New research on Canada’s regulated cannabis market has shed light on consumer preferences and their impact on marijuana sales. The study, set to be published in the Journal of Studies on Alcohol and Drugs, explores the relationship between consumers’ proximity to government-regulated cannabis stores and their purchasing decisions.

The research found that Canadian cannabis users living within 3 kilometers (approximately 1.9 miles) of the nearest regulated marijuana retailer were more likely to buy from legal stores and less likely to obtain cannabis from regulated websites. The study’s lead researcher, Elle Wadsworth, a senior analyst with Rand Europe, suggests that having a store nearby significantly increases the likelihood of customers choosing the legal market.

Convenience emerged as a crucial factor influencing Canadian cannabis users, highlighting the importance of store location for retail chains. Michael Armstrong, an associate business professor at Brock University, noted that understanding the three-kilometer effect could help retailers plan their store locations more effectively.

The research analyzed data from over 15,000 Canadian cannabis users between 2019 and 2021, following the legalization of recreational marijuana in Canada in October 2018. It examined various sources of cannabis, such as regulated and illicit stores, websites, dealers, and home production.

Interestingly, the study showed that the number of regulated marijuana stores had a diminishing effect on consumers’ choices, as long as there was at least one store in close proximity. The research compared Alberta, with its high density of private-sector cannabis retail stores, to Quebec, which had a government-owned retail monopoly. Despite a significant difference in the number of stores, the impact on legal purchases was relatively similar between the two provinces.

The study also revealed that respondents lived closer to regulated marijuana stores in 2021 compared to 2019, likely due to the increase in adult-use marijuana stores across Canada during that time. Additionally, regulated stores became the primary source of cannabis in 2020 and 2021, overtaking family and friends as the main providers.

The research findings are essential for the cannabis industry, as they confirm the positive association between consumer proximity to regulated stores and their likelihood of making legal purchases. The study’s insights could assist businesses in making strategic decisions about store locations, while also informing government policies related to cannabis legalization.

Although the three-kilometer distance is significant, it should not be considered an absolute threshold, with factors like store density and profitability also playing crucial roles in the cannabis retail landscape. As of April 2023, Canada boasted over 3,740 regulated cannabis retail outlets across its provinces and territories, with Alberta leading in terms of the number of stores per capita.

Cannabis Business Takeaways:

1. Location Matters: The study underscores the value of convenience for Canadian cannabis users. Cannabis retailers should consider the significance of proximity to potential customers when planning their store locations. Understanding the three-kilometer effect can help retailers target areas with higher potential for legal market sales.
2. Focus on Proximity: The research highlights the diminishing effect of increasing the number of stores beyond a certain threshold. While having multiple stores is beneficial, having at least one store very close to customers seems to be sufficient to drive legal market purchases. Retailers should prioritize optimizing store placement in high-density areas.
3. Government Policy Implications: Policymakers can use this research to shape regulations and store licensing in the cannabis industry. By understanding the impact of proximity on consumer choices, governments can encourage legal cannabis sales by strategically distributing regulated stores in areas where illicit sales are prevalent.
4. Monitor Market Changes: The study revealed that the number of regulated marijuana stores increased between 2019 and 2021, leading to more customers sourcing from legal outlets. Cannabis businesses should stay informed about market changes and trends to adapt their strategies accordingly.
5. Continuing Shift to Legal Market: The research indicated a higher proportion of respondents sourcing cannabis through regulated channels in 2021 compared to 2019. This suggests an ongoing shift towards the legal market. Cannabis businesses should continue to provide high-quality products and services to attract more customers away from the illicit market.

Moreover, the research shows that legal recreational cannabis sales in Canada increased by 17.9% in 2022 compared to the previous year, reaching a total of 4.52 billion Canadian dollars ($3.4 billion). These figures indicate a growing trend toward legal cannabis purchases, in line with one of the objectives of Canada’s recreational cannabis-legalization law.

Source: Mjbizdaily

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Photo Credit: Robert Haverly ©2023

Vermont, known for its idyllic landscapes and progressive values, was recently in the grips of a natural disaster. Flash floods wreaked havoc across the state, leaving a trail of destruction and affecting various industries, including the budding cannabis sector. As Vermonters pick up the pieces in the aftermath of the floods, we examine the historical context that shaped Vermont’s cannabis industry, the struggles faced by cannabis growers and businesses, the hurdles of federal illegality, and the collective efforts to recover and rebuild.

