Wholesale cannabis prices rise in key states, but downward pressure expected

Posted on September 26, 2023September 26, 2023 by veritasstore

By Kate Robertson, Writer
September 25, 2023

It’s the FINAL COUNTDOWN on MJBizCon savings. Get your tickets by Thursday Sept. 28 for the 12th annual cannabis business conference, Nov. 29-Dec. 1 in Las Vegas.

(Photo by Kim/stock.adobe.com)

Wholesale cannabis prices stabilized or rebounded in some key markets through the summer, but cultivators should brace for renewed downward pressure as the fall harvest boosts inventories through the end of the year, experts say.

Chalk it up to simple supply-and-demand dynamics.

“Over the course of this month, you start to see a huge buildup of inventory across the industry,” Ben Burstein, strategist at New York-based wholesale cannabis platform LeafLink, told MJBizDaily in an interview.

“You start to get huge surpluses of excess product, and at these times, especially around the harvest season, it causes big price declines.”

Data collected in 13 states by the LeafLink platform shows that after months of record-breaking lows, wholesale marijuana flower prices have stabilized in a few key, older markets such as California and Michigan.

Producers in the states, who have long struggled with low prices, will benefit, while retailers already face higher costs.

Stores were paying 29%-plus more in August year-over-year for wholesale cannabis flower in California because the amount of licensed square footage has dropped by more than 15%, Burstein said.

Prices in Michigan rebounded by 19% since the end of 2022 and were up by more than 4% compared to a year ago as the number of marijuana retail outlets expanded and authorities cracked down on illicit sales.

Flower prices in Oklahoma and Oregon, which have reported some of the lowest wholesale cannabis prices in the United States, increased by more than 7% and 5%, respectively, versus a year ago.

Overall prices in the 13 states tracked across LeafLink’s platform were up by 4% year-over-year in August 2023 and 15% compared to the end of 2022.

But price compression amid a glut of inventory continues to be a challenge for wholesalers in most states.

Connecticut-based wholesale marijuana data and analysis company Cannabis Benchmarks wrote in a recent blog post that prices have hit a “historic low,” with the spot index reaching only $936 per pound – a 7.3% decline from September 2022.

Market maturity and seasonality

Burstein said very little is surprising about the wholesale cannabis price data that LeafLink collects.

“All states follow a relatively similar path in terms of the growth of a cannabis program and ultimately how the market matures,” he said.

When medical marijuana programs launch, the price per pound of cannabis flower can be as high as $7,000-$10,000, he said.

As cultivators ramp up capacity and production to take advantage of higher prices and more growers become licensed – often to serve new adult-use marijuana markets and take advantage of higher prices – prices decline.

Wholesale cannabis prices rose in Maryland, for example, by more than 40% from August 2022 to August 2023.

Adult-use sales launched in July.

Rebecca Raphael, the chief revenue officer at Curio Wellness, a Baltimore-based vertically integrated operator, wrote in an email to MJBizDaily that inflation contributed to oversupply at the company four months ago when the state was still medical-only.

In short, medical consumers, squeezed by rising costs, were spending less each week, she said.

“Now in an adult-use market, where we expected normalization due to increased demand, it appears that other licensees have over-forecasted the size of the Maryland market and continue to dump flower in an effort to right-size their inventory,” Raphael said.

Curio is at full capacity and has no plans to expand, she said.

In Missouri, where adult-use sales launched in February, wholesale cannabis flower prices rose from roughly $1,500 per pound in the final quarter of 2022 to more than $2,000 per pound in August.

Rightsizing supply and demand

Colorado had the lowest wholesale marijuana prices in the country in August at $810 per pound, according to LeafLink data.

“Pricing has held consistency since early summer, but dispensary traffic is down and we are seeing store partners run sales more frequently than we used to,” Jon Spadafora, president of Colorado-based Veritas Fine Cannabis, told MJBizDaily via email.

Cultivators have reduced their planting schedules, he said, but a lot of wholesale product is still available – and prices are still weak.

“As times get more difficult, the industry will see producers making wild deals to keep their lights on, which brings down pricing across the market.”

Arizona’s massive greenhouses oversupplied the market through 2021 and 2022, LeafLink’s Burstein said, but prices were up slightly in August, year-over-year, by more than 2%.

Eric Offenberger, CEO of Arizona-based vertically integrated cannabis company Vext Science, told MJBizDaily that’s why he and his team chose to strategically shift their focus from wholesale cannabis flower sales.

They sell the company’s cultivated products through owned retail channels instead.

“We made the determination that we didn’t want to be a [flower] wholesaler,” he said. “We wanted our supply to match our demand.”

Wholesale cannabis in the Massachusetts market is also rightsizing after losing cross-border shoppers from states that have now legalized marijuana, such as Connecticut, New York and Vermont, Burstein said.

According to Burstein, the portion of total sales from out-of-state buyers dropped from 25% to closer to 10%-15%.

