Kaitlin Domangue, Author at Green Market Report

Kaitlin DomangueNovember 3, 2021

Cannabis is the fifth most valuable crop in the United States, effectively beating cotton.

Farmers grew $6.175 billion worth of cannabis last year. That’s enough to fill 57 Olympic-sized swimming pools. Or, you can fill more than 11,000 dump trucks, stretching more than 36 miles. And that’s only across 11 adult-use states, not even including medical marijuana!

With a crop this huge, you’d expect more data to be collected. The USDA Research Service keeps track of all non-cannabis crops, but they don’t account for cannabis produced in legal states because it’s illegal at the federal level.

That’s why Leafly is stepping in to try and keep track of what’s being grown in the United States. Their new Cannabis Harvest Report for 2021 proves just how valuable American cannabis is to consumers and farmers alike. Leafly does the same thing with cannabis jobs, which are not tracked by the Department of Labor.

Quick Data for the United States

This report analyzes 13,042 cannabis farms across 11 adult-use states. All of the states in the report have an active recreational program and operational retail stores.
Cannabis’ value in the United States is beating cotton, rice and peanuts. Cotton was worth $4.7 billion in America last year.
Corn, the nation’s leading crop, was valued at a whopping $61 billion last year. Corn, soybeans, hay, and wheat are the four crops that beat cannabis in value.
Cannabis is the #1 most valuable crop in Alaska, Colorado, Massachusetts, Nevada, and Oregon.
Cannabis is currently worth between $500-$3,000 per wholesale pound across the United States.

Alaska

The cannabis crop is worth more than twice as much as all other agricultural products combined in Alaska, including livestock and crops.
Alaska’s 356 licensed cannabis farms produced 21 metric tons of cannabis during the fiscal year ending June 2021, which was worth $104 million wholesale.
Hay, Alaska’s second most valuable crop, generated $9 million annually during the last fiscal year.

California

There’s an estimated seven cannabis farm licenses for every adult-use store in California, creating a lopsided cannabis market in the state. There’s more product than there are stores to sell it.
California harvested 514 metric tons of cannabis last year, yielding a wholesale crop of $1.66 billion. Big numbers, but Colorado farmers are growing more cannabis than California farmers and bringing in approximately the same amount of money.

Colorado

Colorado farmers produced an estimated 627 metric tons of cannabis in 2020, according to the Colorado Enforcement Division’s 2020 year-end report.
Colorado has 1,245 cannabis farm licenses.
Colorado’s cannabis was valued at $1.03 billion last year.

Oregon

Oregon has an estimated 1,319 cannabis farm licenses, which produced 344 metric tons of cannabis last year.
The crop was valued at $602 million last year.
It’s the most valuable crop in Oregon, beating hay, wheat, potatoes, and cherries.

What’s a pound worth?

Leafly found that using Nevada’s rules set forth by state regulators to be the most clear-cut way to break down just how much a pound is worth in the United States.

Nevada taxes cannabis farmers according to a pre-set “Fair Market Value at Wholesale.” Flower is $2,398/lb, small bud is $1,696/lb, flower approved for extraction is $568, trim approved for extraction is $546, trim is $550, wet whole plant is $297, and immature plants are $51. Leafly rounded up and adapted Nevada’s numbers to create a per-pound formula. Every pound of dry, harvested cannabis yields:

Flower, ½ pound: $2,400 x ½ = $1,200

Smalls, ¼ pound: $1,700 x ¼ = $425

Trim, ¼ pound: $550 x ¼ = $138

Each harvested dry pound of cannabis equals $1,763 of wholesale crop value.

Let’s treat cannabis farmers like other farmers

Cannabis farmers did not receive any of the $35 billion in emergency pandemic aid to American farmers in 2020, nor do they get to claim any of the $10 billion already given in usual farm subsidies, despite generating billions of dollars in legal revenue to U.S. states each year.

