VAPE PANIC SPREADS; INDUSTRY BLAMES PROHIBITION

The vaping disease which has killed six and sickened hundreds continues to stump doctors. A “significant subset” of vaping fluids used by sick patients contained vitamin E acetate, a diluent sometimes found in illegal cannabis vapes. However, some of the sick patients have denied vaping THC products.
N.Y. Times

Doctors consider using vapes bought illegally to be the riskiest behavior, although they can’t confirm the safety of approved products. “E-cigarette aerosol is not harmless,” according to a story in the The New England Journal of Medicine. “It can expose users to substances known to have adverse health effects, including ultrafine particles, heavy metals, volatile organic compounds and other harmful ingredients.”

The Oregonian interviews two pulmonologists who treated a patient who succombed to the disease. The patient was the only fatality known to have shopped at licensed dispensaries.

The backlash is on:

Cannabis industry groups consider the outbreak another reason to legalize cannabis, arguing dangerous products would be less likely in a fully regulated market. “These unfortunate illnesses and deaths are yet another terrible, and largely avoidable, consequence of failed prohibition policies,” National Cannabis Industry Association co-founder Aaron Smith tweeted.
Marijuana Moment

And in a late breaking story, an AP investigation has uncovered another contamination problem which could mean more headached for the industry. The reporter found CBD vapes and edibles spiked with dangerous (and much cheaper) synthetic cannabinoids.

CANNABIS GROWING: NOT SO GREEN

But cannabis isn’t all green. Scientific journal Nature has a deep dive into the environmental hazards of pot growing and how they can be mitigated.

It concludes, Oregon’s Yerba Buena and other eco-minded growers “demonstrate that cannabis can be cultivated in a way that doesn’t harm the planet. But the cannabis industry has only just begun to chart a route to a greener future.”

HEMPCRETE’S DAY IS HERE AT LAST

BNN Bloomberg reports hempcrete is increasingly popular as a building material, largely because it produces fewer greenhouse gases than concrete. Incredibly, cement mixing accounts for about 7% of greenhouse gas emissions worldwide.

Hemp fields absorb carbon when they’re growing. After harvest, the crop continues to absorb greenhouse gases as it’s mixed with lime or clay. Hempcrete structures also have better ventilation, fire resistance and temperature regulation, according to their proponents….

MASSACHUSETTS MAYOR ARRESTED FOR CANNA-CORRUPTION

Jasiel Correia II, the mayor of Fall River, Mass. was arrested on federal extortion charges for allegedly helping cannabis businesses get licensed in exchange for hundreds of thousands of dollars.

Prosecutors say he agreed to sign non-opposition letters for four companies in exchange for “significant six-f

  • Correia, 27, pleaded not guilty. The Democrat is also accused of other corruption related charges. He was indicted last year for fraud related charges to which he has also pleaded not-guilty. He faces 24 total charges.
  • Fall River is about an hour south of Boston.
  • The cannabis businesses are not identified in the indictment.

Quick Hit

  1. Federal prosecutors held their second closed door “marijuana summit” this week.

MSO’S: NOT ALL THE SAME

At New Cannabis Ventures, Alan Brochstein discusses how American multi-state operators are beginning to differentiate themselves:

“We have seen two of the larger MSOs access debt markets, both including a very small amount of warrants, while another MSO has pursued convertible debt. Another aspect of capital markets approaches is how aggressive some companies have been with their mergers and acquisition strategies, while others have preferred to grow organically. Most of the MSOs cite California, Florida and Massachusetts as the most important markets in the near-term, but we have seen several be aggressive in markets like Arizona and Nevada as well.”

Quick Hits

  1. Politico is launching a paid cannabis newsletter, but it’s free for the first few weeks. Business Insider recently launched a cannabis newsletter called Cultivated.
  2. ????WW Canada has the latest on the CannTrust scandal!
  3. Another step towards legal REC in Mexico.
    Marijuana Moment

WW COUNCIL ON INFUSED DRINKS, CANNABIS MARKETING

WeedWeek Council is a new initiative to build a community of industry leaders, and share their insights with WeedWeek’s audience.

We recently asked council members’ if they thought infused beverages will become a hot product category and for what they think are the most important trends in marketing and branding:

Peter Gigante, Head of Policy Research at Eaze says, Drinks will be big, but…:

A major question outstanding is how regulators and the public health community will respond. Depending on what is being infused (i.e. will there caffein or other added energy boosters and in what quantity, I could easily see an outcry that the risk of overconsumption is too great with infused beverages, much as some critics do with edibles today.
(Disclosure: Eaze is a WeedWeek Recharge sponsor.)

Here’s Gigante on branding trends:

“Celebrity brands have done well in other industry areas. It remains to be seen if cannabis consumers, and WHICH cannabis consumers, will be swayed by familiar names or if other factors like quality and price will still reign top of mind.”

James Eichner, Sana Packaging

The most interesting trend in cannabis branding is the growing focus on showcasing regenerative agricultural practices as an integral part of a brand’s story.The word “sustainability” means different things to different people…On the other hand, it’s clear a regenerative cannabis farm cultivates cannabis using regenerative agricultural practices like no-till, living soil, etc. Visit https://regenerativecannabisfarming.org/ to learn more.

Tammy Pettigrew, The Cannabis Cutie:

“My favorite trend in cannabis branding is seeing products that are labeling what the end experience will be after consuming their products, like uplifted, relaxed, or focused. For beginning consumers this is ideal, especially since there are thousands of strains that exist and we have now learned that the sativa-indica binary is a myth.”

What else is on the Council’s mind?

Jacqueline Rosales, Soapbox Sample

“There are big challenges in the candy and confection cannabis space from the food scientist and engineer perspectives. I think it’s something very interesting to watch given the current challenges with regulations.”

 

CALIFORNIA COULD SOON HAVE LIMITED CANNABIS BANKING

California appears to be on the brink of creating what State Treasurer Fiona Ma calls “a partial and temporary cash management solution,” for cannabis businesses.
Cannabis Wire

  • The Bill would authorize the state to license “cannabis depository institutions” They could accept deposits, and issue and redeem special purpose checks, which account holders could use to pay fees and taxes as well as rent and vendors.
  • ????WW California has more!

Quick Hit

  1. In the New York Times, conservative writer Christopher Caldwell suggests cannabis banking would lead to a “Microsoft of Marijuana.” He’s not wild about the idea.
  1. L.A. opened a long awaited licensing period for equity retailers. ????WW California has more!
  2. California vape company dosist is #2 on LinkedIn’s 50 top U.S. start-ups. It has about 200 employees and “has hired more than 100 employees over the past year, attracting top talent from the likes of Apple and Tesla.” Yahoo Finance explains why dosist made the cut.

2020 DEMS EMBRACE POT REFORM

REC legalization “has become something of a de facto platform plank for the 2020 Democratic [Presidential] candidates,” USA Today reports. Among the leading candidates, only current frontrunner Joe Biden hasn’t committed to legalization, instead calling for rescheduling. In 2016, Vermont Senator Bernie Sanders was the only major party candidate who called for legalizati

  • Many in Democratic circles say legalization is a way to better engage young voters.
  • According to The Onion (in 2015), Biden worried his business would be “completely dicked over” by REC legalization in D.C.
  • Andy Bernstein of voter registration non-profit Headcount: “A decade ago, mentioning marijuana made you a fringe candidate. Today, you’re out of the mainstream if you don’t have a position, and a position to provide greater access.”
  • Register to vote at Headcount.