A Brief History of Vermont’s Cannabis Industry

Vermont has a rich history of cannabis use, with early records suggesting that hemp was cultivated in the state during the 18th and 19th centuries. However, like in many parts of the United States, the cultivation of cannabis eventually fell under prohibition during the early 20th century. Despite these challenges, Vermont’s countercultural roots played a significant role in fostering a strong cannabis culture that would eventually lead to significant changes.

The first significant step towards cannabis legalization came in 2004 when Vermont decriminalized the possession of small amounts of marijuana. The state then took a groundbreaking leap in 2018, legalizing recreational cannabis use and cultivation for adults over 21. Finally, in 2020, Vermont legalized the regulated sale of recreational cannabis, allowing entrepreneurs to establish licensed businesses.

The Flourishing Cannabis Industry Cut Short by Floods

Since the launch of legal cannabis sales in 2022, Vermont’s cannabis industry had been steadily growing. The Cannabis Control Board, tasked with overseeing the market, issued licenses to over 500 businesses, employing more than 1,100 people. By May 2023, the state had already collected a substantial $24 million in cannabis tax revenue, indicating a thriving industry.

However, the floods of 2023 abruptly halted this upward trajectory, causing catastrophic damage to the cannabis sector. The historic floods ravaged cannabis farms, production facilities, and dispensaries, leaving the industry reeling from the impact. For business owners, the destruction was profound, with some reporting the loss of hundreds of thousands of dollars worth of products and infrastructure.

Photo Credit: Robert Haverly ©2023

Challenges Unique to Cannabis Growers

In the wake of the floods, Vermont’s cannabis growers faced daunting challenges in assessing the extent of the damage. Unlike traditional agricultural crops, there were no established guidelines for classifying damaged or potentially damaged cannabis plants. This lack of clarity made the recovery process particularly difficult, with growers unsure of the future viability of their crops.

Contaminated soils, a common issue after flooding, posed an additional threat to the health of cannabis plants. Growers had to be vigilant about potential pathogens that could hinder future yields and threaten consumer safety. To safeguard product quality, rigorous testing of the surviving crops became a top priority.

The Ongoing Struggle of Federal Illegality

Adding to the distress of cannabis growers and businesses, the federal status of cannabis rendered them ineligible for any federal disaster aid. Cannabis dispensaries, classified as federal entities, could not access funds from agencies like the Small Business Administration or FEMA due to cannabis’s federal illegality.

Despite Vermont Governor Phil Scott’s efforts to secure a U.S. Department of Agriculture disaster declaration, cannabis farmers were still excluded from federal crop insurance benefits. The lack of federal assistance created financial hardships for businesses already operating on thin margins, leaving many struggling to recover.

Hope on the State Level

In the face of these challenges, Vermont’s cannabis community showcased remarkable resilience and solidarity. Industry advocates rallied together, actively seeking support at the state level. The Vermont Cannabis Control Board and Vermont Growers Association collected comprehensive data on damages, aiming to present a compelling case to the Legislature for emergency state funding.

Fundraising initiatives were also launched to help flood-damaged cannabis businesses get back on their feet. Benefit concerts and joint proceeds aimed to provide much-needed relief, offering a glimmer of hope in the darkest of times.

Conclusion

The 2023 floods in Vermont had a profound impact on the state’s cannabis industry, testing its resilience and highlighting the barriers imposed by federal illegality. As Vermont’s cannabis growers and businesses grapple with the aftermath of the floods, they face unique challenges in assessing damages and ensuring product safety. The federal restrictions on cannabis continue to hinder recovery efforts, underscoring the need for comprehensive regulatory reform.

Nonetheless, the Vermont cannabis community’s unwavering spirit and collaborative efforts offer hope for the future. The determination to rebuild and thrive reflects the industry’s commitment to both economic growth and consumer well-being. As the state navigates the road to recovery, the cannabis industry stands united, poised to continue its journey toward a brighter and more sustainable future.

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Global Cannabis Times recently reported that Nevada’s cannabis industry is on the brink of a major transformation following the recent passing of Senate Bill 277, a game-changing piece of legislation that promises to shape the future of recreational and medicinal marijuana in the state. Effective January 1, 2024, this bill brings a series of substantial changes, all aimed at enhancing customer experience, facilitating business operations, and promoting social equity within the cannabis sector.

Expanded Access for Recreational Users

With the implementation of SB 277, recreational cannabis customers in Nevada can now enjoy increased access to their favorite products. The bill raises the purchase limits for marijuana flower and THC concentrate, allowing customers to buy up to 2½ ounces of marijuana flower or one-quarter ounce of THC concentrate. This marks a significant increase from the previous limits of one ounce and one-eighth ounces, respectively. This change is expected to cater to diverse consumer preferences while bolstering the state’s cannabis retail market.

