Yes, Cann has a plan

THE BIG IDEA

Hi all,

A bit late this week so let’s get to it:

Yes, Cann has a plan
Senate GOP kills SAFE banking

Hope you find it valuable,

Alex

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WHAT YOU MISSED IN WEEDWEEK CALIFORNIA PRO

Cann co-founder Luke Anderson, (Courtesy: Cann)

Microdose beverage brand Cann loses money on every can it sells. When you’ve sold more than 10M — more units than any other infused drink brand, co-founder Luke Anderson says — that begins to add up.

The losses are under control, Anderson told WeedWeek. He said Cann is in the midst of a “predictable shrinking burn,” as it bets the groundwork it has laid will soon start paying off.

Despite this small footprint, Cann has become one of the best known brands in weed. This owes in part to Hollywood fashionista investors like Gwyneth Paltrow, Rebel Wilson and Rosario Dawson (who sits on the Cann board) and its stylized queer-centric advertising.

It has also attracted more than its share of haters. Comments from Luke that Cann targets “the future consumer” can rub OGs the wrong way. There’s also a fair amount of wondering how Cann expects to make money when it charges $24 for a six-pack containing 12 mg of THC. That’s $2/mg, more than 13x the price per mg in a $15, 100mg pack of gummies.

That’s what I discussed with co-founder Luke Anderson

PLUS: Lots more in WW California Pro…

SAFE BANKING REMOVED FROM DEFENSE LEGISLATION

Industry hopes that federal banking reform would be included in a must pass defense bill fell flat this week after Senate Republicans undermined it.
Politico

Minority leader Mitch McConnell (R-Ky.) described it as “making our financial system more sympathetic to illegal drugs.”

The bill in question had bipartisan support and included banking, gun rights and criminal record expungements

The next chance to pass banking reform comes up this week with the omnibus spending bill.
Marijuana Moment

The bill is reportedly close to the 60 votes it would need to pass the Senate in a standalone vote.

If banking reform doesn’t pass in this month’s lame duck session we may be waiting for a while. Republicans take control of the House in January 1.

QUICK HITS

Federal:

WNBA star Brittney Griner returned home after her 10-month imprisonment in Russia. The U.S. swapped her for notorious arms dealer Viktor Bout.
N.Y. Times

Business:

Many retailers scrambled after mainstream financial providers shut off “cashless ATMs” this week.
Bloomberg
MSO Curaleaf violated federal law when it refused to bargain with a union in Illinois, a National Labor Relations Board panel found.
Law360
The Wall Street Journal looks at the failures of equity programs.
Nationwide, sales growth was generally anemic in October.
New Cannabis Ventures, CNBC
LA law firm Dovel & Luner filed its third proposed class action lawsuit alleging inflated THC content on a California preroll brand’s labels. This one’s against Shryne Group, parent of brand Stiiizy. Unlike Dovel’s previous two lawsuits, against Jeeter and King Roll (StateHouse, formerly Harborside), this one cites independent lab tests rather than WeedWeek reporting. Stiiizy did not respond to requests for comment.
Insurance Journal
Weeks after CEO Chris Beals’ departure, Weedmaps said it was laying off 175 employees, roughly 25% of its staff. The stock is down 80% on the year.
Business Insider
The Boston Globe reports on Hop Latent Viroid. This highly transmissible and hard to detect blight hurts bud quality and yield, but has no known effect on human health. Researchers found that between 2018 and 2021 90% of California grows had at least some infected plants. It is now becoming common in Massachusetts.

State and Local:

In its long awaited social equity lottery, Los Angeles selected 100 social equity applicants who can apply for retail licenses. Unlike in New York, a federal judge declined to stop the lottery on account of a lawsuit from a Michigan party suing to access to the market.
Law360
A Portland Ore. business is selling ‘shrooms at retail, which the state doesn’t allow.
Willamette Week
In growing hub Santa Barbara Co. Dutch carbon filters are helping with odor issues.
edhat

International:

The Columbian Senate passed a legalization bill. The country’s industry hopes to become a significant exporter, which could make it a threat to North American growers.
Marijuana Moment

Fun and interesting:

Forty six years ago a plane full of weed crashed in Yosemite National Park. The “dirtbag climbers” who found it got rich.
Unofficial Networks
Leafly‘s strain of the year is Jealousy.