Business Archives - Green Market Report

Debra BorchardtDebra BorchardtAugust 6, 2020
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6min10

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) stock fell over 13% to lately trade at $6.03 after the company reported a net loss for the second quarter of $107 million versus last year’s earnings of $185 million for the same time period. The loss of $0.31 cents per share was worse than the FactSet estimate for a loss of $0.07 per share.

Cronos Group delivered net revenue of $9.9 million in the quarter for an increase of $2.2 million over last year’s $7.6 million. The company said that the increase year-over-year was primarily driven by continued growth in the adult-use Canadian cannabis market, sales resulting from the launch of cannabis vaporizers in the Canadian market, including both adult-use and direct-to-consumer, and the inclusion of the Redwood acquisition in its financial results, partially offset by non-recurring wholesale revenue in the Canadian market in Q2 2019.

“In the second quarter of 2020, we continued our progress despite unprecedented shifts in our industry and the global economy. We officially entered the Israeli medical cannabis market, with Cronos Israel commencing the sale of PEACE NATURALS branded dried flower products to medical patients. During these extraordinary times, it is very encouraging to see that we are making progress against our strategy across our global footprint,” said Mike Gorenstein, CEO of Cronos Group.

The company’s gross (loss) was $(3.0) million in the quarter versus $4.1 million for the same time period last year. The decrease year-over-year was primarily driven by an increase in cost of sales driven by a higher volume of adult-use sales and the lack of wholesale revenue, as well as an inventory write-down of $3.1 million on dried cannabis and cannabis extracts.

COVID Problems

Cronos Group said that the ongoing restrictions and closures experienced by retail stores in the U.S. as a result of the COVID-19 pandemic had negatively impacted sales and demand which has resulted in slower than expected. The company said it expects the revenue growth and operating results in the U.S. reporting unit to continue to be
negatively impacted as the decrease in customer demand and retail closures are expected to continue as a result of the pandemic.  The company reassessed the valuations on the U.S. and the Lord Jones brand and lowered those amounts. The company said it does not believe the declines in fair values are temporary. Cronos recorded $35.0 million of impairment charges on the U.S. reporting unit and $5.0 million on the Lord Jones brand for the three and six months ended June 30, 2020.

Litigation

On June 16, 2020, an alleged consumer filed a Statement of Claim on behalf of a class in the Court of Queen’s Bench of Alberta in Alberta, Canada, against the Company and other Canadian cannabis manufacturers and/or distributors. The Statement of Claim alleges claims related to the defendants’ advertised content of cannabinoids in cannabis products for medicinal use on or after June 16, 2010 and cannabis products for adult use on or after October 17, 2018. The Statement of Claim seeks a total of C$500 million for breach of contract, compensatory damages, and unjust enrichment or such other amount as may be proven in trial and C$5 million in punitive
damages against each defendant, including the Company. The Company has not responded to the Statement of the Claim.

A number of claims, including purported class actions, have been brought in the U.S. against companies engaged in the U.S. hemp business alleging, among other things, violations of state consumer protection, health and advertising laws. On April 8, 2020, a putative class action complaint was filed in the U.S. District Court for the Central District of California against Redwood, alleging violations of California’s Unfair Competition Law, False Advertising Law, Consumers Legal Remedies Act, and breaches of the California Commercial Code for breach of express warranties and implied warranty of merchantability with respect to Redwood’s marketing and sale of U.S. hemp products. The complaint does not quantify a damage request. On April 14, 2020, the class action complaint was dismissed for certain pleading deficiencies and the plaintiff was granted leave until April 24, 2020 to amend the complaint to establish federal subject matter jurisdiction. As of the date of this Quarterly Report, the plaintiff has not refiled the
complaint and the complaint has been dismissed without prejudice. The company said it expects litigation and regulatory proceedings relating to the marketing, distribution and sale of its products to increase.


StaffStaffAugust 6, 2020
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4min180

TerrAscend Corp. (CSE:TER) (OTCQX: TRSSF)  stock popped over 10% to lately trade at $3.84 after the company announced preliminary financial results for its second-quarter. TerrAscend’s net sales increased 36% sequentially and 169% year over year to $47.2 million. The quarter ended June 30, 2020, and all amounts are in Canadian dollars.

“Our strong top and bottom-line performance reflects our unwavering commitment to achieve best-in-class results from our operations,” said Jason Ackerman, CEO and Executive Chairman of TerrAscend. “We have been thoughtful in our approach to expanding our business, primarily focused on the areas of the U.S. market where we see the highest probability of sustained, long-term growth. With cultivation at our New Jersey production facility underway and our Pennsylvania operations continuing to track ahead of plan, I am confident we can continue this solid momentum into the second half of the year.”

