Hi all,

Today’s story about Cookies raises all sorts of questions about the industry’s future. I hope you find it thought provoking and valuable.

Lots more stuff too. Enjoy.

Alex

*

Our advertising policy.

*

Send tips, press releases, concerns, feedback and criticism to hello@weedweek.com

*

Was this email forwarded to you? WeedWeek California Pro is the only publication for people who make money in the world’s largest cannabis market. Get a two-week trial subscription for $1!

The merchandise co-branded Cookies and Batman, which first dropped in March, is apparently the product of a licensing deal between DC Comics and Cookies SF, the clothing company founded by Cookies cannabis CEO Berner. 

The deal is noteworthy for the caretakers of a cartoon character letting it anywhere near the plant. It’s noteworthy in the other direction as well: Most cannabis companies stay away from anything that might get them unwanted attention for kid-friendly advertising.

Is the deal legal?

It depends who you ask.

Last week we saw how the legislature’s proposed budget looked more favorable to the industry than an earlier proposal from Gavin Newsom. While the current budget bill would allocate $20M for equity businesses, a bill sponsored by state senator Steven Bradford (D- South LA Co.) would have gone further to establish a standard definition of social equity throughout the state. 

• In a hearing this week for the Bradford bill, Oakland Cannabis Commission chair Chaney Turner said the problem for social equity businesses isn’t just the amount of money but where it goes. “We have seen that over 70% of equity fee waivers are going to the rural areas of the state. The very same white rural counties that are benefiting most from the cultivation tax cut.” 
• A note sent by Sen. Bradford’s chief of staff and shared with WeedWeek said there doesn’t seem to be appetite in the legislature to change the definition of social equity.

Precision Advocacy lobbyist Amy Jenkins said the expectation is to get the cannabis budget trailer bill approved by July 1.

*

Was this email forwarded to you? Get a two-week trial subscription for $1!

Costa Mesa approves first storefronts

Costa Mesa (Orange Co.) has greenlit its first two storefronts. The licenses, won by Culture Cannabis Club and 420 Central, are highly coveted since Orange County has relatively few dispensaries for its population of more than 3M. Costa Mesa, which already had allowed delivery services, becomes the only city in the county except Santa Ana to allow them.  
LA Times 

Business:

• Citing poor pay and safety concerns, workers at a growhouse owned by Eaze sister company Green Dragon voted to unionize in Colorado. The company declined to comment but has previously denied allegations that the grow house is a substandard facility and that the company is anti-union. 
  Denverite

Local:

• A proposal would funnel 40% of Sacramento (city) tax revenues into a children’s services fund. 
  Cannabis Business Times
• Las Vegas Weekly readers voted The Dispensary best dispensary.
• Ojai (Ventura Co.) may allow consumption lounges.
  LA Times
• San Diego Co. supes took a step towards putting a county tax measure on the November ballot.
  KPBS
• Canna Law Blog examines the LA’s upcoming retail license lottery. 

Criminal justice:

• Four officers won’t be charged for fatally shooting an armed man who tried to drive through a wildfire evacuation checkpoint in far-northern Siskiyou Co.
  NBC 
• Santa Clara Co. will automate expungments for low-level pot convictions.
  Mercury News

Fun and interesting:

• @returnofthealien LOL

For the new chart of the week, I’ll cite CA sales data from Headset posted by Alec Burkin CMO at Uncle Arnie‘s parent company Fly Beverage. It shows Uncle Arnie’s, Wunder and Tonik catching up fast to Cann, Lagunitas Hi-Fi, and Keef Cola, all of which saw declines in the last 90 days YoY.

From what I can tell, Uncle Arnie’s, Tonik and Keef offer 100 mg drinks and the other brands stay at the shallow end of the pool.

Company milestones:

• Bongmaker Puffco released the new pipe shaped device Proxy.
• Kaya Group partnered with Rich and Ruthless to distribute its brand Jamaican roots herbs in California.
• Distributor Herbl announced a new partnership with Leisuretown, an infused beverage brand by skateboarder Rob Dyrdek and musician Diplo.
• NorCal-based Black Market Group is launching brand Higher Frequency Flower in partnership with rap lyricist Rakim. (pictured)
• The state fair’s first cannabis awards partnered with Sacramento-based operator KOLAS to protect and authenticate samples with blockchain technology.
• Element 7 opened stores in Chula Vista (San Diego Co.), Willits (Mendocino) and Mendota (Fresno) which brings it to 12 total, with five more set to open this year.
• Artet released its fourth infused cocktail: Strawberry Basil Spritz.
• Albert Einstone’s brand El Blunto products will be produced at Reina LV‘s facility in Las Vegas.

Job Moves:

• Sensi Media Group named former High Times editor Jen Bernstein executive editor of the multi-state lifestyle publisher.
• Former Glass House Brands general counsel Jamin Horn ditched the cannabiz for a fintech and esports company.

Awards:

• SoCal lawyers named rising stars by Thomson Reuters include Yelena Katchko, of Katchko, Vitiello & Karimoni; Justin Keller of Rimon, Michelle Mabugat of Greenberg Glusker and Griffen Thorne of Harris Bricken. 

Upcoming:

• Tech firm Meadow is hosting the Cannabis M&A Summit on June 22 in SF. Meadow also celebrated the sales at SF’s Carnaval Street Fair.
• The Hood Incubator is holding a 16-week Cannabis Justice Accelerator for industry pros who want to become more involved in ending the war on drugs.

*

Was WeedWeek California Pro forwarded to you? Get a two-week trial subscription for $1!