As a result, wholesale marijuana prices declined by more than 18% since the end of last year and more than 27% since August 2022.

“Massachusetts, compared to Arizona, is much more of a demand-driven story,” Burstein said.

Flower in Massachusetts is largely grown indoors. In states where outdoor grows are more common, July and August tend to have the highest prices.

Burstein said to expect declines through the latter half of the year.

“Almost all pricing declines in cannabis happen between the harvest and then the early months of the spring,” he said, “when a lot of that product availability has been used and sold.”

Kate Robertson can be reached at kate.robertson@mjbizdaily.com.

Why Colorado Tokers Love Dolato

Posted on September 20, 2023September 20, 2023 by veritasstore

Also known as Dosilato, this leathery strain smells like something Ron Burgundy would appreciate.

By Herbert Fuego

Article Link: https://www.westword.com/marijuana/dolato-strain-review-17799686

September 20, 2023

Dolato’s dazzling looks may lure you in, but the nurturing high brings you back. Herbert Fuego

Coming to grips with the fact that you’re no longer young and hip takes time, and I’m still working through it. As I battle with aging pop-culture references and a fading ability to drink or digest junk food, though, weed is there to ease the pain.

There’s nothing new and hip about Dolato, also known as Dosilato, either. As candy terps take over dispensaries, the strain’s parents, Do-Si-Dos and a Gelato phenotype, are no longer new kids on the block. Take a look at Dolato’s bespeckled buds and enjoy its no-nonsense high, however, and you, too, will stop wondering if you’re in touch or not. It’s the children who are wrong.

Dolato smells like something Ron Burgundy would appreciate. Opening a jar reminds me of rich mahogany, leather-bound books and pipe tobacco, and most of that successfully reaches my tastebuds. The high is straight to the point, eradicating minor stress while keeping curiosity and interest alive. After getting cut off for the third time on your drive home or having credit-card information stolen again, it’s a good strain to have in your corner.

With strong bag appeal, a distinguished flavor and a firm but gentle high, Dolato’s ability to shine through in today’s world gives me hope that outdated concepts can be cool again one day. Maybe it’s time to pull out the Brylcreem, spray on some Brut, and hit the town this weekend.

EDITOR’S PICKS

Looks: Known for a rich array of reds, purples, blues and greens with impressive trichome coverage, Dolato’s buds are a sight to behold, even by modern standards. Of the handful of cuts I’ve seen, all of them were above average in size and density.

Smell: Despite the strong Cookie influences in Dolato’s parents, I get a lot of pine, tobacco, leather and teak. It’s quite a manly combination, and anyone who enjoys a cigar bar or the smell of an old-school barbershop will probably enjoy it.

Flavor: Dolato’s rich, tarry flavors are bitter and earthy, but mostly in a good way. Playing off the pine and tobacco aroma, the smoke does remind me of an unflavored blunt wrap, but with a heavy layer of gas and a zesty back end. I could use a small hint of citrus or a little more sweetness, but still appreciate the taste overall.

Effects: Unless I’m dealing with a major problem, stress ceases to exist after smoking Dolato. I move a step slower and might forget how to spell a word or two, yet the high leaves plenty of physical energy for leisurely activity. Physical relaxation is inevitable, so I like to keep Dolato for the evening or nap-friendly afternoons, but the doldrums can be avoided with caffeine or responsible toking during the day.

Where to find it: We’ve caught Dolato or Dosilato at Cherry Peak Dispensary, Everbloom, Golden Meds, Good Chemistry, Green Dragon, Green Valley Dispensary, Kind Care of Colorado, Laughing Grass, LivWell Enlightened Health, the Lodge, Lova, Magnolia Road Cannabis Co., Medicine Man, Mighty Tree, Native Roots, Oasis Cannabis Superstores, Park Hill Gardens, Rocky Mountain Cannabis, Social Cannabis, SoHi Dispensary, Standing Akimbo and Twin Peaks Dispensary.

Clarity Gardens, Dro, Good Chemistry, Natural Remedies, Shift and Veritas Fine Cannabis have all recently sold Dolato or Dosilato around Denver, with pre-rolls from Good Chemistry, Haze Silver and Natural Remedies. Denver Dab Co., Eureka, Green Dot Labs, Mile High Xtractions and Natural Remedies have produced various concentrates of the strain, too, though more growers and extractors probably work with Dolato.

Dro, Good Chemistry and Shift all grow solid takes on Dolato at good value for the price, but the Dosilato #8 from the First Cut line by Veritas has been my favorite rendition so far. It might be too late to grab that First Cut run, but you can still find Dosilato from Veritas across Colorado.

Growing Green: Cannabis Farmers Tackle Sustainability

Posted on July 24, 2023July 24, 2023 by veritasstore

JUL 24, 2023

Gia Mora

With a burgeoning demand for marijuana, both legal and illegal operations face scrutiny over water issues, energy usage, and plastic pollution.

Lex Corwin inspects the plants inside the greenhouse at Stone Road Farms

Photography courtesy Stone Road Farms.

