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Another Lawsuit Claims California Brand Inflated THC Levels on Packaging

11/10/2022

Another lawsuit filed in California accuses a state-licensed cannabis company of inflating THC levels in its products. The lawsuit, filed in the state Superior Court in Monterey County by Dover & Luner, LLP, alleges that Greenfield Organix Inc. and LPF JV Corporation, which produce and market the King Roll brand, “overcharged consumers by illegally selling products whose THC content was represented as substantially higher than it actually was.”

In court documents, plaintiffs claim that the labeling on King Roll products claims THC concentrations as high as 48.54% but independent laboratory testing found the products contained between 33% and 36% THC, which is more than the 10% margin of error allowed under California regulations.

“Defendants know, or reasonably should know, that they are misleading consumers. Defendants know that THC content is highly material to consumers, and have a direct financial incentive to overstate the THC content of their products. Moreover, as a significant player in the cannabis industry, Defendants are aware of industry trends, aware of the rampant testing fraud in the cannabis market, and know which labs participate in the fraud. Accordingly, Defendants are intentionally and knowingly causing the THC content declared on the label of their products to be substantially, and systematically, overstated, either by misstating the results themselves or by intentionally and knowingly causing testing labs, which are their agents, to report fraudulently high THC content results.” — Rocky Willeford vs. Greenfield Organix Inc., and LPF JV Corporation

The lawsuit, in which attorneys are seeking to make a class action, says the companies broke the Unfair Competition Law, False Advertising Law, and Consumer Legal Remedies Act while accusing the firm of breaching express warranty, negligent misrepresentation, intentional misrepresentation, and unjust enrichment.

“Defendants are systematically overstating the THC content to deceive consumers into thinking that the effects of their prerolls are more potent than they truly are,” the complaint alleges. “This is false and misleading.”

The lawsuit seeks unnamed damages, restitution, attorney’s fees, and an injunction.

In a statement, Christin Cho of Dovel & Luner said the plaintiffs “look forward to holding defendants accountable for their actions.”

A separate lawsuit filed by the law firm last month makes similar claims against DreamFields Brands Inc. / Med for America Inc., claiming the company inflates the THC levels on the packaging of its Jeeter brand.

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Oakland Announces City’s First-Ever Cannabis Equity Week

11/10/2022

Oakland will hold its first-ever cannabis equity week from November 14-18, 2022, according to a city press release. Oakland was the first city in the U.S. in 2017 to start a cannabis social equity program to help those most affected by the War on Drugs find a foothold in the regulated cannabis industry. The celebration will highlight equity operators who they say “have suffered from a lack of consumer awareness and marketing,” which has led to fewer dispensaries carrying equity products on their shelves and on their online menus. During the event, select dispensaries will be offering special deals for equity brands.

“When you buy from an Equity brand, you are buying excellent cannabis products while helping your fellow Oaklanders. Oakland has a deeply rooted history of supporting its own and social justice. Equity cannabis is the next chapter in our story.” — Greg Minor, Assistant to the City Administrator and manager of the Special Activity Permits Division

The city said its equity program to date has “included prioritized permitting for equity applicants, exemption from application and permit fees, free legal and technical assistance, the purchase of a shared kitchen to advance manufacturing opportunities and financial assistance via the Equity Loan and Grant Programs.”

Oakland has issued over 190 equity licenses and dispersed $7 million in grant money to social equity operators. Over 80% of businesses approved for the grant funding are owned by African Americans.

Oakland has used city cannabis taxes, state grants from the Governor’s Office of Business and Economic Development (Go-Biz), and funds from California‘s Department of Cannabis Control to fund the social equity program, the press release notes.

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The 3 Types of Videos You Need for Your Cannabis Business

11/10/2022

Video marketing has officially gone viral. With the onset of TikTok during the pandemic, short-form video content has rocket-launched into popularity with nearly every app coming up with some version of it: Instagram Reels, YouTube Shorts, Pinterest Idea Pins, and so on.

As video becomes entrenched in marketing, brands are feeling the pressure to churn out quality video content. Not to mention, it improves SEO, enables easy content repurposing, and increases customer engagement.

For cannabis businesses, in particular, video marketing comes with unease. If social media antagonizes brands for images of flower or people smoking, how can video be safely used?

That’s where cannabis-specific video marketing strategy comes in. Whether you’re working as a direct-to-consumer brand or a business-to-business (B2B) brand, video content is an essential part of building trust with your potential customers and clients.

We’ve rounded up the three types of video your cannabis business needs ASAP:

1. Educational Videos

The cannabis industry is complex. Everything from the anatomy of a vape pen to what to expect when visiting a dispensary is met with consumer uncertainty. These things not only vary by state but oftentimes are culturally or even internally stigmatized.

Educational videos are a great way to help destigmatize cannabis by spreading legitimate information. Videos with Q&As or product demonstrations allow you to lower that barrier of uncertainty by sharing exactly what customers can expect.

