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Cash-strapped governments around the country have found a silver lining in the pandemic-caused loss of tax revenue. Legalized marijuana has provided millions to state and local governments - in some cases, millions more than anticipated.

The ability to raise tax dollars has been a selling point for marijuana legalization from the beginning. Long before the state legislature approved adult-use sales, Illinois politicians hoped marijuana could help the state pay off some of its massive debt. Other states, such as Colorado, have used sales tax dollars to fund schools and public improvement projects and programs.

The cannabis plant is one of the oldest medicines on earth, with humans having used it for medical purposes for thousands of years.

It wasn’t until the better part of a hundred years ago that medical cannabis became prohibited on a global scale.

Cannabis is medicine, as proven by tens of thousands of peer-reviewed studies and countless personal experiences of patients that have successfully treated their condition(s) with cannabis.

Fortunately, more countries have legalized cannabis for medical use than ever before in the post-prohibition era, including in the United Kingdom.

Limited Program

As of November 1, 2018 the United Kingdom has allowed ‘expert doctors’ to prescribe the use of medical cannabis products to patients they feel would benefit from it.

Cannabis companies haven't made many deals outside of its own industry, but a couple of the more notable ones have involved tobacco. Altria (NYSE:MO) invested $1.8 billion into Cronos Group (NASDAQ:CRON) back in 2018 to take a 45% stake in its business. And last month, British American Tobacco (NYSE:BTI) invested roughly $176 million in OrganiGram Holdings (NASDAQ:OGI), which represents a 20% stake in the cannabis company.

Not only is the cannabis industry moving further into the mainstream as more states legalize marijuana, but there's also a growing pressure on the tobacco industry to diversify its offerings. And a new projection could put pressure on tobacco companies to act sooner rather than later.

Could all the smokers disappear?

According to analysts at Jefferies, conventional smokers could be gone from many markets around the world within just two decades. This isn't because smokers won't still demand the products, but instead that countries are trying to move away from smoking and tobacco companies by offering reduced-risk products (RRPs). Analysts point to vaping and oral nicotine as alternatives that smokers may end up turning to. 

Philip Morris International (NYSE:PM) sells IQOS, an electronic cigarette that heats tobacco rather than burns it. However, it still has a long way to go in proving it can be a meaningful alternative for smokers. One quarter of the $28.7 billion in net sales that Philip Morris generated last year was related to RRPs. And of that total, IQOS accounted for just 7%. Switching to other products likely isn't all about safety, either, as tobacco companies also need to find more avenues to grow. Philip Morris' 2020 revenue was down from 2019's tally of $29.8 billion, and its top line is nearly unchanged from what it was in 2017. British American Tobacco's sales also declined in 2020 and over two years are up just over 5%.

Why cannabis may be the ideal option for tobacco

A big reason why industries are hesitant to get involved with cannabis is that it's risky. Federal prohibition means that products can't be transported into the U.S. from abroad or across state lines, and some businesses aren't willing to risk damaging their wholesome images. That's what Berkshire Hathaway executive Charlie Munger pointed to in a 2019 interview, saying it would be a mistake if soft drink giant Coca-Cola were to ever attempt to mix marijuana with its products.

The American Herbal Products Association (AHPA) has published a lexicon to support the standardization of terminology used in the hemp industry.

As new industries develop, so does associated language and jargon. Sometimes words and terms used have different meaning when applied in other sectors, which can lead to confusion and mistakes being made.

Developed by a working group of the AHPA Cannabis Committee, the lexicon seeks to cover terms used in the cultivation, processing, manufacturing and labeling of hemp, and products derived from it.

If Washington wants to be as competitive as possible, it has to drop the cottage cloak around ownership at some point — and eliminating it for financiers just isn’t enough.

I absolutely loved Washington State when I lived there. I lived in Seattle for seven years and was one of the first attorneys in the state to take on medical cannabis business clients in 2010 and then again with adult use clients in 2012 when I-502 passed. Our law firm is a pioneer in the cannabis space, but particularly in Washington State where our cannabis practice first began many years ago.

I also think Washington has a top notch cannabis program when it comes to its regulations. They are clear and comprehensive, setting up licensees for success as industry understands what it is getting most of the time from the Washington State Liquor and Cannabis Board (“LCB“). Of course, there are ambiguities with Washington’s administrative code and cannabis (like with all states), and there always will be because different licensing analysts will give competing interpretations of the law and rules on everything from label review submissions to analyses of true parties of interest. I certainly don’t agree with every LCB rule on the books, but I respect the heck out of Washington for the cannabis program it created and has maintained over the years.

