Eaze Archives - Green Market Report

William SumnerWilliam SumnerSeptember 19, 2019
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4min2870

It’s time for your Daily Hit of cannabis financial news for September 19, 2019.

On the Site

Eaze

California delivery software company Eaze has finally gotten fed up with DionyMed’s (CSE: DYME) (OTC:DYMEF) accusations and filed a countersuit on Tuesday against the company. For DionyMed, it comes at a pretty bad time. The company just accepted the resignation of its COO Pete Hilliard and is restructuring its debt. Plus, the stock was halted in trading. So, where to begin? Let’s start with the Eaze lawsuit.

iAnthus

iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQX: ITHUF) has entered an agreement to acquire WSCC, Inc., better known as Sierra Well, for $27.6 million. iAnthus will pay for the acquisition price with $5.1 million in cash and $22.5 million in company shares, priced at the 10-day volume-weighted average price prior to closing of the transaction. Sierra Well is a Nevada-based, vertically integrated cannabis company with two retail dispensary locations and two cultivation/production facilities in Reno and Carson City totaling a combined 20,000 square feet

In Other News

Future State Brands

The cannabis brand holding company, Future State Brands, announced its launch today with more than $25 million in funding. The company is led by PRØHBTD CEO and Founder Drake Sutton-Shearer; and its portfolio includes a hemp cosmetics line, a music-inspired cannabis brand called Heavy Grass, and a line of infused products.  “I’m excited to move into this next phase of our journey with a crystal clear vision of our desired future state. Although brands is the vehicle to get us there, it cannot be achieved without an incredible team, accessible capital and most of all, an understanding of the customer we are building for,” said Sutton-Shearer.

Vireo Health

Vireo Health International, Inc. (CNSX: VREO) (OTCQX: VREOF) announced today that its shares have received Depository Trust Company (DTC) full-service eligibility in the United States. DTC is a subsidiary of the Depository Trust & Clearing Corp., which manages the electronic clearing and settlement of publicly traded companies. DTC Eligibility will allow the company’s shares to be distributed, settled and serviced through DTC’s automated processes.


Debra BorchardtDebra BorchardtSeptember 19, 2019
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12min23709

California delivery software company Eaze has finally gotten fed up with DionyMed’s (CSE: DYME) (OTC:DYMEF) accusations and filed a countersuit on Tuesday against the company. For DionyMed, it comes at a pretty bad time. The company just accepted the resignation of its COO Pete Hilliard and is restructuring its debt. Plus, the stock was halted in trading. So, where to begin?

2019-09-18 Eaze Technologies, Inc.’s Cross-Complaint

Eaze Countersuit

Let’s start with the Eaze lawsuit. Back in April, DionyMed terminated its contract with Eaze and claimed that “Based on review by outside counsel, DYME could not confirm that the processing procedure meets California regulatory requirements.” The company said it was going to invest in its own delivery service called “Chill.” DionyMed through its dispensary store Hometown Hearts claimed that Eaze was using shell accounts to create fraudulent charges and payment processing, which was the excuse it needed to terminate a three-year contract.

The only problem was that Eaze doesn’t process payments. It merely provides the software that facilitates the transaction between the consumer and the dispensary. The third-party processing companies would have been accounts that Hometown Hearts through its parent company Herban set up, not Eaze. Eaze said it can suggest payment processors and works with them, but doesn’t actually process the payment. The relationship is between the dispensary and the payment company.

Eaze is accusing DionyMed of dirty tricks in an effort to destroy the company and take over its business. “The defendants’ unethical and unscrupulous conduct has not only injured Eaze, it has created a threat to cannabis consumers, retailers, and the industry at large,” said Eaze’s Chief Risk Officer Andrea Lobato, “We intend to show how DionyMed’s campaign of dirty tricks was designed to confuse cannabis consumers and drive them to DionyMed’s competing platform, undermining all of the licensed brands and retailers that utilize the Eaze platform.”

