California Regulators Destroy Pesticide-Contaminated Hemp

8/23/2024

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The California Department of Pesticide Regulation (DPR) recently announced the destruction of hemp grown in 22 greenhouses in Sutter County after an investigation found illegal pesticide residue on the plants. This development comes amid a series of product recalls in the regulated cannabis market, highlighting ongoing concerns about consumer safety and regulatory oversight.

The investigation, led by the Sutter County Agricultural Commissioner (CAC), began with a routine inspection of greenhouses operated by Bin Zheng in May 2024. Subsequent testing by the California Department of Food and Agriculture confirmed improper pesticide use on the hemp, which could have reached the market had it not been destroyed.

DPR worked with the Sutter CAC to ensure the contaminated product was voluntarily destroyed under strict oversight in July 2024. Additionally, Bin Zheng was fined and issued a Notice of Proposed Action for violating pesticide label requirements that prohibit its use on hemp.

It is unclear if the destroyed hemp was being grown for a specific brand or product, though due to the difference in how hemp and cannabis are treated under federal law, many hemp cultivation facilities in the U.S. sell hemp “biomass” across state lines for chemical processing into CBD as well as intoxicating THC variants like delta-8 THC, THCO, and delta-10 THC (which purveyors claim are legal under the 2018 Farm Bill, despite the DEA’s opposite stance). These processed cannabinoids are then re-sold to brands to create products such as gummies and vape products that are sold online, typically with little to zero regulatory oversight.

In a statement, DPR Director Julie Henderson emphasized the importance of prompt enforcement to safeguard public health and the environment. “This action demonstrates California’s commitment to a strong pesticide regulatory program,” she said. This development follows numerous recent cannabis recalls in California, where pesticide misuse and falsification of lab reports have been prominent issues.

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Study: Americans Are Using More Cannabis and Tobacco, Especially Older Adults

8/23/2024

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A study published August 13 in the Addictive Behaviors journal found that the co-use of cannabis and tobacco products by Americans has increased over the last two decades.

The study, outlined in a recent report by Duke University School of Medicine, utilized data from 708,891 adult respondents to the U.S. National Survey on Drug Use and Health from the years 2002-2021. Duke researchers assessed the prevalence among Americans of past 30-day cannabis and tobacco use, exclusive cannabis use, and exclusive tobacco use.

The number of American adults who use both cannabis and tobacco products has increased significantly since 2002 with the increase driven largely by rising rates of overall cannabis use. The prevalence of co-use of cannabis and tobacco particularly increased among older Americans, especially people aged 26-34 and those aged 50 and older. Co-use rates have dropped only for young adults aged 18-25, whose co-use rates stagnated from 2002-2014 and then dropped significantly from 2014-2019.

As of 2021, “the weighted prevalence of cannabis and tobacco co-use was 6.38 %, the weighted prevalence of exclusive cannabis use was 7.28 %, and the weighted prevalence of exclusive tobacco use was 15.01%,” the authors wrote.

“When looking at the 2021 data, younger individuals, people with lower educational attainment and residing in a state with a medical marijuana law, were most likely to report co-use. Trends in cannabis and tobacco co-use prevalence have not been examined in many years while regulatory policy has been changing quite a bit.” — Study lead author Dana Rubenstein, in a statement

Researchers also noted that exclusive cannabis use has been on the rise since 2007 while exclusive tobacco use has declined since 2002.

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Sacramento Officials Pause Plan to License More Cannabis Dispensaries

8/23/2024

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City officials in Sacramento, California this week paused a proposal seeking to increase the number of cannabis dispensary licenses in the city by 50%, CapRadio reports.

The proposal would have increased the total number of retail cannabis licenses allowed in Sacramento from 40 to 60. Current business owners, however, say the market is too saturated for new licenses. Additionally, members of the council’s law and legislation committee said the city should first determine where the new dispensaries could be located — City Council member Eric Guerra specifically called for changes to the zoning rules for cannabis dispensaries due to concerns that limited space could lead to significant rent increases.

“The zoning has to be done first so that we don’t create an artificial market that gouges everyone,” Guerra said in the report.

Of the city’s 40 authorized retailers, 36 are currently open for business, and Sacramento’s cannabis social equity program — the Cannabis Opportunity Reinvestment and Equity Program (CORE) — reserves 10 of the city’s cannabis permits for applicants who were disproportionately affected by cannabis prohibition. The program aims to facilitate disadvantaged people participating in the industry, including those who live or have lived in low-income Sacramento housing or those who were or had family members who were arrested for cannabis-related crimes.