In addition to the sale figures, TerrAscend also delivered the following news in a statement:

  • US operations generated 90% of consolidated Net Sales
  • Adjusted EBITDA of $11.4 million, increasing 131% sequentially
  • Adjusted Gross Margin of 56% (before gain on fair value of biological assets)
  • Cash and Cash equivalents of $75 million as of June 30th, 2020

Management Changes

Just a couple of days ago, TerrAscend announced the appointment of Jason Marks as Chief Legal Officer. Recently, Marks served as the Chief Legal Officer, General Counsel & Corporate Secretary of InflaRx N.V., a publicly-traded biotechnology company. In this role, he was a member of the executive management team responsible for all aspects of legal, compliance, and corporate governance, as well as driving key business and strategic initiatives. Mr. Marks was also responsible for the operations of the company’s U.S. subsidiary.

The company also announced today the departure of Brian Feldman, formerly General Counsel and Heather Molloy, formerly Executive Vice President, Business Development and Chief Strategy Officer. Mr. Ackerman added, “On behalf of the whole team, I want to extend my heartfelt appreciation to both Heather and Brian for their contributions and tireless efforts during their tenure with TerrAscend.”

Later today, TerrAscend is scheduled to host an Investor and Analyst Day.

DATE: Thursday, August 6th, 2020
TIME: 10:00 a.m. Eastern Time
REGISTRATION: Click to Access
REPLAY: A replay will be posted to TerrAscend’s Investor Relations website and will be available until 12:00 midnight Eastern Time Thursday, August 20th, 2020

TerrAscend will publish its Q2 2020 results and host a conference call on August 20, 2020


Debra BorchardtDebra BorchardtAugust 6, 2020
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3min150

MJardin Group, Inc. (CSE: MJAR) (OTCQX: MJARF) reported second-quarter revenue declined to $2.1 million from last year’s restated revenue of $6.8 million for the same time period. Net losses also increased to $12.4 million from last year’s net losses of $6.1 million. The company’s gross margin fell to $850,000 from last year’s $3.6 million, which MJardin attributed to the reduction in revenues from both the managed services and cultivation segments.

“While we still have a lot of work to get done to achieve our growth objectives, I am very pleased with the results of our team’s efforts, which have now resulted in a second consecutive quarter of stabilized operations, improved visibility into the future and ultimately better financial performance,” commented Pat Witcher, CEO of MJardin. “We are pursuing growth opportunities through sensible partnerships whereby our expertise and track record can contribute to growth and profitability without the need for additional capital. We continue to run a lean and extremely efficient business to manage margins and overall costs, while focusing our corporate development team’s efforts on creative growth strategies.”

AtlantiCann Medical

The company’s AtlantiCann Medical Inc. or AMI joint venture contributed $1.3 million to earnings, which was an increase of ~330% from the prior quarter, Unfortunately, that good news is short-lived because MJardin noted that on August 5, 2020, AMI bought out the previously signed master service agreement, which had been a ten-year term that was executed in 2019. MJardin said it will receive $2 million from AMI within the next 45 days in lieu of ongoing license fee payments. The company said its cultivation management support for the AMI operation has been substantially reduced in connection with the buyout and is expected to be completed by the end of 2020.

Second Half Plans

MJardin said it continues to advance the production from its Canadian assets and plans to continue doing so for the balance of the year. At the same time, the company plans to continue focusing on securing offtake for production via either firm commitments with retailers or supply agreements with leading license holders. In a statement, MJardin laid out the following plans:

  • Complete run-rate production at WILL and GRO facilities by the end of Q3;
  • Retail sales of products produced at Canadian facilities in H2 2020;
  • Full licensing of AMI Phase II expansion by/during the Q4;
  • Significant progress on completion of construction at the Warman facility;
  • Continued pursuit of expansion opportunities in select US States.

 


StaffStaffAugust 5, 2020
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4min871

Executive Spotlight: Alex Levine, Co-CEO, Green Dragon

Title: Co-Founder and Chief Development Officer

Company: Green Dragon

Years at current company: 5+

Education profile: Tufts University

Most successful professional accomplishment before cannabis: My entire professional career has been in every aspect of cannabis, from cultivation to manufacturing and retail. I have been involved in real estate transactions, acquisitions of new licenses, operations, and logistics. Green Dragon is now one of Colorado’s largest retail chains and I’m proud to have been integral in building a start-up business into the company that it is today. Outside of the office, I am an accomplished musician, and I play both piano, guitar, and drums.

