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The post News Updates 6/25 – No Legalization In DeSantis Cannabis Agenda, Only 24.4% of U.S. Cannabis Operators Profitable and more appeared first on Cannadelics.
Start your day with our News Update, where we bring you a comprehensive roundup of the latest headlines from the past 24 hours. In this edition, we discuss DeSantis Cannabis agenda that doesn’t includes legalization, a new survey that found that only 24.4% of U.S. Cannabis operators are profitable, a rise in vape product poisonings among kids under 5, Canada cracking down on words ‘Soda,’ ‘Cola’ on Cannabis labels and more interesting headlines.
Join us as we dive into the latest developments and insights shaping the cannabis and psychedelics industry
Legalization Won’t Be Part of DeSantis Cannabis Agenda, Gov Confirms
No legalization on DeSantis Cannabis agenda
Florida Governor Ron DeSantis has confirmed that legalizing will not be on his cannabis agenda if he is elected to the White House in 2024. Despite advancing rules for medical cannabis use in Florida, DeSantis expressed concerns about more young people accessing weed if it were to become decriminalized nationally. The governor’s stance was made clear during a campaign event in Augusta, South Carolina, where a voter asked him to decriminalize marijuana in 2025. DeSantis responded by saying, “I don’t think we would do that.” He also highlighted the US opioid epidemic and argued that the country has too many people using drugs, which he believes hurts workforce readiness and people’s ability to prosper in life. Despite DeSantis cannabis agenda, he did help advance access to medical marijuana in Florida.
[Source: Business Insider]
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Just 24.4% of U.S. Cannabis Operators Profitable, Study Finds
A new report by Oregon-based cannabis data and research company Whitney Economics reveals that only 24.4% of businesses in the U.S. cannabis sector report they are profitable. This is a significant drop from last year’s Cannabis Operator Sentiment and Business Conditions survey report, which found that 42% of marijuana businesses were turning a profit. The study, which surveyed 224 respondents from 13 states, representing 1.1% of licensees in those states, highlights the industry’s struggles. Rising costs, falling wholesale cannabis prices, state regulations, and high taxes were identified as the main challenges. More than 70% of respondents favor limiting cannabis licenses. The report forecasts slower-than-normal growth for the next seven quarters due to these factors.
Steady Rise in Vape Product Poisonings Among Kids Under 5
A new report reveals that the number of vape product-related poisonings reported to America’s poison control centers doubled between 2018 and early 2023, with the majority of cases involving children under the age of 5. The study, led by Nicole Tashakkori from the Center for Tobacco Products at the U.S. Food and Drug Administration, warns that e-cigarettes have the potential to cause poisoning exposure and are a continuing public health concern. To prevent such incidents, adult e-cigarette users are advised to store their e-cigarettes and e-liquids safely to prevent access by young children. The report also found that U.S. sales of e-cigarettes have been rising, from 15.5 million units per month in 2020 to nearly 23 million units in 2022. This increase means a lot of vaping devices, refill containers, and other paraphernalia are left lying around in American homes, posing a risk to children.
[Source: Medical Xpress]
Canada Cracking Down on Words ‘Soda,’ ‘Cola’ on Cannabis Labels
Health Canada is asking federally licensed cannabis producers to stop using certain words on labels and in promotions for infused beverages, warning they could appeal to young people. The words – “soda,” “cola,” “root beer,” or “ginger ale” – do not comply with Canada’s strict labeling and promotions requirements for cannabis. The apparent crackdown could have a significant impact on the increasingly popular carbonated cannabis beverage category, which accounts for almost 60% of all cannabis beverage sales. About half of the best-selling carbonated cannabis beverages could potentially be affected. Health Canada’s decisions about whether a product is appealing to young people are made “based on the facts of each case and after considering a range of factors.” Those factors include a product’s shape, color, smell, flavor, name, and how it’s presented to consumers.
California Cannabis Distributor Herbl Collapses
Herbl, one of California’s largest cannabis distributors, is shutting down operations and entering receivership. The company, which reportedly handled about $700 million in product sales in 2022, marks the largest collapse so far of a California cannabis brand. The development could leave other brands potentially tens of millions of dollars in unpaid invoices, and the state may also be owed millions in unpaid taxes. The company started to miss payments to other brands about six weeks ago. Former Herbl employees mentioned on LinkedIn last week that they were searching for new jobs. The company has reportedly laid off the majority of its workforce, leaving just a “skeleton crew” pursuing payments from retailers while fielding calls from other California operators who are in turn looking for payments owed to them by Herbl.
Report: Oklahoma Growers Producing 64 Times More Medical Cannabis Than Market Demand
A recent study commissioned by the Oklahoma Medical Marijuana Authority (OMMA) suggests that Oklahoma’s licensed cannabis growers may be producing 64 times more cannabis than the medical cannabis patient population’s current demand. The study, conducted by Cannabis Public Policy Consulting, used data from the state’s newly implemented seed-to-sale tracking system and surveys of more than 1,300 cannabis patients. The report indicates that the supply-to-demand ratio of Oklahoma’s regulated medical marijuana supply to regulated medical cannabis demand is 64:1. This oversupply is very likely adding to an illicit market both at the point of cultivation and the point of retail sale. The study suggests that Oklahoma continue to extend the moratorium on cannabis cultivation licenses through 2026 and authorize OMMA to seize and destroy cannabis products that are not logged in the seed-to-sale systems, among other steps to address the state’s oversupply issues.
