BDS Analytics Archives - Green Market Report

Debra BorchardtDebra BorchardtSeptember 3, 2019
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3min26422

A new report from BDS Analytics titled “The Global Cannabinoids Market: Will CBD Overtake THC?” is forecasting that CBD sales will reach $20 billion by 2024. This would account for nearly 44%  of the $45 billion total forecasted
cannabinoid market (which includes legal cannabis).

Cannabidiol or CBD is a natural compound found within the cannabis plant. The report notes that CBD was first extracted from the cannabis plant in 1940, but it wasn’t until 1946 that Dr. Raphael Mechoulam identified the structure of CBD and later discovered properties within the compound to treat epilepsy. Since that time, the FDA approved the GW Pharmaceutical CBD drug Epidiolex for use in treating rare forms of epilepsy. Congress also passed the 2018 Farm Bill, which legalized help and set off a tsunami of hemp-derived CBD products onto the marketplace.

Last year, CBD sales hit $1.9 billion. BDS predicts that these sales will grow 49% annually. The report went on to say, “Further, sales of hemp-derived CBD (as opposed to CBD from marijuana) in U.S. general retail stores are expected to makeup $12.6 billion of the $20 billion in CBD sales forecast for 2024.”

The CBD market splits into two categories: the hemp-derived CBD that can be purchased just about anywhere and the CBD from marijuana that contains some amounts of THC. Many consumers believe the latter’s entourage capabilities are more effective. CBD sales in legal dispensaries rose from 3% in 2017 to 10% in 2018. BDS believes that as more mainstream consumers try CBD from hemp, they may be more disposed to going to a legal dispensary to try the marijuana-derived CBD.

The one drawback to the expected enormous growth of the CBD market is how the FDA plans on regulating the products in foods and beverages. The regulatory body has already cracked down on label claims forcing CVS Stores to remove Curaleaf products from its shelves. Hearings were held this past May with over 100 speakers offering their opinions. There is no timeline as to when the FDA will release a guideline as to how corporations and producers should act with regards to CBD products.

CBD Consumers

BDS Analytics Consumer Insights research revealed “That consumers primarily use CBD as a ‘natural’ remedy
for pain, stress, anxiety, and depression. Further, CBD consumers are divided 45% female, 55% male with an average age of 43, 40% are higher-educated and 50% are employed full-time.”

The top-selling CBD product categories are:

  1. Ingestibles     $883.5M
  2. Topicals          $491.2M
  3. Inhalables       $395.4M
  4. Pet Products   $63.8M
  5. Pharmaceuticals   $16.0M

Source: BDS Analytics Industry Intelligence

 


StaffStaffAugust 20, 2019
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7min5430

It’s time for your Daily Hit of cannabis financial news for August 20, 2019.

On The Site

iAnthus

Multi-state operator iAnthus Capital Holdings, Inc. (CSE: IAN)(OTCQX: ITHUF) said that it has entered into a senior secured term loan of up to $50 million from one or more investment funds managed by Torian Capital Partners. The loan will be doled out in two tranches of $25 million each with similar terms.

iAnthus said it will use the money for its expansion efforts in Florida and the company’s new Be. retail locations in Nevada, New Jersey and New York. The company is expected to report its second-quarter earnings on August 27.  Last month the company noted that its CBD For Life products will be sold in Dillards Department Stores.

BDS Analytics

Cannabis data company BDS Analytics announced that it closed on $7 million in new financing, led by KEY Investment PartnersAltitude Investment Management, and 7thirty, with participation from other investors. A part of the financing deal, Pete Karabas of KEY Investment Partners will be joining the board of directors. BDS said it will use the money to expand coverage of emerging cannabis markets and strengthen its operating infrastructure with investments in machine learning, marketing and sales, and strategic partnerships.

“As the global cannabis economy continues to expand, it is imperative that we’re able to scale alongside it to remain an indispensable asset for key decision-makers in the industry,” said Roy Bingham, CEO, and Founder of BDS Analytics. “We’re excited about this new round of funding, which will allow us to further enhance our GreenEdge platform and expand our capabilities to the entire addressable cannabinoid market.”