“I don’t agree with the idea of releasing a bunch of licenses and letting the nature of the industry decide who sinks or swims. Because that wasn’t the mission of the CORE to let people sink. The goal was to give us the opportunity to succeed and create generational wealth.” — Crystal Nugs Dispensary and Delivery CEO Maisha Bahati, via CapRadio

Sacramento is also home to the annual California State Fair, which this year attracted national attention as the first U.S. state fair to allow adult-use cannabis sales and consumption.

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Gallup Poll: Cannabis is Less Harmful than Alcohol, Tobacco, and Vape Products

8/21/2024

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Americans view cannabis as the least harmful legal drug, according to a recent Gallup poll in which 66% of respondents said it is “very” (26%) or “somewhat” (40%) harmful. Another 22% said cannabis is “not too” harmful, with 10% believing cannabis is “not at all” harmful. 

Among those polled, cigarettes were seen as the most harmful, with 79% of respondents saying they are very harmful and 18% saying they are somewhat harmful. Another 61% said chewing tobacco is very harmful, along with 31% viewing chewing tobacco as somewhat harmful. 

E-cigarettes and vaping were viewed as very harmful by 57% of respondents, with another 34% saying it was somewhat harmful, and 4% saying it is not too harmful. Forty-five percent of respondents said they viewed cigar smoking as very harmful, with 39% viewing the practice as somewhat harmful, while 9% said it is not too harmful and 4% viewed it as not at all harmful. 

Pipe-smoking was viewed as very harmful by 44% of those surveyed, while 40% said it is somewhat harmful, and 7% said it is not too harmful. Another 34% of those polled by Gallup viewed nicotine pouches as very harmful, while 38% viewed the products as somewhat harmful, 10% said the products are not too harmful, with 7% viewing them as not at all harmful. 

A third of those surveyed viewed alcohol as very harmful, with 53% saying it is somewhat harmful, and 8% viewing alcohol as not too harmful.  

The poll also found an increase among Americans who said cannabis negatively impacts society as a whole, with 54% holding that view in the most recent survey compared to 50% in 2022, when 49% of respondents viewed cannabis’ societal impact as positive – a figure that fell to 41% in the poll released on Tuesday.

  

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South Dakota Increases Medical Cannabis License Fees 70%

8/21/2024

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South Dakota lawmakers on Tuesday voted to increase the price of a medical cannabis business license by nearly 70%, South Dakota Searchlight reports. The 4-1 vote by the Legislature’s Rules Review Committee raises the fee to $9,000 from $5,310. 

Emily Kerr, the state medical cannabis program administrator, told the committee that the fee increase will cover the program’s administrative costs, including three new employees who oversee the program and process medical cannabis card applications, inspect dispensaries and grow operations, and investigate complaints.   

Kerr said that the state is averaging about 13,000 medical cannabis cardholders at any given time and that “the program has grown and been utilized at a rate that was much faster than initially projected.” There are currently 68 dispensaries in operation statewide, along with 38 cultivation sites, 18 manufacturing sites, and two testing laboratories. Each of those businesses, Kerr said, “require thorough review of initial annual renewal applications” and the agency provides “technical guidance and customer service,” as well as an “inspection program to investigate complaints,” and that regulators try to make sure their “getting in there at least annually, if not more.”  

The change is expected to return $346,860 in increased revenue in the first, partial year, and $490,770 in increased revenue in subsequent years. 

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Mike Tyson’s Cannabis Brand Changes Gummie Shape In Colorado Due to State Ban on Edibles Shaped Like People

8/21/2024

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Mike Tyson’s cannabis company Tyson 2.0 is selling boxing glove-shaped gummies in Colorado due to the state’s ban on cannabis edibles shaped like people, animals, and fruit which bars the brand from selling its gummies shaped like an ear missing a piece of cartilage at the top. The ear-shaped gummies, Holy Ears, are a nod to Tyson’s 1997 boxing match against Evander Holyfield — who partnered with his former foe on the product. Tyson serves as co-founder and chief brand officer of Tyson 2.0.

