescheduling Cannabis Could Give Biden 11% Approval Boost

1/22/2024

President Biden stands to boost his favorability by 11% if he were to follow the Federal Department of Health & Human Services’ (HHS) recommendation to reschedule cannabis, according to a Lake Research Partners survey first outlined by Politico.

The survey, which engaged 900 likely voters through a mix of phone (cell and landline) and text-to-online outreach, also found that a 58% majority of American voters support the rescheduling proposal, with the strongest support (65%) coming from young voters aged 18-25. Only senior voters largely opposed the move, but there was still a plurality of support for rescheduling among such voters.

A 74% majority of Democrat voters said they support the federal rescheduling of cannabis with just 7% opposed; 55% of independents, meanwhile, would support the move with 15% opposed. For Republicans, 41% said they support rescheduling while 31% said they opposed the move — the idea is disproportionately popular, however, among young Republican voters and Republican women.

Notably, the pollsters said that “no punches were pulled” in the survey’s articulating of the arguments against rescheduling, including claims that the move from Schedule I to Schedule III is “a half measure” that would bring massive profits to pharmaceutical companies, that it reneges on Biden‘s campaign promises to decriminalize cannabis, and that it could leave “hundreds of thousands of Americans behind bars for marijuana-related offenses.”

Nevertheless, “By the end of the poll, impressions of Biden improve by a net double-digits—an 11-point swing overall, including a double-digit (+11-point) swing among younger voters,” the pollsters said.

The survey coincides with a recent Gallup poll which found a record 70% support among Americans for cannabis legalization.

End

New York Gov.’s Budget Proposal Would End Cannabis Potency Tax

1/22/2024

Under New York Gov. Kathy Hochul’s (D) budget proposal for fiscal year 2025, cannabis operators would no longer be required to pay taxes based on product potency; rather, the industry’s potency tax would be replaced with a weight-based excise tax.

New York’s original legalization law taxes cannabis distributors based on product potency as follows:

$0.03 per mg of total THC in edibles
$0.008 per mg of total THC in cannabis concentrates
And $0.005 per mg total THC in cannabis flower products, including pre-rolls.

“To promote and support the expansion of the legal adult-use cannabis market, the Executive Budget simplifies, streamlines, and reduces the tax collection obligations and burden for cultivators, processors, and distributors by repealing the wholesale THC potency tax, and replacing it with a wholesale excise tax of 9 percent, while maintaining the State retail excise tax rate of 9 percent and the local retail excise tax rate of 4 percent.” — FY2025 budget proposal excerpt

For cannabis companies that are vertically integrated, the budget proposal specifies that “the new wholesale excise tax will accrue on the final retail sale to consumers and be imposed on 75 percent of the final retail sales price.”

In addition to the cannabis industry tax changes, the budget proposal would allot $68.1 million to the New York Office of Cannabis Management (OCM), the regulatory agency responsible for overseeing the industry. The proposed budget would also strengthen cannabis regulators’ ability — and that of other local government agencies — to bring enforcement actions against unlicensed cannabis operators, including additional staff resources for the state Department of Taxation and Finance.

According to recent data from the state, the New York legal cannabis market generated more than $150 million in revenue during its first year of operation.

End

Oregon Lawmakers Consider Reversing Drug Decriminalization

1/19/2024

Oregon Republican lawmakers in the House last week unveiled a proposal that would re-criminalize drug possession in the state by reassigning misdemeanor penalties for drug possession and mandating addiction treatment to avoid jail, the Oregon Capital Chronicle reports. The bill seeks to override the state’s 2020 voter-approved drug decriminalization initiative, Measure 110, by making persona possession of fentanyl, heroin, and meth a class A misdemeanor with jail time penalties of up to one year, a fine of up to $6,250, or both, according to the report. Similar penalties would be imposed for public drug use.

Top Democrats in the state, meanwhile, are also considering a proposal to re-criminalize drug possession, but with the option of multiple off-ramps for people to avoid criminal penalties, according to an OPB report. Democrats hope that when faced with legal repercussions, addicts will be more willing to seek and/or accept help as an alternative. Such a program could look similar to the law enforcement-assisted diversion (LEAD) program in Seattle, which allows people who are caught with drugs to be brought to a service provider instead of jail, the report said.

