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Montana recreational cannabis sales top $43 million in first quarter of 2022

Montana recreational cannabis sales top $43 million in first quarter of 2022

Montana recreational cannabis dispensary sales

In its first three months of operation, Montana recreational cannabis sales have surpassed $43 million, resulting in nearly $9 million in tax revenue for the state.

According to the state’s Department of Revenue, Montana recreational cannabis produced $43,537,110 in sales, compared to medical cannabis which generated $29,373,731 in sales during the same period.

Voters approved a ballot initiative to legalize Montana recreational cannabis in 2020, the same year three other states — Arizona, South Dakota and New Jersey — passed similar measures. However state officials wouldn’t approve regulations for a legal cannabis marketplace until October 2021.

This late action created a short deadline for the state’s Department of Revenue Cannabis Control Division to build out the framework for legal sales in Montana.

“The deadlines are aggressive,” Kristan Barbour, administrator of the Department of Revenue’s Cannabis Control Division, said at the time. “Really, the rules are our biggest challenge.”

“Our focus was really to be business-friendly and to try to work with the industry in a fashion that makes the rules adaptable to their current business structure and that they’ll be able to evolve into without a whole lot of pain,” Barbour added.

However despite the delays and tight deadlines, the Montana recreational cannabis market opened right on time, New Years Day 2022. On January 1 an estimated 380 dispensaries opened their doors in 29 counties across the state.

The state brought in an estimated $1.5 millions in adult-use sales in the opening weekend, a number that would snowball over the next couple months. While money isn’t the only reason a state like Montana would legalize cannabis, it is at the top of the list.

According to the Marijuana Policy Project, states have generated over $11 billion in tax revenue through legal cannabis. On average, a state with adult-use cannabis sales generated more than $3.7 billion in total revenue in 2021.

However another growing reason for multiple states legalizing cannabis is the failing War on Drugs. In 2018, 40% (yes, 40%) of all drug arrests in the US were for cannabis, typically possession. Think about the resources and dollars that go into arresting, processing, and housing all of these mostly non-violent offenders.

In March the Montana Supreme Court issued temporary rules for procedures that would allow those with past cannabis-related convictions to have them expunged. The state’s new cannabis law says “anyone convicted of an offense that would now be legal in the state can petition to have their conviction removed from their record, get a lesser sentence for it or reclassify it to a lesser offense,” according to local television station KPAX.

Just for comparison, Oklahoma, an equally red state with just a medical cannabis program that launched in 2019 brought in nearly $500 million in its first year of sales. Then the state nearly doubled that number in 2020.

Comparatively Montana recreational cannabis sales seem pretty miniscule. However it has only been three months. Should the trend continue, the state could easily see over $200 million in sales its first year.

Why you should stop calling it “marijuana”

Why you should stop calling it “marijuana”

history of the word marijuana

The majority of Americans now approve of cannabis legalization on the federal level. Yet the majority of the country still refers to the plant by much different name: marijuana.

If you walked up to someone in their mid-forties and asked them their opinion on cannabis, there’s a chance they wouldn’t know what you were talking about. However if you asked them if they supported the legalization of marijuana, there’s a higher likelihood of them supporting it than not.

So where is the confusion?

When we have been referring to cannabis as “marijuana” for nearly a century, it isn’t as easy to telling people that the name has changed. But the reality is that cannabis was always, well, cannabis.

Origins of cannabis

Cannabis has been a known and used plant for medicine and recreation for centuries. With use dating back to 8,000 B.C. in Mesopotamia, those studying medicine throughout the generations have had plenty of time to learn about the origins of the cannabis plant.

Through these studies, this is where the plant’s name originates. Actually, it has several names for the various types of cannabis that can be found across the globe.

Cannabis Ruderalis (northern/central Asia), Cannabis Sativa (Eastern Europe/Central Asia), and Cannabis Indica (China, Korea, Southeast Asia, Himalayas, Middle East) are the most studied and well known biotypes of cannabis. These are the scientific names for the plant. Notice that none of them have the word “marijuana” or anything close to it in their title.