Moreover, educational videos are one of the best ways to build a strong relationship with your customers over time. As you continue to put out helpful content, your audience will slowly associate you with all their cannabis needs.

You’ll go from being the go-to source for their questions to being their top choice on the market when they’re ready to shop.

Overall, educational videos are essential when you’re looking to level up your cannabis video marketing game because they naturally help establish your brand as knowledgeable and slowly, but steadily, build the foundation of the relationship with your customer.

2. Customer Testimonials

Customer testimonials are perhaps the most underrated type of video in the cannabis industry. While other markets, like beauty and skincare, thrive with customer testimonials and have flourishing user-generated content communities, cannabis is behind.

Think of customer testimonials as brand ambassadorships or influencer partnerships, but with your real-life, everyday, loyal customers. Featuring client testimonials or transformations helps humanize your brand and also takes on-the-fence or first-time customers, well, off the fence.

The cold hard truth is that no one wants to buy your product or service. They want to buy your outcome, your transformation. Whatever story you can share to show what your exact outcome is will get people through the door faster than any full-blown marketing campaign ever could.

3. Behind-the-Scenes Videos

Lastly, you need BTS videos. No, not the K-pop group, but the intimate, sneak peek into a day in the life of being on your team.

When users online can put a face to your brand name – or a few faces – and form a genuine connection, they are more likely to feel a sense of loyalty. For instance, a dispensary sharing the cannabis journey of its budtenders may spark some viewers to say “I would love to be their friend,” or even better, “I have a similar journey; I want to buy from them.”

Behind-the-scenes videos showcase your brand with transparency and authenticity that gives your customers the feeling that they are in the know with you.

The Time for Video is Now

If you’re a cannabis brand that hasn’t jumped on the video marketing train yet, it’s not too late to start. You don’t need an entire team of producers, directors, videographers, and editors to get started.

With cannabis becoming such a saturated market, video could be your key to standing out from the crowd. Begin today just by picking up your cell phone! Experiment with creative approaches to educational videos, customer testimonials, and behind-the-scenes content to organically establish thought leadership, reduce sales friction, and build brand loyalty.

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Maryland Voters Approve Cannabis Legalization Initiative

11/09/2022

Maryland voters on Election Day approved a Legislature-backed ballot question to legalize cannabis for adult use, according to New York Times election results with 82% of the vote counted. Voters handily backed the measure by a 65.5%-34.5% margin.

Polling prior to Tuesday’s vote had repeatedly found strong support for the reforms, with an October poll from the Washington Post and the University of Maryland gauging support at 74%.

Unlike most citizen-backed initiatives, Maryland’s adult-use question was proposed by state lawmakers and gives the Legislature the green light to set up the industry. The approval by voters triggers some cannabis-related legislation that was passed by lawmakers during the 2022 session, according to the Baltimore Sun. The legislation impacted includes a bill that starts a transitional period between January 1 and July 1 where some cannabis-related penalties related to possession would be reduced; criminal penalties for possession up to an ounce-and-a-half can be fined $100, while criminal penalties for possession up to two-and-a-half ounces will be replaced with civil citations.

Lawmakers also passed a bill that allows for the expungement of some prior cannabis convictions.

Starting July 1, adults 21 and older will be allowed to cultivate up to two plants for personal use at home, and up to four plants per household. At the earliest, adult-use sales could commence on July 1; however, when the General Assembly approved medical cannabis reforms in 2014, the first dispensaries in the state didn’t open until 2017.

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Missouri Legalizes Cannabis for Adult Use

11/09/2022

Missourians on Election Day voted to legalize cannabis for adult use by a 53%-47% margin. It marks the first time a mid-western state has backed an initiative to legalize cannabis for adults.

In a statement posted to Twitter, Legal MO 2022 Campaign Director John Payne noted the vote was also historic in that it is the “first state in the nation to automatically expunge past, nonviolent, marijuana offenses by a vote of the people.”

“This enormous step forward for criminal justice reform will result in hundreds of thousands of Missourians having their records cleared, at no cost to them, for an activity that is now legal. Missouri will see millions in new revenue pour in each year for veterans’ health care, drug treatment, and our severely underfunded public defender’s office. Today’s vote immediately puts an end to nearly 20,000 arrests each year for minor marijuana violations, freeing up vital law enforcement resources to fight serious and violent crime.” — Payne in a statement

The measure allows adults to possess up to three ounces of cannabis and to cultivate up to six flowering plants, six immature plants, and six plants under 14 inches at their homes for personal use. At the earliest, sales to adults could begin by Feb. 6, 2023. The Missouri Department of Health and Senior Services will oversee the new industry and is tasked with awarding adult-use licenses to established medical cannabis facilities.