The idea of recriminalizing drugs in Oregon was lambasted by advocacy organizations including the American Civil Liberties Union of Oregon, the Drug Policy Alliance, and others, which together released the following statement:

“Any action by the Oregon legislature that criminalizes addiction would be cruel, harmful, and a failure of leadership. We cannot regress back to the failed war on drug tactics that harm Black, brown, and poor people and make drug addiction, overdose deaths, and homelessness more difficult and expensive to solve.” — Excerpt

Measure 110 was passed by 58% of Oregonians in 2020 but recent polling suggests that voters are not pleased with the state’s ongoing addiction crisis and may have soured on the decriminalization policy.

End

New Jersey Regulators Approve Framework for Onsite Cannabis Consumption

1/19/2024

In a significant move for the New Jersey cannabis market, the state has now opened the doors for the operation of cannabis consumption lounges at dispensaries, according to a report from news outlet NJBiz. During a meeting on January 17, the New Jersey Cannabis Regulatory Commission (CRC) unanimously passed a regulatory framework that permits both medical dispensaries and recreational-use retailers to establish on-site consumption spaces.

This development, initially proposed in December 2022, introduces a set of rules that detail the qualifications, application process, and operational guidelines necessary for businesses interested in offering these consumption areas. The regulations specify that a cannabis business can operate only one consumption area, irrespective of the number of Class 5 Retailer licenses or Alternative Treatment Center (ATC) dispensary permits it holds. Furthermore, these lounges are prohibited from selling food, but customers have the liberty to bring their own or have it delivered.

Another critical aspect of these regulations is the allowance for medicinal cannabis patients to bring cannabis items from other retailers for personal use in these consumption areas, according to the report. The sale of tobacco products and alcohol within these areas is strictly prohibited, and the rules stipulate that patrons must be at least 21 years old and must present photo identification for entry.

The licensing fee structure for these consumption areas is also delineated, with microbusiness retailers being charged $1,000 and standard retailers $5,000, as stated by the CRC. These endorsements, necessary for the operation of consumption areas, are valid for one year and require annual renewal.

Jeff Brown, the Executive Director of the CRC, has assured that details on license applications will be available shortly, the report stated. This announcement follows a 60-day public comment period initiated by the CRC post the preliminary framework approval last winter. The finalized rules are expected to be published in the New Jersey Register next month, marking their official enactment.

As New Jersey joins a select group of U.S. states that have embraced on-site cannabis consumption at dispensaries, the move reflects a broader shift towards more progressive cannabis policies and sets a precedent for other states considering similar regulations.

End

California Taskforce Seized Nearly 190,000 Pounds of Cannabis Last Year

1/18/2024

California’s Unified Cannabis Enforcement Taskforce (UCETF) seized nearly 190,000 pounds of illicit cannabis during the taskforce’s first calendar year of operation, and the haul was valued at nearly $312 million, according to a press release. Law enforcement also seized 119 illegally possessed firearms and oversaw the eradication of almost 318,000 cannabis plants.

“California is effectively decreasing the illegal cannabis market by leveraging the strengths and knowledge of over 20 state agencies and departments alongside our local and federal partners. The UCETF’s progress in 2023 reflects California’s ongoing commitment to disrupting and dismantling illegal cannabis activity. I look forward to working with all our partners in 2024 to build on this progress.” — Nicole Elliott, Director of the Department of Cannabis Control (DCC)

The UCETF was launched in mid-2022 and is co-chaired by the Department of Cannabis Control and the California Department of Fish and Wildlife, while the Homeland Security Division of Cal Office of Emergency Services coordinates the taskforce’s efforts.

Officials also noted the five California counties that experienced the most enforcement actions and a dollar estimate for the amount of cannabis seized:

Alameda County, about $77,828,338.50 worth of cannabis seized
Siskiyou, about $70,747,875.00 worth of cannabis seized
Mendocino, about $48,073,113.00 worth of cannabis seized
Los Angeles, about $28,317,139.69 worth of cannabis seized
Kern, about $21,578,438.25 worth of cannabis seized

California Department of Fish and Wildlife Director Charlton H. Bonham said the taskforce “hit the ground running” in 2023 with year-round enforcement actions that spanned the entire state.

“We’ve sent a strong message that illegal operations that harm our natural resources, threaten the safety of workers, and put consumer health at risk have no place in California,” Bonham said. “While there is more work to be done, we made progress last year and I look forward to going further alongside our county, state, and federal partners.”

End

Minnesota Regulators Say State Needs At Least 381 Dispensaries

1/18/2024

Minnesota cannabis regulators said in a report this week that officials will need to license at least 381 cannabis dispensaries to properly service the state.

