The U.S. cannabis industry seems to be swinging into consolidation mode as more dispensaries, cultivations, and production facilities absorb into bigger operations. This news comes after Germany restarted it’s application process to allow cannabis growing in the country. It remains one of the largest insured MMJ markets but is having trouble meeting the country’s demand without outside help. At the moment, Canada and the Netherlands have applied.
As well, Acreage Holdings has set a record for the largest private funding by a U.S. cannabis company. MJ Biz Daily reports, the company raised $119 million from high-net-worth individuals and family offices in the U.S., Canada, and other overseas markets. In addition to, Tilray’s, a medical cannabis producer, successfully debuted the first “plant-touching” IPO via U.S. stock exchange, the industry has been making more traction to be recognized in the business realm.
Oklahoma’s Next Cannabis Hurdle
After a ruling against the state’s emergency changes to its MMJ program, more changes may be coming in the next months. After a juggle with separate rules for the state’s medical cannabis market, an initiative to legalize cannabis for recreational use was brought forth. Considering the initiative only has just two weeks to gain the required signatures. More has to be approved before it ends up on the ballot but, as cannabis advocates fought for an easily navigable market this may be the only option.
Many lawmakers and anti-cannabis groups opposed the original legislation which provided some of the laxest rules of any medical market. State Attorney General ruled that the changes were overstepping boundaries. The changes reverting the market back to its original legislation will take effect later in the summer. Stay tuned for more on their market transitioning.
Vermont To End Cannabis Gifting
Though many states have come to terms with some sense of cannabis legality, Vermont law enforcement and anti-cannabis groups wish to regulate the industry a bit more. Though the state voted adult-use cannabis that took effect at the beginning of the month, the legislation only allows for the possession of up to an ounce of cannabis. It currently does not possess language allowing the sale of the substance.
As a result, many businesses in the industry get around grey area laws by targeting a loophole in the system. Seeing that products are not available for sale, opportunist will markup the price of an unrelated item or the cost of delivery so they can gift the cannabis along with the purchase. This way, they can get around breaking state and federal law. The issue arose, however, after clear rules were not made about gifting despite many states dealing with the method of sale more regularly.
According to local news, VTDigger, anti-cannabis activist have called for lawmakers to crack down on “gifting” cannabis products.
As it stands however, “any transfer of marijuana for money, barter, or other legal consideration remains illegal under Vermont law.” Vermont Attorney General, T.J. Donovan, issued the previous statement Monday. No moves towards the gifting sellers have been made yet but a decision will be made next week on the matter.
Fallout of California’s CBD Food rules
Following the Department of Public Health’s Food and Drug branch’s decision to prohibit alcohol infused with CBD early last month, they’ve also added foods to the list of items. MJBiz Daily reports, the branch stands by the claim that they have approved industrial-hemp for agricultural purposes but have yet to prove its safe consumption for humans and animals. Oddly enough, the legislation only applies to hemp-derived CBD, causing mass confusion amongst shops who don’t understand the prohibition.
Stores such as 7-eleven and Target sell CBD infused products and have not been forced to remove them, causing industry shops to not remove products from their shelves. The state and the federal government have made their own stances on the cannabis compound despite where it’s derived from but the lack of clarity on cannabis definitions cause problems for those in the industry. For producers and sellers, however, the decision is another nail in the California compliant cannabis market’s coffin.
Between battles with Weedmaps and new testing regulations, compliant stores are given a new hurdle every few weeks. Not allowing the production of a vast amount of products that many dispensaries and companies survive and thrive on is only hurting those trying to follow the rules more.
Even more so, state attorneys have called the decision a contradiction of what CBD is. One particular cites that most states, and even some countries, that have made the same motion have not stuck with it as a result of the underlying contradiction.
The state, however, is standing by its choice for now.
Alcohol Association Supports Adult-Use Cannabis
The alcohol industry is known to be one of the biggest opposers of the cannabis industry. It’s not without some cause, however. The industry feels that a growth in the cannabis would mean to decrease in alcohol revenue. The argument is the foundation of most debate with the two existing alongside one another. According to a 2018 study, however, states with legal cannabis only dropped 15% in alcohol sales after legalization.
Despite the industries stance, the Wine and Spirits Wholesalers of America (WSWA) made a statement of support to the cannabis reform. The company urged the federal government to respect states’ rights to legalize cannabis, nodding to its economic value of more than $7 billion. Acting Executive Vice President for External Affairs, Dawson Hobbs compared the challenges of cannabis to the alcohol prohibition in the 1930s in a recent statement.
“Eight decades ago, Americans acknowledged that the Prohibition of alcohol was a failed policy. The state-based system of regulation, adopted after Prohibition, created a U.S. beverage alcohol market that is the safest, most competitive, and best regulated in the world.”
Though Hobbs words are supportive, most other executives see cannabis as a threat. In 2016, the Arizona Wine and Spirits Wholesale Association contributed $10,000 to fighting legalization. The same year in Massachusetts, Beer Distributors PAC gave $25,000 to an “anti-pot” group.
The WSWA who represents more than 370 distributors is responsible for 80% of alcohol sales in the U.S.
Written by: Joycelin Arnold
