Cannabis News
The Bubble Continues to Burst in the Cannabis Industry as Pick and Shovel Plays Flop on Earnings Reports
Published
1 year agoon
By
admin
As GMR reported financial numbers last week for the cannabis industry, Hawthorne Gardening Co., the subsidiary responsible for marijuana cultivation under Scotts Miracle-Gro, saw its sales further diminish in the quarter ending on July 1st. Based in Ohio, Scotts experienced a 6% drop in overall sales, amounting to $1.12 billion. This decline was primarily attributed to a substantial 40% reduction in sales at Hawthorne, as outlined in an official press release.
The revenue stemming from Hawthorne’s sales of hydroponics, horticulture, and lighting supplies for the cannabis sector has displayed a consistent downward trend over the past two years.
During the most recent quarter, Hawthorne’s sales totalled $93.4 million, marking a significant decrease from the $154.5 million recorded during the same period in the previous year.
In stark contrast, this figure pales compared to the $421.9 million achieved during the equivalent period two years ago.
In the initial nine months of fiscal year 2023, Hawthorne’s sales have plummeted by a notable 42%, resulting in a total of $317.6 million.
Jim Hagedorn, the CEO and Chair of Scotts, expressed concerns regarding the company’s financial situation in an earnings call. He highlighted that the anticipated returns from investments in Hawthorne, the cannabis industry, and the expansion of operational capabilities to meet pandemic-induced demand have not materialised as expected. Consequently, the company has accrued a substantial debt load due to these circumstances.
Among the investments contributing to this situation are the $215 million acquisition of Luxx Lighting, a Los Angeles-based enterprise, and the establishing of a research and development facility in Canada.
A strategic initiative, “Project Springboard,” initiated the prior year to enhance cash flow and bolster the company’s financial position, has yielded savings exceeding $100 million in the current quarter and an aggregate total of $300 million through the program.
In July, Scotts also made revisions to its credit agreement with JPMorgan Chase Bank, resulting in a reduction of $250 million in its revolving loan commitment.
Despite these challenges, Hagedorn maintains an optimistic outlook for the future. He asserts that they are progressing towards achieving $1 billion in cash flow by the culmination of fiscal year ’24. The revised credit facility offers leeway for debt reduction while prioritising investments in core business operations. Hagedorn also envisions the potential for profitability within Hawthorne and opportunities to leverage its dominant standing in the multi-billion dollar cannabis sector.
Scotts Miracle-Gro is listed as SMG on the New York Stock Exchange.
Assessing the Challenges and Trends
As the sales of Hawthorne Gardening Co., the subsidiary responsible for marijuana cultivation under Scotts Miracle-Gro, experience a continued decline; experts are delving into the multifaceted challenges and evolving trends that are shaping the cannabis cultivation market.
The cannabis industry has witnessed remarkable growth over the past decade, with changing attitudes towards legalization and increasing consumer demand. However, the recent downturn in sales at Hawthorne highlights the complexities and uncertainties that come with operating in this rapidly evolving sector.
Several factors contribute to the challenges faced by Hawthorne. Regulatory changes, both at the federal and state levels, have introduced a level of unpredictability that affects production, distribution, and sales. Navigating the intricate web of regulations while ensuring compliance has become critical to sustaining growth in the cannabis industry.
Moreover, the maturing cannabis market has led to intensified competition. A proliferation of cultivators, suppliers, and retailers has created a crowded landscape, making it crucial for companies like Hawthorne to differentiate themselves and deliver unique value to consumers.
Consumer preferences are also evolving, with demand shifting towards premium products, sustainable cultivation practices, and innovative growing solutions. Meeting these changing demands requires constant adaptation and investment in research and development.
Analysing these challenges, experts emphasise the need for Hawthorne and Scotts Miracle-Gro to adopt a multifaceted approach. This includes fine-tuning their product offerings, enhancing operational efficiency, and exploring new avenues for growth.
Navigating the Cannabis Landscape
In a rapidly evolving cannabis landscape characterised by shifting regulations and dynamic consumer preferences, Scotts Miracle-Gro demonstrates its agility and commitment to positioning Hawthorne Gardening Co. for sustained success.