“We first delivered the Mike Bites ear shaped edibles, which took over the world. These Knockout Gummies represent another step in our mission to make plant-based wellness accessible to all. Whether it be through ears or gloves, I’m always looking for new ways to connect with my fans, and I think these gummies will pack a real punch in Colorado.” — Tyson in a press release 

Mike’s Knockout Gummies launched on Tuesday in Colorado. Holy Ears were first released in 2023. Colorado issued its ban on cannabis edibles that could appeal to children in 2017. Other Tyson 2.0 products, including flower and prerolls have been available in Colorado dispensaries since 2021. 

As part of the product launch, and to mark the November fight between Tyson and Jake Paul, Seven Points Distributors is hosting the TYSON 2.0 Knockout Giveaway Contest. For each purchase of Tyson 2.0 products at participating retailers through September 30, consumers will have the chance to win one of 10 prizes, including: an authentic boxing glove signed by Tyson, and other Tyson 2.0 cannabis pipes and products.  

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Report: U.S. Cannabis License Application Rates Are Up For First Time In Two Years

8/21/2024

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The number of total approved and pending cannabis industry licenses in the U.S. increased during the second quarter of 2024 for the first time in two years, according to a CRB Monitor report.

Application numbers soared for many types of cannabis licenses during the quarter, including:

  • Retail dispensary licenses, which increased 445% during Q2 2024.
  • Cannabis manufacturing and processing licenses, which increased 119%.
  • Wholesale and distribution licenses, which saw a significant 760% boost during the quarter.
  • Cultivation licenses, which increased 13%.

Only applications for cannabis testing labs and delivery/transport services saw little change during the quarter.

The increase was driven by a surge in new license applications in states like Michigan, New Jersey, and New York. Michigan added nearly 600 new active licenses, increasing its total licensees by 17%, and New York added 221 new active licenses, increasing its total licensees by 48% (marking an 80% increase over the past 12 months), the report said. Additionally, Utah increased its number of active cannabis licenses by 109% during the quarter — Connecticut also increased its active licenses by 51%, New Jersey by 38%, and Illinois by 23%.

While license applications are up, however, Q2 2024 also saw a 2% decline in the total number of active cannabis licenses in the U.S. — the sixth straight quarter of fewer licensees, the report said. Some of the biggest licensing declines were in California (3%) and Oklahoma (10%) thanks to heightened regulations.

 

 

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Morocco Issues 5,000 Pardons for Cannabis Farming

8/21/2024

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Morocco’s king on Monday pardoned nearly 5,000 people convicted of or wanted for the illegal cultivation of cannabis, Reuters reports.

Mohammed El Guerrouj, head of the National Agency for the Regulation of Activities Relating to Cannabis (ANRAC), said in the report that King Mohammed VI pardoned the individuals to encourage farmers “to engage in the legal process of cannabis cultivation to improve their revenue and living conditions.”

The country’s 2021 medical cannabis law was intended to improve the incomes of farmers, who had held protests over income inequality, and to protect farmers from drug traffickers seeking to exploit the region’s cannabis as an illegal export to Europe.

Moroccan officials issued the country’s first cannabis cultivation permits in 2022 and then issued 54 cannabis export permits in 2023. Moroccan officials say the country’s first legal cannabis harvest in 2023 weighed 294 metric tons — but legal cannabis exports since 2023 have reached just 225 kilograms, Guerrouj said in the report.

Morocco is considered by the United Nations Office on Drugs and Crime (UNODC) to be the world’s largest producer of psychoactive cannabis — but before the medical cannabis policy, Morocco’s cannabis crops would have been primarily processed into hashish.

Earlier this year, South Africa became the first country in Africa to decriminalize cannabis outright.

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Federal Judge Dismisses Challenge to Wyoming Hemp Ban

8/19/2024

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A federal judge in Wyoming last week dismissed the lawsuit challenging the state’s ban on intoxicating hemp products, WyoFile reports. Judge Kelly Rankin dismissed the lawsuit with prejudice, meaning it cannot be brought back to the court; however, plaintiffs are appealing the ruling to the 10th Circuit Court. 

In the ruling, Rankin accepted the state’s motion to dismiss for many of the same reasons he dismissed the plaintiff’s request for a temporary injunction. In that ruling, Rankin said the “Public interest is best served” by denying the injunction.  

“The fact that Plaintiffs are unhappy with the substances [the ban] prohibits, does not make the law vague.” — Rankin, in the decision, via WyoFile 

Rankin also ruled the only proper defendants in the case were the Wyoming attorney general and Wyoming Department of Agriculture director and that plaintiffs could not name the governor or state.

The plaintiffs, a group of hemp businesses, had already filed an appeal in the 10th Circuit Court challenging Rankin’s denial of the injunction. 