There’s an entire council dedicated to iceberg lettuce in Arizona, but no such council or research group exists for cannabis, which is Arizona’s second most valuable crop generating $360 million in revenue each year.
Strawberry farmers pay no cultivation tax in California, unlike cannabis farmers who pay $9.65 per ounce just to cultivate.
19 towns have banned cannabis farming in New Jersey, including processing and retail.

Leafly’s annual reports continue to shed light on the dollar value cannabis brings to state governments and communities, while simultaneously not being awarded the same benefits as other farmers in the United States.

Kaitlin DomangueJuly 29, 2021

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Smoking cigarettes indoors has been shown to reduce a home’s resale value by up to 29%, says Realtor.com. When it comes to buying a cannabis enthusiast’s home, the resale value research is less clear, though 30% of realtors say they have struggled to sell a house where cannabis was grown. A recent study conducted by the National Association of Realtors said 50% of leasing professionals found it wasn’t hard to re-lease a property after tenants smoked cannabis indoors, and the organization “does not have a position on cannabis legalization.”

Legal cannabis raises home value

There’s been a lot of chatter surrounding cannabis and the real estate market. But, what kind of impact do cannabis operations have on property value by simply just existing in the same town or city as your house? According to research by real estate data company, Clever, property values rose by $17,113 more in states where recreational cannabis is legal, compared to states where it’s illegal or just legal at the medicinal level. Not to mention, millions of dollars in tax revenue created. In 2021, average home values increase by $470 for every $1 million increase in overall tax revenue from cannabis.

Clever combined data from Zillow, the U.S. Census, and other resources to produce their report.

New businesses, tourism, and jobs all contribute to the increase

When it comes to answering the “why”, that’s a little more complex. According to Clever, there’s a variety of reasons why property values are increasing as cannabis legalization takes place. “Numerous factors determine home values, including the home’s features and condition, the area’s amenities, and local crime rates. Legalizing marijuana can impact each of these criteria in ways that are both predictable and surprising — particularly by creating fresh demand for housing, new businesses, and tourism,” says the report.

We often look to Colorado as a model representing cannabis’ potential in different states. Legalization brought Colorado a wave of new business, and the crime rate also dropped. Also, hotel revenue rose by $130 million in the first year after Colorado legalized, according to a study conducted by Penn State.

Key Findings

Home values increased by $6,338 from 2017 to 2019 in states where cannabis is legal in some form, compared to states that haven’t legalized at all
On average, home values increase by $470 for every $1 million increase in tax revenue
- Eight states reported a full year of tax revenue generated from cannabis sales in 2020, totaling $2.3. $1 billion of that being California sales alone.
- The seven states (plus D.C.) who haven’t yet sold a year’s worth of legal cannabis are predicted to collect $601 million in new annual tax revenue.

Home values are predicted to increase by an average of $61,343 in states that have legalized recreational cannabis, but sales aren’t yet taking place.
- California has seen the biggest increase in home values, up by $128,341 since 2017, among states that have legalized at the recreational level

Cities with more dispensaries are positively correlated with higher home values, suggesting legalization boosts jobs and economic growth.
- In cities with recreational dispensaries, home values increased by $22,090, compared to states where recreational cannabis is legal but not yet being sold in retail locations
- Property values increase by $519 with each new dispensary a city adds

According to Clever’s future predictions, home values will increase by more than $60,000 on average.

Looking at tax revenue

When it comes to tax revenue, where does it all go? Different states allocate their tax revenue towards different things, but according to a report by Urban Institute, education programs (including community colleges and pre-K schools) are the most likely to benefit.

Oregon, for example, donates 40% of its tax revenue to the state’s school fund, accumulating $180,252,103 between 2017 and 2021. Arizona recently legalized cannabis for recreational consumption, and they plan to follow suit by donating 33% of their tax revenue to the state’s community colleges.