Company Mission: Our mission is to provide premium products at the most competitive prices, with the best service and lowest operating costs in the industry. Cannabis consumers deserve access to a quality experience at an affordable price point, but too many dispensaries follow an outdated model with high-pressure sales, tiered pricing, or daily promotions. Green Dragon set out from the start to offer every day, Low Pricing, which is how we have established such a loyal customer base in Colorado. Our customers know to expect the best products at the best prices.

Company’s most successful achievement: Growing Green Dragon from a small company of three stores to one of the largest and most profitable chains in Colorado, as well as growth outside of the state with a recent acquisition of a Florida license, are accomplishments that we are very proud of. Staying profitable while operating in the most competitive cannabis market in the country is a top achievement for us. We’re a dispensary in a space where there are more dispensaries than there are Starbucks locations. To remain successful, we continue to focus on our core value of always improving the shopping experience, which guides our decision-making as we adapt to today’s challenges and expand to new markets.

Has the company raised any capital (yes or no): No

Any plans on raising capital in the future? Yes

Most important company 5-year goal: To become a key player in the Florida market. As one of the few approved Medical Marijuana Treatment Center Licensees in Florida, Green Dragon will be opening cultivation, production and extraction facilities, and medical marijuana dispensaries across the state. I was born and raised in Florida, and I’m ready to bring my cannabis knowledge and experience back to my home state.


Julie AitchesonJulie AitchesonAugust 5, 2020
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4min1080

Some holidays seem to roll around at just the right time, like my birthday when the last dregs of Christmas largesse are spent, Memorial Day when we need one last long weekend to get us through the school year before summer vacation, and now, National CBD Day on August 8th, just when the CBD market needs a boost from the deflating impacts of Covid-19. 

In a July 2020 report by The Brightfield Group, data analysts projected that CBD sales for 2020 will only be up 14% from 2019 rather than the 30% originally projected due to impacts of the Covid crisis. Store closures, spiking unemployment, and inaction by the FDA are all contributing to a sluggish market. The report also shows that nearly half of CBD consumers have moved their purchasing online due to coronavirus. CBD sales may be suffering due to the pandemic, but the surge in conditions triggered and exacerbated by the virus, such as anxiety (ranked the number one ailment of CBD users), depression (ranked second) and insomnia (ranked sixth) indicate that demand for CBD products will only increase as Covid-19 maintains its grip. 

Among the most popular products right now are edibles, with 33% of US consumers stating an increase in consumption when surveyed in June, with higher dosages reported among all products used. Vape products appear to be declining in popularity, however, due to negative media attention around inhalants and the increased likelihood that inhalant users will experience serious complications with Covid-19.  A surplus of hemp biomass is causing an overall price drop as well as hefty promotions and flash sales to incentivize consumers to sample the array of new products on the market, such as those with trendy ingredients like turmeric and ashwagandha as well as some lesser-known cannabinoids like CBG and CBN. Additionally, CBD companies are inundating the market with innovative products that go beyond the standard capsule and tincture delivery methods.

One example is VCC Brands’ Subtle Tea, a vegan, keto-friendly way to refresh the body and rejuvenate the mind with flavors like Jasmine Green Tea with Lychee and White Peach Tea with Cardamom. Another is TOCA Botanicals TOTO CBD Lubricant, to inspire pleasure and relaxation of a more intimate variety. Humans aren’t the only species feeling the shaky vibes of the 2020 rollercoaster, which is why Harvey’s All Naturals introduced their  Harvey’s All Naturals Elixir for Pets to address pet stress and anxiety as well as pain and inflammation.

2020 has been a rocky year for the economy, but with the FDA inching closer to a clearer, more consistent regulatory framework and the demand for products that can ease the tensions of one of the most dramatic periods in recent history ever rising, the CBD industry is poised for a major rebound. And with new products hitting the market just in time for National CBD Day (and beyond), there just might be a CBD product out there for everything the Covid Era still has in store.


Lydia KibetLydia KibetAugust 5, 2020
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4min2050

According to the President of Curaleaf Holdings Company, Joe Bayern, Nevada could become the hub for cannabis. The Massachusetts-based company, which is famous for medical marijuana, operates 60 dispensaries in 12 states. In an interview with journalists, the president confided several plans to expand their operations to seven more states.

