Marijuana Weekly Review: The State of The Cannabis Union
New Frontier Data released an updated report on the state of the cannabis market, The U.S. Cannabis Report: 2018 Industry Outlook, which determined that the legal cannabis industry will continue experiencing rapid, sustained growth over the next few years. The organization, which is dedicated to cannabis industry business intelligence, projects several years of sustained double-digit compound annual growth rates (CAGR) for both the medical (11 percent) and recreational (18 percent) cannabis markets.
New Frontier also issued its new "State of CBD" report, noting that a $1.2 billion CBD market is likely by 2020, with one-third of the market share coming from hemp-derived, marijuana-derived and GW/pharma-derived CBD. The report also said sales of hemp-derived CBD surpassed sales of marijuana-derived CBD for the first time with total sales passing $367 million in so far in 2017. Most of those sales came from California.
Ontario Government Delays Retail Cannabis Sales
Ontario’s Conservative government announced that when recreational marijuana sales begin in October residents will only be able to purchase cannabis products via a government-run online platform provided by the Ontario Cannabis Store. Officials say privately run brick and mortar retail stores won’t begin operating until April 1, 2019.
There was no mention of the number of private retail licenses to be issued. The new website will reportedly offer a selection of dried cannabis, cannabis oil-based products, cannabis seeds, and accessories. Buyers will be limited to 30 grams per federal possession limits and must be at least 19 years of age.
Canadian Hemp Growers Receive CBD Boost
Health Canada issued a new rule favorable to the hemp-derived CBD industry recently, allowing hemp farmers to collect "tops and buds" from CBD-eligible hemp and preserve it past the harvest to be accessed after Oct. 17, 2018. Canada has a massive hemp-fiber and hemp seed industry.
California’s six-month cannabis tax total is still 50 percent below government projections, coming in at $82 million, far from the $175 million lawmakers expected. Counting statewide sales tax, it’s still about 24 percent short at $135.1 million. In some cities, total marijuana taxes are almost 44 percent. On the other hand, buyers with medical marijuana cards are exempt from state taxes. Experts expect that next quarter’s taxes could be impacted by slower sales and fewer products for consumers, as a result of the July 1st start of testing.
First-year total cannabis dispensary sales in Nevada will surpass $500 million. Up to $90 million of that total will include highly-taxed ancillary products sold at stores. It remains unclear how close the state is to earning the $50 million in cannabis taxes projected by Gov. Brian Sandoval to be put directly into Nevada's public schools. Prior reports say the state placed millions into their cannabis tax fund, but have only sent a fraction of that to the state's education department.
In Colorado, cannabis sales for June rebounded following poor sales the month prior. At $27 million, medical marijuana sales bumped up slightly from earlier in the year, but strong recreational cannabis sales to the tune of $102.4 million helped drive results total revenue to $129.5 million, the second best overall month since cannabis legalization began in 2014.
In Jackson Hole, Wyoming, threats from the state's division of Criminal Investigation closed down two local CBD sources. That agency determined that CBD is illegal under Schedule I of the Controlled Substances Act. All CBD was taken off shelves in Jackson Hole's Lucky's Market and a local health food store.
Wasilla HempFest Fined for Smoking Tent
Alaska regulators fined the organizers of the Wasilla HempFest for including a smoking tent at its event which hosted about 1500. The $2,500 fine was issued by the Alaska Marijuana Control Board, saying the tent was still a public location. Earlier in the year, the Anchorage Cannabis Classic allowed marijuana consumption, and was fined $5000, but is appealing the action. There’s been no word if the town’s former mayor, Sarah Palin, attended the event, or hung out in the tent.
Cannabis Events Calendar
Aug. 17-19 -- 27th HEMPFEST — Seattle
Aug. 24-26 US Cannabis Conference — Miami
Aug. 27-29 Cannabis Science Conference Portland —