fbpx
Legal cannabis sales rose $17.5 billion during pandemic

Legal cannabis sales rose $17.5 billion during pandemic

cannabis sales rose over 17 billion dollars in 2020

Shortly after Nevada officials announced that licensed cannabis stores and medical dispensaries could reopen after lockdown, Nicolas MacLean said cars were lined up for five blocks waiting for curbside pickup.

Like many industries in Las Vegas, the cannabis industry used to rely on tourists for sales, but that changed when the pandemic hit, MacLean, who serves as the CEO of Las Vegas-based cannabis producer Aether Gardens, told The New York Times.

“Locals are very discerning – they want something they aren’t going to find on the black market,” MacLean said. “Especially when you are stuck at home.”

The year of 2020 saw extraordinarily strong sales of legal cannabis in the US, up 46% from 2019 to a record $17.5 billion (R245 billion), according to cannabinoid market research firm BDSA.

“I expect this will be the first year Nevada does over a billion in cannabis sales,” MacLean said. “And it happened on the back of what I think no one expected.”

In western Massachusetts, where recreational cannabis use is legal, Meg Sanders, CEO of Canna Provisions, said government restrictions and later social-distancing requirements forced her to radically change her sales strategy.

At first, only medical dispensaries were allowed to remain open, while recreational-use retailers were forced to close.

“To have liquor stores deemed essential and not adult-use cannabis – especially when the law passed in Massachusetts was about regulating cannabis like alcohol – was surprising and unfortunate,” Sanders told The Times.

As Canna Provisions was allowed to re-open, the shop’s particular boutique-style in-person shopping experience had to change in favour of over-the-phone preorders.

“Our county is an internet desert,” she explained.

Now when customers call, they speak with a salesperson who can answer their questions and walk them through the available topicals, edibles, and smokables – a method, she said, is “working” for business.

“In our Lee store, preorders have become almost 100 percent of our business, so we bought more handsets and hired more people to answer the phones, and our revenue is up,” she said.

Religious Americans Split Over Cannabis Legalization

Religious Americans Split Over Cannabis Legalization

Christian cannabis support is higher than evangelicals

When it comes to supporting the legalization of cannabis, the religious community in the US is divided.

According to the latest polling from Pew Research Center, 60% of all US adults support legalization of medical and recreational cannabis, with only 8% that want to keep it illegal and 31% supporting medical cannabis only. 

However when these results are broken down and analyzed on the community level, the polling is much more complex, and interesting.

Christian Cannabis Legalization Support

Overall, religiously affiliated individuals are less likely to support broad cannabis legalization. White evangelical Christians were the least supportive of legal cannabis, with only 44% supporting full legalization and another 43% supporting medical only.

However, the protestant population — that is the general Christian population that isn’t evangelical or Catholic — is much more supportive of cannabis legalization at 53%. Additionally, white, non-evangelical Christians support broad cannabis legalization by a margin of 62%.

That’s 2% higher than the national average.

Black non-evangelical Christians are nearly identical in their support, with 63% supporting full legalization. Catholics are similar to protestants in their support also at 53% overall with 58% support specifically from the white Catholic community but only 51% support from hispanic Catholics.

Religiously Unaffiliated Most Supportive

Compared to the former, religiously unaffiliated individuals are the most supportive of broad cannabis legalization. Overall, 76% support legalization, with 88% and 86% support coming from Atheists and Agnostics respectively.

Opinions about whether marijuana should be legal for recreational and/or medical use also differ based on how often people pray and how important they say religion is in their lives. 46% of adults who pray every day say marijuana should be legal for both medical and recreational use, compared with roughly seven-in-ten (72%) of those who pray less often.

Similarly, people who say religion is “very important” in their lives are less likely to favor broadly legal marijuana than those who say religion is less important (44% vs. 71%).

Why Delta-8 is Being Made Illegal

Why Delta-8 is Being Made Illegal

Delta-8 THC is illegal

As quickly as Delta-8 THC blew up, it’s being made illegal by states across the country.

It was only a matter of time.

Consumers and entrepreneurs have been an enjoying a regulation free, sub-legal way to get high and profit from Delta-8 THC. Now the DEA and USDA have taken notice, and in addition to the numerous states already taking action to make Delta-8 illegal on their own terms, the official law regarding Delta-8 is becoming more clear.

In fact, the current laws regarding hemp may already have it covered.

What is Delta-8 THC?

A very, very close relative to Delta-9 THC, the main psychoactive component of cannabis, Delta-8 THC is separated by just one subtle difference in its molecular structure. The similarity in molecular structure also leads to similar psychoactive effects although slightly suppressed.