Under the state’s legalization law, there must be at least one cannabis retailer per 12,500 residents, calling for at least 381 locations, the report said.

The Minnesota Office of Cannabis Management commissioned the report to better understand cannabis consumers and cannabis demand in the state. In their investigation, officials surveyed a large number of Minnesota-based cannabis consumers (i.e. people who had consumed within the past year) and found the following:

The percentage of surveyed cannabis consumers in each county matched the percentage of actual Minnesotans in each county, showing the study and its findings hold about 99% accuracy.
Survey participants obtained about 24.8 grams of cannabis on average within the past month, slightly higher than the national average, which suggests a “robust market” for the cannabis industry, the report said.
83% of survey participants had consumed cannabis at least once a month, with 40% consuming daily or almost daily.
Cannabis consumption patterns for past-year cannabis consumers matched national trends.
One-quarter of respondents said they were growing cannabis plants at home, with an average of two plants growing at a time.
More than half of respondents said they had consumed at least one alternative cannabinoid (i.e. CBD, delta-8, or delta-10 THC) within the past month, and 68% said they had tried such products at least once previously.
17.6% of participants said they got their cannabis from a dealer, 16.6% from friends and family, and 16.1% said they purchased the products from one of the state’s dispensaries selling low-potency hemp products.

Minnesota became the 23rd state to legalize adult-use cannabis last August. Under the law, Minnesotans aged 21 and older can possess up to two ounces of cannabis in public and up to two pounds at home. Legal consumers can also cultivate up to eight plants at home, with a maximum of four flowering plants at once.

Unlike other states, Minnesota had already established legal access to low-dose cannabis products but that program was limited to consumable products with a maximum of 5mg of THC, including both delta-8 and delta-9 THC.

Earlier this month, lawmakers and state officials convened to investigate a loophole in the state’s current system that facilitates the sale of hemp flower products that may contain high levels of THC.

End

Maryland Police Chief Says Rule Against Cannabis Use Is Bad for Recruiting

1/17/2024

Montgomery County Police Chief Marcus Jones said that a state rule requiring law enforcement recruits to have abstained from cannabis use for at least three years before they can be hired hurts the state’s police recruitment opportunities, according to a News4 report.

Chief Jones, who is also the head of the Fraternal Order of Police and a Montgomery County Council Member, asked the Maryland Police Training and Standards Commission in a letter last year to revise the regulations.

“I think in today’s environment, where we are with the legalization of cannabis, that has now restricted law enforcement agencies, particularly larger agencies, across the state.” — Chief Jones, via News4

Montgomery County Assistant Chief Administrative Officer Earl Stoddard said in the report that making off-duty use of a legal drug into a “barrier” for growing law enforcement agencies around the state seems like “a bad policy.”

The commission has said it would investigate the issue.

Many states with legalization laws have enacted policies to prevent employers from refusing to hire someone based on their past cannabis use but those policies are frequently not extended to safety-sensitive positions including law enforcement, other first responders, and any position requiring federal security clearance.

In nearby New Jersey, the state attorney general ruled last year that police officers were allowed to consume cannabis while off-duty. That policy sparked a federal lawsuit in October from the public safety director for Jersey City which argued that because federal law prohibits anyone who uses a federally controlled substance from possessing firearms, the city cannot employ any officers who consume cannabis.

End

New Mexico Cannabis Bill Aims to Curtail Unregulated Market

1/17/2024

As New Mexico marks the two-year anniversary of legalizing recreational cannabis, state lawmakers are actively revisiting the regulations governing its sale and use. Spearheaded by Senator Katy Duhigg (D-Albuquerque), the legislative body is set to introduce a comprehensive bill that aims to refine and enhance existing cannabis laws, according to a report from local news outlet KRQE.

A key focus of the bill is the burgeoning illegal cannabis market within New Mexico. Senator Duhigg highlighted the challenges posed by illegal cannabis, particularly with products entering from neighboring states. Duhigg estimates that illicit sales currently account for about one third of the New Mexico cannabis market: to combat this, the bill proposes a clear definition of illegal cannabis and escalates penalties for trafficking, with a special emphasis on repeat offenders.

The proposed legislation also seeks to empower the Cannabis Control Division (CCD) by granting it authority to seize illegal cannabis products found during investigations. This move is intended to prevent these products from filtering into the black market, thereby strengthening the legal cannabis industry.