The ban took effect in July. Under the law, it is illegal to produce, process, or sell hemp or hemp products containing more than 0.3% THC on a dry weight basis when using post‑decarboxylation or similarly reliable testing methods and to add, alter, insert, or otherwise include any synthetic substance into hemp or hemp products produced, processed, or sold. 

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Majority of Minnesota Social Equity Applicants Are Military Veterans or Have Prior Cannabis Convictions

8/19/2024

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Minnesota officials received 1,817 applications for 280 cannabis industry licenses, according to Office of Cannabis Management (OCM) data outlined by MinnPost. The first licenses will be awarded to social equity applicants and the agency has verified 2,307 individuals as such, mostly military veterans and people with previous cannabis-related convictions. 

OCM will next determine whether the applicants meet minimum requirements before they are entered into the lottery. The timing of the lottery will be determined by how long that review process takes.  

Of the social equity applicants, 39% are military veterans, 29% have a previous cannabis conviction, 25% are residents in areas disproportionately impacted by cannabis enforcement, 6% have dependents with prior cannabis convictions, and less than 1% is the dependent of someone with a prior cannabis conviction. 

Minnesota’s cannabis law does not include residency provisions and just over half (50.4%) of applicants had a Minnesota address. 

The majority of business applications submitted were for microbusinesses (32%) and retailers (32%), followed by mezzobusiness (21%), delivery services (9%), cultivators (3%), manufacturers (3%), transporters (1%) and wholesalers (1%).  

The state plans to award 100 microbusiness licenses, 50 testing labs, 38 retailer licenses, 23 mezzobusiness, 20 of each wholesaler and transporter, 10 delivery, and six manufacturers. In instances where there were fewer applicants than licenses, no lottery will be conducted, such as with testing laboratories for which there were just five license requests. 

Adult-use cannabis sales are expected to begin in the state next year.  

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Cannabis Marketing Association Launches Collaboration with GetCannaFacts

8/19/2024

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The Cannabis Marketing Association (CMA) is partnering with newly launched educational marketing hub GetCannaFacts on a collaboration to equip cannabis brands and retailers with the resources needed to directly educate, inform, engage, and attract new cannabis consumers.  

In a statement, Tatiyana Brooks, co-founder and communication director of GetCannaFacts, said the company’s “mission is to provide marketers with data-driven insights that explicitly address consumers’ wants, limitations and aversions to cannabis and foster sustainable growth by reaching new consumers nationwide.”  

“To improve the industry’s bottom line, we aim to empower businesses to deliver tailored cannabis experiences for each type of consumer – from canna-averse to canna-connoisseurs – and perhaps most importantly, the canna-curious.” — Brooks in a press release  

GetCannaFacts aims to grant marketers, researchers, and business owners access to credible, peer-reviewed content that helps educate nascent consumers in newly legal and maturing markets.   

Lisa Buffo, founder and CEO of Cannabis Marketing Association, added that cannabis marketers often work “hard to dispel entrenched myths that have since been disproven” and “the GetCannaFacts platform makes accessing scientific data in an easy-to-read and understandable format simple for industry communicators.”   

“Cannabis retailers and brands have a deep desire to connect with and educate consumers about the facts concerning cannabis,” Buffo said in a statement, “but we constantly hear from our members about the difficulties of reaching the canna-curious and the canna-averse.”   

As part of the collaboration, CMA members can get access to the GetCannaFacts platform for $99 annually.  

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Medical Cannabis Legalization Takes Effect in Ukraine

8/19/2024

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Ukraine’s medical cannabis legalization policy took effect last Friday, August 16, the Kyiv Independent reports. The change in cannabis policy comes as the country continues to defend itself against Russia, which launched an invasion against its neighbor Ukraine more than two years ago.

Under the policy, military veterans with post-traumatic stress disorder (PTSD) and cancer patients are allowed to purchase and utilize medical cannabis so long as it is prescribed by a doctor. Experts say that about 30% of soldiers in Ukraine may be impacted by PTSD and the Ukrainian Electronic Healthcare System (EHS) indicates a significant increase in the number of PTSD patients in the last two years, the report said.