Other states use their tax revenue for different things, like Washington, where the tax revenue goes towards a healthcare trust account to provide basic healthcare services to people without insurance. Ranked from most to least common, here’s how different states use their cannabis tax revenue:

Education programs
Substance abuse education and treatment programs
Reparations for those negatively affected by the War on Drugs/criminal justice reform
General funds
Transfers to local governments
Administrative costs of initiating new laws
Public health and safety programs
Law enforcement, crime reduction, and fire departments
Transportation and infrastructure
Programs for conservation
Programs for veterans

Cannabis’ impact on local communities

This is just another piece of evidence supporting cannabis’ positive impact on local and state economies. According to Leafly, the legal cannabis industry supports 321,000 full-time jobs across the United States, adding 77,300 of those last year. Not to mention the tax revenue generated from legal cannabis sales. Criminal justice reform, education, substance abuse treatment, and local governments all benefit from the new source of revenue.

As the cannabis industry continues to grow, we see it positively affects more than just consumers.

Kaitlin DomangueJuly 28, 2021

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Lollapalooza was cancelled last year due to the COVID-19 pandemic, but the famous music festival is back at Grant Park this year, starting tomorrow and ending on Sunday. Not only is this the festival’s first post-COVID comeback, after being canceled last year, but also the decades-old event’s first run since Illinois’ adult cannabis market took off in 2020.

Chicago cannabis sales expected to increase as Lollapalooza kicks off tomorrow

According to cannabis market research firm, BDSA, out-of-state travelers coming to Lollapalooza is expected to boost dispensary sales in Chicago.

If you’re not familiar with the event, we’ll do our best to paint a picture of the massive music festival. Lollapalooza happens every year in Chicago, at Grant Park. In 2019, 400,000 people attended Lollapalooza, along with a few medical transports and arrests. Unfortunately, one person also died, which drew negative criticism towards the event’s safety protocols as another festival goer also died the year prior. Needless to say, the event brings a large crowd and plenty of room for cannabis sales to soar.

Drug use is popular at Lollapalooza

Now that cannabis can be purchased legally in Illinois, one might wonder if the consumption of illegal, potentially unsafe drugs will decrease at the festival. The details surrounding the 2019 Lollapalooza death weren’t released, but the 2018 death of a 16-year-old was confirmed to be an overdose. Among the top five preferred drugs at Lollapalooza, alongside smoking cannabis and drinking alcohol, are MDMA, cocaine, and LSD, according to a survey conducted by global travel magazine, Time Out. One third of those surveyed have smoked cannabis in Grant Park, while more than 70% drank alcohol.

Opt for vaping or eating edibles

Don’t let this give you any ideas. Smoking cannabis is prohibited per Grant Park’s rules, but more discrete methods of consumption like vaping and eating edibles will still be popular and play a major role at the festival. BDSA says 38% of consumers report taking cannabis gummies for their convenience. Just be mindful of the summer temperature! Gummies might melt into a jelly-filled mess or lose cannabinoids under extreme heat, so leave excess gummies at home or in your hotel room.

Vape sales are likely to increase

Vape sales saw a small jump during Lollapalooza in 2019, with Friday, August 2nd, recording the highest dollar sales for vapes that month. Dispensaries in the River North and West Loop areas, like Sunnyside, Modern Cannabis (MOCA), and Dispensary 33 are likely to see the biggest growth in sales from the festival.

According to BDSA, 30% of Illinois consumers take cannabis when going out or taking part in high-energy activities, while 36% of consumers say cannabis plays a role in celebrations or important events.

Chicago’s sweet history

You may or may not know Illinois’ Windy City, Chicago, has a rich candy making history. It’s been considered the “candy capital of the world” since the late 1800s. Iconic brands like Tootsie Rolls, Brach’s, Wrigley Gum, Fannie May, and Mars Candy all have Chicago roots. If they play their cards right, the city already has their foot in the cannabis edibles door.

Chicago-based Cresco Labs is dominating the edibles market, churning out batches and batches of gummies and other cannabis edibles for Illinois dispensary shelves. It’s a good market to join. According to Chicago-based Brightfield Group, edibles made up 21% of cannabis sales last year, trailing behind consumers’ all-time favorite category: flower. The Brightfield Group predicts edibles will grow 20% annually through 2025, compared to flower growing 15% over the same period of time. The cannabis industry’s total sales are expected to reach $41 billion by 2026.

