CCMA Greenbrief September 25: CA Labs Struggle To Meet Regs, Manufacturers Hit Hardest By Inaccurate Results…Sonoma Cracks Down On Illegal Grows…CalCannabis Considering Santa Barbara County Appellations…

CCMA Political greenBrief

Tuesday, September 25, 2018


Countries, Investors, & Industry Analysts Turn Their Eyes To Canada As They Transition Into A Legal Cannabis Territory Next Month


It’s reasonable to expect products to fail if they’re unsafeIt’s another thing entirely for products to fail because fledgling regulations are overly stringent.”
Kenny Morrison, CEO Of Oakland-Based Product Manufacturer VCC Brands, On Testing Regulations For Edibles
“If 10% is the allowable error for lab-to-lab variabilities, now you have essentially no room for error for manufactured goods. The fact that the label claim has to be within 10% variance really makes it challenging.”
Swetha Kaul, Chief Scientific Officer At Cannalysis Labs, On Labeling Challenges

Why Marijuana Infused Businesses Have Experienced Testing And Labeling Challenges In California (CA – State Regulations)

Marijuana Business Daily (September 25, 2018) The Golden State’s cannabis-infused products makers have weathered some strong winds recently stemming from new testing requirements, and it’s an issue marijuana businesses in other markets should pay attention to as different states experiment with rules surrounding lab tests. According to California’s Bureau of Cannabis Control (BCC), 32.9% of edibles, tinctures and lotions samples have failed laboratory analysis. Compare that with 20.4% of concentrates that didn’t make the grade and 10.6% of cannabis flower samples.

Wine And Weed Tours Pair California’s Top Pleasure Crops (CA – Recreational Cannabis)

Forbes (September 25, 2018) The battle of the buzz has officially commenced. This year saw a flurry of activity in the adult beverages sector as beer and wine producers attempted to stanch the flow of dollars headed to the expanding cannabis industry. Scrambling to create the next great altered experience, alcohol makers are busy experimenting with a variety of marijuana riffs to hopefully lure back some of those deserting dollars. Looking to gain market share ahead of legal recreational pot sales set to ignite across Canada on October 17, a few notable moves occurred this year in North America. Alcohol seller Constellation Brands — makers of Corona beer and Mondavi wine — ponied up $4 billion purchasing a 38 percent stake in Canadian medical marijuana behemoth Canopy Growth Corporation.

Could Santa Barbara County Regions Become Status Symbols In Cannabis Market? (CA – Local Cultivation)

Santa Maria Times (September 23, 2018) Packaged cannabis with labels bearing names like Tepusquet Canyon, Orcutt Hills and Santa Ynez Valley could become sought-after products commanding high prices and the appreciation of connoisseurs if a standardized appellation program can be developed. “I think an appellation for Santa Barbara County on packaging would be a huge plum for us,” Dennis Bozanich, deputy county executive officer, told growers at a recent meeting to provide updates on the status of the county permit and licensing programs. Bozanich, who has his finger on the pulse of cannabis regulation in the county, also said the government should not be involved in developing a brand identity for cannabis grown here.

An Update On Retail Cannabis And Cannabis Cultivation In Redding (CA – Cannabusiness)

KRCR News (September 24, 2018) Five out of the six approved businesses for cannabis retail in Redding have submitted their plans to the City, with one left to go. Monday the City of Redding permit department said there is only one business who has yet to submit their application for cannabis retail and they are in the works of building their location. City ordinance 2584 allows for a maximum of ten cannabis retail businesses in the City of Redding, however the City does not plan on approving more than six at this time. Sundial Collective, LLC., Bulldog Holdings, LLC., Synergy, Bryant Wellness Partners, Inc., Hype Cannabis Co., and The Green Door are the six approved businesses.

Sonoma County Cracks Down On Illegal Cannabis Grows (CA – Illicit Market)

Sonoma Index-Tribune (September 24, 2018) With medicinal cannabis legalized in 1996, and recreational use legalized in 2016, a green rush of entrepreneurial enthusiasm took root in Sonoma County. But legalization came attached to a complement of state and county regulations, and enthusiasts are finding weed production somewhat harder than it sounds. Since January 2017, Sonoma County Code Enforcement has received 682 complaints of cannabis production on private property. Following physical inspections of 662 of those sites, 638 – including 16 in Sonoma and Glen Ellen – are no longer cultivating cannabis, and no further complaints have been filed, according to a report by Permit Sonoma.