Photo by Flickr user Tanya

All of the foregoing is why I was incredibly excited and honored to testify at a Washington State House Commerce and Gaming Committee Legislative Work Session on March 26. You can watch the entire hearing here. I moved to Los Angeles in 2017 and have really focused on California’s cannabis scene for a while now, but I keep up with Washington’s cannabis marketplace and our firm continues to maintain its cannabis practice out of Seattle.

Hemp cultivated for seed and grain comprised approximately ten percent of 2020 total U.S. acreage, approximately 14,000 acres, according to data provided by Hemp Benchmarks.

By comparison, Canadian cultivators grew more than five times that acreage, beyond 75,000 acres, the vast majority of which were exported to the United States.

The cannabis industry has seen some players make big bets on beverages, but so far it hasn’t paid off. The market is definitely growing, just not at the rate many had hoped for. Plus, the slow growth of this form factor is not an indication that it won’t continue to increase and eventually gain even more market share. Cannabis tracking firm  Headset recently released a report on the cannabis beverage industry and found that in the US, “The beverage category’s market share has held fairly steady between 0.85 percent and 1.1 percent over the last several years. In fact, market share to the category was slowly decreasing through late 2019 and early 2020 before maintaining just below 0.9% during the beginning of the COVID-19 pandemic.”

Despite the consumers tapping the brakes on beverages, the category has begun a turnaround and Headset believes the products are poised to reach an all-time high as pandemic restrictions ease. The report also noticed that consumers are at least giving the products a try as basket data is showing more people are tossing some beverages in the bag. The report said, “We can see a relatively steady march upwards over time rising from 1.6 percent in January 2018 to 2.8 percent in February 2021. Even though market share hasn’t drastically increased, Beverages are making their way into more and more baskets each month, indicating that more customers than ever are trying THC-infused Beverages.” Only a little over 20 percent of the shopping carts are filled with only cannabis beverages, meaning the other almost 80 percent are adding beverages to a larger order. By contrast, a third of edible consumers are buying just edibles when they go to the dispensaries. 

It’s A Girl Thing 

What has been learned is that women are the big buyers of cannabis beverages. In every single age category, women outspent men when buying cannabis-infused beverages. So, hands down, the main consumer for cannabis-infused beverages are women.

Where things get even more interesting in the report is when Headset dives into dosage. The two main categories for purchases are on either side of the spectrum – either low like a microdose or very high for maximum effect. The report stated, “In fact, most of the growth in the 10mg or lighter section over the last few years has come from the 0-5mg ‘microdosed’ cohort of Beverages, which has risen from 14.4 percent category share to more than 18 percent of sales this year to date.” For example, so far in 2021 beverages with over 100mg accounted for 59.8 percent of the market share, while products with less than 5mg were the second-largest category with a 19.5 percent market share. 

California Drinking

The report stated that “California Beverage sales in January 2021 clocked in at $15.5M, nearly six times greater than the $2.7M recorded during January 2018, the first month of recreational sales.” Also, since the competition is heating up and there are more beverages to choose from, the top three selling in 2018 brands have seen their market share decline. The data showed that some brands, like Kikoko and Cannabis Quencher have held firm in the market even though new brands have entered the space. “Legal Beverages, on the other hand, was unable to keep up, falling from the third top selling Beverage brand in 2018 to a market exit in 2020.” 

People used cannabis in large numbers during the height of the lockdowns caused by the pandemic. Investors, including big-name celebrities and well-known venture capital funds, are banking on that trend to continue as the pandemic lessens its hold on the country.

The interest in cannabis became apparent the moment lockdowns began as long lines formed at dispensaries. Many governments named cannabis dispensaries as essential businesses. Cannabis sales jumped 45 percent. Investors took notice.

With Montana set to become the next state to legalize marijuana, lawmakers in Big Sky Country will have some options on how to go about implementing the policy.

Local TV outlet KPAX reported this week that legislators there in the state House have “advanced three bills that provide different visions for how to implement recreational marijuana in the state, after legislative leadership asked them to keep all three alive.”