Scotts Miracle-Gro recognises the critical importance of adapting to evolving regulations in this complex regulatory environment. The company takes a proactive approach to staying informed about changes at both federal and state levels. By closely monitoring regulatory developments and ensuring strict compliance, the company aims to minimise disruptions to Hawthorne’s operations and maintain a competitive edge within the market.
Sustainability is emerging as a central theme within the cannabis industry, driven by consumer demand and regulatory pressures. Hawthorne actively explores and implements eco-friendly cultivation methods, energy-efficient technologies, and innovative packaging solutions. By embracing sustainability, Hawthorne appeals to environmentally conscious consumers and contributes to a greener and more responsible cannabis industry.
Scotts Miracle-Gro invests significantly in market intelligence and trend analysis to remain at the forefront of the market. By thoroughly understanding consumer preferences and identifying emerging trends, Hawthorne can strategically tailor its product offerings to meet evolving demands. This data-driven approach enables the company to stay ahead of the competition and seize new opportunities as they arise.
Scotts Miracle-Gro’s extensive experience and established networks in gardening and agriculture provide a distinct advantage in the cannabis industry. Hawthorne can efficiently expand its market reach and penetrate new regions by leveraging these existing relationships. Collaborating with trusted partners empowers Hawthorne to navigate complex distribution channels and accelerate its growth trajectory within the competitive cannabis market.
At the heart of Scotts Miracle-Gro’s approach lies a commitment to a consumer-centric strategy. By engaging directly with cultivators, listening to their needs, and addressing pain points, Hawthorne can develop tailored solutions that resonate. Building strong customer relationships fosters loyalty and advocacy, ensuring that Hawthorne’s products remain sought-after and trusted within the cannabis cultivation community.
Bottom Line
In the face of declining sales at its marijuana subsidiary, Hawthorne Gardening Co., Scotts Miracle-Gro displays unwavering determination and strategic agility. As industry dynamics evolve, the company navigates regulatory complexities, champions sustainability, leverages market insights, fosters partnerships, and prioritises consumer satisfaction. Through this multifaceted approach, Scotts Miracle-Gro not only aims to reverse the sales slump but also solidify its position as a resilient and innovative leader within the dynamic cannabis cultivation landscape, shaping a future where growth and success remain the ultimate goals.
MORE ON SCOTT’S MIRACLE-GRO, READ ON…
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Is Kratom Addictive? Understanding Dependence, Risks, and Safe Usage
Published
14 hours agoon
November 12, 2024By
admin
Is kratom addictive? Discover the potential for dependence on Kratom, the risks involved with its use, and how to approach its consumption responsibly.
From 2011 to 2017, over 1,800 calls to poison centers involved kratom in the U.S. This significant number highlights the concern regarding kratom addiction.
However, without Food and Drug Administration (FDA) oversight, and due to various consumption methods like teas and capsules, there are significant health risks. Safe use of kratom is now in question due to these issues.
Research debates how dependence develops, outlining signs like loss of control and withdrawal symptoms. These signs are seen in regular kratom users. Ironically, some people switch from drugs like heroin to kratom, looking for a legal alternative.
Understanding Kratom: Origins and Prevalence
Kratom comes from the Mitragyna speciosa tree in Southeast Asia. It can act like a stimulant or like opioids, based on how much you take. People use it in different ways, for a small energy boost or stronger effects at higher doses.
The legal status of kratom in the U.S. is complicated and changing. It’s a hot topic because some worry about its misuse. It’s still legal in several states. This shows how different places handle drug rules. The National Institute on Drug Abuse is looking into its medical benefits. But, the FDA hasn’t approved it for medical use yet. The DEA calls it a “drug of concern,” which means policies might change.
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From 2011 to 2017, poison control centers in the U.S. got over 1,800 reports about kratom. This shows it’s widely used and might pose health risks.
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Kratom’s main ingredients bind to opioid receptors very strongly, stronger than morphine even. This fact is key to understanding its effects.
