The rise and fall of Berner’s on Haight
Steps of chocolate chip cookie being devoured. Isolated on white background.
THE BIG IDEA
Hi all,
Lots of great links in the newsletter today. No matter what, don’t miss the spectacular costumes on display at the Telluride Mushroom Festival.
And if that’s not your thing, there’s some ugly litigation.
- The rise and fall of Berner’s on Haight
I hope you find it interesting,
Alex
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THE RISE AND FALL OF BERNER’S ON HAIGHT
MJBiz reporter Chris Roberts has a big story in the SF Chronicle on the rise and fall of Berner’s on Haight, the Cookies-affiliated social equity shop on San Francisco’s culturally resonant Haight St. You should read the whole thing and share it with folks curious about this industry. The piece does a really nice job showing a mainstream audience what has gone wrong with the cannabiz.
To summarize, a partnership between Cookies and a politically-connected equity applicant, which received early access to the application submission system won a license. Nicole Elliott, who’s now director of the state Department of Cannabis Control (DCC), led the city’s cannabis office at the time and denied the business received preferential treatment.
As legal weed became easier to access, the location lost its allure and the equity partner triggered its option to be bought out by Cookies for $10M…
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In another big story from Chris, a federal lawsuit filed in Illinois by a former Curaleaf regional compliance director alleges the leading MSO engaged in “systemic diversion.” It also alleges a former cannabis bureau chief at the Illinois Department of Agriculture “flagged numerous environmental, health and safety…concerns” including “unlicensed pesticide use.”
The plaintiff claims he was fired in 2024 after raising concerns about “violations of state and federal law” at a Curaleaf facility in North Dakota. Curaleaf declined to comment for the story.
MJBiz
QUICK HITS
Federal:
- As Trump apparently continues to weigh rescheduling, he posted a video touting the benefits of hemp-derived CBD for senior citizens. The video was produced by a group called the CommonWealth Project, which was founded by Trump’s friend Howard Kessler, a financial executive. Trump’s post, which had nothing to do with legalization, sent pot stocks soaring to multi-month highs. Days later, Trump’s Department of Homeland Security called marijuana a “deadly drug.“
GreenState, Marijuana Moment - Cannabis Business Times asks if the federal shutdown will delay any announcement from Trump about rescheduling.
- The U.S. Supreme Court could decide this month whether to hear a Humboldt Co. case. Plaintiffs, who are fighting large county fines for code violations related to illegal growing, and which they say were caused by the actions of previous owners, say the Seventh Amendment entitles them to a local jury trial. The county has asked the court to reject the case.
Jefferson Public Radio - Conservative outlet The Dispatch argued “America’s marijuana debate is flawed.“
Business:
- MSO Verano landed a $75M revolving credit facility.
- Lexington, Ky.-based CannaBuzz became the first hemp-infused drink maker to join the trade group Wine & Spirits Wholesalers of America.
- Vape maker Puffco announced a partnership with UFC Brazilian Jiu-Jitsu.
State and local:
- Oregon distro Jefferson Packing House filed another lawsuit challenging federal prohibition on the basis of the dormant commerce clause.
Canna Law Blog - Following an uproar from the industry, the Michigan Senate delayed a vote on a tax hike, and there’s talk of a compromise deal.
WeedWeek - Reinstated Massachusetts regulator Shannon O’Brien returned to work, promising to restore trust.
- A big Colorado recall has raised questions of product safety.
Colorado Public Radio - New Jersey is creating a $15M loan program for smaller businesses.
Patch.com - A longshot Republican sponsored bill aims to legalize MED in Wisconsin.
MJBiz - In an unlicensed Missouri shop, investor George Allen found a pack of edibles with 10,000 mg of THC for $33.
- Consultant Andrew DeAngelo wrote about the Prairie Island Indian Community’s vision for a sustainable industry in Minnesota.
Forbes - Ohio operators sued the state over its advertising and product rules.
Columbus Dispatch
Health and science:
- An experimental drug containing microdoses of THC reduced back pain in a large study.
LA Times
Fun and interesting:
- Folks had some amazing costumes at the @telluridemushroomfest (ival).
- Twenty years later, the cause of Hunter S. Thompson’s death will be reviewed.
BBC
CALIFORNIA HITS
State:
- Gov. Gavin Newsom signed a bill integrating hemp with the licensed supply chain.
- Authorities raided stores seizing $5M in kratom and products containing the related drug 7-hydroxymitragynine (7-OH). The U.S. FDA recently recommendeded that it be made a schedule I drug nationwide.
SFGate
Local:
- As the booze biz struggles, a Santa Barbara Co. winery dropped its tasting fees.
Santa Barbara Independent - Oceanside (San Diego Co.) is accepting applications for its first commercial licenses.
San Diego Union-Tribune - Imperial Co. saw its first lounge open in winterhaven.
KYMA - Illegal farms threaten joshua trees.
SFGate - Baldwin Park (LA Co.) and multiple “greedy and corrupt” public officials, lost a $1.6M lawsuit to a license applicant.
GreenState
Upcoming:
- Grateful Days Fest, October 26 at CBCB-affiliated Chapel of the Flowers in Berkeley.
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