“Now that we’ve had a couple of years to see how recreational cannabis is working in New Mexico, we now know where we need to make adjustments cause we have the benefit of that bug testing.”
– Duhigg, via KRQE

According to the report, another significant change in the bill involves the easing of licensing restrictions. The initial laws prohibited holding both a cannabis and liquor license simultaneously. Duhigg’s bill revises this, allowing individuals to own licenses for both, though not permitting the serving of both substances at the same location. This change is intended to mitigate public safety risks while providing more flexibility for business owners.

The bill also introduces tighter controls on cannabis advertising and packaging. Aimed at reducing appeal to children, the new rules would ban cartoon imagery and require opaque packaging. While the former is a common regulation in state-legal markets, mandatory opaque packaging would be a more extreme restriction that could hinder consumers’ ability to choose which products to buy — likely benefiting brands that focus more on packaging and presentation than product quality.

Despite the limited duration of the 30-day legislative session, Senator Duhigg expressed optimism about the bill’s prospects. She emphasized the importance of these revisions for the numerous New Mexicans who rely on the cannabis industry for their livelihood.

End

Czech Republic’s Adult-Use Cannabis Plan Features Social Clubs, Home Growing

1/16/2024

The Czech Republic has published their first draft of laws intended to legalize adult-use cannabis in the country, including plans to decriminalize possession as well as home cultivation, and to create social clubs where people can freely consume. However, according to English-language news outlet Expats.cz, the government’s draft bill does not include a framework for establishing a regulated cannabis market. This omission has reportedly raised eyebrows and led to a flurry of discussions among stakeholders and policymakers, with some advocates suggesting that rules for licensed production and retail could be added in the future.

Since 2010, the Czech Republic has decriminalized cannabis for personal use, and medical cannabis has been legal since 2013. The country’s recent efforts to legalize adult-use cannabis, initiated in late 2022, first included plans to establish a regulated market. However, the latest developments suggest a focus only on possession, home cultivation, and the formation of cannabis social clubs, for the time being.

According to Expats.cz, the “Pirate Party,” a prominent proponent of cannabis legalization in the Czech Republic, considers the current bill a compromise. The party intends to negotiate additional provisions, given that the bill is still under development by a working group since November last year.

The proposed legislation is also part of a broader initiative by the Czech government to address addiction through a scientific and risk-based approach. This approach involves regulating “addictive” substances according to their harm levels and adopting policies for harm reduction in addiction management.

Despite not being finalized, the draft has already attracted criticism for its failure to create a legal market for cannabis. According to the report, Czech cannabis associations have expressed their concerns in a joint press release. They argue that while permitting self-cultivation and cannabis clubs are steps forward, the absence of a regulated market doesn’t fully address the issues arising from the current repressive approach, particularly the profits of illegal producers and dealers.

In a recent interview with Business of Cannabis, Dr. Tomas Ryska of Astrasana Czech, suggested that this move could be a strategic one ahead of the nation’s upcoming elections. By omitting market regulations, the government might pressure the Christian Democrats, a coalition party opposing a commercial market, to change their stance. This plan also aims to create media attention and public discontent, paving the way for introducing a market in a later draft. In a quote from the interview, he states, “Politicians very much listen to what the people who voted for them say because they need their votes, and the elections are coming in 2025.”

This development in the Czech Republic mirrors the challenges faced by other EU countries in establishing a legal adult-use cannabis market. Germany’s revised proposal due to European Commission push-back and the legal hurdles within the EU framework also highlight the complexities involved.

End

Illinois Nets $417M From 2023 Cannabis Tax Revenue

1/16/2024

Adult-use cannabis retailers in Illinois sold a record $1.6 billion worth of cannabis products in 2023, which generated $416 million in tax revenue for the state, according to data from the Illinois Department of Financial and Professional Regulation (IDFPR).

“From day one, my administration has put equity first to build the most accessible cannabis industry in the nation. Our work will continue to repair past harm while providing opportunities for communities across the state and creating a more prosperous future.” — Gov. JB Pritzker (D), in a press release

Officials also noted that the sales record coincides with a year-over-year decline in out-of-state sales. In total, about $1.2 billion worth of cannabis products were sold last year to Illinois residents, which is a 14% increase from 2022 and is also higher than the growth of resident sales experienced in 2021, the report said.

“These statistics show encouraging progress that is a testament to the hard work by the Pritzker Administration, lawmakers, and stakeholders in ensuring we create a process that’s accessible to everyone, no matter their gender, race, or where in Illinois they call home,” said IDFPR Secretary Mario Treto, Jr. -“I’m proud of the simplified application process we’ve created to ensure an inclusive cannabis industry and look forward to welcoming even more professionals to the most equitable industry in the country.”