DionyMed poached key employees like Evan Tenenbaum who was one of the first Eaze employees. Tenenbaum joined DionyMed’s board while also creating a logistics company called Rise Brands which was subsequently acquired by DionyMed for $8 million. Maurissa McCarthy was also hired from Eaze to run marketing for the new competing Chill platform.

DionyMed, then acquired the dispensary Hometown Heart, also from Tenenbaum (according to the Eaze lawsuit) for $6 million with a potential amount rising to $12 million. Hometown Heart had been a big part of the Eaze volume business. It wasn’t until DionyMed was ready to move to the Chill platform that it expressed issues with Eaze. Up until that point, Hometown Hearts was using Eaze and raking in millions while doing so. Canaccord Genuity analyst Bobby Burleson accurately predicted that Hometown Hearts sales would decline with the loss of the Eaze contract as the Chill platform was put into place, except Chill only accepted cash. Sales did decline, but for now, we’ll stick to the lawsuit.

Eaze also notes in its countersuit that Hometown Heart knew that the payment processors it accused of fraud, were its own processors, not Eaze’s. Eaze also claims its business was hurt by DionyMed accusing the company of fraudulent charges. Plus, the timing of the accusations right before the April 20 holiday affected Eaze’s ability to fulfill orders at the biggest sales day in the cannabis industry. Eaze says that the intention from Hometown Hearts was that the move would crush Eaze at an important time.

Hometown Heart also had access to the Eaze’s customer list and began targeting them for business and suggesting a link between Chill and Eaze, which wasn’t true, while at the same time suggesting Eaze was engaging in fraudulent credit card processing.

Eaze had tried to get the DionyMed case dismissed, but on September 11, a judge ruled the case could move forward. However, the judge stated in the court transcript that he didn’t believe DionyMed could prove its accusations. DionyMed saw this as a win for its side.

“Eaze’s alleged decision to terminate online card payments and cease working with EU Processing shortly after our complaint was filed is a powerful admission of guilt, and an acknowledgment that the allegations in our complaint are true. Those changes don’t go far enough,” said DionyMed CEO Edward Fields. “We are pleased with the court’s decision to allow our lawsuit to proceed.  We will continue until the direct-to-consumer cannabis delivery playing field is level for all market participants, and Eaze has compensated DionyMed for the massive damages its conduct has caused our company and shareholders.” EU Processing, however, was the company hired by DionyMed to process the payments, not Eaze.

Stock Halted

DionyMed’s shares were halted in trading on Tuesday when the company announced it was restructuring its debt facility and opened back up for trading on Thursday morning as the stock slid over 30%. According to the company statement, DionyMed “Announced additional investment from its senior secured investor of $3.2MM and a reorganization of the business to right-size the Company. This increases the credit facility with the senior lender to US$19.2 MM. The credit facility bears interest at LIBOR (at a floor of 2.5%) plus 12% plus an anniversary fee of 2.5%, maturing February 6, 2021. While the credit facility is currently in default, the senior lender has agreed to make additional advances to the Company.” DionyMed will cut its employees from 299 to 199 and focus on the delivery service Chill.

Gotham Green Partners had provided a $2 million secured convertible note in August at an eye-popping interest rate of 12.5%. The notes are convertible into warrants at C$1.45, but the stock was halted at $0.56 a share. The company also announced today that “Gotham Green has issued a request for repayment of its outstanding balance of $2.2 MM representing the credit advance made on July 30, 2019 plus accrued and unpaid interest.”

“With respect to these changes,” said DionyMed CEO Ed Fields, “we’re looking forward to improving market efficiencies and getting the business to breakeven at an accelerated pace. We’re excited about finalizing a deal with the right strategic partner and injecting the capital necessary to drive DionyMed forward as a leader in the cannabis industry.”

