Cannabis News
Over 10 Cannabis Companies Closing Per Month in Massachusetts?
Published
1 year agoon
By
admin
While Schedule 3 banter has the marijuana industry in a “postiive spin mode”, the facts of the industry present day are gruesome and harsh. Selling Cannabis Licenses for Pennies on the Dollar was a story Cannabis.net did on the bleak state of the Oregon cannabis industry after the Fall harvest was so large it is putting growers and culitvators out of business. The race to the bottom on pricing and lack of access to credit or created cash-flow is killing many cannabis businesses.
Going from the over-supplied West Cost to the Northeast, the same story is ringing true in Massachusetts, where the wholesale price of cannabis flower in places like Massachusetts and Oregon is going so low many retailers can’t figure out a way to stay in the black and are just handing their marijuana licenses back to the state.
The closure of marijuana retailers and producers in Massachusetts in 2023 can be attributed to the significantly low wholesale prices of cannabis. As reported by MassLive.com, at least 17 marijuana businesses in the state have either surrendered or had their licenses revoked.
It’s important to note that not all of these businesses have completely shut down; some may have ceased operations in the adult-use market while still maintaining activity in the medical marijuana sector. Furthermore, the actual number of closures could be higher, as some cannabis companies might be exploring the option of selling their licenses rather than relinquishing them entirely.
The drastic drop in cannabis prices is a key factor, with the average cost of an eighth of marijuana in Massachusetts plummeting from $45 in 2021 to approximately $20 now. Jennifer Ngo, Chief of Staff at the cannabis retail chain Bud’s Good, described the current situation as a “buyer’s market.”
Additionally, the decline in cannabis shopping by out-of-state residents in Massachusetts is noteworthy, likely influenced by the legalization of marijuana in nearby states such as Connecticut, New York, and Vermont. In response to the challenging market conditions, even prominent players like Trulieve Cannabis, a Florida-based multistate operator, announced its exit from Massachusetts in June.
Despite the closures, Massachusetts still has 300 licensed marijuana stores and 120 permitted producers in operation. Economist and author Robin Goldstein anticipates that these producers will adapt by implementing more efficient and cost-effective methods, further contributing to the downward trend in cannabis prices.
Goldstein predicts that cannabis prices will continue to fall, emphasizing that the current state of the market is only a midpoint in the overall trajectory. The evolving landscape suggests that stakeholders should brace themselves for continued price adjustments in the cannabis industry.
Some Marijuana Businesses Adapt Amidst Market Challenges
In the face of closures within the Massachusetts cannabis industry, a noteworthy adaptation strategy has emerged among certain businesses: a transition from the adult-use market to a more focused approach to medical marijuana operations. This strategic shift reflects a proactive response to the challenging economic climate, allowing businesses to maintain viability and continue serving a specific segment of the market.
While a significant number of marijuana businesses have surrendered their licenses or faced revocation, it’s crucial to recognize that not all have succumbed to complete closure. Instead, some entrepreneurs have strategically repositioned their operations, redirecting their efforts towards the medical marijuana sector. This pivot enables businesses to leverage existing infrastructure, regulatory compliance, and expertise, ensuring a continued presence in the evolving cannabis landscape.
The decision to shift to medical marijuana operations reflects a nuanced understanding of the market dynamics. By focusing on a specific segment with potentially different consumer needs and regulatory considerations, these businesses aim to weather the storm of low wholesale prices and maintain a sustainable foothold in the industry.
The Ripple Effect on the Massachusetts Cannabis Economy
The seismic shift in cannabis prices, plummeting from $45 to around $20 per eighth in Massachusetts, reverberates across the entire cannabis economy, leaving no facet untouched. Cannabis retailers find themselves at a crossroads, compelled to recalibrate their business models in response to diminished profit margins. In navigating this new pricing paradigm, dispensaries may explore innovative strategies, such as cost-cutting measures or diversifying product offerings, to maintain financial viability in an environment where profitability is increasingly challenging.