Streamlined Licensing for Retailers

In a move to simplify bureaucratic procedures and reduce administrative burdens, the new law requires retailers to obtain only one license to offer both recreational and medicinal cannabis products. Previously, businesses needed specific certifications for each category. This streamlined licensing process is projected to promote efficiency and foster a more conducive environment for cannabis entrepreneurs.

Integration of Medical-Grade Products

SB 277 brings medical-grade marijuana products into the mainstream by allowing them to be sold alongside recreational products. This significant development means that dispensaries require only one type of license to operate, enabling consumers to access high-potency products similar to those available to medical patients. This step aims to bridge the gap between the medical and recreational sectors, providing a wider range of options for consumers seeking potent cannabis products.

Opportunities for Ex-Convicts in the Cannabis Industry

The legislation takes an important stride towards social justice by creating an appeals process through the Nevada Cannabis Control Board for individuals with felonies. This allows them to apply for an agent card, granting them the opportunity to work within the state’s cannabis industry. By providing a pathway for ex-convicts to participate in the legal market, SB 277 seeks to foster inclusivity and create opportunities for those who were previously marginalized due to cannabis-related offenses.

Tax Reforms and Support for Education Campaigns

SB 277 introduces tax reforms to stimulate industry growth while promoting responsible consumption. The bill eliminates the excise tax on medicinal cannabis sales, which is expected to reduce financial burdens on both retailers and consumers. Furthermore, local governments can utilize tax revenue generated from cannabis sales to fund public education campaigns aimed at promoting safe consumption practices and distinguishing legitimate retail operations from illegal ones.

Financial Relief for Cannabis Establishments

Recognizing the importance of supporting the growth and competitiveness of the cannabis industry, SB 277 significantly reduces the annual and overhead startup fees imposed by the Cannabis Control Board. By easing financial burdens on cannabis establishments, this measure aims to encourage business expansion and innovation within the sector.

Conclusion

Senate Bill 277 represents a monumental leap forward for Nevada’s cannabis industry, ushering in a new era of accessibility, inclusivity, and growth. With expanded access for recreational users, streamlined licensing processes, and a commitment to social equity, the state is poised to set an example for other regions looking to strike a balance between responsible regulation and a thriving cannabis market. As the industry evolves under these landmark reforms, stakeholders and consumers alike are eager to witness the positive impact of SB 277 on Nevada’s burgeoning cannabis landscape.

Source: Global Cannabis Times

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In the inaugural week of adult-use sales in Maryland, the combined sales of medical and recreational cannabis products by marijuana retailers reached nearly $21 million. This landmark moment in Maryland’s cannabis industry is the result of a significant historical development—the legalization of recreational cannabis in the state.

The journey toward this legalization began when Maryland voters approved the measure in November of the previous year. This demonstrated a growing acceptance of cannabis and a desire for reform in the state. Following the mandate from the voters, lawmakers faced the task of developing and implementing regulations for adult-use sales within a tight timeline.

Their goal was to finalize these regulations by July 1, ensuring a smooth transition and timely commencement of the legislation. The process involved careful consideration of various factors, including public safety, taxation, licensing, and social equity.

Now, as the doors opened for adult-use sales, the impressive sales figures of nearly $21 million reflect the enthusiasm and demand for legal cannabis in Maryland. This initial surge in sales aligns with the patterns observed in other states that have already legalized cannabis, hinting at a positive trajectory for the industry in Maryland.

Projections from the 2023 MJBiz Factbook indicate that recreational cannabis sales in Maryland have the potential to reach $275 million this year. Looking further ahead, these figures are expected to soar to an astounding $2.1 billion by 2027. These optimistic forecasts not only illustrate the growing acceptance and demand for cannabis but also highlight the economic opportunities presented by the legalized cannabis market in the state.

As Maryland embraces this new era, it is important to consider the values of social equity and inclusivity. The Maryland Department of Commerce has introduced the Cannabis Business Assistance Fund to support social equity licensees in their cannabis business ventures. This fund aims to create opportunities for historically neglected communities by directing investments into businesses located in these areas. By fostering economic growth and equity within the burgeoning cannabis industry, Maryland strives to ensure that the benefits of legalization are felt by all its residents.

Source: Mjbizdaily

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Cannabis, a versatile plant with a long history of human cultivation, has been making headlines in recent years. While it’s commonly associated with recreational use and medicinal properties, one intriguing aspect is its natural growth in certain regions of the United States. This article delves into the science behind the cannabis plant and why specific regions are more hospitable to its growth. It also explores the implications of natural cannabis growth on the current markets, encompassing economic opportunities, genetic diversity, regulatory challenges, and environmental impact.