According to KPAX, House Bills 701, 670 and 707 have all passed in “preliminary votes” after floor debates, giving hope to sponsors of each piece of legislation that theirs may still gain ultimate passage. All three bills have been brought up by Republican members of the House, with each offering a distinct vision on how to bring legalization to Montana.

HB 701 “would set up separate licenses for medical and recreational dispensaries, limit licenses to existing marijuana providers for 18 months, require counties to ‘opt-in’ to allowing marijuana businesses and send some of the tax revenue to Gov. Greg Gianforte’s ‘HEART Fund’ account for mental health and substance abuse treatment,” according to KPAX.

HB 670, meanwhile, would “create a single license for medical and recreational marijuana sales, lower the tax on recreational sales to 15% and raise the medical marijuana tax to 5%,” KPAX said, while also earmarking a third of the revenue from recreational pot toward “a trust fund to address negative impacts of marijuana use, with the rest going toward the state’s public employee pension liability.”

Cultivating cannabis is one of the most enjoyable and rewarding forms of gardening. Whereas some crops can take weeks or even months to show some growth, the cannabis plant grows fairly quickly.

It’s almost as if every day there are new leaves, and eventually, new buds on cannabis plants, which any seasoned cultivator will be quick to point out.

That near-daily gratification makes the cannabis plant one of the most fun crops to cultivate, especially considering that the plant is absolutely beautiful when in full bloom.

Harvesting cannabis and drying it out to be consumed is also an obvious benefit. The truly savvy cannabis consumer can also infuse their harvests into all types of things, from edibles to topicals.

Unfortunately, cannabis cultivation for adult use is prohibited on a national level in all but two countries, Uruguay and Canada. Although that could change soon in Malta.

Researchers believe they may have identified the chemical primarily responsible for complaints regarding the smell of some marijuana and hemp cultivation operations.

We recently mentioned complaints in connection with the smell of hemp farms – some of them anyway – are far from being uncommon. But it turns out what has been described as a “skunky-like” odor may have nothing to do with certain terpenes, the aromatic compounds found in many plants previously thought to be responsible.

A research team consisting of Byers Scientific, Iowa State University and Texas-based odor experts used a triangulation approach of analytical chemistry to potentially identify the primary culprit as being 3-methyl-2-butene-1-thiol (321 MBT). This compound is among seven contained in a skunk’s spray that give the critter its smelly reputation.

321 MBT is also the same chemical causing the skunk-type aroma and odd flavour in “light-struck” beer. This occurs when beer is exposed to strong light, which causes certain compounds in hops to degrade. Light-struck beer is also known as “skunked” beer and is one of the reasons beer is usually stored in brown rather than clear or green bottles, as brown glass transmits less visible light.

There’s a connection between hops and cannabis – they are in the same plant family (Cannabaceae).

New York recently became the 15th U.S. state to legalize cannabis for recreational use.

While 67% of U.S. adults support marijuana legalization, public knowledge about cannabis is low. A third of Americans think hemp and marijuana are the same thing, according to the National Institutes of Health, and many people still search Google to find out whether cannabidiol – a cannabis derivative known as CBD – will get them high, as marijuana does.

Hemp, marijuana and CBD are all related, but they differ in significant ways. Here’s what you need to know about their legality, effects and potential health benefits.

Hemp, marijuana and cannabanoidals

Both hemp and marijuana belong to the same species, Cannabis sativa, and the two plants look somewhat similar. However, substantial variation can exist within a species. After all, great Danes and chihuahuas are both dogs, but they have obvious differences.

The defining difference between hemp and marijuana is their psychoactive component: tetrahydrocannabinol, or THC. Hemp has 0.3% or less THC, meaning hemp-derived products don’t contain enough THC to create the “high” traditionally associated with marijuana.

At an annual growth rate of 20% per year, the marijuana industry has become one of the nation's fastest-emerging industries. Meanwhile, cannabis stocks have been giving back some mouthwatering gains to investors. 

The consumer goods business has seen its share of fads—and then some. Often it seems that not a day goes by when a special ingredient or other differentiator hailed as “transformative,” “groundbreaking” and “game-changing” simply fades away, consigned to the dustbin of marketing past. From hero to zero, the cycle is exceptionally swift.

Product makers are increasingly searching for that extra little something that can help appeal to discerning consumers—and make a splash on social media. They are forced to find that ingredient, additive, or differentiator which can start and sustain buzz while also meeting consumer needs. Yet finding a genuine superstar is very difficult.

