Will We Get Interstate Commerce in 2023?
We have written about the possibility of interstate commerce in the cannabis space for roughly a year now. California's Governor Newsome earlier this year sent an opinion piece to the state's Attorney General, which explained that there are 80 years of Supreme Court precedent that supports the idea that what the state is currently doing is no different in the eyes of the law to that of shipping cannabis across state lines. If the state's AG agrees with the Governor's opinion, it will trigger one of three possible triggers in the state's cannabis interstate commerce law, which would allow them to start interstate commerce. West Coast cannabis experts believe that the state's AG will come out with his opinion on the matter in June of 2023. Last month, the United States Attorney General, Merrick Garland, indicated that they would give more details to their stance on cannabis in the near future but also indicated that it would be similar to that of the Cole Memo. The Cole Memo basically states that the federal government will not interfere where states are operating. The street and many MSO's don't believe that interstate commerce will happen anytime soon, but it is coming increasingly likely that something will happen on this topic in the coming months.
Nevada CANNABIS TRENDS.
In the month of February, Nevada recorded ~$64M in cannabis sales, which represents a sequential decline of 2.7% and a YoY decline of 0.4%. Unit volumes in the month were down 4.8% sequentially but up 9.3%% YoY. The average price per unit was up 2.3% sequentially but down 8.9% YoY.
Tilray's U.S. Beverage Push.
Tilray Brands (TLRY) announced the northeast expansion of Montauk Brewing Company, a craft brewer in Metro New York. Montauk Brewing is now available in over 3,500 points of distribution across New York, New Jersey, Connecticut, and Rhode Island, including top national retailers: Target, Whole Foods, Trader Joe's, Stop & Shop, King Kullen, Walmart, Wegman's, Total Wine, 7-Eleven, Costco, BJ's, and Speedway. Ty Gilmore, President, U.S. Beer at Tilray Brands, said, "Growing Montauk Brewing's distribution across the northeast in New York and New Jersey and expanding into new states including Connecticut, and Rhode Island was a strategic first step in our expansion plan. Montauk Brewing has enormous potential to grow into a true national brand and we will continue to leverage our existing nationwide infrastructure to expand the brand's distribution and growth."