Adult-use cannabis will be taxed at 6%, the Kansas City Star reports. Officials estimate the industry will cost the state about $5.5 million each year but bring in at least $40.8 million in annual revenue. It is expected to cost local governments at least $35,000 each year but bring in at least $13.8 million per year.

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Colorado Psychedelic Reform Initiative Too Close To Call

11/09/2022

The vote to decriminalize and regulate some psychedelics for adults 21 and older in Colorado is still too close to call, according to New York Times figures, which show 51%-49% in favor with 80% of the vote counted. Under state law, a recount is triggered when a margin of victory is less than or equal to 0.5% of the winner’s vote, The Denver Post reports.

The measure aims to legalize psilocybin and psilocin, two compounds found in “magic mushrooms,” for use in therapeutic settings and create “healing centers” where adults 21 and older can use the substances under the supervision of licensed professionals.

The measure would also decriminalize the personal cultivation, use, and sharing of psilocybin and psilocin, as well as ibogaine, mescaline, and DMT, for adults.

Oregon is the only other state to legalize psychedelics for therapy after voters approved the reforms in 2020. Similar reforms were also approved that year by voters in Washington, D.C. In 2019, voters in Denver decriminalized possession of psychedelic fungi, becoming the first U.S. city to do so.

In the statewide vote, neither advocates nor opponents have claimed victory and the vote tally will continue throughout Wednesday.

Natural Medicine Colorado, which got Proposition 122 on ballots, spent nearly $4.5 million through October 26, while raising $6 million through Monday, the Colorado Sun reports.

New Approach, a political action committee, and the Center for Voter Information each donated $1.2 million to Natural Medicine, according to campaign finance reports outlined by the Sun. Natural Medicine donated $224,000 to another super PAC called Rocky Mountain Voter Guide, which published an online voting guide backing the measure.

Protect Colorado’s Kids, the main opposition, raised about $51,000 from the nonprofit of the same name against the measure, with most of the spending going to a digital advertising and texting campaign.

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Adult-Use Cannabis Legalization Initiative Fails in Arkansas

11/09/2022

Voters in Arkansas defeated a ballot question to legalize cannabis for adult use by a 56.2% to 43.8% margin with 92% of the vote counted, the New York Times reports. The measure would have legalized possession and use for adults 21 and older and allowed commercial sales.

The measure was opposed by several state politicians, including Governor-elect Sarah Huckabee Sanders (R) and Republican U.S. Sens. Tom Cotton and John Boozman, the latter of which was reelected to a third term. Huckabee Sanders’ predecessor, Asa Hutchinson (R), had also said he planned to vote ‘no’ on the proposal.

Polls prior to Election Day had found support for the proposal shrinking. The measure faced headwinds even making it to ballots as the state Board of Election Commissioners had initially rejected the initiative’s ballot name and title and Secretary of State John Thurston deemed the measure insufficient due to the commissioners’ decision. However, the state Supreme Court ruled in favor of the campaign that led the effort and allowed the question to appear on ballots.

Medical cannabis is legal in Arkansas and this year’s sales totals are outpacing those of last year. So far in 2022, medical cannabis sales in Arkansas have totaled $205 million; sales reached $264.9 million in all of 2021.

Adult-use cannabis legalization was the only citizen-backed initiative on Arkansas ballots this year. There were three other questions put to voters that were added by lawmakers.

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South Dakota Voters Reject Adult-Use Cannabis Legalization

11/09/2022

South Dakota voters on Election Day rejected the proposal to legalize cannabis for adult use by a 53%-47% margin, the Argus Leader reports. It marks the second time voters in the state have rejected the reforms, voting down a similar ballot measure in 2018.

The measure would have allowed adults 21 and older to legally possess up to an ounce of cannabis for non-medical purposes and allowed sales from state-licensed dispensaries.

In a statement to the Leader prior to the final results, Protecting South Dakota Kids Committee Chair Jim Kinyon compared the proposal to “putting lipstick on a pig.”

“We’ve had a lot of people … say that (legalized cannabis) is going to make us wealthy, or that it’s going to make us well, and I just keep asking the same question: ‘When has the sale of any illegal drug done that?’ That’s a lot of lipstick on a pig. And the good news is, in South Dakota most of us know what a pig looks like, and we know what one smells like.” — Kinyon to the Leader

South Dakota voters had approved the reforms in 2020 but the state Supreme Court ultimately ruled that the measure violated the state’s single-subject rule on ballot initiatives. The campaign backing the reforms, South Dakotans for Better Marijuana Laws, had said if this year’s proposal had been approved it would “restore the will of the people.”

Voters in neighboring North Dakota also rejected their own cannabis legalization initiative.

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North Dakota Voters Reject Cannabis Legalization Measure

11/09/2022

North Dakota voters have rejected a measure to legalize cannabis for adult use by a 55%-46% margin, according to New York Times polling results. It marks the second defeat for the reforms in the state, where North Dakotans voted down a similar measure in 2018 59%-41%.