Almost all of us can call to mind one of those miracle ingredients that were hailed as the next big thing, only to become the last nothing. At one point, you could taste the tang of ginger in every other health drink—that is, until consumers realized they didn’t really care for it all that much. Just a few years back, you couldn’t wash your face without feeling the harsh scrub of micro-beads, until we realized the damaging effect they have on the environment. Glitter even had its moment in cosmetics, until someone sagely pointed out that it breaks down on the skin, potentially causing harm.

In this challenging environment, we might be tempted to dismiss anything that draws too much attention too quickly as mere hype. And in most instances, we’d be right to do so. But cannabinoids present a different case for a number of substantive reasons.

Since the breakout of CBD over the past few years, we’ve seen a lot of hype. But the reality is that far from being a fad, cannabinoids stand to have profound effects on the way we make and market hundreds of consumer products across dozens of major industries. I believe there are three main reasons we will continue talking about cannabinoids well into the future:

South Carolina's medical marijuana legalization bill is heading to likely defeat without getting a debate in the state Senate.

Despite the discussion being scheduled for Tuesday, opposition to the proposal among lawmakers is becoming increasingly clear, with Sen. Greg Hembree (R-Myrtle Beach) announcing he intends to block the debate from even starting.

Under Senate rules, one senator has the power to hold up discussions. It would require three-fifths of senators to vote to override the move. It's unclear if enough senators support the divisive bill, but even its supporters contend that it isn't likely.

Hembree said he was concerned that medical marijuana had not been approved by the FDA and thought this bill was a gateway effort to legalizing recreational marijuana.

"Do we want to be a state that approves the safe recreational use of marijuana? I'm okay to have that debate," he said. "That, to me, is an honest debate."

Stoned drivers and weed-smoking workers take note: marijuana Breathalyzers will soon be in the hands of police officers and employers.

In fact, marijuana Breathalyzer prototypes have already been put to use for Covid-19 testing, after some innovations allowing them to detect SARS-CoV-2 antigens in breath.

Marijuana Breathalyzers have been in development for years and are finally approaching the launching pad as commercial products. Hound Labs, based in Oakland, California, says that market release is imminent for its Hound Marijuana Breathalyzer, which can detect the presence of THC molecules in the breath.

“The first commercial units of the Hound Marijuana Breathalyzer will be in the hands of customers this spring,” Dr. Mike Lynn, an emergency room physician who is CEO and co-founder of Hound Labs, told High Times. “Production will ramp up throughout the rest of 2021.”

This is bad news for workers who get high on the job. But it’s good news for employers who want to weed out such behavior. And it’s good news for anyone with safety concerns about bong-ripping motorists.

Advocates are calling New York’s legal marijuana program the best in the nation. One called it a watershed and a new era for marijuana justice, after hard work and long odds. 

Years of wrangling and tense negotiations finally ended in victory when adult use marijuana was finally legalized on March 31, 2021.

How Great is New York’s New Legal Cannabis Program? 

Let me count the ways.

First of all, possession by adults of up to three ounces of cannabis and 24 grams of concentrate is legal, effective immediately. 

London Mayor Sadiq Khan will form a commission to study the potential of decriminalization of cannabis if he is re-elected next month, according to media reports from the United Kingdom. Khan was expected to unveil the proposal to study the health, economic, and criminal justice benefits of cannabis decriminalization on Tuesday as part of his platform for re-election.

“It’s time for fresh ideas about how to reduce the harms drugs and drug-related crimes cause to individuals, families, and communities,” Khan will say, according to a report from The Guardian. “The commission will make recommendations focusing on the most effective laws to tackle crime, protect Londoners’ health, and reduce the huge damage that illegal drugs, including cannabis, cause to our communities and society.”

“That’s why, if I’m re-elected, I will establish a new London Drugs Commission comprised of independent experts to examine the latest evidence from around the world,” Khan said.

“The commission will make recommendations focusing on the most effective laws to tackle crime, protect Londoners’ health and reduce the huge damage that illegal drugs, including cannabis, cause to our communities and society.”

The mayor’s office noted that the illicit drug trade costs U.K. society £19 billion per year, and nearly 42,000 people in England and Wales were charged with a drug-related offense last year. Although Khan has said he is against decriminalizing class-A drugs such as cannabis and heroin, he would support cannabis reform if the commission concludes the move would be beneficial.