In Other News

Organigram

Organigram Holdings Inc. (NASDAQ: OGI) (TSX VENTURE: OGI) received final approval for the listing of its common shares on the Toronto Stock Exchange (“TSX”). Organigram’s common shares will commence trading on the TSX at the opening on Thursday, August 22, 2019, continuing to trade under the symbol OGI. To ensure continued and seamless trading for the Company’s shareholders and as a result of the graduation, there will be no further trading on the TSX Venture Exchange after Wednesday, August 21, 2019. Organigram’s common shares will be delisted from the TSX Venture Exchange at the commencement of trading on the TSX.

Empower Clinics

Empower Clinics  (CSE: CBDT) (OTC: EPWCF) a vertically integrated and growth-oriented CBD life sciences company, and a multi-state operator of medical health & wellness clinics in the U.S., announced that its common shares will begin trading on the OTCQB Venture Market at the opening of the market on August 20th, 2019 under the stock symbol (OTC: EPWCF). “Our listing on the OTCQB Venture Market in the United States complements Empower’s listings on the Canadian and Frankfurt Stock Exchanges, respectively, broadening our investment base as we accelerate our growth strategy in the global medical cannabis and wellness sectors,” said Steven McAuley, Empower CEO.  “This is a timely milestone, as we have a robust pipeline of activity tied to product development, business development, M&A and, overall company expansion.”

Acquired Sales Corp.

Acquired Sales Corp. (OTC Pink: AQSP) announced that it has signed a definitive merger agreement to acquire 100% of CBD LION LLC (www.CBDLION.com), Mundelein, Illinois, for consideration of $2 million in cash, plus 5 million shares of Acquired Sales Corp.’s common stock. Acquired Sales Corp. also announced that it has loaned $300,000 to CBD LION LLC that will be used as growth capital.


Debra BorchardtDebra BorchardtAugust 20, 2019
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5min6970

Cannabis data company BDS Analytics announced that it closed on $7 million in new financing, led by KEY Investment PartnersAltitude Investment Management, and 7thirty, with participation from other investors. A part of the financing deal, Pete Karabas of KEY Investment Partners will be joining the board of directors. BDS said it will use the money to expand coverage of emerging cannabis markets and strengthen its operating infrastructure with investments in machine learning, marketing and sales, and strategic partnerships.

“As the global cannabis economy continues to expand, it is imperative that we’re able to scale alongside it to remain an indispensable asset for key decision-makers in the industry,” said Roy Bingham, CEO, and Founder of BDS Analytics. “We’re excited about this new round of funding, which will allow us to further enhance our GreenEdge platform and expand our capabilities to the entire addressable cannabinoid market.”

Micah Tapman, Managing Partner and co-founder of 7thirty has been named the chairman of BDS Analytics.  Tapman was an early investor in BDS Analytics and has had a hand in advising the company ever since. The company said that Tapman will use his technology background to help lead the next generation of technological innovation and operational efficiencies.

“I am thrilled to be taking on a more formalized role within the company, which has demonstrated its market value time and time again,” said Mr. Tapman. “No industry can survive without hard data to drive business decisions, and that is what has been most appealing to me since day one. BDS Analytics found an opportunity and capitalized on it, which from a VC perspective demonstrates pragmatic leadership and lays the groundwork for successful long-term operations.”

“We are extremely impressed with what the BDS Analytics team has accomplished since the company was founded in 2015. BDS Analytics provides a critical service to the cannabis industry today that did not exist just a few years ago. As the players in the cannabis industry continue to grow and become more forward-thinking, BDS Analytics’ data and analytics tools will become a necessity for any company looking to maintain its competitive edge. The KEY team could not be more excited to work closely with BDS Analytics to expand the platform, grow the business, and cultivate new relationships, while further establishing the company as the premier market leader in data analytics for cannabis,” says Tiby Erdely, Founding Partner of KEY Investment Partners.

“We’ve seen BDS Analytics surpass its’ milestones and are proud to be co-leading this round of financing as it continues to grow. It’s an exciting time for the company as it expands product lines into new geographies, grows its industry-leading team, and improves its cutting-edge technology and services,” said John Brecker, Partner at Altitude Investment Management, LLC.


Jack SmithJack SmithSeptember 19, 2018
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4min30020

The cannabis market has received a bit of good press recently, as Coca-Cola said it is “eyeing” the cannabis-infused drink market, following Constellation Brands investment in Canopy Growth last month.

But it’s one sub-sector of the market, cannabis concentrates, which may be the true star of the show.

Cannabis market intelligence and consumer research firm BDS Analytics has issued a new report showing that cannabis concentrates are expected to hit sales of $2.9 billion in 2018, up 49 percent year over year. That would make the concentrate market the second largest, behind only flower, according to the report.