Currently, the company has a workforce of 160 employees in Nevada, serving at 40 different capacities. The announcement by Bayern comes after the Curaleaf acquired GR Companies Inc. for $900m.

Bayern believes that his company will catapult cannabis dispensaries based in Nevada to greater height in the mainstream.

Hiring and promoting

According to the president, Curaleaf has set itself apart by creating employment opportunities for Nevadans even during the COVID-19 pandemic. The company’s chairman Boris Jordan has revealed its plan to identify and maximize opportunities in the cannabis industry. Jordan believes that hiring at a time when other companies are downsizing will put them ahead of their competitors in Nevada.

Brand creation

Curaleaf is optimistic that they will penetrate the market and establish a brand. Bayern confided their plans to take advantage of the on-premise consumption in Nevada. However, the president downplayed the plan to focus on profit and insisted that they were focused on establishing themselves in Nevada.

The benefit in the disguise of COVID-19

Most businesses are closing down due to economic constraints meted by COVID-19. However, this has not been the case with the cannabis industry, according to Bayern. He believes that more people are buying cannabis products due to the therapeutic benefits associated with them. Bayern argues that the more Nevadans buy products from Curaleaf, the more they push it into the mainstream. The president also believes that the company is going to use sophisticated technology to make products for their clients. Despite the disruption of life by COVID-19, the high demand for cannabis in Nevada will push Curaleaf into the mainstream. 

Party life

The state of Nevada is famous for its liberal approach to party life. According to Bayern, Curaleaf could benefit from this freedom when recreational cannabis is fully legalized in Nevada. The company is planning to establish a lounge where cannabis users can enjoy their joints and vapor in peace. Bayern believes that the gradual legalization of cannabis in Nevada will push Curaleaf into the mainstream.

Flexibility to change

Bayern believes that their positive approach to change played a vital role in their incredible performance following the coronavirus outbreak. After the imposition of travel and socialization restrictions, Curaleaf shifted into home delivery. The home delivery services increased the productivity of the company to almost 100% in the first three weeks. Although Bayern did not disclose their profits, he agreed that the return to investment (ROI) for Curaleaf was positive. A positive ROI for Curaleaf will push it into the mainstream in Nevada.

He also revealed that during the massive lockdown in Nevada due to COVID-19, they were exempted from the restrictions. Instead, the company was recognized as an essential service provider, making it more popular among the Nevadans and pushing it towards the mainstream.


StaffStaffAugust 4, 2020
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4min2170

Looking for ways to integrate psychedelics to your mental health regimen? As it turns out, there’s an app for that. Today, the North American-based research company Mydecine Innovations Group Inc. (CSE: MYCO) announced that it would be expanding its digital therapeutic platform with several new programs, including a program on psychedelic integration.

One of the many unfortunate side effects of the COVID-19 outbreak is the growing need for mental health services. According to a study conducted by Healthline, more Americans than ever are reporting increased mental stress as a result of the viral outbreak. Aiming to address this mental health crisis, companies like Mydecine have been looking for ways to increase the accessibility of mental health services.

Through the company’s platform, Mindleap, Mydecine is looking to redefine how both patients and healthcare professionals approach mental health. Part of the way the company hopes to change perceptions is through the integration of psychedelic medicines like psilocybin.

 The Psychedelic Integration program will be taught by Dr. Danielle Wise, a lifelong psychedelic advocate with more than two decades of experience as a psychotherapist and coach. Dr. Wise also serves on the advisory board of Unlimited Sciences, a psychedelic research non-profit, and has completed the Psychedelic Research and Training Institute’s (PRATI) comprehensive Ketamine and Psychedelic Medicine Training.

Although the field of research is still emerging, early evidence seems to indicate that psychedelic drugs may have the potential to help treat a number of mental health issues. One academic review found that classical psychedelics, like psilocybin, can produce significant and sustained anti-depressant and anxiolytic effects.

In addition to Mindleap’s psychedelic integration program, the company is also launching an addiction recovery program and a holistic wellness program.

The addiction recovery program will be led by Dr. Rick Barnett, a clinical psychologist and an alcohol and drug counselor with 20 years’ experience in treating addictive disorders. Leading the Holistic Wellness Program is Jeremey Hoffman, an internationally renowned holistic wellness coach known for helping C-Suite level executives and business leaders in their spiritual lives.

“Our focus is on creating real solutions for the mental health crisis and these new offerings will allow Mindleap to have international reach and affect more lives during these times of crisis. The pandemic has left people depressed, isolated and support is needed now more than ever,” commented Mindleap founder Nikolai Vassev.