What To Watch Out For If You Want To Jump On The Cannabis Investing Bandwagon (USA – Cannabis Investments)

CNBC (September 25, 2018) If you walk into one of MedMen’s cannabis retail locations, you will be greeted with rows of tables equipped with tablets that you can use to browse for items. While the layout may resemble an Apple or other tech store, the products are much different. MedMen’s selection includes traditional marijuana products, including pre-rolled joints and/or plants sold in jars ready for smoking. Also on sale are nontraditional items, such as water infused with Cannabidiol, or CBD, which is aimed at helping athletes’ muscles recover after activity, or topical creams that can help with everything from pain relief to skin irritation.

VIDEO: CBD: The Next Frontier Of Cannabis? (USA – CBD Market)

The Street (September 25, 2018) Unlike its more controversial cousin, THC, CBD (cannabidiol) is a cannabis derivative that doesn’t get you high. But advocates say it has a wide range of benefits, from pain relief to anxiety reduction and anti-inflammatory properties. It’s also a booming business, appearing in a growing range of products including oils, balms, edibles and vaporizers promising some of the medical benefits of cannabis without the high. TheStreet headed to CBD Expo West to learn more.–14721609

PayThink The STATES Act Will Bring Needed Clarity To Cannabis Payment Law (USA – Cannabis Banking)

PaymentSource (September 25, 2018) Currently, more than 30 states and Washington, D.C. have legalized marijuana (cannabis) and/or marijuana-based products for various purposes. Unfortunately, however, this legalization conflicts with federal laws, which still cite cannabis as a Schedule 1 drug under the Controlled Substances Act (CSA). In the banking world, federal law trumps state laws – making it illegal for banks to work with merchants in this particular vertical. As a result, cannabis sales declared legal by states are transacted in cash. Can you imagine being a business owner with a garage full of unprotected cash and the inability to make large purchases the legitimate way? For many cannabis merchants, that scenario is their reality.

FBI Data Shows Cannabis Arrests Are Increasing (USA – Cannabis Convictions)

Ganjapreneur (September 23, 2018) New FBI data shows that cannabis arrests in the U.S. are on the rise despite increasing trends of legalization and/or decriminalization. The FBI logged 653,249 cannabis possession arrests in 2016. In 2017, that number rose to 659,700 — that’s about one cannabis possession arrest every 48 seconds. However, while arrest rates for cannabis possession have increased, they actually decreased for the illegal cultivation or distribution of the plant. In 2016, four states (including California, the country’s most populous state) voted to legalize adult-use cannabis — which makes the heightened arrest rates for possession extra concerning.

Eyes Of The Global Marijuana Industry Are On Canada As It Legalizes Recreational Use (Canada – Cannabis Industry)

CNBC (September 24, 2018) In less than a month, Canada will become only the second country in the world and the first G-7 nation to bring marijuana prohibition to an end, legalizing cannabis for recreational use. The move comes at a time when major corporations such as Constellation Brands are deepening investments in the space, cannabis stocks are seeing major volatility, and talk of a bubble is brewing. Canadian legalization, jump-started by Prime Minister Justin Trudeau’s government some three years ago, also has broad implications not only across the country but for its neighbor the U.S., where the drug remains illegal at the federal level. The Oct.17 deadline brings with it a slew of unknowns, including how large the market for cannabis in Canada will be and whether there will be enough product on store shelves. Estimates have run the gamut from $4 billion to $10 billion in the first few years of implementation.

Canadian Cannabis Companies Invest Millions In Pablo Escobar’s Home Turf In Colombia (Canada – Cannabis Market)

CBC (September 24, 2018) Near the hometown of the late Colombian kingpin Pablo Escobar, a growing number of Canadians are seeking their fortunes in the international drug trade. Today, however, they’re doing it legally.   At least seven licensed Canadian cannabis producers have set up shop in Colombia, investing more than $100 million in the conflict-hit country that has become a new frontier in the legal marijuana business, according to a review of company filings. “We understand the pain of the war on drugs. That war was here,” said Bibiana Rojas, managing director of Spectrum Cannabis Colombia, a subsidiary of Canopy Growth, one of Canada’s largest marijuana firms.

Cannabis Company Backed By Retail Fortune Eyes East Coast Expansion (OH – Cannabusiness)

Bloomberg (September 25, 2018) A cannabis company backed by the retail fortune of Ohio’s Schottenstein family has raised about $65 million as it prepares to be publicly traded in Canada. Green Growth Brands, which is run by former Victoria’s Secret and American Eagle Outfitters Inc. executive Peter Horvath, has purchased an existing marijuana operation in the Las Vegas area and is looking to get licenses to operate in Massachusetts, Florida and New Jersey. The new funding round included investments from the Schottensteins and Horvath, and precedes a stock listing in Canada in coming weeks through a reverse takeover.