Lollapalooza will be held starting tomorrow, July 29th, to Sunday, August 1st in Chicago’s Grant Park. Proof of vaccination or negative COVID test is required to attend.

Kaitlin DomangueJuly 15, 2021

It’s time for your Daily Hit of cannabis financial news for July 15th, 2021.

On the Site

Harvest Health Leaves Oregon, Expands Florida Footprint

Harvest Health & Recreation Inc. (OTCQX: HRVSF) is done with Utah and expanding its Florida footprint. Harvest said it had completed the divestiture of its cultivation and processing operations in Utah for what it described as an immaterial amount of cash.

The company said that a local operator bought the cultivation and processing operations located in Ogden, Utah. Following the sale, Harvest no longer has operations in Utah.

The Valens Company Sees Q2 Revenue Increase

After the markets closed on Wednesday, The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF) delivered its second-quarter financial results ending May 31, 2021. Valens reported that its revenue increased 16.1% to $20.5 million versus $17.6 million in the second quarter of 2020. The net loss was $8.6 million in the quarter versus $3.5 million for the same time period in 2020.

Timbaland, Nas Invest In Cannabis Company Pure Beauty

California-based boutique cannabis brand Pure Beauty reported it has successfully raised $5 million in convertible note fundraising from a consortium of investors led by Gron Ventures, Subversive Capital, Ceres Group Holdings, and notable celebrities including Timbaland, Nas, and director Tom Kuntz, among others.

SAFE Banking Is NOT About Rich People Getting Rich

Despite some chatter, SAFE Banking is not about rich people getting rich. The SAFE Banking Act would address the lack of safety in the cannabis space, as well as provide a pathway for cannabis businesses to establish banking relationships.

Psychedelic Fund Palo Santo Launches With $35 Million

U.S.-based psychedelic investment fund Palo Santo, has launched with an initial $35 million in capital raised and an active portfolio of 20 companies. The diversified venture fund said in a statement that it is focused on tackling the growing global mental health crisis by investing in innovative psychedelic-based and adjacent therapies that are poised to shape the future of psychiatry and fields beyond.

In Other News

Green Organic Dutchman Announces Q2 Revenue

The Green Organic Dutchman (TSX: TGOD) (US: TGODF) announced their preliminary unaudited revenue for the second quarter. The company achieved $11.7 million in preliminary unaudited revenue, representing a quarter-over-quarter revenue increase of 30% and a year-over-year 143% increase.

Neptune Reports Q4 Results

Canadian cannabinoid extraction company, Neptune, announced fourth quarter results this afternoon. (TSX: NEPT) The company reported $6.8 million in revenue, representing a 127% increase from the third quarter.

Neptune reported a fourth quarter gross profit loss of $24.8 million, compared to the profit loss of $1.1 million during the same period in 2020.

Reported fourth quarter gross profit loss of $24.8 million compared to a reported gross profit loss of $1.1 million in the comparable period in fiscal 2020 and reported fiscal year 2021 gross profit loss of $36.2 million compared to a gross profit loss of $1.8 million for the fiscal year 2020.

Kaitlin DomangueJuly 14, 2021

It’s time for your Daily Hit of cannabis financial news for Wednesday, July 14th, 2021.

On the Site

Federal Cannabis Legalization Bill is Proposed

Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chairman Ron Wyden (D-OR), and Sen. Cory Booker (D-NJ) released the full text of their federal draft marijuana legalization bill called the Cannabis Administration and Opportunity Act. A public comment period is open until September 1.

In general, the legislation aims to deschedule cannabis, expunge prior records, fund equity programs, remove collateral consequences, and transfer regulatory authority for marijuana to the Food and Drug Administration and other federal agencies.

Audacious Buys Loos Beverage Company

Australis Capital Inc., operating as Audacious (CSE: AUSA) (OTC: AUSAF) is buying a cannabinoid-infused shot beverage company called LOOS. The company which is also known as Gary Maverick Inc. is based in Santa Cruz, California. The amount of the transaction was not disclosed.

The products are based on a unique nano-emulsion technology platform for rapid onset, are all-natural, vegan, gluten-free and low sugar, and low calorie.

