Emerging Markets Roundup: June 2022
What an exciting time to be in the cannabis industry!
As more states give the green light to broader cannabis legalization and decriminalization, others are refining their cannabis policies in response to an ever-evolving marketplace, while still others stay aligned with the Feds in their continued banning of the plant. It can be a lot to keep track of!
As the ultimate cannabis production platform, AROYA keeps its finger on the pulse of the industry by constantly monitoring what’s going on with emerging markets across the country. Here are a few noteworthy cannabis news stories that caught our attention recently…
- The California state assembly recently advanced Assembly Bill 2691, which if passed would allow licensed cannabis farmers to sell at Farmers Markets all over the Golden State. This could be a game-changer for cultivators by offering more opportunities to reach customers – remember, most cities in Cali ban cannabis retail. And considering Gov. Gavin Newsom’s (D) recent proposal to remove the $161/pound of flower from next year’s budget, perhaps growers will finally get the much-needed relief they deserve. Read more at LA Eater…
- Voters used Georgia’s recent primary election to let lawmakers know they want cannabis legalized for adult-use. Faced with the question, “Should marijuana be legalized, taxed and regulated in the same manner as alcohol for adults 21 years of age or older, with proceeds going towards education, infrastructure and health care programs?” more than 80% of the 665,000 votes cast were in favor while 20% were opposed. And although this vote won’t change current state law, it informs lawmakers where citizens in the Peach State stand on the issue. Read more at Marijuana Moment…
- Minnesota lawmakers recently approved a bill which would allow adults to purchase Delta-8 and other hemp-derived products with intoxicating THC at grocery and convenience stores. If approved by Gov. Tim Walz (D), the bill would also allow for the placement of CBD in food and beverages. Read more at Hemp Industry Daily…
- During its first full month as a recreational state, New Jersey generated $24 million in sales, and that’s with just 12 dispensaries open. In fact, within the first 3 days of launching cannabis retail on April 20 – and just over a year after voters in the Garden State approved adult-use – customers spent a whopping $3.5 million! Read more at Forbes…
- Last week Gov. Dan McKee (D) signed a bill legalizing cannabis for adults 21 and older, making Rhode Island the 19th state to officially end prohibition. While adult-use retail will likely not begin before December 2022, citizens are legally allowed to possess and cultivate up to 10 ounces and 6 plants, respectively. Among other considerations the legislation includes automatic record expungement for those convicted of cannabis possession, establishes a social equity program, and allows local municipalities to opt out of cannabis retail. There will also be a two-year moratorium on cultivation licenses beyond growers currently serving the state’s medical market. Read more at Marijuana Moment…
- Days before advocates with South Dakotans for Better Marijuana Laws gathered enough signatures to put adult-use cannabis legalization back on the ballot in South Dakota this November (which ICYMI, voters approved in 2020 only for the state Supreme Court to ultimately strike it down), the Flandreau Santee Sioux Tribe announced they’re building two new cultivation facilities in response to high medical cannabis demand. While SD’s mmj program reportedly counts fewer than 700 state-issued medical card registrations, the Flandreau Santee Sioux Tribe’s Native Nations Cannabis dispensary reportedly serves more than 10,000 registered patients. And with their one 10k square foot facility yielding 80 pounds per week, it’s no wonder they’re looking to expand – and the first new facility is slated to open this summer. Read more at MJBizDaily…
- And on the National front…the National Institute on Drug Abuse (NIDA) put out the call inviting new licensees to apply to become authorized suppliers of cannabis and cannabis-derived products for research purposes. The University of Mississippi has served as the Drug Enforcement Agency’s sole weed supplier for decades. But since their crops match the chemical makeup of hemp more closely than they do commercially-available marijuana, the push for new suppliers could mean better scientific research. Read more at Marijuana Moment…
- And the timing couldn’t be better, as a recent study concluded that the way cannabis strains are categorized and marketed – body high for indica, uplifting for sativa, both/and for hybrid – doesn’t align with their chemical makeup, and may be more confusing for consumers. Researchers emphasize the importance of terpenes and the need for a more accurate, central labeling system for cannabis nationwide. Read more at Marijuana Moment…
Got the scoop on something going on in your emerging market Email it to mandy.spivey@metergroup.com so we can cover it!
And be sure to check back with us for news, important topics for cultivators, operators, investors, and anyone who wants to stay on the forefront of this amazing time in cannabis and crop steering history.