In 2016, when Lex Corwin opened his off-grid, biodynamic cannabis farm in Nevada City, California, he incorporated sustainability into every facet of the company. He powered the greenhouse with on-site solar panels, opted for natural pest control instead of synthetics and sold his products in recyclable, 99% plastic-free packaging. “It’s a very important political topic for a lot of people in our generation,” says the 30-year-old founder and CEO of Stone Road.

Not only do Millennials and Gen Z-ers widely support marijuana legalization, but they also engage more with issues surrounding the climate crisis. With sales of legal cannabis expected to more than double by 2030, producers of the nation’s sixth-most valuable crop have a problem: Cannabis has a substantial environmental footprint.

Research on the sustainability of cannabis cultivation, although nascent because of its illegal federal status, indicates an array of environmental impacts. Growing cannabis requires massive water and energy resources while contributing to air, land and water pollution and soil damage. Corwin is part of a small but growing group of farmers working to transform the least green parts of the industry into more sustainable and profitable practices.

Photography courtesy of Stone Road Farms.

Turning Grass Blue

Cannabis is a water-intensive crop. Grown indoors or in the wild, each plant requires between five and six gallons of water per day—nearly twice that of other commodity crops. In California, irrigated agriculture already accounts for 70 percent to 80 percent of all water consumption.

Inside Stone Road’s half-acre of greenhouses, says Corwin, the plants require much less than five gallons of water per week because they’re small, thanks to their two- to three-month lifecycle. The outdoor plants grown on his 57-acre outdoor farm, however, grow for four to six months and require much more water “because they’re massive.”

Unlike most cannabis operations, Stone Road doesn’t use municipal or stream water, instead irrigating its indoor and outdoor plants from two wells that draw from an underground aquifer. This geologically unique system preserves nearby aquatic ecosystems and ensures that Stone Road has ample supplies, even during droughts.

Stone Road’s sustainable infrastructure stands in stark contrast to the water stolen by unlicensed cannabis operations across the Golden State. In San Bernadino County alone, a reported 4,000 acre-feet of water was stolen in 2021—enough to submerge 4,000 football stadiums in a foot of water.

Water woes aren’t just an issue for California farmers; Colorado cannabis growers face an even drier future. Home to the worst conditions in the West, more than half of the state is in some level of drought, with 86 percent of the water supply already dedicated to agriculture.

Those numbers don’t concern Andrew Mahon, head of cultivation at Veritas in Denver. “We built our own irrigation system to fit the style of growing we do,” he says. Seasoned cultivation staff, not a digital sensor, determine the precise amount of moisture the plants need.

Consequently, the 20,000 square feet of grow space at Veritas uses significantly less water than the average indoor cannabis farm—half to one gallon a day during flowering and just 100 to 200 millilitres a day during the vegetation stage, says Mahon.

Water-conscious techniques like these don’t just prevent overwatering. They can also stem the flow of runoff, which can tax local water treatment systems. That’s because many cannabis operations apply insecticides, acaricides, fungicides and plant growth regulators that can disrupt habitats of fish, amphibians and rare carnivores.

While Mahon could use EPA-registered pesticides, he says he primarily chooses minimum-risk pesticides “typically composed of essential oils like rosemary oil [and] thyme oil.” Corwin eschews chemicals altogether, instead opting for “an army of predator mites, ladybugs and beneficial fungi” to deter other pests, stave off mold and keep the farm’s water supply clean.

LED growlights at Veritas Fine Cannabis. Photography courtesy of Veritas.

Cooling Down Energy Use

Indoor grow houses allow farmers to govern the lifecycle of cannabis using artificial lighting and climate control, which enables rapid turnaround for sometimes dozens of harvests each year. But with that speed comes massive greenhouse gas emissions from lighting, heating, cooling and dehumidification—powered mostly by petrochemicals.

“The elephant in the room,” says Mahon, “is LED lighting.” For years, the industry has relied on high-intensity discharge lamps such as metal halides and high-pressure sodium lights (HSPs), fixtures considered efficient by 1960s and 1970s standards. Compared to HSPs, light-emitting diodes provide more light, require very little energy to run and emit far less heat, substantially reducing the demand for cooling and the energy in general required to produce cannabis.

Dion Foley, chief of operations at Koala Green Development in Adelanto, California, prefers the new tech. “LEDs are insanely more energy efficient,” he says. Koala Green Development has been growing with LEDs since 2018, and its 15,000 square feet of grow space costs $20,000 per month to power. Similarly sized facilities not growing with LEDs, says Foley, spend between $50,000 and $60,000.

For some growers, the cutting edge of sustainability in cannabis has moved toward energy generation. At Stone Road, on-site solar panels provide enough power to run the supplemental LED lighting in the greenhouses. Because the sides can be opened manually to cool the plants and prevent mold, there’s no need for HVAC or dehumidifying, says Corwin.

