December 16 2022,
THE BIG IDEA
It’s been a rough year for the cannabiz. So, if you’ve got some good news to share from your organization or the industry in general pass it along. I’ll try to include some favorites in next week’s issue. News that isn’t overtly self-promotional will receive priority.
In the newsletter:
- Inside Dutchie’s “civil war”
- Does CBN help with sleep?
I hope you find it interesting,
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WHAT YOU MISSED IN WEEDWEEK CALIFORNIA PRO
Does CBN help with sleep?
As brands struggle to differentiate themselves, a number have added so-called “minor cannabinoids” to their products. These compounds are derived from the plant, like THC and CBD, but less familiar to both consumers and scientists. They include cannabigerol (CBG), the so-called “mother cannabinoid” because other cannabinoids stem from it, and THC-V, which several brands tout as an appetite suppressant.
Thus far, the most successful minor cannabinoid has been cannabinol (CBN), which several brands suggest has benefits for sleep. East Bay-based Kiva Confections released its Midnight Blueberry Camino Gummies in 2019. It was the first CBN edible, Kiva’s web site says, and became the company’s best-selling product, “by far,” (emphasis theirs).
It’s the second-best selling edible in California, according to Headset.
Customers pay a couple bucks extra for CBN because, as the Kiva web site puts it, “There are early indications that CBN is a powerful sedative, especially when combined with THC.” The Midnight Blueberry gummies each contain 5 mg of THC and 1 mg CBN. “It works really well and you don’t need a lot,” Kiva co-founder Kristi Knoblich Palmer told WeedWeek in early 2021. “It’s important to use in moderation because it can make people groggy.” She didn’t have data to share.
Inside Dutchie's "Civil War"
Dutchie co-founders Ross and Zachary Lipson are suing the company claiming they were the victims of a conspiracy to remove them. Forbes goes inside the e-commerce platform’s “civil war” as the Lipson brothers try to get a judge to reinstate them as CEO (Ross) and Chief Product Officer.
In the lawsuit they allege they suffered a “blatant ambush” during a late November board meeting when they installed executive chair Timothy Barash as CEO.
- “Forbes has also learned that Dutchie had been approaching direct competitors with offers to merge.”
- Dutchie’s counsel said the Lipsons’ suit is “absolutely without merit.”
- The company’s burn rate was multi-millions of dollars a month, an investor said. “There’s a level of acceptability.”
- Sen. Majority Leader Chuck Schumer (D-N.Y.) is making a last ditch effort to get banking reform included in the omnibus spending bill. Bloomberg explains why it’s not a panacea.
- The FDA issued warning letters to CBD companies that may signal a widening enforcement policy.
- MSO Trulieve faces a potential class action suit over firings.
- Green Market Report asks whether lawsuits challenging residency requirements in Maine, California and New York could undermine equity programs.
- AdWeek lists the top 10 weed marketing moves of 2022.
- Lowell is the latest California preroll brand to be hit with a lawsuit following WeedWeek‘s story on rampant potency inflation. Read the complaint. Lowell didn’t respond to a request for comment.
State and local:
- Massachusetts is the first state to add a cannabis curriculum to driver’s ed.
- New Hampshire lawmakers have reportedly reached a bipartisan compromise to legalize REC.
Health and science:
- An L.A. Times investigation looked at industry support for cannabis research at UCLA and other prestigious universities.
- Cartoonist Brian “Box” Brown looks at the idea of weed as a gateway drug.
- A report found nearly 2M U.S. pot convictions have been pardoned or expunged in the past five years.
- The sons of notorious drug trafficker El Chapo are trying to corner Mexico’s legal weed market, Business Insider reports.
Fun and interesting:
- Cookies is expanding to Albuquerque.
Albuquerque Business Journal
- MSO Trulieve announced an exclusive Florida partnership with Connected Cannabis and its sister California brand Alien Labs.
- Compliance tech shop Simplifya has expanded to 28 states.
- Chris Walsh is stepping down as CEO of MJBiz.