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As more people use kratom, more are reporting serious health problems. These include liver and heart issues, and tough withdrawal symptoms, particularly in those already sick.
The statistics show mounting worries about kratom in the U.S. As its use grows, it’s becoming more important to health policies and laws. What happens next will depend on further research and legal decisions.
Is Kratom Addictive: Investigating the Substance’s Nature
The question of kratom’s addictiveness focuses on how it affects brain receptors and its long-term health implications. The ongoing debate highlights concerns about dependence and the risk of addiction. Scientists are closely looking at these issues.
How Kratom Works in the Brain
Kratom’s main alkaloids, mitragynine and 7-hydroxymitragynine, bind to the brain’s opioid receptors, similar to painkillers and narcotics. This connection suggests a potential risk of dependence. These alkaloids are key to kratom’s pain relief but also point to possible addiction concerns, especially with frequent, high-dose usage.
Patterns and Consequences of Long-term Use
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Using kratom often, especially in large doses, can increase the risk of dependence and intense withdrawal symptoms, similar to opioid withdrawal.
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Although some use it for pain or to improve mood, long-term kratom users might see serious health problems, like liver damage and mental health issues.
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Withdrawal symptoms, including irritability, nausea, and sleep problems, show kratom’s impact on one’s physical and mental health.
Assessment of Addiction Risks
Studies indicate a significant risk of addiction to kratom, especially with high doses or frequent use. Dependence develops as the body gets used to kratom, leading to tolerance and a need for more to feel its effects. Withdrawal symptoms emphasize this risk, as highlighted by health experts.
Physiological Effects: Kratom’s Impact on the Body
There is a lot of debate about the safety and use of kratom. This herbal extract comes from the Mitragyna speciosa plant. It has drawn attention for its possible harmful effects on the body. The FDA has issued many warnings about kratom, raising safety concerns.
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Kratom Adverse Effects: Kratom users have reported side effects like nausea, vomiting, and confusion. More serious issues include high blood pressure and liver damage. These problems highlight the risks of using kratom.
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Herbal Extract Safety: Some kratom products contain heavy metals and pathogens. These can cause severe health issues, including death. This shows the importance of safety in herbal products.
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FDA Warnings and Regulations: The FDA has linked kratom to over 35 deaths and warns against using it. They point out the lack of medical uses and the risk of addiction.
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Physiological Impact: Kratom’s effects depend on the dose and the user’s body. Yet, it can lead to dangerous outcomes like liver damage and seizures.
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Safety Concerns from Authorities: Federal agencies like the DEA are worried about kratom’s safety. Although not a controlled substance, monitoring suggests users should be careful.
Kratom might offer temporary relief for some ailments, but it comes with significant risks. The FDA’s warnings should make people think twice. If considering kratom, it’s crucial to talk to a doctor first. Experts stress the need for safety and caution with herbal extracts.
Conclusion
Kratom’s role in health and regulation is complex, with views and research findings widely varied. Some people use kratom for its claimed health benefits, but it’s a hot topic. Experts advise caution and suggest consulting a doctor before using kratom due to the unclear effects.
Clinical studies using scores like SOWS and COWS haven’t confirmed withdrawal symptoms from kratom. This adds to the debate, especially when some users report withdrawal. This makes kratom a controversial subject among different findings and user experiences.
When it comes to treating opioid addiction, kratom can be both helpful and harmful. Some have used it successfully to fight addiction. Yet, some states have banned it. This highlights the need for regulations and consistent product quality. It also raises questions about kratom’s legal status due to mixed actions by authorities.
The situation shows how complex kratom is in the realm of substance use and law. Without clear evidence supporting either its benefits or risks, it poses a challenge. More research is needed to guide regulations and health advice. For now, anyone thinking of using kratom should be careful, seek medical advice, and keep up with laws and health guidelines.