Growing under LEDs also allows for much higher yields each harvest, “meaning that grows will not have to be as large in the future and, therefore, the footprint of the industry will decrease over time,” says Mahon.

While Veritas has not fully switched to LEDs, Mahon says the company has plans to upgrade in the near future. In the meantime, more than a quarter of Colorado’s energy currently comes from wind and solar, and 2022 was the first year that renewables generated more energy than coal and nuclear power. As the grid continues to decarbonize and LEDs become the industry standard, the emissions of indoor cannabis cultivation will continue to shrink.

LED growlights at Koala Green Development. Photography courtesy of Koala Green Development.

Pot’s Pernicious Plastics

Zipper bags, rigid “doob tubes,” spent vape cartridges and other plastic pollution generated by marijuana packaging also contribute to the global plastic crisis, although it’s unclear how much of an impact cannabis packaging has on an already massive problem . A jaw-dropping 363 billion pounds of plastics choke the world’s oceans, eventually finding their way into the human food chain. Single-use plastics also take hundreds of years to decompose, releasing harmful methane and ethylene gasses as they do.

A daily surfer, Corwin says he can’t imagine swimming into a piece of plastic packaging that his company had created, which is why Stone Road’s current packaging is made from 100% post-consumer recycled materials and will soon be 100% plastic-free.

Stone Road’s plastic-free packaging. Photography courtesy of Stone Road Farms

Yet plastic remains the most popular packaging material in the industry. Of the limited number of options that meet the child safety regulations, plastic is the most economically priced, says Foley. A glass jar, for example, can cost $1.50, whereas a Mylar bag can cost as little as $0.20.

When opting for plastic over glass, Foley says an established company could save between $10,000 and $75,000 a year, depending on the number of accounts. That might not seem like a lot of money in the context of a $37-billion industry; but, he says, “cannabis companies are operating on extremely tight margins in the current struggling cannabis market.

“You’d charge a dispensary somewhere between $2.50 and $5 more per eighth (3.5 grams) for jarred cannabis,” he continues, with the cost of sustainable packaging passed on to consumers. That poses a problem for producers in a market increasingly flooded with product, driving down prices for both legal and illegal cannabis. Corwin says this has led consumers to prioritize “value over everything.”

Foley swore up and down he’d never sell cannabis in plastic until the price of doing business pushed his hand. Many farmers simply “can’t justify doing something that’s good for the environment when it costs more,” he says.

Without financial incentives to encourage more eco-friendly practices, Foley fears many smaller-scale operations won’t have the working capital to make the sustainable switch. To survive the second decade of recreational legalization, cannabis farmers will have to be as resilient as the plants they cultivate.

This new MIP could be a social-equity force multiplier — here’s how

Posted on June 30, 2023June 30, 2023 by veritasstore

And inside the Legislative debate over hemp-derived intoxicants with Christian Sederberg

JUN 29, 2023

Welcome to another edition of Regulated State! Thanks for letting me hit your inbox.

It’s a relatively slow week in Colorado cannabis news, what with the MAPS conference, Pride and all. But I still have some great conversations for you to check out, a new Social Equity Spotlight with a beverage manufacturer whose product was born out of both joy and tragedy, a new drop from Veritas Fine Cannabis, and some proper news briefs too.

Speaking of Pride: I was at the parade last weekend — which was amazing as always. But the lack of cannabis brands representing stood out to me like a sore thumb. Did I miss any? Let me know so I can give them a shout!

And, here’s a white paper on the state of LGBTQ representation within the cannabis industry that I wrote last year.

This is also the first regularly scheduled newsletter to implement a paywall. As promised, the overall format has stayed the same, but I’ve saved some juicy bits for those of you willing to cough up $5 a month to get the real inside scoop.

No matter what, I appreciate you taking the time to read. It’s a pleasure.

Did somebody forward this to you? Are you ready to upgrade your subscription? 👇🏼👇🏼👇🏼Subscribe

Let’s do it, starting with some quick hits:

California-based Jetty Extracts, a cannabis manufacturer, is expanding its Solventless product collection to Colorado, marking its third U.S. market entry. Touting its one-gram Live Rosin Vape free of fillers and cutting agents, Jetty is partnering with Colorado cultivator and retailer Leiffa for the launch. The expansion follows a successful debut in New York, according to a press release. Jetty’s Solventless products, available in a range of strains, can be found at several Colorado dispensaries with more to come in the next months. Further Jetty product lines are set to roll out in late 2023.

Boulder-based Wana Brands, meanwhile, just doesn’t stop making moves. This time, its targeting new customers over the summer with product innovations, unique events and over $15,000 in premium giveaways. They’ll be promoting their “Quick” line of products — the two most recent of which utilize minor cannabinoids to relieve stress and “address a range of recreational and wellness goals,” according to the company. Wana plans to expand its audience by participating in non-traditional cannabis industry events and launching a nationwide “Enhance Your Summer” sweepstakes. For each Wana purchase until Labor Day, consumers can enter to win prizes, including a $10,000 dream vacation or equivalent cash.