Luke Niforatos, executive vice president of Smart Approaches to Marijuana, a Virginia-based political organization that opposes cannabis legalization – and helped fight the measure in North Dakota – told the Associated Press that the vote showed “It’s pretty clear North Dakota families don’t want marijuana across the state.”

The organization behind Measure 2 received close to $600,000 in donations this election cycle, mostly from national pro-legalization groups and dispensary operators, according to Inforum. Much of those funds were spent gathering signatures to put the issue to voters.

Voters in neighboring South Dakota also rejected the reforms.

The North Dakota House of Representatives passed a measure similar to the ballot initiative in 2021 but the proposal did not make it to the Senate floor for a vote, according to Time. Voters in the state also rejected the reforms during the 2018 midterm elections.

The initiative would have legalized the possession of one ounce of cannabis for adults 21 and older and allowed home cultivation of up to three plants.

According to an MJBizDaily projection, an adult-use market in North Dakota could have generated up to $100 million during its first year of operation and up to $285 million in its fourth year.

North Dakota voters legalized medical cannabis in 2016.

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Single Texas Mom Facing Eviction for Medical Cannabis in Federally Subsidized Apartment

11/08/2022

Texas single mother Candace McCarty, of Temple, is facing eviction for possessing and consuming medical cannabis in her federally subsidized apartment, KXAN Austin reports. Temple, who is a patient in the state’s limited medical cannabis program, faces the looming eviction because she receives housing assistance through the federally-funded Central Texas Housing Consortium.

Last year, the U.S. Department of Housing and Urban Development clarified that even if an individual is prescribed medical cannabis through a state program, they are still not allowed to use or possess cannabis at home if they receive federal housing assistance. McCarty says she was not aware of the rule, assuming her use of THC gummies, cannabis oil, and smokable CBD cannabis were allowed because the cannabis was permitted by the state of Texas, the report says.

“They’re claiming it’s criminal. I thought it was all legal, because I obtained it legally from the state. I’m just a single mom on disability, and I’m just trying to make it … facing homelessness right before the holidays.” ‒ McCarty to KXAN

Barbara Bozon, executive director of Central Texas Housing Consortium, pointed out that McCarty’s lease says “any drug use is not allowed, and that their lease is subject to termination for any drug activity.”

McCarty, however, said she believes the lease was not clear, noting that it says residents cannot engage in “any drug-related criminal activity on or off the Authority premises. The term drug-related criminal activity means the illegal manufacture, sale, distribution, use or possession with the intent to manufacture, sell, distribute or use of a controlled substance.”

McCarty moved to Texas two years ago after Hurricane Laura and wishes she would have known about the restrictions. She was reported by her neighbor.

“I just want people to know, so they’re not in the same position that I’m in,” McCarty said in the report.

Her next court date is at the end of November.

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New Mexico Monthly Cannabis Sales Again Break Record in October

11/08/2022

Adult-use cannabis sales in New Mexico broke another monthly sales record in October reaching $25 million, according to Cannabis Control Division (CCD) data outlined by the Albuquerque Journal reports. It marks the first time adult-use cannabis sales have surpassed $25 million in a month in the state.

During October, medical cannabis sales in New Mexico reached a new low – $14.7 million – since the launch of adult-use sales. The number of patients in the state fell by 473 since September 2021.

Overall, both medical and adult-use sales for October were $39.8 million. To date, adult-use sales have reached $161 million since the market launched in April, the report says.

New Mexico’s border towns represent a third of adult-use sales. Sunland Park, with a population of less than 20,000, sold more than $1.5 million in adult-use cannabis in October. The town’s dispensary customers are largely Texans. Hobbs, which borders West Texas, sold $1.47 million in adult-use cannabis during the month, while sales in Clovis, which also borders West Texas, reached $713,010 in adult-use sales.

In Albuquerque, the state’s largest city, adult-use sales reached a new record of $8.1 million in October, while Las Cruces sold about $1.73 million in adult-use cannabis. Sales in Santa Fe declined from September to $1.84 million, according to CCD data.

Reilly White, an associate professor with the University of New Mexico’s Anderson School of Management, said Albuquerque’s record sales month could be due, in part, to the Balloon Fiesta which boosted tourist traffic.