“Cannabis, its resin, extracts, and tinctures are excluded from the list of particularly dangerous substances. Previously, their circulation was prohibited — now it is allowed, but with certain restrictions. In order to ensure the cultivation of medical cannabis in Ukraine, licensing conditions have been developed, which will soon be considered by the Cabinet of Ministers. Also, the entire chain of circulation of medical cannabis, from import or cultivation to dispensing to a patient in a pharmacy, will be subject to license control.” — Ministry of Health statement, via Marijuana Moment

The legalization policy was passed by lawmakers in December 2023 and signed into law by President Volodymyr Zelensky — who called for legalizing medical cannabis during his 2019 presidential election campaign — in February 2024.

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Florida Polls Disagree on Cannabis Legalization Vote’s Chances

8/19/2024

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Two different polls in Florida are in disagreement regarding the fate of Amendment 3, the state’s cannabis legalization amendment that is set to appear before voters this November. If approved, Amendment 3 would add the legalization of adult-use cannabis to the state’s Constitution and would allow current medical cannabis dispensaries to sell adult-use products.

One poll by Florida Atlantic University found a 56% majority of registered voters said they plan to vote yes on the initiative to legalize adult-use cannabis. Because the initiative calls for a constitutional amendment, however, the measure requires at least 60% support to pass. Meanwhile, 29% of voters said they would vote no on the measure, with 15% undecided. The poll was held from August 10-11 and sampled 1,055 registered Florida voters with a +/- 3% margin of error.

However, another poll conducted from August 7-11 by 7News and Suffolk University found that 63% of voters responded “yes” to the question “Should recreational marijuana be legalized?” The survey questioned 500 likely Florida general election voters in both English and Spanish with a +/- 4.4% margin of error, according to the pollsters.

“The marijuana questions has wide support across all demographics,” David Paleologos, director of Suffolk University Political Research Center, said in the report.

Of the two polls, the 7News/Suffolk University poll is more in line with other recent poll results:

  • A poll last month found that 64% of voters supported the reforms.
  • Some weeks before that, another poll found 64% voter support for the reforms.
  • A FOX News poll in June found that 66% of voters said they would vote yes on the legalization amendment.

However, another poll from even earlier this year — published in April — found voter support lacking for the reforms at just 49% in favor.

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Ohio Dispensaries Generate $11.5+ Million During First Five Days of Adult-Use Sales

8/16/2024

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Ohio cannabis dispensaries with provisional dual-use licenses, which allow operators to conduct both medical and adult-use sales, sold more than $11.5 million worth of adult-use cannabis products during the first five days of legal sales, according to data from the Ohio Division of Cannabis Control.

The dual-use licenses were issued earlier this month and licensees were permitted to begin adult-use sales starting August 6. Five days later, cannabis retailers posted 138,466 receipts for the week totaling more than $11.5 million. Additionally, dispensaries sold about $1.9 million worth of medical cannabis products during the same time period, WKYC reports.

Kathleen Olivastro, the senior vice president of Ascend Wellness Holdings, said in a FOX 8 report the community has been enthusiastic about the launch of recreational sales.

“Since transitioning the first four of our stores, we’ve seen an initial revenue surge by at least three times previous sales and in some cases even higher multipliers. The excitement is palpable, and we look forward to watching this momentum continue to build as we serve our customers.” — Olivastro, via FOX 8

The surge in sales suggests that Ohio’s total cannabis sales could reach nearly $1.3 billion for the year, Cannabis Business Times reported.

Ohio voters approved the state’s adult-use legalization policy in November 2023 and the policy took effect in December. Under the law, adults aged 21 and older are allowed to purchase and possess up to 2.5 ounces of cannabis and/or up to 15 grams of cannabis concentrate. Additionally, adults can home-grow up to six cannabis plants for personal use.

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Report: Global Hemp Market to Grow by $13.9B from 2023-2028

8/16/2024

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The international industrial hemp market is projected to grow by USD 13.90 billion between 2023 and 2028, with a compound annual growth rate of 25.25%, according to a Technavio analysis of international hemp market data from 2018 to 2022.

The report predicts year-over-year growth for the industrial hemp market this year at just under 19% and highlights the Asia-Pacific (APAC) region as the world’s fastest-growing hemp market, responsible for about 39% of the predicted growth during the total forecast period.

While hemp-derived cannabinoid products containing primarily CBD or delta-8 THC have attracted much attention in the U.S. since hemp was federally legalized there in 2018, industrial hemp and its numerous byproducts stand to disrupt a much wider range of industries on a global scale. The hemp market’s expected growth, according to the report, is primarily driven by the crop’s textile potential due to the natural durability of hemp fiber and the material’s ability to replace cotton and synthetic fibers. Hemp is also easier to grow and has a smaller environmental impact than cotton crops, and hemp-based textiles are typically used in the manufacture of rope, canvas, clothing, and even furniture.