In the meantime, the Canadian MSO that paid nearly $300 million for the rights to purchase Wana Brands isn’t doing so hot. A quick analysis of their 2023 fiscal year earnings report is near the end of the newsletter.

How a new MIP could be a social-equity gamechanger and force multiplier

Sarah Woodson, provided by The Color of Cannabis

Sarah Woodson is an advocate, an executive and entrepreneur who owns or leads three (soon to be four) businesses. And just weeks ago, she announced that she’s signed the lease on a 9,000-square-foot “turnkey” cannabis manufacturing facility, or MIP, in Denver proper through her organization The Color of Cannabis.

She recently took the time to chat with me about the why of it all, and how she envisions it working out

FWIW: Her other businesses include My Cannabis Tours — the first ever licensed cannabis bus that promises a “high-flying” experience as it makes stops at dispensaries offering exclusive deals and discounts, along with roundtrip airport transportation. The Color of Cannabis helps aspiring social-equity entrepreneurs learn the complex ins and outs of Colorado cannabis compliance and laws, while Kush & Canvases offers a place to toke up and make great (or not so great) art.

That fourth business? It’s a “small CBD store” that will soon celebrate its grand opening, Woodson said.

“Essentially, I’m always trying to find ways for people to actually open their businesses,” Woodson told me over the phone. “There’s a lot of organizations that help. I consider us to be the best in our market, and I stand on that. But as a business owner, I have an additional insight and I know what the challenges are.”

One of the biggest challenges she noted was the cost of space, especially for folks who were looking to start infused-products businesses. And many of the entrepreneurs she works with are young in their roles — first-timers — and some are a little gun-shy when it comes to working with landlords. She would show up with them to important meetings as the executive director of The Color of Cannabis, which carries some weight.

But the costs: $10,000, $12,000, $15,000 — “astronomical amounts,” as she puts it, were just too high.

“I know that a $15,000 overhead in a space where it’s gonna take you about six to seven months to even get licensed, it’s just not — it’s not possible,” Woodson told me. “The people that I work with don’t have that type of capital.”

So when this facility became available, she couldn’t let the opportunity pass by.

It’s a plan more than a year in the making, Woodson said.

She approached the Colorado Marijuana Enforcement Division with a novel approach that would allow each separate space inside a manufacturing facility to be addressed individually so that it counts as a physical location to meet the state’s rules surrounding licenses. A cannabis manufacturing license must have a physical location tied to it.

“They came back and they were like, ‘Yeah, we think it’s possible.’”

The MED and Denver’s Excise and Licenses department, which regulates cannabis in the Mile High City, have been a tremendous help, she said.

One promising location fell through — a misfortune that “devastated” her and her fellow entrepreneurs.

“I was like, ‘You guys, don’t worry. You know, hang in there. It’s the long game.’”

And then the “completely turnkey” location showed up and things are happening.

The Color of Cannabis has an office space on site. They share the costs of doing business — rent, security, compliance, software — with four other businesses currently, and two more on the way.

And compliance is key: If products want to be transferred between spaces in the building, they must complete a Metrc manifest just like any other businesses moving cannabis. The space is unique, but the rules are universal (at least in Colorado).

“What we’ve created is essentially almost like a coworking space where everyone’s covering the overhead, but everyone’s an individual business — and when you step out of the door, it’s like you’re stepping out on the street,” Woodson told me.

Most of the four businesses that have committed to working out of the new space will be familiar to my readers: C’est la vie Coffee, owned by Nicholas Goodwin; La Vida Dulce, founded by founded by husband-and-wife duo Desiree and Dijonn Duran; Strain16, owned by Jamana Jamison (keep reading to meet her and her company); and resin manufacturer Monster Melts, who I haven’t yet had the pleasure of speaking to.

One of the more exciting aspects of this whole thing to me, personally, is the scalability of it. Each entrepreneur can use their space to host an accelerator program — a function created by the state that allows a “accelerator-endorsed licensee” to “host” a social-equity licensee on their licensed premises.

That means, technically, that this space for six businesses actually has the potential to launch 12 social-equity companies. It’s a big move. A big deal.

Only one established cannabis company — Smokey’s Cannabis Co. in Trinidad — has offered their space as an accelerator host, Woodson told me, while all of her current tenants have made a commitment to act as accelerators.

“And that is something that’s doable, and that is something that will help people get their business started and hopefully operational,” Woodson said.

Why Sarah Woodson is done with the term “social equity” — and inside the stakeholder process to even the playing field for cannabis delivery drivers.

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Inside the compromise hemp-intoxicants bill with Christian Sederberg

Christian Sederberg, provided by VS Strategies

While I’ve spent a lot of time in this newsletter focused on the social-equity side of this past Legislative session (also: see above), a bill potentially just as important to the cannabis industry — both reputationally and economically — passed with a quieter, but just as serious, debate.