Studies done on Delta-8 THC have revealed it to be roughly 75% the potency of traditional Delta-9 THC. With modern extraction technology and isolation techniques, manufacturers of D8 THC are able to produce products that get users high.

The reason that D8 THC is able to operate currently with near impunity is because of the wording of the 2018 Farm Bill. In the bill, “Hemp” is defined as:

The plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.

Because the definition specifically includes Delta-9 THC and nothing else, this has been used by manufacturers as a de facto legalization of other tetrahydrocannabinols. However, looking a little more deeply into current rules and regulations on the books by the DEA and USDA, and depending on your definition of “synthetic”, the future of Delta-8 may have already been decided.

Synthetic Tetrahydrocannabinols

In August of 2020, the DEA released a set of interim rules regarding hemp. In this ruling they say, “For tetrahydrocannabinols that are naturally occurring constituents of the plant material, Cannabis sativa L., any material that contains 0.3% or less of D9 -THC by dry weight is not controlled, unless specifically controlled elsewhere under the CSA,” CSA being the Controlled Substances Act.

However in the same paragraph further down, we get to the part that matters to Delta-8 THC advocates; “For synthetically derived tetrahydrocannabinols, the concentration of D9 -THC is not a determining factor in whether the material is a controlled substance. All synthetically derived tetrahydrocannabinols remain schedule I controlled substances.

By establishing a difference between naturally occurring cannabinoids that are produced in hemp and those that are derived and enhanced synthetically, the DEA virtually made a ruling against Delta 8. This is because, to the likely surprise of many (including myself), Delta 8 THC while naturally occurring in hemp, is in fact synthetically made from CBD when produced for retail sale.

How Delta 8 THC is Made

All cannabinoids, from CBD to THC and beyond begin as CBGA. Because of the shared molecular structure of cannabinoids, manipulating them is simpler than it may seem. While Delta-8 is relatively new, producers have been using these methods to manipulate cannabinoids for a long time to find exotic new cannabinoids.

While Delta-8 THC exists in a wide range of cannabis strains, it is in minuscule, trace amounts. To extract and purify Delta-8 from raw plant material with less than one percent of the targeted cannabinoid is unprofitable. This is why producers have begun converting other, more prevalent cannabinoids like CBD and Delta-9 THC into Delta-8.

The process of creating Delta 8 from CBD is nothing new, and is actually a patented isomerization process. It involves dissolving CBD in a solvent like heptane. An acid is then added into the solution and stirred constantly up to 18 hours on a heat plate. Once the chemical reaction is complete it will separate, where it can then be washed and dried and tested.

Compared to how your average Delta-9 extract is made, Delta-8 is a more lengthy, “synthetic” process. The Delta-8 is not there in the beginning, it is created in the end. And that’s why it’s a problem.

What does this mean for Delta 8 THC?

Unfortunately for producers and consumers alike, the great days of Delta-8 THC are likely coming to an end sooner rather than later. Over a dozen states have already banned Delta-8 THC, and more are considering passing their own laws against the cannabinoid. With the ruling by the DEA being brought into the open, it will be difficult for manufacturers to argue that Delta-8 is not in fact a synthetic cannabinoid.

In other words, those who continue to manufacture and sell Delta-8, even right now, are technically manufacturing and distributing a Schedule 1 substance. States in which Delta-8 THC has not been explicitly banned likely don’t need to worry about prosecution for the time being, as no official ruling on Delta-8 specifically has been passed down.

But as concern grows and more states ban Delta-8, it is going to become more difficult and less profitable for manufacturers to continue making it. Soon enough, Delta-8 will likely be another banned substance nationwide.

Texas Marijuana Concentrates and Psychedelics Bill Passed in Senate

Texas Marijuana Concentrates and Psychedelics Bill Passed in Senate

Texas marijuana concentrates and psychedelics got a big win in the state senate

The Texas Senate has approved House-passed bills to reduce criminal penalties for possessing marijuana concentrates and require the state to study the therapeutic potential of psychedelics like psilocybin and MDMA. But because senators amended both pieces of legislation, they must first head back to their originating chamber before they can be sent to the governor’s desk.

Meanwhile, advocates are closely monitoring a separate bill to expand the state’s medical cannabis program, which cleared the House and was referred to a Senate committee on Thursday. But the fate of that proposal remains murky as a legislative deadline approaches. It must be acted on in the Senate State Affairs Committee in order to advance to the floor, and the end of the session is nearing.

Under HB 1802, which passed the Senate on Saturday in a 25-5 vote, the state would be required to study the medical risks and benefits of psilocybin, MDMA and ketamine for military veterans in partnership with Baylor College of Medicine and a military-focused medical center. As amended by a House committee, it would also mandate a clinical trial into psilocybin for veterans with PTSD, in addition to a broader review of the scientific literature on all three substances.