In addition to the debt restructuring, DYME said its COO Peter Hilliard resigned and the company hired Mark Zinselmeier to take his place. Zinselmeier was working as a consultant on the Chill platform and will now focus on growing that business.

Licenses?

DionyMed continues making the odd claim that Eaze is behind its payment processing, which isn’t the case because as Eaze will say repeatedly, “It doesn’t process claims.” Even more strange is that Hometown Heart had its delivery license revoked. According to CannaBiz Media, State License A9-18-0000032-TEMP for Hometown Heart was issued January 26, 2018, expired August 19, 2019 and on September 16, 2019 was updated as “Revoked.” This was confirmed on the California Bureau of Cannabis Control website. Yet, just two weeks ago, DionyMed was announcing it had been awarded the license, even though it had been expired on 8/19/2019.

“DionyMed today also announced the award of a non-storefront retail provisional license in San Francisco, issued to Hometown Heart, a licensed California delivery service managed by DionyMed. The license allows DionyMed to deliver within San Francisco and the surrounding cities, the company’s largest direct-to-consumer market with more than 20,000 deliveries since its Chill Concierge Cannabis Delivery began service in April 2019.”

Although DionyMed did note in its September 4, filing that “The Bureau of Cannabis Control has approved Hometown Heart’s application M9-18-0000278-APP for a provisional license pursuant to Business and Professions Code section 26050.2 “ That filing was the credit agreement for $2 million, that was later upped to $3.35 million.

Also, on September 4th Canaccord analyst Bobby Burleson wrote, “”While we are cutting our estimates due to capital constraints on growth and elevated costs, DYME’s announcement that the company has hired an adviser to assist in managing discussions with potential strategic partners is highly constructive, in our view, and warrants we maintain a SPEC BUY rating. We note that major MSOs have been accelerating their entry into the California market through investments in brands and distribution. DYME appears well-positioned in both regards, and with a growing home delivery platform its distribution capability spans wholesale and retail, marking the company as an attractive asset. Our price target remains C$6″

However, it should be noted that in an August 29 filing the company said that “On May 7, 2019, DionyMed closed a bought deal private placement financing with a syndicate of agents co-led by Canaccord Genuity Corp. and Cormark Securities Inc. for 3,822,055 units of the Company at a price of C$2.75 per Unit for aggregate gross proceeds to the Company of $7,148,824.” So Canaccord was clearly underwater when it continued praise the company.

DionyMed didn’t respond to a request for comment. Public Relations firm KCSA said the company was no longer a client


StaffStaffJanuary 23, 2019
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4min4370

It’s time for your Daily Hit of cannabis financial news for January 23, 2019.

On The Site

Eaze

Eaze just released its 2018 State of Cannabis report giving insight into the buying habits of cannabis consumers. Eaze is a Calfornia-based cannabis delivery software company with buying history from 450,000 cannabis shoppers who have used Eaze for its delivery software service along with 4,000 survey respondents.

Some of the key findings included the breakout year for CBD (cannabidiol) products and the increase in the number of women who have become cannabis consumers. The report called CBD the “darling” of 2018 after learning that CBD consumers nearly doubled in 2018 from 2.6% to 4.8%.

Cronos Group

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) entered into a credit agreement with Canadian Imperial Bank of Commerce and the Bank of Montreal for a $65 million secured non-revolving term loan credit facility. The Canadian-based cannabis company said it plans to use the funds to repay the Company’s existing loan facility with Romspen Investment Corporation and for general corporate purposes pending the closing of the previously announced equity investment by Altria Group, Inc.

Canopy Growth

Their future dream is a hothouse scheme, and after months of teasing its Canopy in the UK, finally. The Canadian medicinal marijuana luminary on Monday announced the creation of Spectrum Biomedical UK, a dedicated British firm targeting the underserved and uneducated but highly lucrative UK market, alongside a new Polish entity as part of a massive European campaign.