Trulieve Drawn Into Burnett Trial in Tallahassee

While Florida-based cannabis company Trulieve (OTC: TCNNF) is not involved in the trial of businessman John “J.T.” Burnette, the company can’t help but get dragged into the trial. Burnette is the husband of Trulieve CEO Kim Rivers and she has been attending the hearings as noted with court drawings.

According to the case, Burnette and Tallahassee City Commissioner Scott Maddox flew to Vegas in December 2016, where they met up with undercover agents posing as Mike Miller, owner of Southern Pines Development, an FBI front company; Mike Sweets, a medical marijuana entrepreneur, and Brian Butler, a “green energy” businessman. Burnette is being charged with racketeering, extortion, fraud and making false statements.

In Other News

Beach Haven, New Jersey Says No Cannabis

Beach Haven has joined other New Jersey municipalities to ban the sale of cannabis in their jurisdiction. Pursuant to New Jersey’s laws, “all cannabis establishments, cannabis distributors or cannabis delivery services are prohibited from operating anywhere in the Borough of Beach Haven, except for the delivery of cannabis items and related supplies by a delivery service.”

Rapper Travis Scott Launches Cannabis Line

Rapper and boyfriend to makeup mogul Kylie Jenner, Travis Scott is the latest celebrity to launch a cannabis line, named Cactus Farms. Teaming up with Connected Cannabis, a self-described designer cannabis brand, Scott’s line is an “indica-leaning hybrid [that] has a dense, purple bud structure that smokes with the same experience as sipping a fine wine.”

Cactus Farms is now available for purchase in California and Arizona.

Kaitlin DomangueJune 29, 2021

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Cannabis software and intelligence company, Akerna (NASDAQ: KERN), released a new flash report this morning, predicting the 4th of July, 2021 to bring in over $206,000,000 in legal cannabis sales across the United States.

With Connecticut being the most recent state to legalize, 38 states now have legislation permitting an adult-consumption and/or medical cannabis program. Not everyone has dispensaries up and running yet, so this data doesn’t reflect sales in all 38 legal states.

2021 4th of July sales predictions

According to the flash report, historical data shows cannabis sales typically spike the weekend before the 4th and Friday, July 2nd is expected to retail nearly $91,000,0000 – up 60% from an average Friday. The report predicts July 2nd to be the second highest sales day of the year, just after 4/20. Saturday, July 3rd, is forecasted to generate $72,000,000 in cannabis sales, with Sunday, July 4th, expecting to see $43,000,0000. Sundays are typically the lowest sales day of the week when you look at historical data, but dispensaries will still see more sales than normal because it’s a holiday.

“Year over year, we’ve seen a 23% increase in the number of products consumers and patients are purchasing for the 4th of July holiday weekend,” said James Ahrendt, Business Intelligence Architect at Akerna. “With the holiday falling on a Sunday this year, dispensaries should be evaluating staffing and preparing inventory ahead of the weekend to ensure they are ready to accommodate these increases in both traffic and sales.”

Some other Independence Day weekend (7/02-7/04) sales predictions:

Product Categories

The average order total will be $8 more than normal: $109 vs. $101
Each basket will carry an average of 3.6 products per transaction

Flower will make up 49% of sales
Cartridges/pens will make up 31% of sales
Concentrates will account for 10% of sales
Infused edibles will account for 9% of sales
Other products will make up 1% of sales

Demographics

61% of consumers will be male
39% of consumers will be female
29% of consumers will be under the age of 30
30-40 year olds will make up 31% of consumers
20% of consumers will be between the age of 40 and 50
50-60 year olds will account for 11% of consumers
Consumers over the age of 60 will account for 9% of sales

Akerna regularly releases flash reports. Last year’s 4th of July report anticipated an 87% increase in sales over the 4th of July weekend, with Americans expected to spend more on cannabis than bbq meats. Historically, consumers spend more than $371 million on chicken during the two weeks leading up to July 4th, equalling about $37 million per day. Akerna predicted cannabis sales to reach over $260 million in just three days, generating about $86 million per day.