 


Debra BorchardtDebra BorchardtAugust 4, 2020
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4min1910

Arkansas-based beer distributor Premium Brands of Northwest Arkansas is adding a hemp beverage to its lineup. Premium Brands currently have distribution agreements with MillerCoors (NYSE:TAP), Corona (NYSE:STZ), Yuengling, Pabst Brewing, Boston Beer, Mike’s, Seagram’s, and Heineken USA to name a few.

Good Hemp, Inc. (OTC: GHMP) makes Good Hemp Fizz and CannaHemp beverages, which is a line of naturally flavored waters infused with 10mg of THC-free hemp extract and prebiotic fiber. The company says that unlike other hemp-infused beverages that contain CBD, its products are made with hemp seed oil which is categorized as “GRAS” (under sections 201(s) and 409 of the Federal Food, Drug, and Cosmetic Act, and therefore not subject to FDA review and approval).

“Hemp Infused beverages is a growing category, and we are excited to add a solid brand like Good Hemp Fizz and CannaHemp to our non-alcoholic portfolio,” said Heath Sutherlin, GM at Premium Brands. Sutherlin continued, “We look forward to working with the Good Hemp reps for a strong Labor Day rollout and building a long-term successful partnership in the territory.”

Premium Brands will distribute Good Hemp Fizz and CannaHemp throughout 11 counties in northwest Arkansas servicing approximately 900 C-stores, grocers, and liquor stores.

Beverage Market

Mazakali wrote a white paper on cannabis drinks and it stated, “Infused drinkables currently hold a market share of under 1% in the US, a figure that is far too low when compared with industry estimates for a $2.8 billion global cannabis beverage market by 2025. Advances in cannabis science along with the thirst for a healthier alternative to alcohol are but two factors behind this anticipated growth.”

The market is being flooded with hemp drinks of all sorts these days.  The hemp-infused beverage market is expected to reach $2.8B by 2025 with a CAGR of 18%.

Constellation Brands had been expected to create its own line of cannabis drinks with its investment in Canopy Growth. Its current slate of drinks includes a Houseplant-branded Grapefruit beverage with 2.5 milligrams of THC, Tweed’s Bakerstreet & Ginger and Houndstooth & Soda drinks containing 2 milligrams THC as well as a high-potency Deep Space cola with 10 milligrams of THC, the maximum under Canadian regulations.

“We are excited to add Premium Brands to our distribution network,” said Rise’ Meguiar, VP Sales and Innovation at Good Hemp. “They are a well-established distributor in NW AR, and by adding them to our network, our products will now be widely available across the northern part of the state.”

 

 


Debra BorchardtDebra BorchardtAugust 4, 2020
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6min1770

A cautionary tale for cannabis companies and the Securities & Exchange Commission (SEC) was laid bare last week when the Central District of California filed a $25 million complaint against nine defendants. The group raised money from investors by selling the unregistered stock for the purpose of funding a marijuana farm in Salinas California. 

The individuals named included Anthony Todd Johnson (aka Todd Johnson), Jeremy Johnson, Richard Portillo, Charles Lloyd, Mark Heckele, and Michael Gregory. The companies that wanted funds for the marijuana farm were named as Smart Initiatives, LLC, Valley View Enterprises LLC, Target Equity LLC, Zabala Farms Group, LLC, and Green Growth Ventures, LLC. The companies that raised money for a CBD extraction facility were named as – C Quadrant LLC, GPA Enterprises LLC, RJ Holdings Group, LLC, and Extraction Capital Tier 1, LLC. 

Alleged Actions

The group engaged in so many alleged actions, it’s easiest to just list them as follows:

  • Claimed the investments would generate returns of 100% or more
  • Misrepresented their compensation
  • Misappropriated $2.7 million
  • misled and deceived investors about a purported “business loan,” secured by C-Quadrant’s real property
  • Rather than using that business loan for the benefit of C-Quadrant, Gregory used the loan proceeds to pay off different investors in an entirely unrelated entity. 
  • Falsely claimed a relationship with a prominent California University
  • Acted as unregistered broker-dealers in connection with the offerings, none of which were registered with the Commission
  • Used general solicitation to attract prospective investors, including via cold calls, Craigslist, Facebook, and other websites and social media.
  • None of the securities offerings were registered with the Commission as required by the Securities Act
  • Many of the investors in each offering were unaccredited and unsophisticated. 
  • The defendants did not take reasonable steps to verify the investors’ accreditation status

The alleged behavior took place between 2017 and 2019. The Johnsons used pro-forma numbers when soliciting investors. The farm though revised those figures.   The revised pro forma P&L statement adjusted the farm’s projected net income significantly downward, from a range of $23 to 37 million per year to a range of just $6 – $23 million per year. The group though continued to raise money knowing the farm could not generate the amounts they are accused of touting. They also told the investors they would get quarterly payments, which the farm said it had not agreed to make.