In Other News

Doyen Elements

Doyen Elements International, Inc., announced its rebranding and renaming itself to Covalent Collective, Inc. . In addition, the Company announced Bill Gregorak as Chief Executive Officer, effective immediately. Prior to being named CEO, Mr. Gregorak served as Chief Financial Officer of Covalent Collective since February 2018. Mr. Gregorak takes over as CEO from Geoffrey Thompson, a co-founder of Covalent Collective, who will continue as leader of merger and acquisitions.

In his role, Mr. Gregorak will direct all business units and strategy for Covalent Collective. Mr. Gregorak will also oversee the execution of the Company’s rebranding and acquisition strategy of plant-touching enterprises that grow, process and sell cannabis products.

Bella

Bella CBD-infused bath, body and skincare has released the first-ever silicone personal lubricant enhanced with the soothing and healing properties of CBD. Developed by cannabis industry thought leader Krista Whitley, Bella’s Olio d’Amore makes it easy to experience indulgent intimacy with premium CBD, encouraging optimal sexual wellness and intimate pleasure.

 

 


Debra BorchardtDebra BorchardtJanuary 23, 2019
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3min12771

Eaze just released its 2018 State of Cannabis report giving insight into the buying habits of cannabis consumers. Eaze is a Calfornia-based cannabis delivery software company with buying history from 450,000 cannabis shoppers who have used Eaze for its delivery software service along with 4,000 survey respondents.

CBD

Some of the key findings included the breakout year for CBD (cannabidiol) products and the increase in the number of women who have become cannabis consumers. The report called CBD the “darling” of 2018 after learning that CBD consumers nearly doubled in 2018 from 2.6% to 4.8%. Part of this could be attributed to the tsunami of CBD products hitting the market and the general acceptance of the product as being mostly legal. The 2018 Farm Bill legalized CBD derived from hemp. Baby boomers are driving the increased sales of CBD products with 8.4%  of that business coming from that age group.

Women, in particular, are drawn to making CBD purchases. The Eaze report said that “Their preferred products appear to be more ‘beginner’ friendly.” The CBD-only customers reported a variety of effects from taking the product. 61% reported relaxation, while 41% reported anxiety and stress relief, while 40% reported pain relief.

Women

In 2015, women accounted for 25% of the cannabis market and that number has jumped to 38% in 2018. “Over the past year, the total number of women customers grew 92%,” said the report. It also suggested that at this rate, women could end up equaling men by the year 2022 for consumption.

Women were most likely to purchase edibles, drops, and topicals, while men tended to buy the traditional flower and concentrates.  Gummies and the biggest edibles seller followed by bites, chocolate bars, cookies, and mints, respectively. Women also tend to consume cannabis more for personal care and sleep, while men use it for at-home entertainment and sports or exercise.

Substitutions

The report also determined that cannabis consumers tended to give up other things once they began to make regular cannabis purchases. Millenials reduced alcohol consumption and the Gen Z folks either quit tobacco smoking entirely or at least cut it down. All demographics said they reduced their use of over-the-counter pain relievers and prescription pain medicines. Over the counter drug purchases fell by 71% and prescription painkillers fell by 35%.

It seems by consuming cannabis, people are focusing more on the benefits of wellness. Bad habits like alcohol and cigarettes drop as consumers look to cannabis to feel better and contribute to an overall wellness behavior.

 

 

 

 


Jack SmithJack SmithAugust 8, 2018
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4min19220

Despite the overwhelming majority of Californians being happy with the legal cannabis market, there is still a significant percentage of residents who buy marijuana illegally, due in large part to high taxes on the substance.

A new report from Eaze Insights shows that 84 percent of Californians are “satisfied” with the legal marijuana market, but approximately 20 percent have purchased illegal or illicit marijuana in the past three months. Concerning to regulators and the state’s finances is that 84 percent of that segment of the population is “highly likely to repeat that behavior in the future due to the illicit market having cheaper products and no tax.”