Data for Akerna’s flash reports are provided by MJ Platform, a regulatory compliance technology company in the cannabis space.

Kaitlin DomangueJune 10, 2021

It’s time for your Daily Hit of cannabis financial news for June 10th, 2021.

On the Site

Executive Spotlight: Meg Sanders

Canna Provisions CEO Meg Sanders is a powerhouse and a connector of people and talents. She took $5mil+ business and turned it into a thriving and growing $100mil+ company in US cannabis. Canna Provisions’ home base is Lee, MA – a small Berkshires rural town. Next on her deck is finding thoughtful new investors that support the vision of what Canna Provisions has successfully built.

Terra Tech Announces Pending Acquisition of SilverStreak

Terra Tech Corp. (OTCQX:TRTC) announced their plan to acquire SilverStreak Solutions Inc. The two companies have executed an agreement for the acquisition to take place. The close is expected to occur within 90 to 120 days. After the close, SilverStreak’s CEO, Sterling Harlan, is expected to consult with the company for a period of six months.

In Other News

Washington Cannabis Stores Taking Part in “Joints for Jabs”

Washington cannabis retailers are now able to partake in a program encouraging people to get vaccinated against the coronavirus. Anyone over 21 who gets a shot at an on-site vaccine clinic will get a free pre-rolled joint. Breweries have been offering a similar incentive program.

Ohio Adds Three Conditions to The List of Approved Conditions

The Ohio State Medical Board added three approved conditions for people to seek medical marijuana in the state:

Huntington’s disease.
Terminal illness.
Spasticity.

The board rejected additional conditions, including: autism spectrum disorder, restless leg disorder, panic disorder with agoraphobia, and spasms.

Kaitlin DomangueJune 10, 2021

SilverStreak Solutions is a cannabis delivery service serving California areas like Sacramento, Yuba City, Citrus Heights, Roseville, Elk Grove, Stockton, and others. SilverStreak Solutions has 22 company vehicles and about 42,000 monthly customers. As one of the first direct-to-consumer cannabis companies in their area, SilverStreak is experienced in this space and a good move for Terra Tech.

Terra Tech’s acquisition

“We are delighted to continue our expansion with the addition of this high-quality and well-run delivery service,” said Frank Knuettel II, CEO of Terra Tech Corp. “We believe the synergies with Unrivaled’s existing brand portfolio and distribution operation makes enormous economic and operational sense. In addition, we expect to expand SilverStreak’s base of operations utilizing our existing assets in Northern and Southern California, with the intent to develop a statewide delivery operation giving us access to millions of California consumers.”

“This is the next step in our rebuilding initiative, and with our anticipated monetization of our Hydrofarm, we expect to expand our base of operations in the near future. I would like to thank Sterling and his team for the work they have done in building SilverStreak and being the next building block in our effort towards becoming the premier West Coast and Southwest operator of cannabis assets,” Knuettel II continued.

Terra Tech is a vertically integrated cannabis company with operations in California and Nevada. Terra Tech operates two dispensaries and a cultivation facility in California, with two additional cultivation facilities and a dispensary under development. The company operates in Nevada by way of joint ventures, operating a manufacturing and cultivation facility.

Terra Tech sold property for $2.6 million

Terra Tech recently sold a Nevada property on N. 4th Street, as local zoning changes prevent any cannabis activity in the area. The company sold the building for $2.6 million, improving their balance sheet by approximately $900,000, even after paying off $1.6 million in mortgages and other related sale costs.

“Since taking over as CEO a few short months ago, we have continued to review our operations, divest unproductive assets and drive appropriate cost reductions. The successful sale of our N. 4th Street property is another positive step towards doing just that,” Knuettel said.

“With the sale, we have now added approximately $900K to our balance sheet and alleviated numerous costs associated with its ownership, allowing us to focus our attention on working to position the company for what we believe is a very opportunistic future, including the upcoming anticipated closing of the transaction to acquire Unrivaled. This mutually beneficial transaction is expected to lead to immediate scale, driven by strong brands and revenue growth.”