Senate Bill 23-271 tackled the proliferation of hemp-derived intoxicants, or often chemically modified extracts such as delta-8 THC. These intoxicating chemicals, federally legalized through the 2018 Farm Bill and essentially unregulated, are being sold at natural-food stores and gas stations across the country.

In Minnesota, these products arguably led to the full legalization of adult-use cannabis. But anecdotally, I’ve spoken to people who’ve had some seriously dark, scary experiences consuming the supposed same product by the same brand that once gave them a great high.

And as a matter of fact, more than 100 “reports of adverse events in patients,” over half of which required emergency medical services (such as hospitalization), have been reported to the U.S. Food and Drug Administration since Dec. 1 2020.

In Colorado, the first state to regulate the sale of adult-use cannabis, this posed a potential problem — both to the status and health of the already-struggling traditional cannabis sector, and to hemp farmers and extractors who were making a product technically legal.

“We definitely had at the beginning, I would say, sort of two camps — trusting, but looking at the other side thinking, ‘OK, this is the cannabis industry; they’re trying to protect their business.’ [and] ‘This is the hemp industry; they’re trying to protect and expand their business, and this is all about money,’” VS Strategies Partner Christian Sederberg told me during a recent video call. “But pretty quickly, we all agreed that this was really about public safety.”

Sederberg was in the room as an industry leader who represented both camps that both worked hard to find compromise, he said.

He pointed to other leaders, like the Stanley brothers of Charlotte’s Web, and other members of a task force created by the Legislature last year in creating guardrails in what he called “a belt-and-suspenders” approach.

“The belt being we established very clear serving sizes, package sizes, age-gating, and other safeguards,” Sederberg said. The suspenders are that the state agencies can look at these things as the market adjusts and as we see things coming online and make further adjustments going forward.”

The new legislation, signed by Gov. Jared Polis on June 7, includes several new rules and restrictions, including:

Classifying both “hemp- and marijuana-derived compounds and cannabinoids” into three categories (as explicitly listed in the bill):
- Nonintoxicating cannabinoids;
- Potentially intoxicating compounds; and
- Intoxicating cannabinoids
Giving the MED and Colorado Department of Public Health and Environment regulatory authority over all three classifications
Allowing Colorado hemp manufacturers and extractors to sell their federally legal intoxicating products across state lines
Defining and limiting serving sizes
Age-gating purchases of intoxicating hemp products and hemp products designed to be eaten or smoked to 21

“So I think we really came together by the end, even though nobody on either side was super happy with the end result and had some pretty significant concerns,” Sederberg told me. “That usually is the sign of a good bill, when everyone’s got their complaints.”

Get wonky and dive into the details of the legislation as broken down in a VS memo and letter to the governor.

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Social Equity Spotlight: Strain16

Jamana Jamison, provided by Jamana Jamison

Strain16 is an infused-beverages manufacturer launched by Jamana Jamison. The result of years of experimentation and an homage to her passed brother, Strain16 will be setting up shop in the new MIP leased by The Color of Cannabis. Jamana was kind enough to spend some time chatting with me.

The following Q&A has been edited for style.

First, let’s talk about your brand and products. Strain16 has developed a line of infused beverages — a hot commodity in the cannabis market right now. Tell us about the flavors and dosage. Strain16 is a small-batch craft-beverage company that will offer high-quality, euphoric drink experiences. We’ve developed an initial line of lemonade-based beverages with signature pairings of other fruit favorites like strawberry, mango and pineapple.

It was a high priority to create a drink that found the sweet spot in balancing great taste and desired effect. Our plan is to dose each drink somewhere between 30 and 50 mg per package, and I truly believe we’ve curated a product that is dosed for the consumer’s enjoyment. We’re in the final stages of product development and look forward to sharing our fresh take on such a classic drink.

And the THC is relatively fast acting. How soon after drinking your lemonade will the average consumer feel its effects? Yes, our beverages are infused through a nano-emulsion process and the average consumer will feel the effects within 15-20 minutes. I’ve made the age-old mistake of doubling up on an edible when I believed the feeling wasn’t happening fast enough. Then shortly afterwards I felt like I could touch the moon for 13 hours. I wouldn’t want that to be an experience any of my customers have.

You weren’t always a “weed person.” Like many of us, you were raised with the “Just Say No” ethos. Tell us about how and why you decided to start experimenting with cannabis-infused food and beverage. I was raised in the era when “Just Say No” was one of the most memorable marketing campaigns. There was this commercial where there was a hot frying pan, and then a voiceover guy said, “This is drugs.” Then an egg was cracked open over the hot pan and as the egg started the fry, the voiceover guy says, “This is your brain on drugs. Any questions?” It was kind of a scared straight moment for me. I was convinced drugs were bad and marijuana was too.

However, in 2014, my older sister was diagnosed with breast cancer at 38. I remember the day she received the diagnosis. I remember crying a lot! Once the family was able to talk through our tears, my brother (middle child) said to my sister, “Well, it’s not your time to lay down, so we’re going to get through it together.” And those were our marching orders.