Part of the concern is that although consumers would like to purchase marijuana legally if, given the option, the taxes are a major concern for many consumers. According to the California Department of Tax and Fee Administration, marijuana has a 15 percent excise tax, though recent reports have suggested the state is looking at cutting taxes as a way of driving legal means of consumption.

Approximately 85 percent of Californians have purchased cannabis from “unlicensed sources,” but most of them cited factors such as lower prices and a lack of taxes for the reasons those purchases were made.

Other consumers say they have purchased from illegal marijuana vendors because it’s “hard and time-consuming” to find legal businesses. Approximately 1 in 7 respondents said it was “not easy to identify licensed cannabis businesses.”

Although the picture has been painted with some negative brushes, there are changes that can be made that will positively affect California’s burgeoning weed economy.

If taxes were decreased by 5 percent, that could drive much of the illegal market into the legal market, Eaze notes. The town of Berkley took that initiative early on when it lowered its city tax on cannabis from 10% to 5%.

“A 5% decrease in the overall tax rate in CA could bring twice as many CA consumers to only purchase cannabis from licensed businesses (from 16% to 32%),” Eaze wrote in an email obtained by Green Market Report. “Conversely, a 5% increase in the overall tax rate in CA would drive twice as many CA consumers to only purchase from unlicensed businesses (12% to 23%).”

Use cases in the state include wellness (treating or coping with illnesses such as cancer) and consumers are increasingly becoming more sophisticated in the types of cannabis they consume.

“They care the most about consistent product quality,  fair pricing, packaging, safe access and a great customer experience, the same way they care about those things for more traditional consumer products,” the email obtained by GMR said.


StaffStaffMay 18, 2018
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4min6490

It’s time for your Daily Hit of cannabis financial news for May 18, 2018:

On The Site:

Eaze

The cannabis technology company Eaze finds itself in legal jeopardy as a class action lawsuit has been filed alleging that the company violated the Telephone Consumer Protection Act (TCPA) of 1991 by sending out unsolicited marketing text messages en masse various individuals across the country.

The lawsuit was filed by Farrah Williams and reported in MJ Biz Daily, who alleges that between September 2017 through the present she received dozens of unsolicited texts messages from Eaze. Williams’ suit claims that Eaze contacted her through the use of an autodialer and that the same had happened to countless others. The case also mentions the technology provided by (among other agents or affiliates) a company called Bitesize, which was founded and is operated by an individual named Jessica Lee. As restitution Williams is seeking an injunction prohibiting Eaze from committing any further violation of the TCPA, $2000 for herself and each member of the lawsuit for each and every text message that violated the TCPA, and payment of attorneys’ fees and costs.

In Other News

The Green Organic Dutchman Holdings Ltd.

The Green Organic Dutchman Holdings Ltd. (TGODF) announced that on May 9, 201,8 its facility based in Ancaster, Ontario received organic certification from Ecocert Canada, an internationally recognized world-leading organization in organic certification.

“This is another step in TGOD’s planned expansion to be the world’s largest branded organic cannabis company. Consumers world-wide are interested in quality products and TGOD will continue to strive to provide the highest quality organic product that complements the natural product preferences of today’s consumer,” said Mr. Robert Anderson, Co-Chairman and CEO.

Marapharm Ventures Inc.

Marapharm Ventures Inc. (MRPHF) announced today that it intends to proceed with a non-brokered private placement of up to 6,666,667 Units at CDN $0.60 per Unit to raise gross proceeds of up to $4,000,000. The Unit will consist of one common share of the Company (a “Common Share”) and one-half of one common share purchase warrant of the Company (each whole warrant, a “Warrant”).  Each warrant entitles the holder thereof to purchase one Common Share of the Company at an exercise price of $0.70 for a period of 12 months from the date of issuance of the warrant.