Consumers, on the other hand, are presented with a unique set of dynamics. While the reduced prices offer an apparent benefit, questions arise regarding potential trade-offs in product quality and the broader impact on market dynamics. This shift in pricing is likely to influence consumer behaviour, prompting a reassessment of preferences and purchasing patterns. As consumers adapt to this new reality, the market may witness a reshaping of expectations and a redefinition of value within the cannabis industry.
Beyond the immediate retail landscape, the ripple effect extends to industry consolidation and regulatory responses. Smaller players face heightened challenges, potentially leading to closures and creating opportunities for larger entities or new market entrants to consolidate their positions. Simultaneously, Mass regulatory bodies grapple with the need to adapt policies to ensure the long-term sustainability of the cannabis market. This interplay of economic forces and regulatory considerations shapes the intricate tapestry of the Massachusetts cannabis economy, revealing a complex web of challenges and opportunities amidst the drastic price drop.
Massachusetts Faces Competition as Neighboring States Legalize Marijuana
The dwindling interest in cannabis shopping by out-of-state residents in Massachusetts serves as a compelling indication of shifting regional dynamics within the cannabis market. As neighbouring states, including Connecticut, New York, and Vermont, embrace marijuana legalization, Massachusetts contends with both challenges and potential opportunities. This subheading explores the multifaceted impact of this evolving landscape on the state’s cannabis industry.
The legalization wave in nearby states has triggered a decline in cannabis tourism in Massachusetts. Out-of-state residents, who may have previously flocked to the state for its cannabis offerings, are now presented with more accessible options in their jurisdictions. Analyzing this trend unveils a complex interplay between regional regulatory frameworks, consumer preferences, and the broader economic impact on Massachusetts’ cannabis market.
In response to the changing competitive landscape, even established players are recalibrating their strategies. The decision of Florida-based multistate operator Trulieve Cannabis to exit the Massachusetts market in June reflects a broader trend of industry participants reevaluating their geographic footprint in light of evolving regional dynamics. This subheading delves into how such strategic decisions impact the overall market structure and shape the competitive landscape for the remaining 300 licensed marijuana stores and 120 permitted producers in Massachusetts.
Bottom Line
The Massachusetts cannabis industry grapples with closures driven by significantly low wholesale prices, prompting strategic adaptations such as a notable shift towards medical marijuana operations. This reflects a resilient response to economic challenges, with retailers innovating to navigate the pricing turbulence. The ripple effect extends to consumers, who face a redefinition of value amidst reduced prices, while industry consolidation and regulatory responses add layers of complexity. Moreover, Massachusetts contends with heightened competition from neighbouring states embracing marijuana legalization, leading to strategic exits by established players. As the remaining businesses brace for ongoing price adjustments, the Massachusetts cannabis landscape stands at a pivotal juncture, requiring continuous adaptation and innovative strategies to thrive in an evolving and competitive environment.
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Cannabis News
Maintaining The Highest Level of Quality and Freshness for THCa Products
Published
10 hours agoon
January 7, 2025By
admin
When looking for food, the freshness and quality of the product are essential to the customer. Care must be taken with every product to keep its original qualities. This makes sure that customers have the best experience possible with every buy. Brands ensure their products stay potent and fresh, so to maintain they put them in airtight containers. This gives customers a premium experience that stands out in the market even if they are bought from thca flower clearance. This is especially important when it comes to cannabis goods. Keeping THC-rich flowers fresh ensures every person has a good experience that meets their needs.
The practice of storing things in air-tight containers is very helpful for maintaining their quality. These containers help keep out air, light, and wetness, which can all make the product fresh and effective over time. For people who use cannabis, how fresh the product is can have a big effect on how strong and how long the benefits last. When THC flowers are stored properly, users can expect a better experience that keeps all of the product’s benefits.