Hemp can also be used as a biofuel and source of renewable energy, while hemp seeds and hemp seed oil — which are a reliable, vegan, and protein-rich source of important nutrients including linoleic acids, lipids, and omega-3 and omega-6 fatty acids — are frequent ingredients in health supplements and other organic food products.

 

 

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Tilray Brands Acquires 4 Craft Breweries from Molson Coors

8/14/2024

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Tilray Brands, Inc., owner of cannabis brands Tilray, Aphria, Broken Coast, Symbios, and Navcora, on Tuesday announced it has agreed to acquire four craft breweries from Molson Coors Beverage Company, including Hop Valley Brewing Company, Terrapin Beer Co., Revolver Brewing, and Atwater Brewery.  

The firm’s portfolio already holds craft beers, including SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company, Green Flash Brewing Company, Shock Top, Breckenridge Brewery, Breckenridge Distillery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewing Company, Widmer Brothers Brewing, along with craft cider Square Mile Cider Company, energy drink brand HiBall Energy, and the hemp-derived Happy Flower CBD sparkling cocktail brand.

In a press release, Irwin D. Simon, Tilray chairman and CEO, said the company “plans to continue to invest in the future of these craft breweries, accelerating their growth and capturing a wide range of new market opportunities.”

“Tilray Brands is proud to be driving the most compelling and unique growth story in the craft beer industry. With the acquisition of these four craft breweries from Molson Coors, we are marking another strategic milestone in Tilray Brands’ growth plan. Our team’s expertise in operational excellence will enable us to unlock the full potential of these brands and businesses. We are confident in our ability to drive revenue, generate cost synergies, and expand national distribution reinforcing our leadership position in craft beer resulting in tremendous growth opportunities for our global beverage business.” — Simon in a statement

Ty Gilmore, president of Tilray Beverages, North America added that the additions “will play a pivotal role in the growth of Tilray Beverages” and cements Tilray as the top craft brewer in the Pacific Northwest and Georgia and anchors the company’s craft brands in Texas and Michigan.

“As we move forward, we will leverage our extensive expertise in product innovation and distribution to unlock the full potential of these brands, strengthen their sales and operations, and expand their reach into key markets across the U.S.,” Gilmore said.

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Two North Dakota Medical Cannabis Companies Donated Bulk of Legalization Campaign’s Funding

8/14/2024

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Two organizations linked to North Dakota medical cannabis companies have contributed the bulk of the funds to New Economic Frontier, the campaign spearheading the cannabis legalization initiative in the state, the North Dakota Monitor reports. The Secretary of State’s Office announced on Monday the question will appear on November ballots.  

Pure Dakota Health, which operates a chain of three medical cannabis dispensaries in the state, has contributed about $247,000 in regular and in-kind donations to the campaign, according to campaign finance reports outlined by the Monitor, while GR Holding OH-ND LLC, a company associated with multistate cannabis company Curaleaf, donated $40,000. Curaleaf operates four medical cannabis dispensaries in North Dakota.  

There has been only $130 in small-dollar donations collected by the campaign outside of the $287,000 donated by the medical cannabis operators.  

Steven Bakken, chair of New Economic Frontier, told the Monitor that any business, including North Dakota’s medical cannabis providers, would have a chance to apply for adult-use cannabis permits, if the measure passes. 

Paul Chialdikas, senior vice president and central region lead for Curaleaf, said in a statement that the firm has helped other states transition from medical to adult-use markets in the past and has “the infrastructure and expertise to provide a diverse assortment of safe, tested products to adult-use consumers and medical patients alike if the initiative passes.” 

Medical cannabis sales in the state have increased from about $6.4 million in 2020 to $21.6 million in 2023, according to a 2023 Department of Health and Human Services annual report outlined by the Monitor. Those sales have resulted in more than $2.1 million in medical cannabis fees collected during the 2021-23 biennium.

More than 9,500 North Dakota patients were enrolled as of June 30, 2023. 

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Maine Public Utilities Commission Rejects Plan to Report High Electricity Use to Police

8/14/2024

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The Maine Public Utilities Commission on Tuesday rejected an electric utility’s proposal to proactively report high electricity consumption – which could signal unlawful cannabis cultivation – to police, the Associated Press reports. The three-member panel declined to implement the proposal due to concerns that customers using large amounts of electricity for legitimate purposes could be targeted by police because of the reports.  