Kaitlin DomangueJune 8, 2021

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The cannabis industry’s proof was in 2020’s revenue, but Brightfield’s newest report shows consumer behavior to match exactly what the cannabis industry already knew: people consumed more cannabis during the pandemic than they were before.

Gen Z makes up a large part of new consumers

A clear factor is stress and anxiety, and the Brightfield report confirms that. New recreational cannabis consumers made up 6% of all consumers in 2020, with 22% being Gen Z. If you thought Generation Z wasn’t old enough to consume cannabis, so did we (kidding), but many of them are now 21 which means legal access to cannabis if they live somewhere where it’s legal.

Consumers seeking relaxation, sleep, and emotional relief from cannabis

New recreational customers saw the heaviest consumption, specifically in Q4 2020, with 22% of new consumers reporting they utilized cannabis multiple times a day. This declined a little bit in Q1 2021, but nonetheless, new cannabis consumers are entering the market at a faster rate than pre-pandemic. The top three desired cannabis product effects are relaxation, sleep, and emotional relief. Over half, 54%, of new recreational consumers reported utilizing cannabis for anxiety, while a whopping 74% of consumers sought cannabis for relaxation.

Women are newly consuming cannabis in droves

Also, 59% of new consumers are women, further diversifying the cannabis marketplace. Female consumers made up 51% of cannabis consumers in Q1 2021. Women consumers steadily rose in 2020, and they tend to be younger and heavier consumers than men, with 21% of female consumers reporting daily consumption. The Brightfield Report shows women and men approach cannabis consumption differently, with women focusing more on the effects of cannabis and how it benefits their mental and physical health.

Women use more product types than men do, especially gummies (48% of female consumers utilize gummies, as opposed to 34% of men), but women select specific times of consumption. The report says 80% of women consume cannabis right before going to bed, 59% of women say before taking care of home duties, and 50% save cannabis consumption for date night with their partner. This gender balance varies by state. In Michigan, 59% of cannabis consumers are women. In California, the number goes down to 43%.

How brands can take advantage of the new demographics

All of this means good news for cannabis businesses. The key is approaching it well. The data tells us 2020 brought a slew of new and heavy consumers to the cannabis market, with a large majority of those new consumers being women. The report further says women favor products like gummies, topicals (17% of female consumers), vape cartridges (40% of women consumers), and flower (57% of female consumers). Cannabis companies can take advantage of these new consumers and develop a brand strategy that appeals to them.

More Americans consume cannabis than plant-based meats

More Americans reported consuming cannabis in the past three months than hard seltzer, soy milk, and plant-based meat. According to the Brightfield report, 10% of Americans reported consuming cannabis in the past three months, with 13% of total consumers being Millenials – the most likely generation to consume cannabis. Hard seltzer, soy milk, and plant-based meat were used by 7%, 6%, and 8% of Americans, respectively. Americans still consumed more granola bars and sports drinks in 2020 than cannabis though. The report shows 13% of Americans consumed granola bars in the past three months and 15% of Americans consumed sports drinks.

Key takeaways

What we can gather from this report, and other consumer reports like this one, is that Americans are past ready for cannabis legalization, especially after the stress 2020 brought.

All different kinds of people are entering the cannabis market, both as businesses and consumers, so those brands who identify and aim to understand their target audience will do well as American (and global) cannabis policy reforms over time.

Many consumers believe now that Joe Biden is the president, April 20, 2021 will be the last illegal 4/20. Currently, there’s not a bill in circulation to legalize cannabis at the federal level, but many are pushing and hoping for it under the new blue administration.

Kaitlin DomangueJune 3, 2021

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It’s time for your Daily Hit of cannabis financial news for June 3rd, 2021.

On the Site

Executive Spotlight: Kathryn Blackwell

Kathryn Blackwell is the Co-Founder and CEO of The Open Dør, a national cannabis retail franchise headquartered in Scottsdale, Arizona.

Since establishing The Open Dør in 2020, Kathryn has integrated proven franchise strategies and merchandising practices into the dispensary brand to deliver a modern aesthetic and transform the consumer experience.

