August 5 2022,
THE BIG IDEA
Happy weekend. Let’s get to it.
In the newsletter:
- Calif. lab execs allege rampant potency fraud
- Unions see cannabiz as fertile terrain
WeedWeek regularly links to paywalled content
WHAT YOU MISSED IN WEEDWEEK CALIFORNIA PRO
Calif. lab execs allege rampant potency fraud
California cannabis retailers say only two things move product: high potency and low prices.
With prices at new lows and the state market in crisis, retailers are hungry for products with ever higher THC levels. Responding to market demand, unscrupulous labs have made potency inflation the norm, according to a group of self-identified honest operators.
Flower labeled 30%+ THC is now the norm, and regulators have been unwilling or unable…
SCOOP: MSO MedMen sued for discrimination, retaliation and other labor violations. (MedMen denies the allegations.)
PLUS: The juicy bits from Forbes‘ Berner story.
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UNIONS SEE CANNABIZ AS FERTILE TERRAIN
The Guardian reports that unions see the cannabiz as a huge organizing opportunity:
- The United Food and Commercial Workers and the Teamsters both represent thousands of workers in the cannabis industry.
While several company’s have been relatively open to organized labor, others have strenuously opposed it.
From the Guardian:
“Tonya Townsend worked at a Green Thumb Industries cannabis facility in Rock Creek, Illinois, during one of the first union organizing campaigns in the cannabis industry in the state, in 2018 and 2019. The union came up short in the union election in a 26-30 vote.
“There was a lot of union busting. They hired the top union avoidance firm in the country,” said Townsend. “We took them on for about a year. It was a lot. It was mental, physical, verbal, daily abuse from these guys – they fought us tooth and nail the whole way.”
California Gov. Gavin Newsom recently signed a law lowering the threshold for companies to enter labor peace agreements to 10 employees. The change worries some businesses, including equity businesses.
- A new interest group called the Schedule 6 Foundation calls for cannabis to be a new category of controlled substance, one that would allow for commerce, research and banking.
- Brittney Griner was sentenced to nine years in prison. CNN explains what comes next, and the possibility of her being freed through a prisoner swap with Russia.
- The largest federal workers union called for an end to pot testing for most government employees in legal states.
- Sales decreased slightly from May to June in eleven states, according to data shop BDSA.
New Cannabis Ventures
- New Cannabis Ventures’ global pot stock index was up for July, a first in 17 months.
- Scotts Miracle-Gro’s Hawthorne hydroponics unit and grow supply superstore GrowGeneration reported bleak quarters, blaming oversupply.
Green Market Report
- MSO Verano Holdings said it would amend five previous quarterly financial statements.
- Cannabis Industry Journal spoke to George Mancheril, CEO of lender Bespoke Financial.
State and local:
- Arkansas officials declined to certify a REC ballot initiative despite it collecting the necessary number of signatures. The dispute is likely to end up in the state supreme court.
- Massachusetts lawmakers sent an industry regulatory overhaul to the governor.
- Washington state proposed changes to its social equity rules.
- Vermont is now accepting retail license applications.
- Nevada companies are tired of paying regulators more than $100/hour. One company has paid nearly $30,000.
- Casino.org reports Nevada’s first consumption lounges will probably open this year.
- Canna Law Blog discusses new tough talk from Oregon regulators.
Health and science:
- Connected to the Brittney Griner story, the New York Times discussed why athletes use MED for pain.
- An editorial from the conservative American Enterprise Institute called for prominent warning labels on pot. The industry is fighting an uphill battle against them in California.
Fun and interesting:
- Cookies announced a global beverage partnership with Green Monké, which is available in Canada and California. (Pictured)
- Holistic Industries announced the arrival of Garcia Hand Picked in Colorado, in partnership with Veritas Fine Cannabis. It’s the fifth state for what calls itself the country’s top celebrity brand.
- MSO Columbia Care released a national loyalty app.
- Brand Leune raised $5M from investors including Snoop Dogg’s vehicle Casa Verde and NBA stars.
- Kiva’s Lost Farm gummy brand has partnered with musician SAINt JHN for a second limited edition edibles line.
- Canadian giant Canopy Growth named Christelle Gedeon, Chief Legal Officer.
- Antonio Frazier has joined testing company Sonoma Lab Works as president. He was previously with CannaSafe which shut its California operations on account of rampant “lab shopping.”
North Bay Business Journal