“As the cannabis industry matures, we’ll likely see new product categories catch fire with consumers,” said Troy Dayton, CEO of the ArcView Group in a statement. “Concentrates are the first category to do that, but it’s just the beginning of a revolution in how cannabis is consumed now that it’s becoming legal around the world.” Arcview partnered with BDS on the report.

By 2022, concentrate sales are expected to nearly surpass flower sales in terms of size, at $8.4 billion, compared to $8.5 billion for flower sales.

“For consumers, it’s a discreet and healthier choice that will likely make cannabis consumers of people who would never dream of inhaling smoke,” Tom Adams, Editor in Chief of ArcView Market Research wrote in the report. “That will cause the category to represent ever more retail display space, and likely spawn vape-only stores and on-premises consumption venues.”

Adams added that concentrates are able to cut costs at different parts of the supply chain, making them more efficient to extract and distribute.

“But the main savings will be at the agriculture level, where expensive warehouse and greenhouse grows designed to provide pretty buds give way to traditional outdoor growing of a commodity crop. The cost savings—and broader consumer appeal of concentrates—will prove critical as the legal market struggles under the weight of heavy tax and regulatory loads to compete with the illicit market,” he wrote.

The concentrate market, which includes products such as vaping, is expected to grow to 27 percent of all U.S.-related cannabis sales in 2018. That’s a stark contrast from 2014, when it was just 10 percent of cannabis sales, indicating healthy and growing consumer demand for these products, experiencing 70 percent annual growth.

Of that exceptional growth, 58 percent of spending will come from prefilled vaporizers, deemed to be a “market dominance likely to grow over the next five years.”

“Technology is revolutionizing a product category that began as hand-rubbed hash in the Middle East centuries ago,” said Adams in the statement.

Adams continued: “We believe the growth of the concentrate market will continue as the cannabis industry evolves and consumers look toward new and innovative delivery methods that fit their lifestyles.”


StaffStaffSeptember 11, 2018
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8min8710

Ten New Investments Since Initial March 2018 Fund Close

New York – September 11, 2018 /AxisWire/ Altitude Investment Management, LLC updated the market today on its fund Altitude Investment Partners, LP’s recent cannabis industry investments. During the period of March through August 2018, Altitude invested in ten companies: six of which were add-on investments to existing portfolio companies and four were investments in companies new to the Altitude portfolio.

The Altitude portfolio now consists of investments in 15 companies. The following is a summary of a selection of notable recent investments:

BDS ANALYTICS

Altitude made an add-on investment as co-lead in BDS Analytics’ Series B Preferred Stock $3.5 million capital raise. BDS is the leader in cannabis business intelligence. This funding places BDS in a very strong position to execute the national expansion of its GreenEdgeTM software and to roll out its Consumer Insights & Industry Intelligence services to a much broader client base. Using the GreenEdgeTM sales tracking software, BDS Analytics is able to generate actionable insights pulled from hundreds of dispensary partners’ point-of-sale systems and closely study the behaviors and psychographics of cannabis users through its Consumer Insights Group. Its Industry Intelligence Services enables the company to make accurate market-wide financial projections and help the cannabis industry make better informed decisions. “We are very impressed with the management team,” says Jon Trauben, partner at Altitude. “Based on extensive experience in other industries, BDS Analytics has developed proprietary software and services that provide its clients with really useful data and insights. Its value is reflected in the rapid growth and diversification of the BDS Analytics client base.”

CANNDESCENT

Altitude made an add-on investment in Canndescent’s Series C Convertible Note $13 million capital raise. Canndescent closed 2017 as the #1-selling brand of cannabis flower in California with its market-leading effects—Calm, Cruise, Create, Connect and Charge and is taking that success to the vape and ingestible categories. Canndescent is a leading modern cannabis company by combining world class management with best practices from consumer-packaged goods, advanced agriculture, and luxury lifestyle marketing. The company is commencing a multi western-state expansion strategy. John Brecker, partner at Altitude added, “We took a small position in Canndescent’s Series B Preferred Stock raise and have increased our investment significantly based on the milestones the company has achieved in such a short period of time.”

