New Cannabis Policy Group
There are now 16 states that have enacted full marijuana legalization, while 36 have legal medical markets. Senate Majority Leader Chuck Schumer has embraced marijuana legalization, calling it a priority for this Congress. An now there are 10 or 11 different policy groups in DC.
"Yesterday, the Coalition for Cannabis Policy, Education, and Regulation launched to advance comprehensive policy solutions to guide cannabis legalization and regulation at the federal level. Representing global, highly regulated businesses and experts on issues like patient access, public safety, criminal justice reform, youth prevention, and access to capital, the Coalition is the first of its kind to bring such diverse stakeholders together. Launching within the new administration’s first 100 days, the Coalition aims to advance a dialogue that can shape a responsible regulatory framework that will inform federal cannabis legalization." The coalition’s current makeup: The coalition includes tobacco giant Altria, beer behemoths Constellation Brands (Corona, Modelo) and Molson Coors Beverage Company, two national convenience store associations, the Council of Insurance Agents & Brokers, and The Brink's Company. Many of these companies already have big stakes in the cannabis industry and stand to profit from federal policy changes. Constellation owns 39 percent of major Canadian cannabis company Canopy Growth Corp. Altria purchased a $1.8 billion stake in cannabis company Cronos Group in 2018 and lobbied for Virginia’s recently passed marijuana legalization bill. In addition, Constellation and Molson Coors both produce CBD-infused beverages.
“One of the biggest challenges I've had over the last several years has been breaking through to the leaders of the black community — whether we're talking about clergy, whether we're talking about our elected officials,” Penny said. “If we have a chance to hear from these leaders, and absolutely take into account what hasn't been heard over the years, I think we're going to make some significant progress.”
CA sales slowing
At an investor conference, yesterday Canopy Growth's CFO said the company's DTC sales have slowed 10% relative to the prior quarter. The CFO attributed the slowdown to a resurgence of COVID-19 which has delayed store openings and reduced foot traffic. In wholesale provinces have reduced inventory levels. Alberta for example has been reducing inventory levels to reduce working capital needs. The company's inventories are 40% lower, but were reduced an additional 30% in February. As you can see below sales have been slowing since December. Not sure that CGC reasoning for the slower growth hold up.
Rhode Island budget proposal for 2022 includes a plan to legalize marijuana
While a number of differences remain passage look possible. Gov. Dan McKee’s (D) proposal calls for 25 marijuana retailers to be licensed each year for the first three years of implementation. Those would be awarded on a lottery basis, but five would be specifically given to minority-owned businesses, a category that also includes firms run by women. Additional licenses would be issued in the future based on demand. Sales would begin in April 2022.
