SMITHS FALLS, ON and NEW YORK, Oct. 1, 2020 /CNW/ - PRESS RELEASE - Canopy Growth Corporation and Acreage Holdings, Inc. announced today that following the implementation of their amended arrangement, Acreage has developed a plan to market Canopy Growth's diverse beverage portfolio in the United States.
Leading with legal adult-use markets in Illinois and California, Acreage anticipates launching Canopy Growth's select, sessionable THC beverage formulations in summer 2021. In addition to selling products in its own dispensaries, Acreage will access existing distribution channels through strategic corporate relationships.
"We have had an incredibly successful introduction into the Canadian cannabis-infused beverage industry with over 1.7 million cans of our THC-infused RTD beverages, like Tweed's Houndstooth & Soda and Bakerstreet & Ginger sold to date," shared Canopy Growth CEO David Klein. "We introduced a new product category to cannabis consumers that we knew had the potential to disrupt one of the most mature industries and since launching in Canada, Canopy Growth now owns 5 of the top 6 SKUs in the beverage category with a 74% market share. We are excited for Canopy's beverages to be introduced to the U.S. market next summer."
"We see THC-infused beverages as a game-changer in U.S. cannabis, and we are excited to launch Canopy Growth's unique beverage offerings to our core markets offering the greatest growth potential next year," said Bill Van Faasen, interim CEO of Acreage Holdings. "We are already working on our beverage production capabilities, and look forward to tapping the wealth of experience and research Canopy can offer following its successful entry in the category last year."
The companies look forward to bringing a sessionable infused beverage offering to U.S. consumers that will more closely liken itself to current beverage-alcohol serving sizes.
Surterra's Wellness Florida location
Photo courtesy of Parallel
How Surterra Texas Is Evolving with the State’s Expanding Medical Cannabis Market
President Marcus Ruark shares insight into the company’s efforts to bring telehealth services and cannabis-infused lozenges to Texas’ patient base.
Helping Texans access the benefits of medical cannabis is an important goal for Surterra Texas, one of the state’s vertically integrated medical cannabis licensees, and the company has made strides lately with its efforts to bring telehealth services and cannabis-infused lozenges to the state’s patient base.
Texas’ massive size, as well as its requirement that doctors in the medical cannabis program be board-certified specialists, make it challenging for patients to find and visit a physician who can prescribe medical cannabis, according to Surterra Texas President Marcus Ruark.
This led the company to partner with Heally to bring telehealth services to patients across the state to help them see a doctor and potentially get a prescription for medical cannabis from the comfort of their own homes.
“Obviously, that’s very helpful in a large state like Texas, but it’s also helpful in these COVID times,” Ruark tells Cannabis Business Times and Cannabis Dispensary. “Anything we can do to make things easier for patients is a win for Texas.”
The telehealth services have been well-received by both patients and doctors, he adds, and the Texas Department of Public Safety (DPS), which regulates the state’s medical cannabis program, has been very supportive of telemedicine.
Photos courtesy of Parallel
Surterra Texas' lozenges, part of the company's Relief product line, feature a 1:9 ratio of CBD to THC and are one of the first non-tincture products in the state.
Surterra Texas’ efforts to expand patient access don’t stop there—the company recently launched a new product line of cannabis-infused lozenges, the first non-tincture form of medical cannabis in the state.
The lozenges, part of Surterra’s Relief product line, also represent the company’s first THC-dominant medical cannabis products, Ruark adds, featuring a 1:9 ratio of CBD to THC.
The typical concentrations of tinctures in the state have been high in CBD, he says, such as a 19:1 CBD to THC product, as well as more balanced ratios of 4:1 CBD to THC or equal ratios of 1:1 CBD to THC.
“Access to THC-dominant medication can be very helpful for certain patient groups—patients with cancer or patients who are experiencing pain from some of their approved and treatable conditions,” Ruark says. “This is a very helpful ratio for them.”