GRASSROOTS CANNABIS (AES Compassionate Care PA and Grassroots Compass Ventures IL)

Altitude made separate investments in both AES Compassionate Care Pennsylvania and Grassroots Compass Ventures Illinois. Each are fully-licensed, vertically-integrated cannabis companies that are active in cultivation, extraction, manufacturing and retailing. Both companies are managed by the same management team. Altitude partner Michael Goldberg stated, “Our investments in multistate vertically-integrated operators will allow us to participate in the growth and value creation as the medicinal markets grow, new patients are added, and new approvals for qualifying conditions increase the patient base. Additionally, large upside exists when a planned rollup takes place and as these states legalize adult use.”

FLOWHUB

Altitude made an add-on investment in Flowhub’s Convertible Note $3.3 million capital raise. Setting a new standard for the highly regulated industry, Flowhub offers dispensary and cultivation license holders a metrc™ integrated platform built specifically to simplify compliance, with data automatically sent to state regulators via an API. Flowhub’s award-winning software serves more than 300 of the largest retailers and cultivators in the United States. Flowhub processes over $1B in cannabis sales annually and is the top cannabis compliance technology recommended by state agencies. Rod Stephan, partner at Altitude added, “Flowhub has successfully created software which meets the regulatory and compliance requirements of each state and also creates a sticky customer with recurring monthly revenues. We are excited by the accelerating growth of this company.”

C4 DISTRO (Golden Systems)

Altitude made a lead investment in Golden Systems’ Class B Preferred Units $5 million capital raise. Golden Systems owns C4 Distribution Co. (a.k.a C4 Distro), a California-licensed distribution operating company. C4 is poised to become a leader in the California cannabis distribution market. California needs companies to provide quality distribution services due to the extremely fragmented market of suppliers and retail dispensary buyers. C4 has most recently added four new brands for distribution to its growing list of products. Rod Stephan stated, “With service to over 160 dispensaries in southern California, C4 is experiencing accelerating month-over-month growth by leveraging its high touch business model to build close relationships with its customers. The distributor plays a material role in the supply chain as well as in creating and growing brands. We believe C4 has the right management team to capitalize on this opportunity.”

PATHOGEN DX

Altitude was the co-lead investor in PathogenDx’s Convertible Note $3.4 million capital raise. PathogenDx provides DNA-based disruptive testing technology and solutions to the cannabis, botanical, food, and agriculture markets at an adaptable scale for both large and small testing facilities. The company offers growers, processors, producers, consumers, and ancillary services real-time data and information pertaining to the quality of their product, ensuring a safer commodity and preventing millions of dollars in losses from contaminated or spoiled crops. PathogenDx’s testing kits identifies bacterial and fungal contaminants and reduces testing time down to hours from the traditional petri-dish method which takes days. Jon Trauben commented, “The company is in an enviable position as it fulfills a central regulatory need with cutting edge science, while alleviating existing bottlenecks.”

ABOUT ALTITUDE INVESTMENT PARTNERS

Altitude Investment Partners, LP is a US-based, global venture capital fund that invests in a range of early-stage to growth companies supporting the fast-growing legal global cannabis industry. The fund is managed by Altitude Investment Management, LLC, (the “Manager”), whose members have been actively investing in the cannabis industry and have successfully invested in the alternative investment space for years. The Manager provides institutional quality investment management experience to its investors. The fund continues to accept new investments and plans to close the fund to investors later this year. For more information about Altitude Investment Management please contact info@altitudein.com or visit www.altitudein.com.


Debra BorchardtDebra BorchardtJune 5, 2018
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4min40490

A new report from Arcview Market Research and BDS Analytics says that the medical marijuana market will drop to only 41% in 2018 as the California, Nevada and Canada adult-use markets explode. Medical marijuana accounted for 71% of the legal market in 2017, making the pace of the decline dramatic. The State of Legal Marijuana Markets 6th Edition also predicts that the medical component of worldwide legal sales will plunge to just 35% by 2022 due to the growth of recreational sales in those three markets, along with new states like Maine and Massachusetts.

Consumer spending in cannabis markets is expected to triple to $32 billion by 2022 for a 27.5 compound annual growth rate (CAGR). The report notes that U.S. sales alone will grow to $23.4 billion by 2022. It seems Americans are the most excited about adult use marijuana as the paper says that it is largely a U.S. phenomenon.  The rest of the world appears to be content to stick with just medical marijuana.

Uruguay and Switzerland allow for sales of recreational cannabis, but the Swiss limit it to pre-rolls with up to 1% THC. Germany recently opened to medical sales in 2017, which was a big leap for Europe but won’t move the needle in global sales.