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Cannabis News
New Rule, December 5: Oregon Cannabis Retailers, Processors and Labor Peace Agreements
Published
15 hours agoon
November 12, 2024By
admin
Oregon’s Measure 119 passed last week, as expected. This means that as of December 5th, every OLCC licensed retailer, processor, researcher and testing lab must secure a labor peace agreement before OLCC will approve a new or renewal license application. The labor peace agreement must be with a “bona fide labor organization.”
I previewed M119 back in September, explaining:
Compulsory peace agreements aren’t anything new in cannabis, although it would be something different here in Oregon. California, for example, requires labor peace agreements for many of its cannabis licensees, and has for many years. We had clients struggle with the concept initially, and we saw some fumbled rollouts, but people eventually adjusted.
Measure 119 further provides that retailers and processors would be required to remain neutral, under the peace agreements, when labor organizations communicate with employees about collective bargaining rights “with any licensure or renewal application.”
M119 may be legally problematic
I’m not a First Amendment lawyer, but it’s not clear to me that an Oregon business can be constrained from speaking with employees– regardless of what M119 provides. Oregon’s speech protections are extremely broad, which is why we have a naked bike ride, tons of strip clubs and no campaign finance restrictions.
I’m also not a labor lawyer, but I’m told M119 could hit a snag on the National Labor Relations Act.
I’ve run these concepts by an Oregon First Amendment lawyer and a couple of labor lawyers, and all confirmed to me that M119 has real exposure. I found that feedback interesting, because M119 sponsors would have understood this when they set out signature gathering. Back in September, I wrote:
The United Food and Commercial Workers Local 555 spent a good deal of money to get Measure 119 on the ballot, rounding up some 163,000 signatures when only 117,173 were required. This follows on a stymied effort to get House Bill 3183 passed last year, which would have accomplished the same thing legislatively.
HB 3183 failed after a couple of advisory letters from the State of Oregon, Legislative Counsel Committee (see here and here). Those letters discussed preemption exposure for what is now M119 under the National Labor Relations Act, The Taft Hartley Act, and other federal laws. Oregon Business and Industry, the largest business group in the state, also submitted opposing testimony, highlighting legal exposure.
As to the First Amendment issues, anyone watching this is advised to follow litigation recently brought by Ctrl Alt Destroy, Inc., on a similar requirement in California.
So let’s see how that goes, and let’s see if anyone in the Oregon cannabis space wants to make a run at litigating M119. For now, credit to UFCW Local 555, I guess, for not giving up and for getting this thing on the ballot. And for having some fun by slipping a Rickroll into the voter pamphlet. I’m sure that won a few people over.
The OLCC process
I don’t have any information yet on what OLCC is going to do ahead of the December 5th deadline. It’s worth noting that, in addition to California, other recreational cannabis states including New York, New Jersey, Rhode Island, Connecticut and Delaware all have similar requirements. Most likely, OLCC will put out an FAQ page very soon that looks something like this and licensees will need to upload something or other to CAMP with respect to any post-December 5th application or renewal.
As far as OLCC licensees negotiating these agreements, the best approach would be to speak with experienced labor counsel. Labor law is highly specialized, and negotiating a labor peace agreement with any outfit claiming to be a “bona fide labor organization” is not a typical exercise.
For now, this is just one more thing for licensed cannabis businesses to comply with. Please reach out to us if you have any questions or need a referral.
As the popularity of CBD (cannabidiol) continues to rise, many pet owners are exploring its potential benefits for their furry companions. CBD is derived from the hemp plant and is known for its therapeutic properties, which may help alleviate anxiety, pain, inflammation, and other health issues in dogs. However, when considering CBD treats for your dog, it’s crucial to understand the ingredients that go into these products. This article will delve into the essential ingredients to look for in CBD treats, their benefits, potential risks, and how to choose the right product for your canine friend.
Understanding CBD and Its Benefits for Dogs
Before we dive into the ingredients, it’s important to understand what CBD is and how it can benefit dogs. CBD is a non-psychoactive compound found in cannabis plants. Unlike THC (tetrahydrocannabinol), which can produce a “high,” CBD does not have intoxicating effects. Instead, it interacts with the endocannabinoid system (ECS) in both humans and animals, which plays a crucial role in regulating various physiological processes.
