January 7 2022,
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!
TODAY in WeedWeek Live:
Redwood Roots CEO Chris Anderson
11 a.m. PT in the WeedWeek Pro Discord community
WeedWeek regularly links to paywalled content.
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.
- Two companies say they’ve grown MED with the DEA’s permission, ending the federal government’s decades-long monopoly on legally growing marijuana.
- 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.
- MSO Trulieve won a lawsuit accusing it of misleading investors about the quality of its grow operations.
- 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.
- The same pub profiles Riley McDonnell, 24, who started GlassPass, an online marketplace for high-end bongs.
- 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.
- New York said it would create a $200M public/private fund to support equity license applicants.
- Illinois REC sales approached $1.4B in 2021, more than doubling year over year.
- 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.
- An L.A. Times editorial says billboards advertising to teens violate California Prop 64.
- Montana REC sales topped $1.5M in their first weekend.
Health and Science:
- The U.S. FDA signed off on a study of MED as a treatment for opiate addiction.
Hemp Industry Daily
- Quebec will require proof of vaccination to enter province-run booze and pot shops.
- Operation Hammer Strike, a major crackdown on unlicensed grows in the desert cities east of LA continued into week 18.
Moreno Valley City News
- Longtime hemp activist Steve Levine died.
Fun and interesting:
IN THE WEEDS
- Greenlane CEO Nick Kovacevich discussed his house of ancillary brands strategy.
- 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.
- 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.
OVER TIMES SQUARE EDITION
WEEDWEEK HIGH SOCIETY -- 1/7/22
Do your part to make High Society possible: Get Vaccinated.
Reach the most influential audience in cannabis by advertising in the self-serve WeedWeek store.