Cronos Group

Cronos Group Inc. (CRON) announced that it has appointed Jim Rudyk as lead director and has entered into an engagement agreement to retain Athena Advisors LLC as its agency of record for investor relations and corporate communications.


William SumnerWilliam SumnerMay 18, 2018
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The cannabis technology company Eaze finds itself in legal jeopardy as a class action lawsuit has been filed alleging that the company violated the Telephone Consumer Protection Act (TCPA) of 1991 by sending out unsolicited marketing text messages en masse various individuals across the country.

Under the TCPA, companies are prohibited from sending unsolicited adverting messages and from making a call or text using automated telephone equipment to contact individuals through any service for which the recipient is charged.

The lawsuit was filed by Farrah Williams and reported in MJ Biz Daily, who alleges that between September 2017 through the present she received dozens of unsolicited texts messages from Eaze. Williams, who works nights at a nursing home, claims that the continuous messages sent by Eaze throughout the day would wake her up and prevent her from going back to sleep; causing her to become irritable and distracted.

Williams’ suit claims that Eaze contacted her through the use of an autodialer and that the same had happened to countless others. To bolster this claim, Williams provided text messages from Eaze as well as social media posts made by individuals making the same allegations.

“@Eaze_Team @Handstack received an unsolicited text message from you guys. how do you have my number???” reads one tweet posted on June 17, 2017.

“What company is idiotic enough to use unsolicited SMS as a marketing scheme? @Eaze_Team is going to get sued out of existence,” reads another.

Although it is possible to opt-out of receiving text messages from Eaze by replying with the word “Stop,” Williams claims that she was not made aware of this option in the message.

The case goes into great detail about the money that Eaze has raised and suggests that the money was raised off the tremendous growth that Eaze was experiencing, but that the success was achieved through “growth hacking.” The suit claims, “The reality is that Defendant “growth hacked” its way to the top of the pot delivery business – specifically, by relentlessly bombarding existing and prospective customers with text messages and other digital spam, day after day, en masse, without anyone’s permission, precisely as experienced by Plaintiff here.” The case claims the growth hacking was at the expense of people’s privacy.

It went on to state, “The inconvenient truth, however, is that Defendant’s exponential growth is not attributable to the quality of the product it delivers or the convenience of the service it provides – after all, the product is not even grown by Defendant, and Defendant is hardly the first drug dealer to deliver.”

Bitesize

The case also mentions the technology provided by (among other agents or affiliates) a company called Bitesize, which was founded
and is operated by an individual named Jessica Lee. Bitesize’s text messaging technology “helps companies,” including Defendant, “drive sales with interactive text message[s],” which Bitesize sends on the companies’ behalf in “bulk.”  The case goes on to say, “The
founder and CEO of Bitesize, Jessica Lee, personally responded to the complaint by assuring the individual that Defendant’s text message program is “completely CAN-SPAM compliant.”

The lawsuit says that the text messages at issue, in this case, were sent by Bitesize on behalf of Defendant with the wrong regulatory scheme in mind.

Restitution

As restitution Williams is seeking an injunction prohibiting Eaze from committing any further violation of the TCPA, $2000 for herself and each member of the lawsuit for each and every text message that violated the TCPA, and payment of attorneys’ fees and costs.

If found guilty of violating the TCPA, and if more join the class action lawsuit, the cost of paying Williams and the other plaintiffs could potential bankrupt Eaze.

As outlined by the lawsuit, the outcome of the case will hinge on five important questions:

  • Did Eaze or its agents transmit marketing/advertising messages to the plaintiffs?
  • Was Eaze using an automatic dialer to transmit the messages?
  • Can Eaze demonstrate that it had expressed written consent to send the messages?
  • Was Eaze’s conduct knowing or willful?
  • Should Eaze be prevented from performing such actions again?

So far Eaze has not made any public comment on the case and has proffered no rebuttal to any of the claims the suit makes. As the lawsuit is still in its infancy, it could be months or even years before the case reaches a definitive conclusion.

