SAFE +
No reason to get too excited about what is happening in DC, but things are moving in the right direction.
From Politico today - "Lawmakers, staffers, advocates, and lobbyists all told POLITICO that in recent weeks the tone has changed on Capitol Hill. Senate lawmakers previously opposed to anything but a major marijuana decriminalization bill are slowly warming to another option: adding provisions to a broadly supported bill that would allow financial institutions to offer banking services to the cannabis industry, called the SAFE Banking Act.
They’re calling it “SAFE Plus,” a term coined by Sen. Jeff Merkley (D-Ore.), the Democrat co-lead sponsor of the weed banking bill.
The change in approach is driven in part by the fact that the clock is ticking on Democratic control of Congress — experts say the House will likely flip in November, and the Senate could join it. Despite the often-bipartisan nature of cannabis legislation, it does not enjoy strong support from GOP leadership in either chamber. So lawmakers involved in weed policy are looking more seriously at what they can accomplish in the last six months of this Congress.
“There's a greater sense of urgency,” said Rep. Earl Blumenauer (D-Ore.), who has been trying to shepherd cannabis legislation through Congress for decades. “I think there's a broader base of support.”
We addressed this topic in our recent Cannabis Monthly Update and Q&A:
CLICK HERE TO WATCH A REPLAY OF OUR CANNABIS Q&A SESSION FROM 6/23 |
Overproduction & Falling prices.
The trend of lower prices is making its way to the east coast and still has a way to go!
As we have been writing about sales in the largest legal states are declining. In more established cannabis markets like CO, OR, WA, and CA, wholesale cannabis prices are tumbling forcing adult-use retailers out of business. “My revenue has dropped month after month, year after year, and we are to the point now where we’re just barely able to keep our doors open,” said James Lathrop, owner of Cannabis City, a marijuana retailer in Seattle. Many of these mature markets must deal with an overcrowded market, unbearable taxes, inflation, a tight labor market, and now excess product types with deteriorating prices. mjbizdaily.com
We also talked about this on the Cannabis Monthly Update & Q&A call:
FDA COMING DOWN ON JUUL.
The Food and Drug Administration (FDA) is preparing to order Juul Labs to take their products off the U.S. market. This decision is expected by later this week. Juul came under scrutiny roughly four years ago when an increased number of underage kids in the U.S. started using it. Juul’s response stopped selling its sweet and fruity flavors. Altria Group spent $38B in a deal to own 35% of Juul in 2018, which is now valued at $1.6B. Separately, the FDA is also looking to mandate the elimination of all nicotine in cigarettes which would be a huge blow to the $95B U.S. cigarette market. Wsj.com
Curaleaf expanding in Spain.
Curaleaf, Europe’s largest vertically integrated cannabis company, got approval from the Spanish Government to begin operations at its new extract manufacturing site. Matt Darin, CEO of Curaleaf, had this to add “There is significant momentum in Europe and with the most licenses of any cannabis company in Europe, Curaleaf International is well placed to capitalize on this growing momentum. With Spain moving towards full implementation and France expected to complete the opening of its market in spring 2023, all 5 major European economies will have a medical cannabis program in place. We couldn’t be more excited about the future in this market.”
