🌿 Leaflet 🌿 The Country Embraces CBD 🌿canabodial
Welcome back to our weekly newsletter, which outlines recent cannabis news you need to know about related to entrepreneurship, finance, legal, medicine, science, and technology. This week, we take a look at new CBD ventures and outline some recent market developments. We also break down the support of U.S. legalization and get up to speed on the latest medical studies and technology advancements.
CannaGather had a busy week in New York, Orange County, and Colorado, covering a wide range of topics, from the state of the vaping industry to the future of edibles. Be sure to join us at a CannaGather in your city, where we continue to network and explore the latest progress in our communities as the reach of cannabis increases.
Know someone who is just as cannacurious as you are? Be sure to share this newsletter to keep them in the loop!
// CannaGather Calendar
December 3 // Los Angeles, CA // CGLA December: Distribution & Manufacturing Decoded
December 3 // Denver, CO // A Colorado Preview of MJBizCon with Chris Walsh
December 17 // New York, NY // State Senator Diane Savino & (depending on impeachment) Congressman Jerry Nadler
The Boom in CBD Ventures
Since hemp-derived CBD was federally legalized last December, the cannabinoid has been used in existing businesses and to create new, unique products. The latest business to hop on the CBD bandwagon is Edible Arrangements, the popular franchise that prepares fresh fruit arrangements. This week, they debuted a new line of CBD-infused smoothies and chocolate-dipped fruit produced by Incredible Edibles. The line is now available in 25 locations in Dallas-Fort Worth and is set to be in 200 more locations by the end of the year.
Southeastern Grocers (SEG) announced earlier this month that 152 of its Winn-Dixie and BI-LO grocery stores in Florida and South Carolina will start offering CBD products, ranging from topical care to supplements. SEG is the first conventional retailer in the Southeast to offer supplemental, topical, and pet forms of CBD products and they are also a member of the Florida Hemp Council, an organization formed to support the Florida hemp industry.
In October, Canadian cannabis company 1933 Industries came out with a new CBD-infused balm in collaboration with skateboarder Tony Hawk’s Birdhouse Skateboards company. Sales of the Birdhouse CBD Balm by Canna Hemp X are targeted toward the action sports market and will be featured in skate shops, specialty retailers, dispensaries, and wellness shops.
What This Means and Why You Care: Whether you own an existing business or are looking to start a new venture, CBD can be utilized to create a range of different products that have a place within a variety of industries.
Growing Confidence in the U.S. Cannabis Market
A number of U.S. cannabis companies reported positive earnings this week, an important indicator that the industry is still looking up after big Canadian companies released their disappointing earnings reports last week. Green Thumb Industries (GTI) reported that its Q3 2019 revenue increased 296% year-over-year to $68 million, while CuraLeaf reported total revenue for Q3 increased 189% year-over-year to $61.8 million, compared to $21.4 million in Q3 2018.
Now let’s take a look at some of the activity from the week: Acreage Holdings will acquire the Compassionate Care Foundation, a New Jersey nonprofit cannabis corporation; The CBD Capital Group acquired its second portfolio company, Hawaii-based CBD company Mana Artisan Botanics; Freedom Leaf closed a $5 million round of growth capital; CBD company HeavenlyRx and pharma company Therapix Biosciences announced a business combination to create a NASDAQ-listed company led by Paul Norman, the former CEO of The Kellogg Co.; and multi-country operator Terrace Global commenced trading on the TSXV.
What This Means and Why You Care: Positive earnings reports by a number of major U.S. cannabis companies are a great sign that the market in the states is resilient. News of the MORE Act passing the House Judiciary Committee hearing held on Wednesday also bumped up cannabis stocks, adding to a week of good signals for the industry.
Break Down of Support for U.S. Legalization
Two-thirds of Americans support cannabis legalization, according to data published by Pew Research Center (a Gallup poll from October revealed a similar statistic). Also shown is a lessening opposition to legalization from U.S. adults, with 32% opposed today compared to 52% back in 2010. A whopping 91% say that it should be legal for at least medical use, with fewer than 1-in-10 saying it should be illegal in all circumstances.