The Botanical Wonder in US Soil:

Cannabis, also known as marijuana, grows naturally in various parts of the United States, thanks to its hardy nature and adaptability. The plant thrives in both wild and cultivated environments, exhibiting impressive resilience in diverse climates and terrains. Historically, cannabis has been found growing in regions such as California, Oregon, Washington, and parts of the Midwest and Southeast.

Climate and Temperature:

Cannabis plants prefer temperate climates with moderate temperatures between 60 to 80 degrees Fahrenheit (15 to 27 degrees Celsius). This temperature range promotes optimal growth and development of the plant. Regions with Mediterranean climates, such as California, Oregon, and Washington, provide suitable conditions for cannabis cultivation. The Midwest and Southeast regions also offer favorable climates, although with some variations in temperature and humidity.

Sunlight and Photoperiod:

Sunlight is crucial for cannabis growth, especially during the flowering stage. Cannabis is a photoperiodic plant, meaning its flowering cycle is triggered by changes in daylight hours. Regions closer to the equator and those with longer daylight hours during summer months are ideal for cannabis cultivation. This explains why southern states like California, Texas, and Florida are known for their cannabis production.

Soil Composition and Nutrient Availability:

Cannabis prefers well-drained soil with good moisture retention and a balanced nutrient profile. It can adapt to various soil types, as long as they provide adequate drainage and nutrients. Regions with fertile soils and a balance of essential elements, such as nitrogen, phosphorus, and potassium, can support robust cannabis growth. Agricultural areas with nutrient-rich soils, such as parts of the Midwest, are suitable for cannabis cultivation.

Water Availability:

Water availability is critical for cannabis cultivation. While the plant requires water, excessive moisture and poor drainage can lead to issues. Regions with adequate rainfall or access to irrigation resources are advantageous for cannabis cultivation. However, careful water management techniques may be necessary in drought-prone or water-limited regions.

Elevation and Microclimates:

Elevation and microclimates within regions also influence cannabis growth. Higher elevations can offer cooler temperatures and lower humidity, which can benefit certain strains of cannabis. Microclimates, such as valleys or areas near bodies of water, may create localized favorable conditions by providing protection from extreme temperatures, wind, or frost.

Implications for Current Markets:

1. The Rise of Hemp Cultivation:

The natural growth of cannabis significantly influenced the cultivation of hemp, a non-intoxicating variety. The passage of the 2018 Farm Bill, legalizing hemp at the federal level, led to increased hemp cultivation. Wild cannabis plants provided valuable resources for farmers developing high-quality hemp strains with desirable traits like robustness and disease resistance.

2. Genetic Diversity and Strain Development:

Natural cannabis growth contributes to the genetic diversity of strains available in the US market. Wild plants possess unique genetic traits that can be selectively bred into commercially cultivated varieties, resulting in more robust and potent strains. This genetic diversity expands consumer options, creating a vibrant and diverse cannabis market.

3. Regulatory Challenges:

The presence of naturally growing cannabis poses regulatory challenges for federal and state authorities. While the 2018 Farm Bill legalized hemp, it mandated strict regulations for THC content, distinguishing it from marijuana. The natural growth of cannabis blurs the line between legal hemp and illegal marijuana, requiring increased vigilance and regulation to prevent the accidental cultivation of psychoactive cannabis strains.

4. Economic Opportunities:

Natural cannabis growth presents economic opportunities in terms of job creation and revenue generation. The cultivation, processing, and distribution of cannabis products support a thriving industry, creating employment opportunities in regions where cannabis grows naturally. Development of hemp-based industries, such as textiles, construction materials, and CBD products, further contributes to economic growth.

5. Conservation and Environmental Impact:

Naturally growing cannabis has implications for conservation efforts and the environment. Cannabis plants provide habitats for various animal species, contribute to soil health, and can assist in phytoremediation. However, uncontrolled growth can lead to adverse effects, including displacement of native flora and potential water consumption issues in drought-prone regions.

Conclusion:

The natural growth of cannabis in the United States has had a multifaceted impact on current markets. From driving the hemp industry to shaping genetic diversity, it has influenced various aspects of the cannabis market. While offering economic opportunities, it also poses regulatory challenges and environmental considerations. As the cannabis industry continues to evolve, striking a balance between harnessing the benefits of natural growth and implementing responsible regulations is essential for ensuring a sustainable and thriving market.

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