The Senate adopted a balanced budget amendment to the bill clarifying that the psychedelic studies wouldn’t be carried out unless there’s funding allocated the effort—a situation already accounted for by a contingent rider for the funds.

Former Gov. Rick Perry (R), who also served as U.S. energy secretary, has called on lawmakers to approve the psychedelics legislation.

The cannabis concentrates measure that also advanced through the Senate is a modest reform compared to another proposal to more broadly decriminalize marijuana possession that recently passed the House but has since stalled. But if enacted, HB 2593 would mark the first time that Texas has reduced penalties associated with marijuana since the 1970s.

Marijuana industry expected to add $92 billion to US economy in 2021

Marijuana industry expected to add $92 billion to US economy in 2021

Marijuana revenue is expected to surpass $90 billion in 2021

From jobs to tax revenue to commercial real estate, the marijuana industry has a large – and growing – impact on the broader economy in the United States.

The total U.S. economic impact from marijuana sales in 2021 is expected to reach $92 billion – up more than 30% from last year – and upwards of $160 billion in 2025, according to analysis from the newly published MJBizFactbook.

To measure the industry’s economic impact, MJBizDaily analyzed similar industries and applied a standard multiplier of 3.5 on projected recreational and medical marijuana retail sales.

The numbers are a best guess because the marijuana industry’s structure is somewhat unique because it encompasses agricultural, manufacturing and retail activity.

The economic impact of the marijuana industry is not the same as supply-chain revenues that are often used to estimate the “total size” of an industry.

Rather, the economic multiplier paints a picture of the impact the industry has on the broader economy.

In this case, for every $1 consumers and patients spend at retail locations, an additional $2.50 will be injected into the economy, much of it at the local level.

That impact comes directly from the day-to-day needs of workers in the cannabis industry, including spending on life’s necessities such as housing, transportation, entertainment and more.

Marijuana businesses, consumers and patients also pay hundreds of millions of dollars in state and local taxes that are used to fund state and local government activities, including schools and roads.

In addition, real estate receives a boost from new retail, manufacturing and agricultural businesses moving into an area or established companies expanding, increasing broader demand for commercial properties.

Cultivating and manufacturing marijuana can require large investments in equipment and technology that boost not only the local economy but also areas throughout the U.S.

The list goes on.

Using the same multiplier methodology can also offer insight into the local-dollar impact from sales of recreational and/or medical marijuana.

The economic impact will vary by state based on the size, maturity and type of market.

For example, as the largest market in the U.S., California’s marijuana industry is expected to pump close to $20 billion into the state’s economy in 2021.

No other state comes close to that amount.

But states such as Colorado, Illinois, Oregon and Washington will provide more than $10 billion each for their local economies in the coming years.

Expect the same for markets in densely populated states such as New Jersey and New York as they develop.

If we consider total population, some states benefit more than others.

Ann Arbor dispensary to open Michigan’s first cannabis consumption lounge

Ann Arbor dispensary to open Michigan’s first cannabis consumption lounge

Michigan cannabis consumption lounge approved in Ann Arbor
An Ann Arbor dispensary is venturing into recreational cannabis’ next frontier: consumption lounges.

According to WXYZ 7 Action News, Holistic Industries, which operates Liberty Provisioning Center, have announced plans to open a cannabis consumption lounge adjacent to the dispensary at 338 S. Ashley Street.

“We’re thrilled to bring Michigan’s first cannabis consumption lounge to Ann Arbor and create a one-of-a-kind experience for the many people in Ann Arbor who agree that life is better with cannabis,” a spokesperson shared with WXYZ. “By providing a safe, designated space for consumption, we are helping remove some of the potential roadblocks cannabis patients and customers face after they purchase products and want to consume them.”

Liberty Provisioning Center opened last summer and services recreational clients and medical marijuana patients. Despite 2018’s legalization of recreational weed in Michigan, neighboring businesses are concerned that a consumption lounge — which is exactly as it sounds like: a commercial space where adults are legally allowed to consume cannabis on-site — could pose a threat to the community.

Sherry Doughty, who operates a Montessori school just a few hundred feet from the proposed site of the consumption lounge, is among those community members who remain skeptical.

“We don’t want them using the playground as a place to party,” Doughty told WXYZ. “If people will be milling around outdoors and if that will impact our staff and our children.” A local therapist who operates his business out of a house close to the dispensary and the yet-to-open lounge is also wary even though he supports legal cannabis.

“I don’t want a bunch of potheads walking around acting like a bunch of fools, would you?” Ken Land said. “If they get out of line, I’ll get crabby. But if they don’t, live and let live.”