We all sat in the hospital with her whenever allowed. Chemotherapy, radiation, a double mastectomy, reconstructive surgery — she did it all. My sister started to realize that she has so many prescriptions and all the side effects began to negatively impact her quality of life. She expressed an interest in finding a new pain management option, and she was open to using marijuana for pain relief, but discreetly.

I decided to experiment with cooking with weed. I fell in love with it. I researched online how to infuse foods with cannabis. I went from making flavored butters, dipping sauces, and meals for her to hosting “elevated” dinner parties at my brother’s house for 30 guests at a time.

And what was the impetus that led you to focus on cannabis beverages, and how does the story of your brother tie into your brand? Growing up in a single-parent household, my sister, brother and I grew up very close. They’ve always been my biggest supporters in whatever I decided to pursue. If I needed a taste tester, a party host or help pivoting my vision my brother was the first phone call.

When I decided to incorporate drinks into the menu for my dinner parties, he made a point to pull me to the side and say, “The dinners are great, but the drinks are the best move.” That ignited the spark for me to adjust my products exclusively focus on creating THC-infused craft beverages.

Unfortunately, my brother passed away unexpectedly in January of last year. Our family was completed devastated. I questioned everything about my purpose and continuing this path of being a cannabis entrepreneur. 2022 shifted into a time of introspection and being intentional in determining if this journey was one I wanted to continue. He was so present in developing this brand, and him not being here (physically) to see it come to fruition was never a part of any plan.

Ultimately, I chose to push forward. I decided to rebrand, and it was so important to find a name that reflected the journey I am on. According to Merriam-Webster, the first definition of the word “strain” means “lineage, ancestry.”

When my brother passed away, he was 44 (4×4=16) and I gave birth to my second son 16 days after his passing. Strain16 means so much more than creating infused craft beverages. It’s a way to honor my brother and curate a drink experience that shares his legacy with the world. I believe in my heart Strain16 a pivot he’d be proud of.

You’re currently renewing your MIP license. Tell us about the brick-and-mortar you’ll be able to connect to that license. Yes! I am extremely excited about this new space. I originally initiated the application process back in 2021, but since I was not able to find a manufacturing space within a year, I had to start the licensing process over. I attended a cannabis business conference last year and I met Sarah Woodson, CEO of The Color of Cannabis. I was able to sign up for a 10-week business course through her organization. She is truly championing for the social equity small business folks and helping develop a blueprint for success in this industry.

TCC has secured a MIP shared space and I am fortunate enough be able to lease a manufacturing space there.

What is Colorado doing right when it comes to social equity, and what could it do better? Colorado is on the right track in leveling the playing field when it comes to social-equity applicants gaining access to the industry. I’m grateful the policymakers are giving space and opportunity to develop a more inclusive plan for those small business owners who may not have access to large amounts of capital or an extensive network of resources. They’ve made tremendous strides in implementing licensing fee subsidies and renewal cost adjustments. However, getting into the industry is only one aspect of it. Right now, many social equity licensees live in the blind spot of corporate cannabis. Once smaller businesses get up and running, there’s still the hurdle of getting products and services on shelves of dispensaries and out to consumers.

If the industry gave true consideration and opportunity for collaboration on bills like HB23-1020, which would afford license holders a level of autonomy to establish their own customer base, that would eliminate so many barriers to entry and provide a true chance at building successful and sustainable cannabis companies.

As it stands now, our success is at the mercy of a dispensaries’ interest in partnering with us and if the interest doesn’t exist, then all our investments will be for naught.

The business of cannabis is one that comes with a high price tag and some of us have cashed in our savings and are tapped out on our limited resources, while others have paid the cost with their freedom. And we’re still met with opposition.

We want to follow our passions, build our legacies, and do good business and we have every right to do so. It’s imperative the generation of entrepreneurs after us to know we were here, and we understand the value of building an equitable framework that will prove beneficial to their dreams as well.

EARNINGS

Canopy Growth Corporation had a pretty terrible fiscal year 2023, with net revenue dropping 21% year-over-year to $403 million. Despite cost reduction initiatives, decreased debt by approximately $500 million and SG&A and COGS cutbacks, the company that paid $298 million for the rights to purchase Wana Brands still grappled with revenue decreases due to divestitures.

A major concern was discovered with material misstatements in Canopy’s BioSteel sports drinks business unit’s financial statements, leading to a securities class action in California Central District Court — and management changes.

However, there were some positive developments: The company’s Canadian medical cannabis revenue grew 6% year-over-year, and the Tweed brand, which manufactures edibles and sells flower, saw a resurgence in the adult-use market.

An agreement with Indiva Limited will allow the distribution, marketing, and sales of Wana branded products in Canada, which is expected to boost Adjusted EBITDA and advance the company’s leadership in the edibles category.

We’ll see.