The scheme was proposed by Versant Power, who told the panel that the company has a high success rate of identifying illegal cannabis cultivation based on electricity consumption but have no way to communicate that to the police.  

Following the decision, Versant spokesperson Judy Long said the plan was “strictly in the interest of public and worker safety.”  

“After the discussion and today’s ruling in that docket, we have clear direction from the commission, and we will remain vigilant in protecting customers’ private information while continuing to work as mandated with law enforcement.” — Long via the AP 

The proposal was backed by Somerset County Sheriff Dale Lancaster and Republican U.S. Sen. Susan Collins. Law enforcement officials in Maine have been attempting to target illicit cultivation operations in the state in which rural homes are gutted and turned into high-yield indoor cannabis farms, the report says, adding that dozens of the illegal grows have been busted in the state.

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California Taskforce Seizes 2.2 Million Illicit Cannabis Packages

8/14/2024

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The Unified Cannabis Enforcement Taskforce (UCETF) in California seized more than 2.2 million illicit cannabis packages during a recent sting operation in Los Angeles, Gov. Gavin Newsom’s (D) office announced on Tuesday.

The California Department of Tax and Fee Administration led the operation with assistance from the Department of Cannabis Control (DCC) and other state agencies. The operation targeted 11 storefronts in the Los Angeles Toy District; the businesses were also manufacturing and selling “bulk packaging used in the illicit cannabis market to deceive customers and thwart state safety and quality regulations,” according to a press release.

In total, law enforcement seized 2,279,000 contraband packages and 31 banker boxes and garbage bags filled with cannabis.

The governor’s office said many of the illegal products were marked with the California symbol designating legal cannabis, while others resembled popular food and candy products that could be appealing to children.

“California is committed to supporting our safe and legal cannabis market. We will not tolerate criminal activity that undermines the legal market, especially when it puts children at risk. This successful operation in the Toy District reinforces our commitment and sends a clear warning to criminals choosing to operate outside the safer legal industry.” — Newsom, in a press release

“Illegal [cannabis] packaging is dangerous to consumers, especially when it is ripping off well-known brands that are attractive to children, and needs to be removed from the marketplace,” DCC Director Nicole Elliott said in a statement.

Earlier this month, UCETF announced the task force has seized over $120 million worth of illicit cannabis products since January.

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North Dakota Cannabis Legalization Initiative Approved for November Ballots

8/14/2024

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The ballot initiative to legalize adult-use cannabis in North Dakota has qualified for the November election, the Associated Press reports.

Advocates with New Economic Frontier, the group sponsoring the legalization proposal measure, submitted more than 22,000 signatures in July. On Monday, Secretary of State Michael Howe said that officials verified nearly 19,000 signatures — more than enough to qualify the initiative for voter consideration.

If approved by voters, the proposal would legalize the personal use, possession, and cultivation of cannabis by adults aged 21 and older. The policy would also set purchasing and possession caps at one ounce of dried cannabis flower and four grams of cannabis concentrates. The rules would also set limits of 1,500 milligrams of total THC in a single product and 300 milligrams in edible form.

Burleigh County Commissioner Steve Bakken argued in the report that legalizing cannabis would free up police resources to tackle more important issues, such as fentanyl and the opioid epidemic. State Rep. Matt Ruby (R), who sat on the sponsoring committee, said “Our goal now is to educate voters on why we believe this to be a great step forward for our state.

North Dakota voters approved a medical cannabis legalization policy in 2016 but rejected an adult-use proposal 55%-46% in 2022, and voted down a similar measure 59%-41% in 2018.

“The people of North Dakota soundly rejected the idea of recreational marijuana in 2018 and 2022, but here they are again,” said Patrick Finken, who chairs the Brighter Future Alliance, an organization opposed to the reforms, the report said.

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Minnesota Law Banning Cannabis Smoking in Multi-Unit Dwellings Now in Effect

8/12/2024

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A Minnesota law barring cannabis smoking in multifamily homes – defined as those with at least three units – is now in effect, FOX 9 reports. The law does provide exceptions for medical cannabis patients. 

Under the law, landlords are responsible for reporting violators of the law to the Office of Cannabis Management which can impose a $250 fine for each violation; however, there are more than 40,000 medical cannabis patients in Minnesota, so enforcing the smoke-free policy could be tricky.  