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American Autoflower Cup 2023 to Unite Growers and Breeders at Green Street in Los Angeles

11/08/2022

Los Angeles, California — The American Autoflower Cup (AAC) is announcing its first-ever event where autoflower cultivators can test their cannabis growing skills head-to-head with the best growers and breeders in the United States. Participants will compete to become the first American Autoflower Cannabis Cup Winner in the following categories:

Best Sativa strain
Best Indica strain
Best Autoflower Breeder

The following individuals will serve as judges for the event:

Daniel Morford, a third-generation ganja farmer born and raised in the Emerald Triangle with over 19 years of experience in cannabis growing and 10 years growing/breeding autoflowers
Nick Bradley, with more than 10 years of experience in cannabis retail and quality assurance
Sincerely Cali, with 25 years of industry experience working from trap houses to full cultivation of big canna — currently working with Platinum Genetics & Platinum Farmers
Jenny-Beth Dills, founder of Kind Cannabis Consulting and Director of Operations for Game Over Distribution
Joey Burger, a Regenerative Cannabis Consultant, Dragonfly Earth Medicine Pure Certified Educator, and Permaculture teacher with 27+ years of experience in the Emerald Triangle
Jessica Cueb, AKA Pothead Princess, an LA-based influencer with 10 years of cannabis industry experience ranging from Amsterdam to all over the U.S.

AAC is also pumped to present our Cup Curator, Jeremy Norrie, winner of the High Times Cannabis Cup for Best Product in Amsterdam. His in-depth knowledge of how the judging criteria works for cannabis competitions in national and international cups will make this the best Autoflower Cup ever!

Come check out the latest and greatest autos the cannabis world has to offer while enjoying live music and good company, and even better buds. See the future of cannabis cultivation firsthand and celebrate all things autoflower.

The event will take place in LA’s premier cannabis location, Green Street, located at 718 South Hill Street, Los Angeles. Applications are open and sample submissions will be accepted from December 1st, 2022 through January 10th, 2023.

For more information visit https://americanautoflowercup.com or send us an email at info@americanautoflowercup.com.

Social links:
IG https://www.instagram.com/americanautoflowercup/
Twitter https://twitter.com/AAutoflower_cup
Facebook https://www.facebook.com/profile.php?id=100085049890177
Reddit https://americanautoflowercup.com

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Czech Republic Aiming to Harmonize Cannabis Legalization Laws with Germany

11/08/2022

The Czech Republic is aiming to harmonize its cannabis laws with Germany as the two European Union nations seek to implement adult-use reforms, Forbes reports. The Czech coalition government is expected to present a draft bill to regulate the industry in March 2023 and the reforms could take effect by January 2024.

In September, the Czech government tasked drug commissioner Jindřich Vobořil to draft a law to legalize adult-use cannabis. In a Facebook post last month, Vobořil indicated that Czech officials are in contact with the German government to coordinate and consult with one another on the reform plans.

“My colleagues in Germany are talking about permitted quantities, and they don’t have the cannabis clubs that we foresee. I certainly want to hold the cannabis clubs until my last breath. This model seems very useful to me, at least for the first few years.” — Vobořil, in a Facebook post, via Forbes

The Czech Republic decriminalized personal possession of cannabis in 2010 and legalized medical cannabis in 2013. The nation is also one of the few in Europe that allows industrial hemp to contain THC concentrations of up to 1% instead of 0.2%.

According to the Addiction Report released in August by the National Monitoring Center on Drugs and Addiction (NMS), about 30% of adults in the Czech Republic have tried cannabis and about 9% consume it regularly.

According to the Czech Pirate Party, the smallest political group inside the government coalition and one of the country’s most prominent cannabis advocates, cannabis product sales could generate about €800 million ($782 million) in tax revenue annually.

Germany unveiled its legalization plans last month. Under the draft plan, THC in cannabis products would be limited to 15% and adults would be allowed to cultivate up to two plants for personal use. Health Minister Karl Lauterbach has estimated about 4 million adults in Germany consume cannabis.

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Maine Bars Medical Cannabis Caregivers from Giving Patients Liquid Concentrates, Pre-rolls

11/08/2022

The Maine Office of Cannabis Policy (OCP) last month released guidance that effectively bans medical cannabis caregivers without a storefront from selling pre-rolls and liquid concentrates, the Associated Press reports. The new rules treat the products like tobacco, requiring all purchases to be made by individuals 21 and older. Previously, those products could be provided by individuals 18 and older with valid medical cannabis cards.

Sen. Craig Hickman (D), co-chair of the Legislature’s Veterans and Legal Affairs Committee, called the move by the OCP “executive branch overreach and bad faith.”

“Let medical cannabis caregivers go into the winter without more fear and anxiety that they are going to lose their shirts or be fined and imprisoned for conduct explicitly authorized under current statute.” — Hickman, in a letter to OCP, via the AP

Sharon Huntley, a spokesperson for the Maine Department of Administrative and Financial Services, told the AP that the guidance is not actually a policy change, rather it outlines “the current state law for registrants and licensees” and is meant to eliminate confusion.

The guidance doesn’t have an impact on adult-use cannabis retailers, which requires customers to be 21 to purchase any cannabis products, but has led to confusion for the state’s medical cannabis caregivers.

Arleigh Kraus, who grows medical cannabis and produces pre-roll products, called the guidance “confusing,” “scary,” and “nonsensical.” She said state law requires lawmakers to be consulted on rule changes and that small business owners are worried about being penalized for running afoul of the rules.