Should Health Canada Ease Cannabis Packaging Rules? US CDC Warns of Child Safety Risks
Canada’s competition watchdog has identified prohibitions on cannabis promotion, packaging, and labeling as one of the barriers affecting competition in Canada’s cannabis industry. The watchdog recommends the government review and consider easing restrictions. The Cannabis Act and Cannabis Regulations stipulate general packaging and labeling requirements, including logos, colors, branding, and specific display formats about how product information must appear on the label. However, Health Canada asserts that the plain packaging measures are designed to reduce the attractiveness and appeal of cannabis products, particularly to young persons. The rules are expected to be updated by early next year.
Meanwhile, a US study evaluating pediatric cannabis edible ingestions in children younger than six years concerning toxicity, medical outcome, and health care utilization for 2017–2021 found an increase of 1,375%. The study published in Pediatrics earlier this year details that 70% of cases followed to a known outcome were reported to have central nervous system depression. Of all reported cases, 22.7% of patients were admitted to the hospital.
[Source: Packaging Insights]
New Rules: Oregon Cannabis Retailers Must Certify Tax Compliance
The Oregon Liquor Control Commission (OLCC) has approved temporary rules requiring marijuana retailers to obtain a Certificate of Tax Compliance from the Oregon Department of Revenue as a condition for acquiring or renewing a marijuana retailer license. This also applies to changes of ownership and adding someone to a license. The rules, which took effect on June 16, 2023, apply to all applications for a retail license, including changes of ownership, submitted to the OLCC on or after that date. It also applies to all renewal applications for retail licenses that expire on or after September 15, 2023. The rule requires all marijuana retailer “applicants” to submit a Certificate of Tax Compliance. If an applicant cannot obtain a Certificate, the business will not be able to renew its license, enact a change of ownership, or add individuals or entities to the OLCC license.
[Source: Cannabis Business Executive]
Bill to Regulate CBD and Kratom Products Passes North Carolina House Committee
A bill to regulate hemp-derived CBD and kratom products has passed the House Judiciary Committee in North Carolina. The bill, which is moving next to the House Appropriations Committee, introduces several new regulations.
The measure would limit the CBD content of hemp-derived products to 200 milligrams. It also imposes license requirements for selling the products and creates marketing and packaging regulations.
For kratom products, the bill includes an age requirement of 18 to purchase. Licensees must be 18-years-old, have not been convicted of a controlled substance-related felony within 10 years, allow product inspection and sampling, and be current in filing and paying taxes.
The bill includes a schedule of licensing fees, with $5,000 for manufacturers, $2,500 for distributors, and $100 per location for retailers, up to $2,500. Licenses would need annual renewal.
Packaging of CBD products would need to be child-proof and include a warning label. The products would also need to include a list of ingredients, a statement acknowledging the product is not FDA-approved, the total amount of hemp-derived cannabinoids in milligrams, and a scannable code for more information. The measure also bans products that could appeal to children.
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Steve Cohen Donates $5M for MDMA’s Push to Go Mainstream
Hedge-fund billionaire and New York Mets owner Steve Cohen and his wife have donated $5 million to the Multidisciplinary Association for Psychedelics Studies (MAPS), a nonprofit that has advocated for more research on psychedelic drugs since 1986. The donation from the Steven & Alexandra Cohen Foundation is aimed at supporting MAPS’ efforts to get the U.S. Food and Drug Administration to approve MDMA, also known as ecstasy or molly, for use against post-traumatic stress disorder. If the FDA approves an MDMA-assisted therapy for PTSD, MAPS and the foundation will create a patient-assistance fund to ease access to the treatment for needy individuals. This move is part of a growing trend of support for psychedelics, with Blake Mycoskie, founder of the Toms shoe brand, also pledging $100 million toward psychedelic research and access.
[Source: Green Market Report]
National Vape Crackdown Continues as Suffolk Police (UK) Lead Major Operation
Illegal vapes were among the products seized by Suffolk police in a crackdown on stores in Bury St Edmunds this week. The Suffolk force is the latest to act in a nationwide effort to curb the illegal vape market. Officers, along with staff from other government agencies, visited six stores in the town and removed more than 500 vapes containing between 2,000 and 10,000 puffs from the shelves. The volume limit for vapes in the UK is 10ml, which effectively means a maximum of 600 puffs. During the raids, the police also seized more than 200 bottles of alcohol, and one man was taken into custody under the Immigration Act. Sergeant Dan Peck from Bury St Edmunds police said, “This was a very productive operation as illicit tobacco and alcohol contribute to harm within the local community and often goes hand in hand with anti-social behavior and other like offences.”
[Source: Talking Retail]
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We hope you enjoyed today’s news update covering DeSantis cannabis agenda, child safety, industry problems and more. Check back with us daily to see what’s going on in the world of cannabis, psychedelics, and recreational drugs. And make sure to subscribe below to our newsletter for all the latest stories and deals!
AI Disclaimer: Our Daily News Updates are created using AI tools. PsychePen is an AI author who is constantly improving. We appreciate your kindness and understanding as PsychePen continues to learn and develop. Please note that the provided information is derived from various sources and should not be considered as legal, financial, or medical advice.