Cecil Smith, CEO of Minnesota Multi Housing Association, told FOX 9 that “Obviously there’s going to be some tension that’s going to arise when people have an expectation of a smoke-free building, and they’re smelling weed.” 

In an interview with FOX 9, Kayla Fearing, of Healing Fear Consulting who lives in a multi-family unit, called the law “very discriminatory” adding that, technically, she needs to drive 15 minutes from her home if she wants to smoke cannabis.  

“They’re trying to find places, whether it’s a private trail, places that they can smoke that are in public, that aren’t necessarily ‘in public.’” — Fearing to FOX 9 

Fearing, though, said that “if your neighbors don’t want you smoking, don’t smoke.” 

“I think we just got to be respectful of people,” she said.

Under the law, lawsuits can also be filed against landlords and homeowners’ associations that fail to enforce the policies. 

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Delaware to Begin Accepting Adult-Use Cannabis Industry Applications August 19

8/12/2024

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Delaware officials will begin accepting adult-use cannabis license applications next week, Monday, August 19, Delaware Public Media reports. Once an application is deemed eligible, it will be put into a lottery set to take place in October.  

Under the state’s adult-use law, the state will award 60 cultivation licenses, 30 manufacturing licenses, 30 retail licenses, and 5 testing facility licenses. Applications are required to include a comprehensive business plan, safety and security plans, operations, training, and staffing plans, and whether the applicant has any criminal, civil, or regulatory experience. 

A portion of each license category is designated for micro license applicants and 47 for social equity applicants. The state has already conducted and closed the pre-screening process for social equity applicants but is still accepting applications from applicants who believe they would qualify for a social equity license under the state’s definitions. The state has earmarked $6.2 million for social equity applicants, including $4.2 million from industry application fees and another $2 million allocated by state lawmakers.  

The Office of the Marijuana Commissioner plans to begin awarding cultivation and manufacturing licenses before the end of the year with retail and testing licenses expected by early next year.  

Delaware legalized cannabis for adult use last year. 

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Music Festival Outside Lands Criticized for Stiiizy Partnership

8/12/2024

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California music festival Outside Lands is coming under fire for its partnership with cannabis brand Stiiizy, which released products with the festival’s logo during this year’s event, SF Gate reports. Last year, Stiiizy’s founder Tony Huang was accused of owning multiple holding companies that were connected to numerous illegal dispensaries in California and earlier this year an investigation found Stiiizy products contained high levels of pesticides.

In a statement to SF Gate, Grace Jones, an employee of Grandstand Media, which represents Outside Lands, responded with a “statement from Outside Lands organizers,” who declined to say if the festival was aware of the allegations against Stiiizy. Stiiizy has repeatedly denied the allegations against it.

In an email to SF Gate, Pristina Alford, a spokesperson for Stiiizy, said the company “follows all California regulations and passes all tests, which includes testing for over 60 pesticides.”

“California has the highest set of standards for testing within the industry overall. The results in question have not been shared with us, so we have no idea how they were conducted.” — Alford to SF Gate

During last year’s Outside Lands event, organizers said cannabis sales surpassed $1 million but did not provide exact numbers. The event was the first major music festival given a cannabis consumption permit in California.

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Survey: Most Cannabis Consumers Use Legal Sources

8/12/2024

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A strong 77% majority of cannabis consumers in the U.S. say they get all or most of their cannabis products from legal, licensed sources, according to a recent NuggMD survey.

Specifically, 65% of survey respondents said that “all” of their cannabis products came from legal sources while 12% said that “most” of their products came from legal sources although they still occasionally relied on alternative sources, such as delta-8 shops, vape shops, or an unlicensed dealer.

The survey, which was conducted online, included 473 respondents with a margin of error of +/i 4.51 percentage points. NuggMD, which is primarily a cannabis telemedicine platform, said that most respondents reported using cannabis mostly or exclusively for medical reasons — with the remainder reporting recreational use to some degree — and that most were daily cannabis consumers, which could have skewed the results.

Cannabis remains a federally prohibited Schedule I substance for now but the Biden Administration this year announced plans to move the plant to Schedule III, which would expand research access for the plant and alleviate tax pressure for state-legal industries. During a recent public comment period on the plan, about 90% of the responses filed with the government either supported the plan or called for removing cannabis from the Controlled Substances Act entirely.

Meanwhile, a survey in June found that there were more daily cannabis consumers than daily drinkers in the U.S.

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