Hickman said lawmakers should have a say and that the rules are contrary to the will of voters.

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More Than $13B of Cannabis Sold in Colorado Since Legalization in 2012

11/07/2022

In the decade following adult-use cannabis legalization in Colorado, the state has sold $13.4 billion in sales, leading to $2.2 billion in taxes collected, 9 News reports. Brian Vicente, one of the co-directors of the campaign to pass Amendment 64, which legalized cannabis for adults 21 and older, said the reforms have been “an unqualified success.”

Mason Tvert, the campaign’s other co-director, told 9 News that Colorado’s legalization win at the ballot box 10 years ago “inspired a lot of discussions and got a lot of elected leaders both in the U.S. and abroad examining their cannabis policies.”

Since 2012, when Colorado joined Washington state in passing the reforms, 17 other states and Washington, D.C. have reformed their cannabis policies and allowed adult-use sales.

“I feel like the Colorado model should be exported to other states and other countries and the world would be better off.” — Vicente to 9 News

In Colorado, tax dollars derived from adult-use cannabis sales are used for public school funding and sent to the state’s marijuana fund which earmarks the money for healthcare, health education, drug abuse prevention and treatment programs, and law enforcement.

Vicente added that while additional states pass the reforms, more pressure is being put on the federal government to overhaul its cannabis policies. Five states will vote during the midterm elections on whether to pass adult-use cannabis reforms.

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Idaho Poll Finds That 68% Support Medical Cannabis Legalization

11/07/2022

An Idaho Statesman poll by SurveyUSA released on November 5 found 68% of Idahoans believe medical cannabis should be legalized in the state. The poll found just 18% believed medical cannabis should remain outlawed with 14% unsure.

The poll found less than half (48%) of respondents backed adult-use legalization in the state with 41% opposed and 10% unsure.

The poll also found a minority of respondents – 11% – believed low-level cannabis possession should be met with jail time, with 43% saying such offenses should lead to a fine, and 42% supporting no penalty at all.

The poll found medical cannabis legalization was supported by 84% of Democrats, 60% of Republicans, and 74% of independents. Adult-use reforms were supported by 35% of Republicans, 74% of Democrats, and 61% of independents.

House Minority Leader Ilana Rubel (D) told the Statesman that she “wouldn’t have been surprised” if support for medical cannabis legalization wasn’t higher.

A bill introduced in the state Legislature last year to decriminalize cannabis never made it to the floor for a vote. Rubel said the poll indicates that “the Idaho Republican Party and the political elite within it have taken on a life of their own, that does not track the desires of the people of Idaho.”

The poll was conducted from October 17-20 online and by phone and included 550 adults.

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Hemp Processing Company Setting Up Headquarters in Virginia

11/07/2022

A hemp fiber processing company is set to invest $17.5 million to establish its U.S. headquarters in Mecklenburg County, Virginia in the former Kinderton Distribution Center. The plan by FyberX, which processes raw agricultural biomass into refined natural fibers, will create 45 new jobs.

In a statement, Ben Young, CEO of FyberX, said “Southern Virginia is strategically positioned to play a vital role in unlocking the economic potential of industrial hemp fiber in a variety of markets including textiles, construction, packaging, automotive, and bioplastics.”

“We are excited to work with the local community to implement socially responsible best practices, including a zero-waste production model that minimizes emissions, a transparent supply chain, fair wages, and safe and state of the art processing facilities, all of which will define a new global standard for natural fiber production facilities. The Mecklenburg County facility and anticipated future facilities across the Southeast of the United States will expand the availability of domestically grown and processed hemp fiber while simultaneously providing a substantial economic benefit to not only Southern Virginia, but it’s neighboring states.” — Young, in a press release

Gov. Glenn Youngkin (R) added that the hemp industry “provides a sustainable alternative for industrial and consumer products that will also bring economic benefits to Virginia communities and farmers.”

The Virginia Economic Development Partnership and Virginia Department of Agriculture and Consumer Services (VDACS) worked with Mecklenburg County to secure the project for the state, Youngkin’s office said, and Youngkin approved a $150,000 grant from the Commonwealth’s Opportunity Fund to assist the county with the project.

FyberX is also eligible to receive state benefits from the Virginia Enterprise Zone Program, which is administered by the Virginia Department of Housing and Community Development. Funding and services to support the company’s employee training activities will be provided through the Virginia Jobs Investment Program.

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Sean ‘Diddy’ Combs Agrees to Purchase Cresco Labs and Columbia Care

11/04/2022

Sean “Diddy” Combs has agreed to purchase the cannabis operations of Cresco Labs Inc. and Columbia Care Inc. in three states for up to $185 million, The Wall Street Journal reports. The deal still requires regulatory approval and the company would need to divest assets in several states before it is finalized.