So if cannabis had held that name for centuries of scientific study, what changed?

The answer to this question is why you should stop using the word “marijuana” when talking about cannabis.

Origins of “marijuana”

The origins of the word “marijuana” or “marihuana” are debated among the cannabis community. But one thing is inarguable; the word is racist.

Cannabis,  AKA hemp, was a major cash crop in the United States for decades, with the government even requiring its production by farmers during the Revolutionary War. Now, why cannabis became illegal in the first place is highly debated.

Many argue that cannabis became illegal because major paper manufacturers and big cotton producers partnered together to phase out hemp as a material for paper. However there is very little historical information to back this up. The more recognized and historically traced reason for the criminalization of cannabis goes back to the introduction of Mexican immigrants to the United States.

Prior to their arrival, recreational use of cannabis was not widely accepted. The plant’s main uses were medicinal and manufacturing. Hash and concentrated forms of cannabis were commonly used by doctors to treat a variety of ailments. The fibers of the hemp plant were great not only for creating boat sails which were vital to the war effort, but hemp was also a vital material in clothing and paper for decades.

However it was when Mexican immigrants arrived and brought their preferred method of cannabis consumption with them that the plant would begin to gain notoriety. Opposed to consuming it in a medicinal form such as a tincture which was common in the country at the time, the immigrants would roll up loose cannabis flower into cigarettes or pack it into pipes and smoke it.

Just like today, immigration of Mexicans to the United States stirred up xenophobia. In the 1930s a man named Henry Anslinger, the head of the Federal Bureau of Narcotic (now the DEA), made a distinct effort to link cannabis use to Mexican immigrants to stir up fear in the community and build support for prohibition.

Keep in mind this is the 1930s, and alcohol prohibition had already been in effect for almost a decade. So the idea of banning a substance through provoking fear in the public was by no means a new concept.

Anslinger would coin the term “marihuana” to replace cannabis. He chose the word because of its foreign sounding nature that could be attached to Mexican immigrants. But Mexicans weren’t the only victims of Anslinger’s racist campaign against cannabis.

Henry Anslinger held such views on cannabis as, “Reefer makes darkies think they’re as good as white men,” and, “Marihuana leads to pacifism and communist brainwashing.​” One of his most famous quotes is as revealing as we need it to be to recognize the racist intentions of the word “marijuana”:

“There are 100,000 total marijuana smokers in the US, and most are Negroes, Hispanics, Filipinos and entertainers. Their Satanic music, jazz and swing, result from marijuana usage. This marijuana causes white women to seek sexual relations with Negroes, entertainers and any others.​​”

Need I say more?

In the end as we all know, Anslinger’s plan would be a success. In 1937 the United States passed the Marihuana Tax Act which would be the basis for criminalizing the plant nationwide in the years to come.

After the Marihuana Tax Act of 1937 went into effect, the Bureau of Narcotics arrested Moses Baca for marijuana possession. Baca was a Mexican-American and was the first victim of the federal government’s war against drugs.

It’s time to move on

To make a long story short, the only reason the word “marijuana” even exists in the first place is because of racism. And that same racism has fueled the drug war that has plagued the United States for decades, with that word being at the forefront of the campaign.

Does this make everybody who calls cannabis marijuana a racist? Of course not. Don’t attribute malice to that which can be explained by ignorance.

It’s not like the history and prohibition of cannabis is taught the same way prohibition of alcohol is in high school. Politicians don’t want to talk about the dark, tattered history of the plant and why it became illegal in the first place. Anybody who wanted to know the history of cannabis had to seek it out themselves, and in most cases still do!

Let’s not forget that cannabis is still illegal on the federal level, all because of the racist campaign Henry Anslinger started in the early 20th century. Well, we’re in the 21st century now, and it is time to move on from the outdated, racist terms used to describe a plant that thousands use as medicine and recreation.