One cannabis industry expert that preferred to not be identified said the suit didn’t pass the smell test for them. “It’s either a class-action grab by the lawyer or someone out to get Eaze,” they said. “It just seemed odd. You can’t text stop, but you can file a lawsuit?”


Peggi CloughPeggi CloughMay 17, 2018
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3min15440

Stemless is a Portland-based startup that gives cannabis consumers an easy way to buy from their local dispensaries without having to leave home.

“We are an online platform that helps dispensaries connect with their customers, so their customers can order from them in a way that is convenient, fast and, most of all, legal,” says Stemless founder Koushi Sunder.

First, the Stemless website connects patrons to their nearest dispensary. The store’s inventory is listed, so customers can shop, securely pay, and have their order delivered or they can pick up in the store without waiting. In addition to providing online ordering and tracked delivery via custom apps, Stemless also gives dispensaries the ability to text customers and reward them with loyalty programs.

Stemless is entering a market dominated by the cannabis delivery service Eaze. This first-market company has seemingly owned the California cannabis delivery service but could face new pressure due to a recent lawsuit filed by Farrah Williams as reported by MJ Biz Daily. In the lawsuit, Williams claims that Eaze sent unsolicited texts and was violating the Telephone Consumer Protection Act, 47 U.S.C. § 227.

The suit claims that Eaze “‘growth hacked’ its way to the top of the pot delivery business – specifically, by relentlessly bombarding existing and prospective customers with text messages and other digital spam, day after day, en masse, without anyone’s permission, precisely as experienced by Plaintiff here.”  Williams claims her privacy was disrupted by the continuous texts. While it won’t be known for some time whether Williams will win her case or if it will even affect Eaze, Stemless seems poised to jump in to grab market share.

Sunder says Stemless is for everyone, but right now it has two main groups of users: people who are new to dispensaries and want to learn about products from the comfort of their own homes, and people who are frequent buyers and spend a lot of time in lines at dispensaries. Stemless gives both types an easier way to buy cannabis than traveling to dispensaries.

Founded in 2015, Stemless currently has 25 stores from Oregon and California on their platform. They recently announced they’ll be expanding into all states where cannabis is medically or recreationally legal. You can learn more about them at Stemless.co.

 

 


Peggi CloughPeggi CloughApril 18, 2018
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5min12240

Of the nearly 5,000 people surveyed by legal cannabis delivery service company Eaze, more than half report they’ll be openly celebrating 4/20 this year.

Eaze asked their customers questions about their consumption openness when discussing their use and thoughts on celebrating their first legal 4/20 holiday in California.

Seventy-three percent surveyed reported the reason they’re celebrating 4/20 for the first time is that cannabis is now legal. About a quarter of Baby Boomers will be first-time celebrants. Sixteen percent of Gen Xers, 10 percent of Millennials and 12 percent of Gen Z adults will be partaking in celebrations for the first time this year.

Gen Z adults are most likely to post about it on social media, at 52 percent, and more surprisingly, Gen Xers are more likely to share on social media than Millennials, at 46 percent and 42 percent, respectively. Forty-seven percent of women report they’ll probably share about their 4/20 plans on social media, while only 42 percent of men will.

The trend of women being more forthcoming about their cannabis use also held true where their family and friends are concerned. They’re a bit more open than men when speaking about cannabis consumption, at 96 percent versus 95 percent. Almost all of the adults surveyed—99 percent—have shared about their use with friends, but they’re not as open with family members. Forty-seven percent of parents have told their children, with mothers being more likely to tell them than fathers, 61 percent to fathers’ 37 percent.

Seventy-two percent of adults reported that they’ve told their parents about their cannabis use. Baby Boomers are most likely to tell their parents, at 79 percent. The numbers went down with age: 75 percent of Gen Xers, 72 percent of Millennials and 67 percent of Gen Z adults have been open about their cannabis use with their parents. A quarter of people surveyed reported that they’ve used cannabis with a family member for the first time since its legalization.

