Business
MedMen / Ascend dispute escalates
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January 7 2022,
TOGETHER WITH
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THE BIG IDEA
Happy Friday all,
With tons of deals and one big one growing increasingly rancorous, 2022 is off to a fast start. Let’s get to it:
In the newsletter:
- MedMen / Ascend dispute escalates
- How two retailers see the California market
Plus lots more!
Alex
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TODAY in WeedWeek Live:
Redwood Roots CEO Chris Anderson
11 a.m. PT in the WeedWeek Pro Discord community
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HOW TWO RETAILERS VIEW THE CALIFORNIA MARKET
High taxes, complex regulations and a still strong illegal market have leading industry voices saying the California market is on the brink of collapse. While many pot snobs downplay THC and emphasize terpene content, retailers say price and potency, far more than anything else, is what moves product.Â
With that in mind, I spoke to two retail execs, Embarc purchasing manager Ivy Merriman and Josephine and Billie’s CEO Whitney Beatty, about what they look for in brand partners.
QUICK HITS
Politics:
- Two companies say they’ve grown MED with the DEA’s permission, ending the federal government’s decades-long monopoly on legally growing marijuana.
Marijuana MomentÂ
Business:
- MJBiz sold to Emerald Holding, a non-cannabis related trade show company, for $120M in cash, plus earn outs which could total up to $50M. MJBiz says its 2021 revenue was approximately $27M, near pre-pandemic levels.Â
Bloomberg, MJBiz - MSO Trulieve won a lawsuit accusing it of misleading investors about the quality of its grow operations.
Bloomberg Law - Scotts Miracle-Gro expanded its Hawthorne Gardening unit with the acquisition of Luxx Lighting for $215M and True Liberty Bags for $10M.
- California hemp grower Apothio is raising money on the blockchain for its lawsuit against the state.
Business Insider - The same pub profiles Riley McDonnell, 24, who started GlassPass, an online marketplace for high-end bongs. Â
- Holiday sales were strong.
Green Market Report - Jackie Bryant spoke to Humble & Fume chairman Jakob Ripshtein about the Canadian distributors’ partnership with an alcohol distributor to attack the U.S. market.
Forbes
States:
- New York said it would create a $200M public/private fund to support equity license applicants.
MarketWatch - Illinois REC sales approached $1.4B in 2021, more than doubling year over year.
Chicago Tribune - Massachusetts released an open data platform to track the industry.
- Cartoonist Brian “Box” Brown says Connecticut’s REC market is “almost impossible” for small businesses to access.
- Rhode Island lawmakers say they’re approaching a REC deal.
Marijuana Moment - An L.A. Times editorial says billboards advertising to teens violate California Prop 64.
- Montana REC sales topped $1.5M in their first weekend.
Helena Independent-Record
Health and Science:
- The U.S. FDA signed off on a study of MED as a treatment for opiate addiction.
Hemp Industry Daily
International:
- Quebec will require proof of vaccination to enter province-run booze and pot shops.
Bloomberg
Crime:
- Operation Hammer Strike, a major crackdown on unlicensed grows in the desert cities east of LA continued into week 18.
Moreno Valley City News
In memorium:
- Longtime hemp activist Steve Levine died.
Fun and interesting:
- An intrepid Business Insider reporter wrote about her week taking microdose “weed pills” by Zeno.Â
- The L.A. Times recommended 14 non-alcoholic options to get you through “dry January.”
IN THE WEEDS
- Greenlane CEO Nick Kovacevich discussed his house of ancillary brands strategy.
Benzinga - A story in MG Retailer discusses what labor unions could mean for your business.
- Canadian giant Canopy Growth released its Environmental, Social and Governance report.
- Data shop Headset released U.S. sales projections through 2025.
- Two lawyers at firm Wilson Elser suggest Michigan’s new cannabis insurance law may not be workable.
- On the Alchemy podcast, OpenNest CEO Tyler Wakstein discussed his upscale Trailblazers conference and how community building will be big this year.
UPCOMING
- Cannabis Industry Journal is hosting a January 25 virtual conference on cannabiz labs.
- On January 22, City Lights book store is holding a virtual symposium to celebrate the work of psychedelic researcher Stanislav Grof.
- A new journalism fellowship at UC Berkeley will award grants for reporting on the psychedelic renaissance.
PRODUCT NEWS
- Colorado retailer The Green Solution, which is owned by MSO Columbia Care, added to its NectarBee sour gummie line-up.
- California value brand Pacific Stone introduced pre-rolls infused with THCa diamonds.
- There’s a new CBD brand inspired by the book Go the Fuck to Sleep.
ON SOCIAL
- “Brand house” Green Street showed off its new digs in downtown LA.
- MJ Unpacked’s George Jage posted a video of Tommy Chong talking to a superfan who’s in prison.
- Urban Development CEO Jeff Livingston recommended four new year’s resolutions for the cannabiz.
OVER TIMES SQUARE EDITION
WEEDWEEK HIGH SOCIETY -- 1/7/22
Do your part to make High Society possible: Get Vaccinated.
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On New Year’s Eve, female-owned brands Honeysuckle Media, The Stone Age and Etain made a statement over Times Square.
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