Under the proposal, the new company controlled by Combs would acquire nine retail stores and three production facilities in New York, Massachusetts, and Illinois. Combs’ company would pay $110 million in cash and $45 million in debt financing, plus additional money based on certain market-growth milestones. Cresco and Columbia agreed to merge in March in a $2 billion deal.

In an interview with the Journal, Combs seemed to describe legalization as “diabolical.”

“How do you lock up communities of people, break down their family structure, their futures, and then legalize it and make sure that those same people don’t get a chance to benefit or resurrect their lives from it?” — Combs to WSJ

Between 2010 and 2018, Black people were 3.6 times as likely as white people to be arrested for cannabis possession in the U.S., despite similar rates of cannabis use, according to data from the American Civil Liberties Union.

A June 2021 Leafly report utilizing data from Whitney Economics found that Black-owned businesses comprise just 2% of the roughly 40,000 cannabis companies in the U.S.

“Two percent? All the years, all the pain, all the incarceration,” Combs said. “To me, it was important to do a big deal like this.”

Combs’ other consumer brands include Sean John, a partnership with Diageo PLC on Cîroc vodka and DeLeón tequila.

Editor’s note: A previous version of this article stated incorrectly that Whitney Economics had published the 2021 report investigating Black-owned businesses in the cannabis industry. The ‘Seeds of Change’ article, authored by Janessa Bailey, was actually published by Leafly.

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U.S. Cannabis Council Launches ‘Buy Legal’ Campaign

11/04/2022

New Jersey Gov. Phil Murphy (D) is featured in a new U.S. Cannabis Council (USCC) ad campaign calling on consumers to “Buy Legal.” The campaign kicked off Thursday during the Black CannaBiz Expo in New Orleans, Louisiana.

In a statement, Murphy said it is “an honor” to be the first elected official to participate in the campaign.

“Since adult-use cannabis became legal in our state in 2021, the New Jersey Cannabis Regulatory Commission has established a well-regulated adult-use cannabis market that has catalyzed economic growth in our local communities and established minimum standards for safe products. But like many other products, cannabis is not immune to the persistent illegal market, which poses a serious risk to consumers. As states like New Jersey continue to refine a regulatory framework for adult use of cannabis, our local businesses and consumers would greatly benefit from the resources that the Buy Legal campaign provides. This campaign will help protect the ability of local, regulated cannabis enterprises to continue to do business in a way that is safe and accountable, and protect the safety of consumers while reinvesting in communities.” — Murphy in a statement

Al Harrington, the former National Basketball Association player and founder and CEO of Viola, is also participating in the campaign, which he said “comes at such an important time in the cannabis industry.”

“To truly create equitable opportunities for generational wealth in our community, things like this must be done,” he said in a statement. “Now more than ever it’s imperative to educate consumers on the importance of buying regulated, safe products.”

The founding members of USCC’s Buy Legal campaign include Anacostia Organics, American Trade Association of Cannabis and Hemp, Canopy Growth, Columbia Care, Cresco Labs, Cronos Group, Curaleaf, DC Cannabis Trade Association, Holistic Industries, Jushi, Native Roots, PAX, TrueGreen, Viola, and Wana Brands. The founding members hope to recruit a broad range of legal cannabis businesses to implement the Buy Legal seal across e-commerce, in-store, and at industry conferences and events.

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Report: 2022 Hemp Harvest 46% Smaller Than 2021

11/04/2022

A new report by Colorado-based commodity exchange PanXchange says the 2022 hemp harvest will be 46% smaller than last year’s harvest. The report, outlined by Marijuana Business Daily, indicates that nearly 75% of CBD extract is being used for Delta-8 and Delta-9 THC products, reducing the demand for traditional CBD products.

Farmers grew around 36,925 acres of hemp in 2021, according to the U.S. Department of Agriculture’s National Agricultural Statistics Service. However, only 20,000 acres are expected to be harvested this year. This year’s harvest includes 6,400 to 6,800 acres of hemp flower, 8,200 to 9,100 acres of hemp fiber, and 4,800 to 5,000 acres of hemp grain.

Hemp was federally legalized as part of the 2018 federal Farm Bill. Although this legalized hemp nationwide, many states have developed their own regulations for hemp-derived cannabinoid products including CBD and delta-8 THC, which is a cannabinoid similar to delta-9 THC but which can be synthesized from CBD.

While the hemp industry fluctuates, some licensed cannabis companies have expressed concern about the growing hemp consumer goods market. The California Cannabis Industry Association released a white paper last month describing the nationwide sale of intoxicating hemp-derived cannabinoids like delta-8 THC as a public health crisis, claiming “loopholes in the federal definition of hemp are being exploited … to sell extremely potent, often chemically synthesized intoxicants that are more powerful than anything available in licensed cannabis dispensaries.”