The chemicals that give weed its unique tastes and smells, don’t break down when it is stored in an airtight container. Terpenes are very important for improving the taste and making each type unique. The natural qualities of these terpenes can be kept safe by storing them in the right way. This way, every user can enjoy the full range of tastes and smells that the product has to offer.
Why airtight containers are important
Containers that don’t let air in are not only useful, they are necessary for storing things. Over the time, oxygen can break down the product’s cannabinoids and oils. When you use airtight cases, the product stays protected from the outside world. This keeps its chemical structure and makes sure it stays strong.
The users will trust the products only if they feel good about quality. Whether they are used for fun or medical reasons, THC flowers if not stored correctly may have less effect, giving a bad experience for users. To keep the level of quality, it is important to spend money on good storage methods like using airtight containers.
Make sure you have a great time
When a product has been carefully stored in the best possible ways, the experience is more powerful. Whether you are buying flowers to help you feel better or just for fun, they should always be live. With this care, users can get a product that works well like they bought the day it was packaged.
Freshness is at the heart of this process. By making sure that goods are kept in containers that keep air out, businesses can keep up the quality of the goods and make sure that customers can get the best items. Customers are happier and more likely to trust the brand to always provide better goods.
In the end, keeping the product fresh and high-quality isn’t just about keeping it safe, it is also about giving the customer a regular, good experience. Making sure that a product stays fresh and effective from the time it is packed until it gets to the customer is very important. One easy and very effective way to reach this goal is to store things in containers that keep air out. Looking at good storage methods will continue to be important for keeping the quality of THC products even as the cannabis business grows. Customers can be sure that this way of keeping things fresh and effective will make their experience better, whether they are looking for new types or taking advantage of thca flower clearance deals.
Cannabis News
Cannabis Code Enforcement Fines Must be Remedial, Not Punitive, Federal Court of Appeal Holds
Published
11 hours agoon
January 7, 2025By
admin
The Ninth Circuit Court of Appeal has reinstated a civil rights lawsuit against Humboldt County, California, that challenges the county’s practices in imposing punitive daily fines. It is the first time a federal appellate court has weighed in on local government’s enforcement of code violations involving cannabis farms.
The Court of Appeal decision
The decision, in Thomas v. County of Humboldt, comes after years of complaints by cannabis cultivators that local governments impose unfair fines for technical violations at licensed farms. That counties and municipalities have adopted and are enforcing large fines involving licensed properties is one of many reasons why increasing numbers of farms have given up their licenses and shut down completely or returned to the illicit market. This is hurting state efforts to bolster the legal market and suppress the illicit market for cannabis.
Lessons for industry and regulators
A takeaway from the decision is that local governments need to keep the goal of remediation in mind in establishing penalties, must be more reasonable in allowing cultivators to fix violations, and more flexible in decisions to impose fines and settling disputes. The decision should motivate county and city attorneys, and cannabis licensees and applicants, seek assistance from a mediator with expertise in the cannabis market and regulation. The courthouse might not now be as friendly a venue for local government as it has been in the past.
Most cannabis businesses that run afoul of local codes pay the penalties, no matter how unfair they might seem, because they can’t afford a long legal battle and the administrative and court processes are tilted against the property owner. Administrative hearing officers routinely uphold notices of violations and the penalties imposed by code enforcement officers. Writs of mandate brought against local government in state court, particularly in smaller counties, are extremely difficult to win.
Background on the Thomas case
What has made the Thomas case viable is that several plaintiffs banded together in a civil rights class action in federal court under 42 U.S.C. § 1983, alleging that Humboldt County’s penalties for cannabis abatement violate the Eighth Amendment’s Excessive Fines Clause.
