Hi all,

Today in the newsletter, I’ve got another EXCLUSIVE on Metrc, the dominant regulatory software company. This piece focuses on two newer products Metrc is offering to the licensed supply chain.

Don’t forget, today’s the LAST DAY you can get 25% off your first year of WeedWeek California Pro with code: WW25OFF

Read up, and don’t forget to vote,

Alex

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EXCLUSIVE: Metrc seeks growth in licensed supply chain

Over a decade, Metrc has built its business on one product, a platform used by states to help regulate their cannabis industries. It is perhaps the most used software in the cannabis industry. 

While some operators resent having to buy RFID tags from Metrc and other costs imposed by the system, since he became CEO in 2022, Metrc boss Michael Johnson has spoken of his goal to make Metrc a “desired, not required” component of operators’ tech stacks. This pivot coincides with the company’s recent introduction of two products that aim to serve, not just regulate, the licensed supply chain. 

In a recent podcast interview, Johnson argued that Metrc’s ubiquity has served the industry by enabling everyone to speak the same language. He describes Metrc’s new products as extensions of, and improvements on, that standard which bolsters compliance, public health and, now, operators’ bottom lines. He aims for Metrc to be, “Desired, not required,” by everyone who uses it.

Larry Levy, CEO of Lucid Green, which competes with one of Metrc’s new products, sees it differently. “By leveraging their position with regulators, [Metrc] stifles fair competition and removes innovation and choice within the cannabis industry,” he wrote in an email.

Metrc did not respond to questions and requests for comment.

Read the story 

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And be sure not to miss Monday’s piece:

SPECIAL REPORT: How does Metrc add value?

This summer, California’s Department of Cannabis Control (DCC) renewed its contract with track and trace software provider Metrc for at least four years, at up to $28.3M per year. No state has ever replaced Metrc. It is by far the leading track and trace provider.

Metrc is also among the most controversial companies in weed, largely due to the costs it imposes on operators. Mike Getlin, director of licensing and public affairs at Nectar Markets, a large Oregon retailer called it “catastrophically expensive” for plant touching businesses.

Metrc declined to make anyone available for an interview but in a statement CEO Michael Johnson said the company is focused on making Metrc “faster, more intuitive, more transparent, more accessible, and more aligned with licensees’ goals.”

Read the story

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TODAY’S THE LAST DAY to get 25% off WeedWeek California Pro with code: WW25off.

Weed is on the ballot in 2024. Here’s where:

• Florida is set to vote on Amendment 3, which would legalize REC. MSO Trulieve has poured more than $140M into the effort. I wrote a story for Slate about Gov. Ron DeSantis’ (R) opposition to the measure.
  Politico
• In Nebraska, where early voting is underway, two MED ballot initiatives are on trial.
  Nebraska Examiner
• North Dakota will vote on REC legalization for the third time.
  ValleyNewsLive
• South Dakota is set to vote on REC. In 2020, a REC initiative passed in the state before it was overturned in the courts.
  Argus Leader
• Arkansas will be able to vote on whether to expand the state’s MED program. But the state Supreme Court ruled the initiative is invalid.
  Little Rock Public Radio
• Oregon voters will decide whether it should be easier for cannabiz workers to unionize.
  Oregon Capital Insider
• Massachusetts could legalize some psychedelics.
  GBH

Harris Sliwoski, home of Canna Law Blog, is hosting an election wrap up webinar on November 7.

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In some states you can still register to vote.

Federal:

• The DEA has contacted 25 “designated participants” to testify at the Dec 2 rescheduling hearing. The agency then delayed the hearing until early 2025.
  MJBiz, Marijuana Moment
  
• A record number of banks are working with the industry, according to the Feds.
  Marijuana Moment

Business:

• The hemp industry is stepping up self-regulation efforts.
  The Press-Democrat
• Earnings season is about to begin.
  New Cannabis Ventures
• Utility XCel Energy ran out of money to pay rebates on a program incentivizing growers to switch to energy saving LEDs. Now lighting companies are on the hook.
  MJBiz
• Metrc won Virginia’s track and trace contract.
  WAVY
• Eight things to know about cannabis REITs.
  MG Magazine

State and local:

• A New York judge ruled New York City Mayor Eric Adams’ crackdown on unlicensed shops is unconstitutional.
  CBS
• Nevada no longer bans cannabis use for professional fighters.
  Sporting News
• New Jersey’s regulator held off on deciding whether to raise the state’s social equity fee, currently $1.24/ounce to as much as $30.
  New Jersey Monitor
• Massachusetts chose a former employee, now working as head of cannabis at the Illinois Department of Agriculture, to lead its troubled regulator.
  CommonWealth Beacon
• Florida operators are split on when to open the REC market if Amendment 3 succeeds.
  Green Market Report
• Missouri is creating a new government lab to test products for potency and contaminants.
  The Beacon
• Licensed delivery starts today in Arizona.
  Phoenix New Times

Health and science:

• A new California report highlighted risks associated with high-potency products.
  MJBiz
• A CDC study asked which workers are most likely to consume.
  Marijuana Moment

Fun and interesting:

• Annie Holman at Fusion Strategies introduces Grower Barbie.
• Iconic Napa restaurant The French Laundry paid tribute to the Grateful Dead bassist Phil Lesh who died at 84 this week.

State:

• California has seized more than $500M in illegal product this year. It’s a “drop in the bucket.”
  LA Times

Business:

• A California appellate court decision gives easement holders “a good amount of leverage” when it comes to licensing, lawyer Hilary Bricken writes. The case cites federal illegality as the reason.
  Law.com
• The receiver for StateHouse Holdings said industry receiverships are on the rise in an interview with Green Market Report.
• A partner company sued Cookies for allegedly not paying for $4.75M in hemp products. Cookies declined to comment.
  SFGate
• SFGate profiles Eli Melrod, “wunderkind” founder of small retail chain Solful, which says it is profitable while only selling outdoor-grown cannabis.

Local:

• The Berkeley Patients Group, the country’s oldest continually operating dispensary, turned 25.
  BerkeleySide
• It’s a bumper harvest in Sonoma.
  ABC
• Emerald Village West Hollywood brought back its Halloween party, Hollywood Haunt.
  WeHoTimes
• Santa Cruz Co. supes are considering on site hospitality spaces.
  Mercury News
• Sacramento Co. will penalize businesses selling now-banned hemp products.
  SacBee
• The museum in SF’s Castro District honoring legalization pioneer Dennis Peron faces an uncertain future.
  ABC