Another area that the report highlights as changing is the decline in flower’s total sales in relation to the market. The report says that vape sales have grown 86% from 2016 to 2017 followed by live resin which has grown 80%. Oils have grown by 40% “California’s extract market, where the vape subsector comprises 71% of all concentrate sales makes high-quality vapes a hot opportunity for companies looking to enter the market.”

Investing in cannabis has changed too. “Despite a pullback since 2018 began, the top four Canadian LP’s were valued at a total of C$10 billion at the end of April, about twice our 2022 forecast for consumer spending in the entire Canadian market.” The report also pointed out the softening stance by the stock exchanges in the U.S. Initially the exchanges wouldn’t allow any plant touching companies to list, but now Cronos Group (CRON) from Canada is on the NASDAQ and Canopy Growth (CGC) is on the New York Stock Exchange.

The cannabis friendly Canadian Securities Exchange lists about $5 billion in cannabis-related companies out of a total of C$9 billion in market cap for 354 companies. 23 of those companies are U.S. based. The report also noted that while some investors continue to avoid plant touching companies to stick with ancillary investments, Constellation Brands (STZ) jumped in with its 10% stake in Canopy Growth.

Looking Ahead

The report says that despite movements from other countries like Germany, North America will continue to lead the way in legal cannabis spending. South America is also building its programs as Uruguay takes big steps forward as the first federally legal adult-use market. While many believe legalization will only mean an upside to the industry, the report cautions that strict regulations keep the black market intact. It also predicts that prices will fall and that the availability in attractive retail environments will expand.


Debra BorchardtDebra BorchardtMarch 21, 2018
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6min18550

A new report suggests that the California cannabis market growth may be slowed due to heavy taxes and restrictive regulations. “California: The Golden Opportunity” written by Arcview Market Research in partnership with BDS Analytics writes that even the state’s revenue gains could be affected by the onerous tax and regulatory burdens that will drive consumers to the black market – exactly the opposite of what authorities wanted.

The report stated that the taxes and regulations amount to a 77% handicap versus the prices in the illicit market. California already had high sales taxes and now that is compounded by new cultivation and excise taxes. In addition to that, cannabis businesses are subject to the costs of navigating 40+ different types of state licenses. All of these costs ultimately trickle down to the consumer.

“While California cannabis companies are thrilled with the traffic increase they’ve seen since January 1 they can’t help but worry that regulations and taxes are going to handicap the legal market in the long term,” said Troy Dayton, CEO of the Arcview Group. “It’s clear that every additional penny of a price increase on legal cannabis products only serves to boost the attractiveness of purchasing from the illicit market which has flourished in the state for decades.”

To get an idea of how pervasive the black market is in California, the State Department of Food and Agriculture reported that cannabis cultivators (both legal & illegal) grew 13.5 million pounds of flower in 2016. However, residents only consumed 2.5 million and the rest was diverted to the black market. The bad players have little incentive to abide by the law because as part of the legalization process, punishment for breaking drugs laws have been lightened.

The report said that long-time illicit market customers were shocked when they saw the prices in legal dispensaries. Around 50% of California consumers surveyed in BDS Analytics’ “Public Attitudes and Actions Toward Legal Cannabis” reported buying cannabis from a friend, family member, or acquaintance. This market is big and very much ingrained in the state. Meaning there will be stiff competition between the legal and illegal businesses.

That competition isn’t helped when the legal operators are forking over higher taxes than in Colorado and Oregon with local municipalities adding their own taxes on top. A hypothetical $1,400 pound of cannabis effectively ends up costing $4,054 at retail and puts cannabis businesses at a serious disadvantage to the illicit players who have little overhead costs.

Ultimately the state could be cutting off its nose to spite its face with the extra regulatory and tax burdens. States have mostly legalized recreational marijuana so that they can reap the benefits of huge tax receipts. Cannabis sales in California are expected to hit $3 billion in 2018 larger than the states of Colorado, Oregon and Washington combined. The tax revenue is expected to exceed $649 million in 2018, so this is a significant source of income that the state will want to protect and grow.

While the numbers seem generous, they could be even bigger. The report notes that its forecast puts sales at $7.7 billion by 2021. “That sounds like a lot of growth, and it is, but the forecast is conservative compared to the post-adult-use legalization growth seen in other states. During the first three years (from 2017 through 2020), California’s market will increase at a compound annual growth rate (CAGR) of just under 29%—versus the 84% seen in Washington, 57% in Oregon, and 56% in Colorado during the first three years of adult-use in those states.” Still, the authors believe the politicians will be willing to make adjustments to ensure the success of the program.