Humboldt County established a schedule of daily fines for illegal cannabis cultivation of up to $10,000, with a minimum of $6,000. Upon receiving a notice of violation from the county, the party has 10 days to abate all violations, subject to an appeals process, during which penalties continue to accrue. Violations included not just the illegal cultivation of cannabis itself, but also any other violation that facilitates illegal cultivation of cannabis. The Thomas plaintiffs contended that the county issues violation notices with hefty fines based on imprecise data (such as satellite and drone photos) and for code violations that originated with previous property owners.
The lower District Court dismissed the lawsuit on the basis that the plaintiffs lack legal standing, because they had not, at the time of suit, paid any penalties. But the Ninth Circuit held that the plaintiffs had concrete injuries, providing standing, because they suffered emotional distress and had incurred expenses with engineers and attorneys as they attempted to abate the alleged violations and defended themselves in hearings.
Getting to the merits of the lawsuit, the Ninth Circuit held that the plaintiffs had plausible claims under the Excessive Fines Clause because the penalties were punitive, not remedial. The Ninth Circuit agreed with the plaintiffs that the fines were unconstitutionally excessive because (1) the notices were vague, often inaccurate, or involved violations that pre-dated the plaintiffs’ occupation of their properties; (2) lesser penalties could accomplish the same health and safety goals; and (3) the alleged offenses caused no harm beyond a technical lack of compliance with the county’s permitting regulations.
Humboldt provides for an administrative appeal before a hearing officer who determines whether a violation has occurred or continues to exist. The hearing officer can only reduce the penalty for a violation in limited circumstances and cannot reduce it to less than $6,000 per day. Although the Ninth Circuit did not explicitly address it in the Thomas decision, a property owner in most circumstances also can be forced to pay the county or municipality’s abatement costs and legal expenses — including those incurred in a subsequent writ of mandate proceeding in state court. The Ninth Circuit agreed that the Thomas plaintiffs had come under:
“immense pressure to settle due to the County’s issuance of ruinous fines, . . . its undue delay in providing hearings, its denial of permits while abatements are pending, and the cost the County imposes to prove one’s innocence.”
The Ninth Circuit found that Humboldt County’s fines were “clearly punitive, not remedial as argued by the County.” The fines could reach millions of dollars, and, in the case of one plaintiff, the fines dwarfed the value of her property. The appellate court was untroubled by the involvement of cannabis, which remains unlawful under the federal Controlled Substances Act:
“[I]t seems clear to us that lesser penalties could accomplish the same health and safety goals,” and “the offenses here have caused no harm beyond a technical lack of compliance with the County’s cannabis permitting regulations.”
The Thomas plaintiffs’ strategy pays off
The Thomas plaintiffs’ strategy of going to federal court was fraught, because the court could have just as easily declined to hear the matter under the illegality doctrine, but it paid off here; the Ninth Circuit not only considered the case but also disregarded the problem of whether the plaintiffs were entitled to any remedy under federal law.
The Ninth Circuit concluded by acknowledging that local government is “often at the forefront of addressing difficult and complex issues,” but it should use “flexibility” in decision making and “cannot overstep its authority and impose fines on its citizens without paying heed to the limits posed by the Eighth Amendment.”
Note: This post was first published January 6, 2025 on the Alger ADR Blog
Cannabis News
Are Americans Shifting to Cannabis and Saying Goodbye to Cigarettes for Good?
Published
12 hours agoon
January 7, 2025By
admin
Are Americans Shifting To Weed And Saying Goodbye To Cigarettes?
We live in a time when people are more health-conscious than ever.
For the first time in history, we’re seeing a downward trend in the consumption of cigarettes, especially among young adults and adolescents. Just a few decades ago, cigarettes were considered ‘cool’. The link between cancer and cigarettes were established by the 1950’s, though accepting that cigarette smoking was “bad” for you didn’t take root socially until around the late 1990’s.
Now, we know that cigarette smoking is a dangerous, often fatal habit that leads to cancer, respiratory illnesses, and heart disease. According to the World Health Organization (WHO), over 8 million people die prematurely from tobacco use yearly.