Currently, 177 adult-use cannabis dispensaries, including 67 social equity licensees, have opened for business in Illinois.

A report last year noted that in 2022, Illinois made $36 million in tax revenue off people from Wisconsin — where cannabis remains fully prohibited — who traveled to Illinois to participate in the state’s legal cannabis industry, according to a report.

End

Study Examines Cannabis as Treatment for COVID-19

1/15/2024

In a comprehensive review, a group of scientists have brought forth intriguing insights into the potential role of cannabinoids in the battle against COVID-19. The study, titled “Cannabinoids and the Endocannabinoid System in Early SARS-CoV-2 Infection and Long COVID-19,” was authored Cassidy Scott, Stefan Hall, Juan Zhou, and Christian Lehmann. It was published in the Journal of Clinical Medicine.

By analyzing data from numerous past studies, the review explores how components of the cannabis plant could be key in both preventing the onset and mitigating the prolonged effects of COVID-19. The findings suggest that cannabinoids, notably in cannabis extracts, might inhibit the virus’s entry into cells, reduce harmful oxidative stress, and tame the overwhelming immune response often seen in severe cases. This research also highlights the promising role of cannabinoids in addressing the varied and persistent symptoms of Long-COVID.

According to the study, cannabinoids have shown potential in preventing viral entry, mitigating oxidative stress, and alleviating the cytokine storm associated with COVID-19. The study indicates that specific cannabis extracts can downregulate ACE2 protein levels in key tissues, hindering the virus’s entry into human cells. The authors state that this aspect is critical, considering that ACE2 is the primary gateway for the virus.

The review also discusses cannabinoids’ role in addressing oxidative stress, a significant factor in COVID-19’s pathogenesis. By transforming free radicals into less active forms, cannabinoids like CBD could help mitigate the harmful effects of oxidative stress seen in severe COVID-19 cases.

According to the study, cannabinoids may also have a beneficial effect on the cytokine storm, a severe immune response triggered by COVID-19. Cannabinoids have demonstrated effectiveness in reducing inflammatory cytokines, suggesting their potential in managing such immune responses.

Moving to post-acute COVID-19, commonly known as Long-COVID, the study sheds light on the potential of cannabinoids in treating persistent symptoms like depression, anxiety, post-traumatic stress injury, insomnia, pain, and decreased appetite. The endocannabinoid system’s involvement in various neurological processes makes it a target for addressing these neuropsychiatric symptoms.

The study also considered the various methods of consumption and different types of cannabis products used by consumers, and the authors point out that smoke inhalation may have negative effects for patients suffering from respiratory illness that could offset therapeutic benefits.

“Although smoking and vaporizing cannabis are often preferred by patients, as they provide the fastest onset of effects, it is possible that the potential benefits of cannabinoid treatments are outweighed by the negative respiratory health consequences associated with smoking. Studies have suggested that the use of cannabis vaporizers is associated with fewer respiratory symptoms than smoking cannabis, as they do not heat marijuana to the point of combustion.” – Cassidy Scott, et al

The authors underscore the need for further research in this domain. While the initial findings are promising, they caution that these are preliminary and derived from studies not exclusively focused on COVID-19. Therefore, more targeted and extensive research, including clinical trials, is essential to fully comprehend the role and efficacy of cannabinoids in treating early and post-acute SARS-CoV-2 infections. The authors advocate for a deeper dive into the pharmacological aspects and potential therapeutic applications of the endocannabinoid system, urging the scientific community to explore this avenue more rigorously.

End

Feds Release Documents Calling for Moving Cannabis to Schedule III

1/15/2024

Officials with the U.S. Department of Health and Human Services (HHS) last week quietly released hundreds of pages of documents detailing the agency’s recommendation that cannabis be moved from Schedule I to Schedule III under the Controlled Substances Act (CSA). The recommendations were released following a FOIA request to Texas-based attorney Matt Zorn of the On Drugs Substack, and Zorn promptly released the documents to the public on Saturday.

While the unredacted documents are not laden with new revelations, the release confirms reports from last year that federal scientists were recommending the shift to Schedule III and reveals the federal agency’s reasoning behind the change.

The 252-page document states that despite being the most commonly used illegal drug, cannabis “does not produce serious outcomes compared to drugs in Schedules I or II” and, in fact, “the vast majority of individuals who use marijuana are doing so in a manner that does not lead to dangerous outcomes to themselves or others.”