“Rarely does a 20-year-old market undergo as radical a transformation in as short a time as California’s cannabis market did on January 1st of this year,” said Tom Adams, Editor-in-Chief at Arcview Market Research and Principal Analyst at BDS Analytics. “Suddenly, 29 million adults had access to the cornucopia of the modern cannabis store but were also suffering sticker shock from the state-imposed costs of going legal.”

On a positive note, the authors of the report believe that medical patients will be excited to see a new range of products available to them in the legal market. They also think that long-time black market consumers will find that the quality of the legal products is better and the options in the legal dispensaries more plentiful. Plus, there will be many consumers who did not want to engage in the illegal market, but now will be comfortable entering a legal dispensary.

In addition to the analysis of the illegal market, the report does a deep dive into all of the complicated regulations affecting the businesses, plus an exhaustive review of the various regions and counties.  It delves into the conflict of the inner state areas not wanting to be a part of the cannabis industry versus the coastal areas that seem to be all in.

 


Debra BorchardtDebra BorchardtSeptember 18, 2017
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5min19960

New data on the California cannabis market is shedding light on the consumers and what they prefer. It turns out they love their flower, vapes and infused pre-rolls according to a recent report from BDS Analytics.

This unregulated marketplace has been light on hard information as other states like Colorado and Washington produced a wealth of retail data. Now a new report describes a state that behaves much more like a recreational market even though legal recreational sales aren’t set to begin until 2018. “Until now, the questions had only anecdotal and inaccurate answers. But with the launch of our California data, we now offer penetrating insights into every aspect of the cannabis marketplace that matters to stakeholders,” said Roy Bingham, Founder and CEO of BDS Analytics.

Size is the reason why California data is so important. In the four months of March through June of 2017, BDS noted that California dispensaries sold $894.85 million of cannabis products, dwarfing Colorado’s $516.39 million in sales. California commands a third of the legal cannabis market in the U.S., while combined sales from Colorado, Washington and Oregon account for 41% of the market.

California was the first state to legalize medical marijuana twenty years ago, while Colorado was first for adult-use legalization. However, BDS’s data reveals a market that already acts like adult-use has been legalized by the products that are being sold. The lack of regulation and ease of entry into the marketplace has created a very competitive retail environment and a crowded market for brands. For example, the top five brands for concentrates in California only control 52% of the market, while in Colorado they control 71% of the market. In edibles, the top five brands own only 42% of the market, but in Colorado they own 49% and in Oregon the top five own over half of the market’s sales. This makes California the land of opportunity for brands seeking to plant their flags.

The state’s customers spend the most money on flower products at $375 million in the second quarter of 2017 or 55% of the market. Flower prices are higher in California than in the other states with indica being the preferred genus. The top strains are similar to other states and include Girl Scout Cookies, Sour Diesel and Gorilla Glue #4.

One place that makes  Cali customers different from other states is infused pre-rolls. Like other states, pre-rolled joints capture about 5% of the market, but Californians particularly like infused pre-rolls with an extra THC boost. They will happily pay $14.08 per joint instead of going for the cheaper ($5.12) plain pre-roll. This category owns 31% of these sales.

Concentrates are second in popularity in the state and account for 25% of the cannabis pie or $169 million in sales for the second quarter of 2017. Vape sales in Colorado for the same time period were less than $40 million. Vape pens control the market with 61% of the sales. It’s still  a wide open  category with the top ten brands owning 66% of the market and a long list of brands falling into the remaining 34% of sales.

Edibles are 12% of the market at $81 million for second quarter sales with gummies and hard candy winning the category followed by chocolate and infused foods. Gummies have eaten up 19% of sales in the candy category.

The state is sprinting towards finalizing its new rules and trying to stay on track for regulated legalized sales to take place in January.. Los Angeles and San Diego both approved new business regulations over the past week, while lawmakers denied advertising restrictions for marijuana promotions on clothing like t-shirts and hats. The state is banning drone delivery of cannabis as car delivery company Eaze raised $27 million for expansion.

With so much money at stake and a market still ripe for opportunity, brands are flooding in to try to capture consumers purchases. Colorado may have been first to create a strong recreational market, but California is poised to steal its thunder.



About Us

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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