This past week saw a lot of news from California’s marijuana market. Though it remains one of the biggest in the US, it hasn’t taken off just as lawmakers had anticipated. Unsolved legal matters keep some areas from flourishing but, some savvy business people -and celebrities- have founds was to make marijuana work for them.
Snoop’s Growing ‘Chronic’ Brand
Snoop Dogg is one of the few celebrities that is synonymous with marijuana. Between his music lyrics and his lifestyle, he is only outmatched and outsmoked by Willie Nelson, himself. Snoop, through some savvy business decisions and moves over the years, will have a large share in the world’s largest marijuana grow, Canopy Growth.
As a result, Canopy Growth will exclusive have the rights to Snoop’s cannabis brand, Leafs.
A few years back, Snoop’s venture firm, Casa Verde Capital partnered with an Ontario based marijuana producer, Tweed. After the firm raised $40 million through investments, Canopy Growth purchased Tweed.
This now makes Snoop a partner with a company that supplies ⅓ of Canada’s medical marijuana.
LA Companies Leaving Due to Licensing
Despite Snoop’s booming investment, many other companies have opted to leave Los Angeles’ cannabis market. The industry is blaming city for not approving licenses in a timely manner.
As of last month, only 139 companies have been licensed in the city of LA. Those that hold them, mostly longstanding dispensaries, qualified through priority licensing and numerous complicated rules. Licensing was supposed to begin for others the beginning of this year but, it never did.
Los Angeles Department of Cannabis Regulation has no made comments on how the matter will be resolved or when licensing will begin. The issue has created a “grey area”, forcing many shops to operate in a technically illegal arena. They still would face consequences from the state if found operating this way, in turn, causing them to bankrupt or have to sell their businesses.
A bigger problem facing the cities market is who many of those licenses haven’t gotten to. Many cultivators and manufacturers are without business licenses.
“If people don’t get their licenses in the very near future, their businesses are tenuous,” said Aaron Herzberg, founding partner of Puzzle Group, a law firm specializing in cannabis licensing and real estate. “Maybe those businesses are driven into the black market entirely.”
Business are trying to stay afloat but, with operation cost looming over, it proves difficult without the proper permits. If they were supplying the shops that were approved for licensing originally, they were approved as well. Any others would have to wait until the next phase of licensing for the chance.
“The shift from cannabis prohibition to regulation — in the largest cannabis market in the world — is complex, and involves a broad range of stakeholders,” Cat Packer, who heads L.A.’s Department of Cannabis Regulation, said in a written statement Friday. “Getting it right will take time.”
Pot Parties in California
Mother’s Day may be over but, some moms are still ready to enjoy Mary Jane’s company. Pot parties are not new to the industry but, to some they are a new way to safely consume without the worry of breaking the law.
The southern california market has had a boom in the pot-party business, despite the recreational market not taking off as some had hoped. As much as some would jump for joy at going to a legal marijuana dispensary, the ordeal can be uncomfortable and/or not as informative as they may like.
With women being among the fastest-growing segment of cannabis consumers, the parties help new and old users find what they are looking for. The parties supple samples and information on products so that these women can ask questions and be educated without the anxiety and/or embarrassment of visiting a dispensary.
Legal States Consume More Cannabis Than Alcohol
Based on new market research, states that have legalized cannabis actually see less interest in alcohol, over-the-counter pain medications, and sleep aids.
Studies from Chicago-based High Yield Insights revealed that legal cannabis consumers use 27% less pain meds, 22% less sleep aids, 21% less alcohol and 20% less beer than states without legal cannabis.
The study shows how much potential the industry possibly has in the sales arena. If legal states are using cannabis opposed to other substances, it could be reaching even more consumers with speciality products.
Louisiana Company Sues Board of Pharmacy
With medical cannabis gearing up to be sold this fall in Louisiana, an aspiring medical dispensary is suing the Board of Pharmacy. The ordeal comes over their decision to issue a medical marijuana license to H&W Drug Store instead of RX Greenhouse.
The state has only 10 medical cannabis dispensary license available for the state and the two companies were contending for one. H&W was ranked as fourth in state standing but, RX Greenhouse was ranked first. The lawsuit claimed that the Board “improperly issued a medical marijuana license to an unqualified license holder.”
RX Greenhouse, originally based out of Maryland, was leading the state in preparing for medical dispensaries while H&W Greenhouse has been operating in New Orleans years.
The denial will have to be disclosed on future applications for RX Greenhouse but they hope the lawsuit will vacate the decisions and start the licensing process over.