Legalization has made it easier to talk to others about their cannabis consumption, according to 52 percent of respondents. Thirty-eight percent of women cited family concerns as the reason they’re not open about their use, 35 percent said career concerns and 32 percent stated medical privacy. Family concerns were the reason 62 percent of men are hesitant to speak about their use, and 68 percent said medical privacy.

Sixty-five percent of men reported career concerns prevent them from speaking freely about their cannabis use, yet they’re more open about their use with their colleagues and their supervisors than women tend to be. Baby Boomers are less likely than Gen Z adults to share their cannabis consumption with their boss, but only by a small margin, 31 percent versus 33 percent. Gen Xers were most likely at 40 percent, and Millennials were at 39 percent.

On the medical front, 70 percent of those surveyed have a friend or family member who’s benefitted from medical cannabis. This has helped 96 percent of them become more open with others about their own personal use.

 


William SumnerWilliam SumnerJanuary 30, 2018
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5min28270

2017 was a big year for women. Between powerful movements like #MeToo or the Women’s March in Washington DC, millions of women across the country have discovered a newfound empowerment unlike anything ever seen before; and there is no place where that is more evident than in the cannabis industry.

Although the cannabis industry has traditionally skewed male, both in terms of executive leadership and consumer spending, a new report by the cannabis technology company Eaze, which analyzed the consumer habits of over 15,000 survey respondents and 350,000 cannabis consumers in the state of California, has found that women are one of the fastest growing consumer groups in the industry.

In the fourth and final part of our series, Analyzing Eaze Insights 2017, Green Market Report will examine the growing power of women as consumers in the cannabis industry. If you missed any of the previous parts, you can catch up by clicking here: Part One, Part Two, Part Three.

When examining the difference between male and female consumers, Eaze found that women generally prefer cannabis products that meet a variety of health and wellness needs, while men tended to prefer cannabis products that delivered potent efficiency.

For example, the top three cannabis products Eaze sold with the highest ratio of female or male were:

Female

  • Om Lavender Bath Soak
  • Select CBD Lavender All-in-One
  • Rose OG Headwaters Flower

Male

  • Pax Era Jack Herer Bloom Farms
  • Silver Label Banana Dream Concentrate
  • Candy Jack Cake Batter Concentrate

In terms of consumer spending, women spent approximately 20% more on cannabis in 2017 compared to the previous year. Women also made up a larger portion of Eaze’s customer base, rising from 25% in 2015 to 35% in 2017.

The growth of female consumers in Eaze’s report mirror other surveys which reveal that women make up a larger percentage of cannabis consumers than previously thought. According to one survey conducted by the Cannabis Consumers Coalition, approximately 53% of women are consuming cannabis, compared to 42% of men.

Women are not also just making up a larger percentage of cannabis consumers; they’re also starting to fill more executive positions. According to one survey by Marijuana Business Daily, approximately 27% of executive-level roles in the cannabis industry are held by women; well above the national average of 23%.

Although the report does not specifically examine why women are beginning to make up a larger portion of cannabis consumers, report authors credit the growth to greater product selection as well as improvements to safety and access.

Another key component to the expansion of the cannabis industry’s growing demographics is education, according to Devika Maskey, founder of the luxury cannabis brand TSO Sonoma.

“Education is a key component to broadening the demographic spectrum for cannabis consumption. Teaching people that they can improve their overall wellness with safe and discreet ways to consume begins to open the door to new users,” Maskey said. “Coupling education with sophisticated branding is appealing to women that are looking for healthy alternatives to prescription pills or alcohol. By creating a more elevated experience we can make cannabis more approachable to a larger audience and destigmatize women and cannabis, moving away from that ‘lazy stoner’ stereotype.”



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