Additionally, officials highlighted findings that cannabis could carry significant medicinal benefits — this directly contrasts the plant’s current Schedule I classification, which is reserved for “drugs with no currently accepted medical use and a high potential for abuse.” While the plant was found to carry some risk of physical dependence, HHS noted that the risk of serious outcomes is low.

HHS Secretary Xavier Becerra told the New York Times that his department has been coordinating with DEA about the potential for rescheduling cannabis and had “communicated to them our position.”

“We put it all out there for them. We continue to offer them any follow up, technical information if they have any questions.” — Becerra, via NY Times

After news of the Schedule III recommendation broke last year, a group of Republican lawmakers urged the DEA Administrator Anne Milgram in a letter to reject the recommendation. DEA would later assert to Congress in a letter revealed early this year that the agency has the “final authority” on any decision regarding the status of cannabis under the Controlled Substances Act.

In terms of the industry, it’s not completely clear what a Schedule III reclassification would bring but cannabis entrepreneurs, scientists, and lobbyists believe it would at the very least relax restrictions on cannabis medicine, research, and banking.

“The importance of a federal agency publicly acknowledging that cannabis is inappropriately classified as a Schedule I substance and has accepted medical use cannot be overstated,” said Saphira Galoob, Executive Director of the National Cannabis Roundtable, in a press release.

End

2024 Cannabis Industry Forecast: Federal, International, and Financial

1/12/2024

As the cannabis landscape continues to evolve at a rapid pace, both within the United States and globally, 2024 stands as a pivotal year filled with potential breakthroughs and challenges. In this round-up, Ganjapreneur taps into the insights of industry professionals, offering a diverse array of predictions that shed light on the future of legalized cannabis. Over the coming weeks, we’ll be publishing more round-ups that will dive deeper into the issues facing brands, retailers, and the CBD/hemp industry. (Want to submit your predictions? Click here) Our focus in this installment is on federal reform, international policy, and the financial outlook of the cannabis industry for the coming year.

The journey towards federal legalization in the U.S. has been a complex and often unpredictable path. This year, experts weigh in on the likelihood of significant legislative changes and how these could reshape the industry. Meanwhile, on the international front, changing policies across various countries offer a glimpse into a future where cannabis may play a more prominent role in global trade and healthcare.

Potential Policy Changes & 280E Relief

We are cautiously optimistic that 2024 is going to be a good year for the cannabis industry. If a re/de-scheduling takes place, this could be great news for workers in the cannabis industry, with the elimination of 280e alone, which has squeezed profit margins considerably. A re/de-scheduling would give companies better margins giving them the ability to catch up to other industries by improving their compensation and benefit offerings to more easily attract new talent and retain the great employees they currently have. This should also allow Cannabis employers to gain access to better healthcare provider networks and 401k plans for their employees.

Kara Bradford, CEO Viridian Staffing

It’s an election year so that means campaign promises will be made! In general it will be up to cannabis organizations and supporters to pressure officials to present tangible solutions with timelines and accountability measures. Specifically, the recent very unfortunate death of an Oakland police officer responding to a cannabis business burglary may ramp up SAFE Banking talks and some movement will be made with rescheduling efforts post HHS’s position release.

Frederika Easley, Director of Strategic Initiatives The People’s Ecosystem

One word: unification. As I see it, we still don’t have a unified industry, and we aren’t advocating enough for the needs of small businesses and legacy producers. We need a coalition of people that represents the needs of the already existing community of consumers—and the people who provide cannabis to them—to make sure that federal legalization isn’t just a transfer of power over to mega corporations whose only interest is capital. Together, we are strong. Individually, we are powerless. If we are not operating together as a unit, the people who are aligned against us are going to take control of our industry.

Roger Volodarsky, Founder/CEO Puffco

We foresee several additional states legalizing recreational cannabis in 2024. Federal legalization of medical or recreational cannabis appears to be a long way off, as demonstrated by the inability of the SAFE Banking Act to pass in Congress. 280E is still the number one challenge the industry faces. The high tax burden stifles growth and profitability in the cannabis industry. 280E makes it difficult for cannabis businesses to reinvest in their operations or to compete with prices on the black market.