In the results of a Gallup poll from early 2024, they found that more Americans are more likely to smoke weed than cigarettes, while young people are more than 5 times more likely to choose weed over tobacco. The poll found that 17% of Americans smoke weed, while 12% admitted to smoking cigarettes in the previous week. The more dramatic difference was observed among the 18-34 age range, where 26% admitted to consuming weed while only 5% of them still smoke cigarettes.
For the same poll, they also found that the older adults aged 55 and up were more likely to still smoke cigarettes compared to marijuana. “Americans’ reported marijuana smoking has more than doubled since 2013, when Gallup first added the question in its annual Consumption Habits survey,” explained Gallup. “That year, seven percent said they did,” they reported.
Improved Public Perceptions Leads To Healthier Choices
One can’t deny that there has been a massive shift in the increasing awareness of marijuana’s health benefits, as well as the dangers of cigarette smoking. This leads to changing public perceptions, better and more scientific research as well as clinical studies, and an improvement in the law.
The law, specifically, has been instrumental in mitigating the spread of cigarette use. For example, many governments worldwide have established strict no-smoking policies and placed a massive tax on cigarettes. Tobacco manufacturers are no longer allowed to freely advertise their product. All these have led to a downward trend in cigarette smoking habits and purchasing.
The proliferation of legal cannabis throughout North America, not just for medical use but also for recreational use has also contributed to a widespread cultural acceptance of cannabis, which has also improved the public perception of the drug. As we speak, it’s already become a part of society not just in North America but also in countries such as Thailand, several European nations, Uruguay, and Mexico to name a few.
In addition, people are also becoming more educated about the use of alcohol. While it may still be the most widely used intoxicant, its days me be numbered: there is a small yet growing number of people who are choosing to replace alcohol with weed, because of the sheer number of studies proving the dangerous link between fatal illnesses and alcohol. Not to mention that alcohol is linked to drunk driving and road fatalities, multiple different types of cancers, horrible hangovers, and so much more.
Even Gallup polls from as far back as 2022 revealed that people in the United States have already begun to smoke more weed than cigarettes. Gallup conducted the survey from July 5 through 26 of 2022. The results reveal that 11% of the population smoke cigarettes, while back in the mid-1950’s, 45% of Americans smoked them. Meanwhile, 16% of Americans reported that they smoke weed, and 48% tried it in the past. Back in 1969, just 4% of Americans smoked weed!
It’s clear that societal and cultural perceptions around both have changed dramatically. “Smoking cigarettes is on the decline and is most likely to become even more of a rarity in the years ahead,” explains Gallup Senior Scientist Dr. Frank Newport. “This reflects both public awareness of its negative effects and continuing government efforts at all levels to curtail its use,” he said.
Unfortunately, the Gallup poll also found that alcohol remains a popular substance for Americans. Despite the increasing studies being published right now that alcohol is a proven carcinogen, one can’t blame the population: it’s legal, easily accessible, and affordable for many.
Overall, it seems that the demand for wellness is slowly taking over. Wellness is no longer just a buzzword or a trend; it’s a real pursuit that more, especially young people, are seeking. And cannabis fits very well into that picture: whether CBD or THC, the components of marijuana have proven beneficial for the mental and physical health of people, across a wide age group. From pediatric CBD applications to therapeutic uses for the elderly, cannabis can be beneficial for many people.
It’s so easy to see why thousands of young adults commonly include cannabis as part of their everyday wellness regimen – the same generation that have shunned cigarette smoking for good.
Conclusion
If you really must have a smoking habit, choose weed over cigarettes. Even then, any type of weed is much healthier than tobacco. Marijuana is so much healthier for your mind and body, and it can function as a medicine and supplement as well.
For individuals who are struggling to quit smoking cigarettes, you might even want to consider using cannabis as a cessation aid. Many have found success using cannabis to quit cigarettes, with longer-lasting success rates.
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