Potential Benefits of CBD for Dogs
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Anxiety Relief: Many dogs experience anxiety due to various factors such as loud noises, separation from their owners, or changes in their environment. CBD may help reduce anxiety levels by promoting a sense of calm.
Choosing the Right CBD Treats
When selecting CBD treats for your dog, it’s essential to look beyond just the CBD content. The overall quality of the treat is equally important. Here are some key ingredients you should be aware of:
1. High-Quality CBD Oil
The foundation of any good CBD treat is the quality of the CBD oil used. Look for treats that contain:
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Full-Spectrum or Broad-Spectrum CBD: Full-spectrum products contain all cannabinoids found in the hemp plant, including trace amounts of THC (below 0.3% as per legal standards). Broad-spectrum products contain multiple cannabinoids but no THC. Both types can provide an “entourage effect,” enhancing the therapeutic benefits.
2. Natural Ingredients
Just like human food, the ingredients in your dog’s treats matter significantly. Look for treats made with natural ingredients rather than artificial additives or preservatives. Here are some beneficial components:
Whole grains like oat flour or brown rice flour provide essential nutrients and fiber that support digestive health. They are also a good source of energy for active dogs.
Healthy fats are vital for maintaining your dog’s coat and skin health. Ingredients like coconut oil or peanut butter not only enhance flavor but also provide beneficial fatty acids that support overall well-being.
Incorporating fruits and vegetables into your dog’s treats can boost their nutritional value:
To make treats more appealing without resorting to artificial flavors, look for natural flavorings like chicken broth or carob (a chocolate substitute safe for dogs). These ingredients can enhance taste while keeping the treat healthy.
3. Functional Ingredients
Some treats may include additional functional ingredients designed to address specific health concerns:
These compounds are often included in joint support treats to help maintain joint health and mobility, especially in older dogs or those with arthritis.
Probiotics can promote gut health by supporting a healthy balance of bacteria in your dog’s digestive system.
Certain herbs like chamomile or ginger may offer calming effects or aid digestion. Always ensure these herbs are safe for canine consumption before choosing treats containing them.
Ingredients to Avoid
While there are many beneficial ingredients to seek out, it’s equally important to know which ones to avoid:
1. Artificial Additives
Many commercial pet treats contain artificial colors, flavors, and preservatives that can be harmful to your dog’s health. These additives may lead to allergic reactions or other health issues over time.
2. High Sugar Content
Just like humans, dogs do not need excessive sugar in their diets. Treats high in sugar can lead to obesity and dental problems.
3. Low-Quality Fillers
Avoid treats with low-quality fillers such as corn syrup or by-products that do not provide any nutritional value.
Always ensure that any CBD product you choose contains less than 0.3% THC to avoid any psychoactive effects on your dog.
How to Introduce CBD Treats Safely
When introducing any new treat into your dog’s diet—especially one containing CBD—it’s essential to do so gradually:
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Start Small: Begin with a small amount of the treat to see how your dog reacts.
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Monitor Your Dog: Observe your dog for any adverse reactions such as changes in behavior or gastrointestinal upset.
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Adjust Dosage as Needed: Depending on your dog’s size and needs, you may need to adjust the dosage over time.
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Consult Your Veterinarian: Before starting any new supplement regimen, including CBD treats, consult with your veterinarian—especially if your dog has existing health conditions or is taking other medications.
Conclusion
CBD treats can be a beneficial addition to your dog’s diet when chosen carefully with attention to ingredient quality and safety. By understanding what goes into these treats—such as high-quality CBD oil, natural ingredients, functional additives—and knowing what to avoid, you can make informed decisions that support your dog’s health and well-being.
Always prioritize transparency from manufacturers regarding ingredient sourcing and product testing; this will ensure you’re providing your furry friend with safe and effective options tailored to their needs. With proper research and guidance from a veterinarian, you can confidently explore the potential benefits of CBD treats for your beloved pet while ensuring they enjoy a tasty snack that’s good for them too!
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