It isn’t snobby to call cannabis by its proper name to combat the decades of racism its former helped promote. It isn’t elitist or trying to be cool to use the proper terms for a plant that the majority of us want to be legal.

How can we expect legalization of cannabis when we can’t agree on what to call it?

New Mexico cannabis sales pass $4 Million in first weekend

New Mexico cannabis sales pass $4 Million in first weekend

New mexico cannabis sales brought in a lot of money

In its first weekend of adult-use recreational cannabis sales, New Mexico cannabis sales surpassed $4 million.

The brand new market broke $3 million on day one as dispensaries across the state opened their doors to customers for the first time. Over the next two days the industry would bring in a total of $4.5 million.

According to state officials, there have been 49,552 transactions for recreational cannabis as of 12 pm Sunday, totaling $3,092,712. During that same period, about $1,425,000 worth of medical cannabis was sold.

The first recreational cannabis transaction occurred at 12:01 a.m. in Las Cruces. Sales in the state’s largest city, Albuquerque, didn’t start till 10 a.m. By noon Friday, recreational sales had reached $476,000. About 70 percent of all cannabis sales Friday were for recreational use.

New Mexico cannabis sales for adult-use were signed into law by the state’s governor in April 2021. By December 2021 the state’s Cannabis Control Division began accepting applications with no limits on how many licenses would be given out.

Other states have taken similar approaches, like Oklahoma, which also didn’t put limits on licenses or plant counts for cultivators. While Oklahoma’s market is now oversaturated with cannabis products driving prices down, it is way too soon to say if New Mexico will face a similar issue.

Michigan opens first cannabis consumption lounge

Michigan opens first cannabis consumption lounge

Michigan cannabis consumption lounge

The first marijuana consumption lounge is set to open its doors later this month in Hazel Park.

Hotbox Social will start off with private events and then will open to the public later in the year.

It’s the first of its kind to be granted a state permit where users can recreationally light one up or smoke a bong.

But there’s a catch, you can’t bring in your own stash just yet.

“We’re able to accept deliveries from any retailer in the area. We don’t actually sell here,” CIO at Trucenta Nowfal Akash said. “Delivery drivers show up and maintain the transaction inside where it’s safe.”

Experts will also be on hand to teach those who are new users.

“The FDA has a certain recommendation about 5mg as an initial dose. We want to cut that in half and probably float around the 2-2.5mg range for a first-timer just to be safe,” Akash said.

Michigan is now the 7th state to allow these consumption lounges.

“We saw a need for a way for social consumption to occur in a responsible manner,” Michigan’s top Cannabis Regulator Andrew Brisbo said. “We can ensure the safety of the employees working in those types of establishments.”

There are a lot of regulations for these consumption lounges including an adequate ventilation system.

Interstate cannabis commerce bill introduced in California

Interstate cannabis commerce bill introduced in California

California interstate cannabis commerce bill introduced

California has always been at the forefront of cannabis legalization. As one of the first states to legalize medical and recreational cannabis, other states looked to California for the outline of legal cannabis.

But despite its progressive policies regarding cannabis, California has not been able to develop and maintain a strong legal cannabis industry. This is for a wide range of reasons, from strict and expansive regulations to exorbitant application and licensing fees. Not to mention the massive illicit market that still operates within the state, in part due to the current barriers to entry into the legal market.

Some would argue that the solution to California’s cannabis industry woes is to simplify the application process, lessen the cost of licensing and give cultivators and retail owners the resources they need to stay within regulation. However the state is taking a different approach to profiting off an industry with an oversupply of cannabis.

SB1326 has been introduced to approve interstate commercial transactions for cannabis products. This means that if passed, California would be able to import and export cannabis products from other legal cannabis states. For example a state that recently legalized cannabis but does not yet have enough supply to meet demand could import products from California to fill the gaps.

If this bill sounds familiar, it may be because Oregon passed something similar in 2019. However since they were the only state with a law allowing export of cannabis, and no states have a law allowing imports, the law is basically moot.