NEW DROPS

Denver cultivators Veritas Fine Cannabis have released a new product line — and this time it’s as much about the quantity as it is the quality.

Press photo. Provided by Veritas Fine Cannabis.

“When consumers buy an eighth of an ounce, one of the most popular flower offerings in dispensaries, they find themselves out of cannabis so quickly,” President Jon Spadafora said in an email. “But for consumers purchasing a full ounce, they can’t finish their product before it dries out. That’s where Veritas comes in.”

The solution? Pre-packaged half-ounce jars.

You can soon find the jars at the following locations:

Rocky Mountain Cannabis, Trinidad
Canna Cabinet, Pueblo
The Dispo, Pueblo
Magnolia Road, Boulder
Magnolia Road, Broomfield
Spark Dispensary, Denver
Best Budz, Colorado Springs
Cannabicare, Cimarron Hills

Dream Team of Artists Turned a Dispensary Into the Meow Wolf of Marijuana

Posted on June 30, 2023June 30, 2023 by veritasstore

THOMAS MITCHELL JUNE 29, 2023 10:41AM

Spark Dispensary enlisted over twenty artists to work on the new store, including Birdcap, who painted part of the west wall. Thomas Mitchell

Ruben Cabrera, better known by his artist moniker of Rubezilla, has painted murals for nearly twenty dispensaries around Colorado. It’s fun, steady work, Cabrera says, and the store walls provide him with large canvases.

When Spark Dispensary decided to upgrade its retail space and move next door into 4799 Colorado Boulevard, general manager Dan Holom thought Cabrera was a natural choice to work on the new store. The Denver artist was interested, but thought he saw an opportunity to do more than a mural.

What the two parties eventually settled on was a playground for Denver’s art space that stretches from the inside of the dispensary to the area around it.

Locally and nationally renowned street artists like Nychos, Chris Haven, Detour, Birdcap, Shane Huss, Casey Kawaguchi, Hiero Veiga and Marissa Napoletano are just some of the people whom Cabrera persuaded to paint on Spark’s walls, rooftop and awnings. Cabrera didn’t stop there, though. He also convinced SMiLE to create animal-focused stencil art and got painted vases for the interior from Joshua Genius, as well as collages from art duo Grantedly Cordial and indoor graphic projections from Actualize Visuals. And, of course, Rubezilla’s work is represented, too.

OUR FAVORITE CBD & CANNABIS BRANDS OF 2023: A HALF-YEAR REFLECTION ON WHAT WE’RE ENJOYING

Posted on June 27, 2023June 27, 2023 by veritasstore

Explore the best CBD & Cannabis brands of 2023 so far! Our half-year review dives into quality, innovation, and what sets our favorite brands apart in this booming industry. Stay tuned!

WILL VANCE
UPDATED: 2 HOURS AGOORIGINAL:JUN 21, 2023

Our Favorite CBD & Cannabis Brands Of 2023

Cannabis and CBD are more prevalent in 2023 than ever before, the primary denominator being the fact that my mom is officially enjoying the daily benefits and effects of cannabis (and if you knew her, you would know that’s an about as prominent sign of the times as a longtime-cannabis enthusiast like me could ask for).

The stereotypes around cannabis and even CBD that were prominent in generations past are completely gone now, as more states are legalizing the sale and consumption of weed and more and more of the population are waking up to the fact that the Devil’s Lettuce isn’t all that sinister.

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But with so much noise and clamor being added to the dialogue of best brands, virtual devices, necessary smoking life hacks, and more, it can be challenging for even veteran smokers to parse through what’s good or necessary. This is why we compiled a massive list of some of the best cannabis and CBD brands we’ve had the opportunity to review and companies we’ve been lucky enough to work with. Because 2023 is halfway over and there’s never been a better time to reflect on the brands we love and double down on the strains we dig.

If you’re a fan of underground dance music, follow our Magnetic Magazine playlist, updated weekly with the freshest and latest underground dance sounds. Don’t miss a beat in your next smoke session – follow now and stay ahead of the curve! https://open.spotify.com/embed/playlist/6q6PLnJWE9aRXX5CRjSMcP?utm_source=generator

OUR FAVORITE EDIBLES

MOUNTAINTOP EXTRACTS

We’re pretty picky when it comes to edibles, as way too many brands these days try masking the inherent flavor of the cannabis with overly-fake flavorings and ultra-processed sugars. But this is not the case with Mountaintop Extract’s edibles. And while the couple-founded cannabis company has made the biggest waves in the industry off the back of their delicious cannabis-infused lollipops, our favorites were their Cannabis Connection gummies.

They come in a range of flavors and pack about as much punch as you need them to, and being 10mg of TCH per serving with a splash of CBD to top it off, taking just half of one chills you out and primes you for bedtime where a whole one sets you up for those harder hangs on the couch. I’ve also read online that many users consider these specific gummies the magic bullet solution for curing insomnia. So while Mountaintop Extracts doesn’t advertise or claim them to be a wonder product for insomnia, many of the community swear by them.