Cory Parnell, Principal/CEO BGM

Cannabis markets have been long capital constrained with a small investor pool due to being Scheduled 1 at the Federal Level. Before the next presidential election I believe there will be enough political pressure to re-schedule cannabis. This change may take a while to impact areas such as banking, payments, and interstate commerce, but it will have an almost overnight impact on investment capital. Many interested pools of money are waiting in the wings for this federal prohibition to drop. Ideally this will provided the needed injection of capital into struggling cannabis businesses, and at valuations that are competitive.

Kai Kirk – CPO, Blaze Solutions

Finance & Market Landscape

Regardless of the outcome of rescheduling or the potential passage of SAFER Banking, three key issues will remain unaddressed in 2024: 1) Cashless payments will continue to be scrutinized by card companies and will continue to be shut down 2) Access to capital will not improve and social equity license recipients will either struggle to maintain ownership or be unable to operate 3) The ripple effect of the collections crisis will start to be felt across the supply chain– beginning with cultivators– and will lead to an increase in layoffs and receiverships.

Abby Kaufmann, Sales Executive / Board Member CRB Monitor

The conversation about unethical and illegal industry behavior will have much more attention in 2023. The conversation around the larger cannabis industry and more specifically, cannabis social equity failing to, in any tangible way, heal impact caused by the War on Drugs will mature and we will start to see community demand comprehensive solutions to address comprehensive harm. These conversations will move burden away from the businesses and onto the cities and counties that implemented harmful War on Drugs policy.

Anthony Avalos, Co-Founder/President Council of Equity Advocacy San Diego

In 2024, the cannabis industry will implement substantial changes in how debt and overdue payments are managed. We can expect to see:

Elevated Focus on Credit and Collection Practices: Companies will intensify their focus on implementing stringent credit evaluations and more effective collection strategies to navigate financial uncertainties.
Emergence of Advanced Credit Scoring Tools: Integrating credit reporting systems into specialized associations will revolutionize how businesses assess credit risks, providing more nuanced and accurate evaluations tailored to the dynamics of the industry.
Shift Towards Delegating AR Responsibilities: Enterprises will realize the significance of segregating Accounts Receivable functions from sales teams. This will streamline operations, enhance accuracy, and ensure proactive management of credit and collections.
Accelerated Submission of Accounts to Collections: To minimize the impact of delayed payments, reduce risk of defaults and foster a more financially stable ecosystem, companies will expedite the submission of overdue accounts to collections within 90 days.

Brett Gelfand, Managing Partner Cannabiz Collects

2024 will be about the survival of the fittest, it’s that simple. Those cutting corners to make a quick buck will not withstand the pressures and pain points the industry is experiencing. Those of us who have taken the more measured, slow and steady approach and built firm foundations, done things the right way, will be rewarded.

Jeremy Zachary, CEO Zen Cannabis

Overall, event marketing spend will further contract and attendance will decline in 2024. Pre-pandemic, there was a surplus of events. Most came back but have reduced their footprint or frequency. And almost all major cannabis events in the western US in 2023 had 30-50% decline, or in one case, was outright cancelled. Trade shows reflect the health of an industry, often a leading indicator. However, licensed operators, the life blood of all aspects of our industry, lack access to capital which is the oxygen to a quintessential growth industry. Gone are the days when companies would exhibit just because they think they need to be there. ROI will be queen (there is a reason why this is the most powerful piece in chess). Trade events are amazing accelerants for professional growth and enterprise success. The ones that offer compelling content both in the conference rooms and exhibit floor, deliver a qualified audience, and listen to the needs of the market will capture the limited event spend. Or as Warren Buffet once said, “Price is what you pay. Value is what you get.”

George Jage, Co-Founder/CEO MJ Unpacked

We’ve seen an IP land grab going on for a few years now, and you should expect the pace of IP litigation to pick up in 2024, particularly for ancillary businesses, such as those involved in AgTech, vaporization, medical devices, and extraction. As competition heats up and new actors enter the market, patents will become a crucial differentiator. Not only do patents protect companies’ innovations, but they also provide long-term value for investors and acquirers. By enforcing their IP portfolios, companies will protect their market positions and demonstrate the strength of their patent portfolios.

Douglas Fischer, General Council Advanced Vapor Devices

In 2024, the cannabis industry is poised for unprecedented growth, but success won’t come to those who go it alone. The mantra for the year is collaboration. Businesses must recognize that operating in separate entities won’t cut it anymore. The key is to be stronger together—combining forces, pooling expertise, and forming strategic partnerships. Investors are increasingly looking for unity in the industry. A combined company of experts not only mitigates risk but also presents a compelling case for sustainable success. It’s a year where teamwork isn’t just an option; it’s the winning strategy.