RIV Capital Stays On Path To Crossover To U.S. Cannabis

RIV Capital Inc. (TSX: RIV) (OTC: CNPOF) released its financial results for the fourth quarter and fiscal year ended March 31, 2021, which proved to be a very transitional period for the company.

Riv sold certain financial assets to Canopy Growth for $118.4 million in cash in February, as well as 3.65 million common shares of Canopy Growth and other aggregate forms of payment.

Eddie Lucarelli, Chief Financial Officer, said, “With the CGC Transaction complete and the PharmHouse Credit Facility fully settled, our rejuvenated balance sheet puts us in an advantageous position to capitalize on the growing momentum in the U.S. cannabis market.”

Silo To Create Mushroom Stores In Jamaica

Silo Wellness Inc. (CSE: SILO) has signed a letter of intent with Canadian-based mushroom company Mushe Inc. to create the first legal functional and psychedelic mushroom retail outlet based in Jamaica.

Silo Wellness currently cultivates psilocybin mushrooms, conducts psychedelic wellness retreats, and is testing a proof-of-concept patent-pending nasal spray.

Empower Clinics Adds Diabetes To Clinic Portfolio

Empower Clinics Inc. (CSE: CBDT) (OTCQB: EPWCF) is buying Medi + Sure Canada Inc. also called Medisure, a leading Canadian manufacturer of medical devices for patients managing diabetes in a deal valued at $3.5 million.

Last year, Empower created a subsidiary company dedicated to the advancement of psilocybin research and patient care, addressing the significant mental health issues of anxiety, depression, post-traumatic stress disorder (PTSD), and addiction.

In Other News

Zynerba Announces Results of Study Exploring Cannabinoid Therapy for Autism Spectrum Disorder

Cannabinoid pharmaceuticals company, Zynerba Pharmaceuticals, announced their presentation of efficacy and safety findings in children and adolescents with Autism Spectrum Disorder.

“The previously disclosed data from these three studies provide evidence of the potential for Zygel [the cannabinoid product studied) to have a clinically meaningful impact on a variety of endpoints associated with ASD and related disorders,” said Joseph M. Palumbo, M.D., LFAPA, MACPsych, Chief Medical Officer of Zynerba. “Should these findings be confirmed in additional trials, we believe Zygel has the potential of being a new and differentiated therapeutic option for these patient communities.”

Cannabics Pharmaceuticals Launches Program for Cancer Treatment Research

Gabriel Yariv, Cannabics Pharmaceuticals President and COO, said: “We have successfully completed a series of preclinical experiments in our in-house research facilities and have identified promising antitumor results on Breast Cancer cell lines. Based on these encouraging results, we now plan further research aimed at developing a new drug candidate for the treatment of Breast Cancer.”

This announcement comes shortly after the launch of a similar treatment program for melanoma.

Jay-Z’s Company Invests in First Black Woman-Owned Speakeasy

Jay-Z’s company, TPCO Holding Corp., aka The Parent Company, has chosen Josephine & Billie’s to be its first social equity corporate venture fund investment.

The speakeasy-style storefront will be a private cannabis consumption lounge, exclusive to BIPOC women and allies.

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Quick Data for the United States

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California

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Oregon

What’s a pound worth?

Let’s treat cannabis farmers like other farmers

Legal cannabis raises home value

New businesses, tourism, and jobs all contribute to the increase

Key Findings

Looking at tax revenue

Cannabis’ impact on local communities

Chicago cannabis sales expected to increase as Lollapalooza kicks off tomorrow

Drug use is popular at Lollapalooza

Opt for vaping or eating edibles

Vape sales are likely to increase

Chicago’s sweet history

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2021 4th of July sales predictions

Terra Tech’s acquisition

Terra Tech sold property for $2.6 million

Gen Z makes up a large part of new consumers

Consumers seeking relaxation, sleep, and emotional relief from cannabis

Women are newly consuming cannabis in droves

How brands can take advantage of the new demographics

More Americans consume cannabis than plant-based meats

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