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National Hemp Council of America Urges FDA to Approve Hemp Seed Meal as Animal Feed

11/04/2022

In a letter to U.S. Food and Drug Administration (FDA) Commissioner Robert Califf, the National Industrial Hemp Council of America (NIHCA) urged the agency to “act quickly to approve hemp seed meal as an approved ingredient for production agriculture.”

“From our perspective, there is no reason why the FDA hasn’t already approved hempseed-based animal feed ingredients. We have seen numerous clinical trials, by Land Grant Universities and others, submitted to the FDA that all show the same outcome, that there is no transference of cannabinoids into the nation’s food supply chain from animals raised on hemp seed meal. Those results are consistent across the various species of animals, including laying hens, hogs, and dairy cattle.” — NIHCA in the November 3 letter

In the letter, the NIHCA said that part of the organization’s mission “has been to promote the safe and efficient use of hemp-based animal feed for the production of livestock.”

“The U.S. agriculture industry is struggling with a global grain shortage that is a direct result of the war in Ukraine,” the letter states. “This has resulted in a direct increase in inputs for all domestic livestock producers of 16% since last year, according to the United States Department of Agriculture (USDA).”

The organization indicated that while it understands and is sympathetic to “concerns about cannabinoids entering the nation’s food supply” hemp seeds are “biologically incapable of producing cannabinoids.”

The NIHCA points out that the FDA has recognized that other hemp seed products, including hearts, oil, and protein, are safe for human consumption and that the Drug Enforcement Administration earlier this year determined that cannabis seeds are not considered a controlled substance federally and legal under the Farm Bill.

“Drought and the war in Ukraine contribute to the global grain crisis. Hemp is an environmentally responsible and domestically grown alternative,” the NIHCA wrote. “Considering the higher costs associated with the worldwide grain shortage, a sustainable American hemp crop is a nutritious source of animal feed, and it can lower the cost of farming feed inputs. This would be good news for farmers and consumers who now struggle with the higher costs of milk, meat, and eggs.”

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Report: Cannabis 6th Largest Cash Crop in the US

11/03/2022

According to the 2022 Leafly Cannabis Harvest Report cannabis is the sixth-most valuable crop grown in the U.S. The report estimates that cannabis grown in the U.S. is worth $5 billion a year and constitutes a larger agricultural footprint than potatoes or rice.

The second annual harvest report from Leafly found that adult-use cannabis producers grew 2,834 metric tons this year, up 554 metric tons from last year, which according to federal use reports is only one-quarter of the country’s demand. The report estimates that the actual demand for cannabis in the U.S. is between 12 million and 15 million metric tons. Despite the seemingly low supply, cannabis wholesale prices dropped last year, especially in Western states, the report says.

Leafly found producers in western states, such as Oregon, Colorado, and the world’s largest cannabis market, California, grew too much cannabis, while Midwest and Eastern producers did not grow enough. The report notes that due to federal prohibition, farmers cannot sell cannabis over state lines, and the illicit market hurt farmers in the West and increased prices for Midwest and Eastern customers in 2022.

Jason Gellman of Ridgeline Farms, a Humboldt County Emerald Cup winner, told Leafly, “The prices this year are at an all-time low and honestly pretty tragic for all the craft farmers. Lots of people will not be able to afford to keep their farms going. Our community as a whole is in a bad financial place.”

Dusty Shoyer, President and COO of Revolution in Illinois and Missouri, though, said 2022 was a “great year” for his company.

“We finally finished two expansion projects and brought 10 more small batch cultivation rooms online in Illinois and a high-tech mini-grow in Missouri,” he said in a statement to Leafly. “Both are harvesting and producing amazing results.”

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New York Scraps Testing Limits for Bacteria, Mold, and Yeast

11/03/2022

New York’s Office of Cannabis Management (OCM) on Tuesday scrapped its testing limits for bacteria, mold, and yeast for cannabis products after cultivators expressed concern that the majority of their products wouldn’t be able to pass under the state’s strict rules.

According to an email from OCM dated November 1, the agency has removed “the pass/fail limits associated with the Total Viable Aerobic Bacteria County and Total Yeast and Mold Count for unextracted cannabis products,” which includes pre-rolls and flower.

“Cannabis laboratories will still need to run these tests as part of the state mandated testing panel, but at this time, there will not be a defined limit for unextracted cannabis products in the adult-use program.” — OCM in an email

The agency said it is still “the responsibility of the licensee to consider these results and any impact on the stability and expiration dating of the product, as well as any risks to the health of the consumer.”

OCM added that it will continue to monitor lab test results and licensees “may be required to conduct further testing where results indicate concerns with product quality or safety.”

The New York agency still imposes limits on pesticides used in cannabis cultivation and said it is planning “additional lab testing guidance soon to help streamline the lab testing process for conditional licensees including a temporary testing protocol designed to enable licensees to test multiple lots of the same form of product simultaneously.”

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