Diving deeper, the research reveals wide partisan and generational differences. 78% of Democrats or Democratic leaning independents favor legalization, while Republicans and Republican leaners only hold 55% support. But there are clear divides within the parties, especially represented within age groups. The majorities of Millennials, Generation X, and Baby Boomers (those born from 1964 to 1997, collectively) say that use should be legal. Older Americans are the least supportive. Only 35% of the Silent Generation (those born between 1928 and 1945) support legalization.
11 states and the District of Columbia have legalized recreational use. 33 states (along with the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands) have legalized medical use.
What This Means and Why You Care: Although progress is being made, the fact that cannabis remains federally illegal is not representative of the majority. The recent Pew and Gallup publications help outline targets who are more likely to join legalization advocacy efforts, as well as the groups that need to be persuaded. It also shows which groups have the potential to make significant impacts, such as the 71% of Millennial Republicans who support legalization.
// Medicine, Science, & Technology
New Cannabis Studies and Advancements
The benefits of cannabis for people suffering from post-traumatic stress disorder (PTSD) have been documented for quite some time. New research published in the Journal of Psychopharmacology has backed up these claims, showing that PTSD patients who use cannabis experience fewer depressive episodes and lower rates of suicidal thoughts compared to non-users. Researchers at the University of British Columbia found that non-users were about 7 times as likely to have experienced a recent major depressive episode and 4.3 times as likely to have contemplated suicide. “These findings are promising, and merit further study in order to fully understand the benefits of cannabis for people living with PTSD,” says senior author Dr. M-J Milloy, research scientist at BCCSU and Canopy Growth Professor of Cannabis Science at UBC.
On the tech front, CBD isolate producer Sun Kissed Industries recently announced that its soon-to-be subsidiary Hakuna Supply will release its new biometric-sensing cannabis storage device, the Fingerprint Lock Box. In a press release, Sun Kissed CEO Carl Grant stated that he is “truly excited that the Hakuna acquisition appears set to be finalized sooner than expected as Hakuna continues to roll out powerful new products.” The company notes that the Fingerprint Lock Box, which is expected to come out in time for the holiday season, “sits at the intersection of major market trends, with the biometric sensing market already projected to grow from $3.5 billion in 2019 to $7.1 billion by 2024…and overall sales within the legalized U.S. cannabis industry expected to reach $13.6 billion throughout 2019, for a 32% increase over 2018.”
What This Means and Why You Care: The cannabis study related to PTSD patients is important for those who suffer with the disorder, many of which are U.S. military veterans, and could help lead to additional clinical research into the therapeutic benefits of cannabis for those who have served.
A Diverse Week of CannaGather Events
The week’s events kicked off Wednesday with unique conferences taking place on both coasts. In New York, Arnaud Dumas de Rauly sat down with CannaGather founder Josh Weinstein to discuss the good, the bad, and the ugly of the vaping crisis. Arnaud, Co-Founder & CEO of The Blinc Group and Chair of the ISO Vapor Product Standards Committee, gave an informative talk on the state of the vaping industry, from the science behind current issues to the need for proper testing and market legislation.
Out west, CannaGather Orange County hosted Green Bits Founder and CEO Ben Curren, Tikun Olam Healthcare Liaison Mieko Hester-Perez, and Dust to Diamonds Incorporated Co-Founder Mariah Aleah Dodson. The conversation centered around compliance, healthcare, and community within the professional cannabis industry.
Nancy Whiteman (“The Queen of Legal Weed”) joined CannaGather Colorado on Thursday for a keynote Q&A on the future of edibles. Nancy is the CEO of Wana Brands, the top-ranked edibles brand in the U.S. by sales revenue and producer of best-selling products Wana Sour Gummies and WanaCapsXR.
Missed out on all the fun? Check out the exclusive recap of our New York event below:
The Vaping Crisis: The Good, the Bad, and the Ugly
Do you want to get involved and join the CannaGather team? Reach out to us, we would love to have you on board as we grow!
Written by Justin Bernstein