C-Quadrant Property

The case says that the sales team touted C-Quadrant’s ownership of the property, the Johnsons and Gregory failed to disclose that they had collateralized C-Quadrant’s property and that Gregory had used the loan proceeds to pay off investors in an unrelated entity. In early 2018, C-Quadrant purchased a former recycling plant, where it planned to locate its extraction facility. In October 2018, prior to the start of the second C-Quadrant offering, the Johnsons and Gregory transferred ownership of the property to another entity they controlled and used it as collateral for an almost $2.9 million loan. Gregory used the majority of the loan proceeds to make payments to investors in an unrelated cannabis farm that he owned. 

Less Than Honest Bios

The group was also less than honest with investors about their backgrounds.  Johnson told prospective investors, in Gregory’s presence, that Gregory had an MBA, which he apparently did not have. Jeremy Johnson had filed for personal bankruptcy in 2012 but did not disclose this to investors. 

Portillo has an extensive criminal record that also wasn’t disclosed to investors. In June 2018, Portillo was convicted of felony domestic violence and witness intimidation. He had at least two prior convictions for domestic violence, and was on probation and subject to a restraining order at the time of the 2018 assault. Portillo also has prior convictions for felony possession of marijuana for sale, felony taking of a vehicle, and felony assault with a deadly weapon. Investors, no doubt, would have liked to have this information.  

Punishment

The SEC is asking the group to disgorge all the money received and pay civil fines.


Julie AitchesonJulie AitchesonAugust 3, 2020
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4min3000

The differences between Baby Boomers (i.e. those born during a marked rise in birth rate, thought to be 1946-1964) and Millennials (born 1981-1996 or thereabouts) vary from the subtle to the stark. With the common friction points of politics, economics, and culture escalating to bare-knuckled debates over human rights and life-or-death public safety issues, polarization is increasing both within and between these generations.

Marijuana dispensary chain Verilife, (a subsidiary of PharmaCann, one of the county’s largest vertically integrated cannabis companies) recently conducted a study to map just one small piece of the Boomer/Millennial divide— the difference in marijuana consumer habits between the two. 

The results of the study (which surveyed 1,000 Millennials and 1,000 Baby Boomers regular marijuana consumers) reflect not only some predictable differences (yes, Boomers are twice as likely to use marijuana in the morning), but commonalities as well, some of which have emerged during the Covid-19 pandemic. Notably, both generations report using marijuana significantly more during the Covid crisis (44% more for Boomers and 36% more for Millennials). 

The biggest difference in consumption occurs around motivation for use, with nearly half of Millennials using for recreational reasons, while Baby Boomers are twice as likely to use marijuana solely for medical purposes. This despite a discrepancy that shows that more Millennials than Boomers believe that cannabis has medical benefits. A correlation might be drawn between Boomers’ higher rate of use for medical issues and the gravity of the illnesses for which they most commonly consume: arthritis, chronic pain, and cancer.

For Millennials, the top three medical reasons are migraines, chronic pain, and managing nausea. Whether the use is medical or recreational, one in five Millennials consider themselves daily users as opposed to only 12% of Baby Boomers.

A review of the report reveals some solid differences but a preponderance of similarities as well, including inhalation as the most preferable way to consume marijuana and the fact that both generations cite relaxation, social use, and anxiety as their three top reasons for recreational use, albeit in different orders of importance. Millennials are twice as likely to use before going to a public gathering or large event to ease social anxiety– a complaint far less frequent among members of the older generation. There is only a $3 difference in monthly spending between Boomers ($75) and Millennials ($78), and only a 2% difference between the Boomers (26%) and Millennials (28%) who said they have consumed marijuana before work. The divide grows a bit larger as far as toking up with the boss is concerned, with Boomers edging out Millennials with a 16% lead.

No doubt these numbers will prove useful to advertisers when crafting their marketing strategies to lure specific demographics to their client brands, but the study also points to the possibility that marijuana may be one tract of common ground upon which Boomers and Millennials can meet without rancor, or at least quite so many scathing memes.



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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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