Jordan Tritt, Founder/CEO The Panther Group

In a momentous year for the U.S. cannabis industry, the number of states with adult-use legalization will hit halfway. Cannabis is legal in 24 states going into 2024, and we’ll break 25 before ’25. This year, we’ll see hopeful operators in states across the country struggle to open their doors, as competition for capital continues to be fierce in ’24. Maryland and New York businesses will finally get the go-ahead but face a fried funding landscape and hurdle after hurdle to become operational. Bootstrapping, ESOPs, and tax loopholes will be all the rage, but only efficient, compliant operations will succeed. Legalization will push forward, as will medical-only programs, and quietly profitable companies will continue to grind, evolve, and expand with the ever-growing market. Many emerging state licensing opportunities in: Delaware, Kentucky, Maryland, Minnesota, New York, Ohio, and Virginia.

Sumer Thomas, VP of Regulatory Operations Canna Advisors

International Cannabis Outlook

Everyone needs to keep their eyes on Europe in 2024. Legalization is expected to become law in Germany in April, and leaders in several other European nations have indicated that once Germany legalizes it, they will proceed with similar policy modernization efforts in their respective countries. Legalization is going to look different in Europe than it does in North America due to continental agreements. However, there are still tremendous opportunities on the horizon, and industry members need to make moves in 2024 to be strategically placed for the coming years. It is very likely that Europe will see more activity than any other region on the planet, including activity in nations that may not be on everyone’s radar right now.

Alex Rogers, Founder/CEO ICBC

European cannabis will continue to implement more progressive cannabis policies and expand national markets. We expect that Germany’s latest cannabis legislation, which includes the reclassification of cannabis as a non-narcotic, expanding the medical market, to be a major catalyst. It’s already happening: Switzerland has begun experimenting with adult-use cannabis programs; the Czech Republic has announced a progressive new cannabis policy; Malta has already legalized cannabis social clubs; and the Netherlands has already kicked off fully legal, comprehensive pilot programs. The year 2024 will likely be deemed a major milestone for cannabis policy in Europe. The end of cannabis prohibition has been initiated, and new market opportunities are on the rise.

Niklas Kouparanis, CEO Bloomwell Group

End

California Cannabis Regulators Announce Product Recalls

1/12/2024

On Wednesday, the Department of Cannabis Control in California announced two recalls of cannabis products due to health and safety concerns.

Recall 1: Urban Therapies Distribution’s Gelato Orangeade

The first recall involves a mandatory action against Urban Therapies Distribution, LLC, concerning their Gelato Orangeade hybrid cannabis flower. The recall, issued on January 10, 2024, was triggered by the detection of Aspergillus flavus, a potentially harmful mold, in the product batch numbered GF-271. According to the announcement, the affected product was manufactured on July 12, 2023.

Consumers in possession of this product are advised to check the UID and batch number on their package. If they match the recalled batch, the DCC recommends that you either dispose of the product or return it to the retailer for proper disposal. Ganjapreneur has reached out to Urban Therapies Distribution for comment.

Recall 2: Echsen Industries’ Infused Pre-rolls

The second recall is a voluntary action by Echsen Industries, LLC, concerning their Fog City Farms Shark Bites infused pre-rolls. Initiated on the same day, this recall was due to the presence of the pesticide Spiromesifen, along with Cadusafos and Cyphenothrin, which were also found in the sample results. These substances pose a potential health risk, according to the DCC. The recalled batch, numbered 0628301 and manufactured on June 28, 2023, was sold after July 17, 2023.

Echsen Industries advises customers who have purchased this product to check the UID and batch number. If they match the recalled batch, the product should be disposed of or returned to the retailer. Consumers experiencing any adverse effects should contact a physician.

In response to the recall, Fog City Farms posted on Instagram clarifying that they have never used chemical pesticides. They attributed the contamination to a third-party manufacturing facility, emphasizing that this was an isolated incident affecting only one batch of their Pacific Chem prerolls manufactured in June of the previous year. They assert that the flower provided was clean, supported by their test results.

For more information about these product recalls, please visit the DCC website.

End

Losing Strategies: Competing Only on Price and THC Content

Customer Experience is Key

Don’t Sleep on Your In-House Sales Data

Optimize Each Sale by Zooming into the Individual

Overcome Upselling Challenges

Bottom Line: It’s All About Consistency

Potential Policy Changes & 280E Relief

Finance & Market Landscape

International Cannabis Outlook

Get the daily briefing