The interstate cannabis commerce bill wouldn’t just be restricted to recreational cannabis either. California also has one of the country’s oldest medical cannabis programs and would be able to provide medical cannabis to neighboring states as well.

Even with the largest illicit market of cannabis production in the country, California’s legal recreational market is still oversupplied. The hope with SB 1326 is that some of that supply can be sent to other states to make the industry more profitable for those participating legally.

Critics of the bill have shown concern however over wording that could remove the opt-out clause currently in place in the state.

Most states with legal cannabis programs will have opt-out clauses that permit municipalities to opt-out of legal cannabis business in their localities. Those criticizing SB 1326 believe that the new bill will overshadow the opt-out clause, but lawmakers believe that it will actually give the municipalities more options than the opt-out clause itself provides.

The interstate cannabis commerce bill also places restrictions on who can enter the new market if it passes.

“The bill would prohibit an entity with a commercial cannabis license issued under the laws of another state from engaging in commercial cannabis activity within the boundaries of this state without a state license, or within a local jurisdiction without a license, permit, or other authorization issued by the local jurisdiction,” the bill’s text reads.

This line should reassure smaller towns and local businesses that multi-state operators won’t be able to just storm in and take over. And at this time, officials in the cannabis industry want to focus on leveling out the supply in California before they begin accepting any imports.

Popular soda brand Jones Soda unveils new cannabis infused drinks

Popular soda brand Jones Soda unveils new cannabis infused drinks

Jones Soda company releases new cannabis infused drinks

You may have seen their bottled sodas at your local grocery store. Now Jones Soda is dipping their feet into legal cannabis with a line of new products.

Mary Jones — the new brand from Jones Soda — will introduce cannabis-infused drinks, gummies and syrups to California consumers on April 1. According to the company’s marketing chief Bohb Blair, the company is hoping their recognizable branding will help them gain a chunk of the cannabis drink marketshare that is increasing constantly.

As a smaller, craft soda company, Jones Soda’s 2021 revenue was only .04% of what Coca-Cola pulled in, at just $14.8 million. However the company is using its smaller size to their advantage.

While larger companies like PepsiCo and Coke are hesitant to enter the cannabis drinks market due to federal legality, Jones is more willing to take the risk.

Blair believes that the company’s brand recognition as a quality, craft soda company will give them the edge over existing soda drinks. The current products on the market, according to Blair, are light on flavor and low on dosage. This leaves the door open for Mary Jones to capitalize.

“Health claims aren’t our equity, full flavor is,” Blair said. “We had some conversations early on: Should we be putting CBD in this? And no, it’s not who we are.”

The initial launch will include four different product lines: 12-ounce bottles of soda infused with 10 milligrams of cannabis; 16-ounce cans of soda infused with 100 milligrams of cannabis; syrup designed to mix with other drinks or on food with 1000 milligrams of cannabis per bottle; and gummies infused with five milligrams of cannabis, shaped like mini Jones Soda bottles.

While they are starting in California dispensaries only, Mary Jones already has plans to expand to every legal state in the country.

“We have been putting all of these pieces in place since we announced our intention to establish a cannabis division last July, and we fully expect the brand to deliver solid strategic growth for the company,” CEO Mark Murray said in a statement.

Because the new line of products will only be sold in dispensaries, Jones Soda isn’t worried about consumers mixing up the labels. To distinguish the new products from their traditional line, the Mary Jones branding is a different design, with THC dosages printed in large font.

As a publicly traded company, it is a bold move for Jones Soda to enter the cannabis-infused products market, However they aren’t the first.

Molson Coors, Anheuser-Busch and Boston Beer — the maker of Samuel Adams — have all started their foray into the legal cannabis industry. However there haven’t been any well-known soda companies that made the move, until now.

While still small and lesser known than the big names, Jones Soda has a name that is recognizable on grocery store shelves. As long as Mary Jones can utilize that recognition on dispensary shelves, the new line of products will likely bring a fresh take on cannabis-infused drinks to the market.