To support the production of the lozenges, Surterra Texas has expanded its production space and equipment, and has also hired additional staff.
“We’re fortunate that the program is expanding, the patient base is increasing, and we are able to grow and hire,” Ruark says.
One of the company’s goals is to provide patients with a diverse set of product offerings, he adds, so patients can find a formula and delivery method that works for them.
“One of the things about medical cannabis is it can be fairly personalized, and each person, each patient, can find a different ratio or a different way to consume medical cannabis than someone else,” Ruark says.
Evolving with an Expanding Market
Texas launched its medical cannabis program in 2015, with the first sales taking place in 2018. At first, the only treatable condition was intractable epilepsy, but in 2019, the legislature significantly expanded the list of qualifying conditions. Ruark estimates that roughly 2 million Texans are now eligible for medical cannabis under the current set of treatable conditions.
The Texas Legislature meets every two years and kicks off its new legislative session in 2021, and Ruark says additional expansion of the medical cannabis program is possible next year.
Earlier this month, Texas Agriculture Commissioner Sid Miller said he would like to see the program expand, as reported by KXAN.
“I would certainly expand medical marijuana,” he said, according to the news outlet. “If it’ll help somebody, I’m for it. Whatever it is. I mean, a toothache, I don’t care. If it’s a cure, if it [alleviates] pain, we should be able to use that.”
Surterra Texas, as well as other medical cannabis licensees in the state, have conducted polling to gauge public perspectives on the medical cannabis program, Ruark says, and those results have also shown support for expansion.
“I think Texans are wanting this and the state is doing a great job of expanding the program every two years, learning from what other states are doing, and providing a state-regulated and state-licensed program that’s bringing medical cannabis across the state,” he says.
As the program continues to expand, Surterra Texas is focusing on cannabis education and awareness for both patients and doctors to educate them not only on the company’s specific product offerings, but also medical cannabis in general.
“One of the really great things about this industry is … the degree to which we’re always learning, and the science and the benefits are always improving,” Ruark says.
Looking ahead, Surterra Texas plans to continue bringing new product categories to the market as it focuses on the overall expansion of both the company and the program.
“In terms of our future, I do think it’s all about expansion,” Ruark says. “It’s about providing more patients with access, providing more education to patients and doctors, and working with the state and legislators to increase the number of patients who can access the medicine across the state."
The East Fork Cultivars team and neighbors dug fire lines to help prevent the Slater Fire from spreading.
Photo by Nathan Howard
A Dozen Oregon Cannabis Businesses Ruined by Wildfires
While some fires have been totally or mostly contained, several companies have still not fully surveyed damage nor have they received back product they left in the hands of other businesses.
West Coast wildfires in 2020 have killed at least 40 people, burned over 5 million acres of land and leveled more than 7,000 buildings, according to The New York Times. Fatalities from the smoke number in the thousands, the Associated Press reports.
Cannabis industry entrepreneurs’ and workers’ livelihoods have not been spared, with blazes reaching hemp farms and state-legal cannabis grows and dispensaries in California, Washington and Oregon. And when wildfires surround a grow—even if they’re miles away—smoke, soot and ash can mar product quality.
The Oregon Liquor Control Commission (OLCC) has been monitoring the ongoing crisis in that state. Mark Pettinger, spokesman for the OLCC, told Cannabis Business Times and Cannabis Dispensary that as of Sept. 29, the agency has confirmed that four fires have destroyed 12 Oregon businesses. Those are:
On Sept. 28, Oregon Public Broadcasting (OPB) stated, “The Beachie Creek, Archie Creek, and Holiday Farm fires are all over 55% contained, and almost all of the uncontained areas are far away from where people live. The Riverside Fire remains just 37% contained, but officials say there’s little chance the fire will grow in the next few days.”
OPB also reported that fire officials have seen hotspots from the Slater Fire, which is active in Oregon and California, diminish.
The OLCC estimates 20 licensees, including the 12 that experienced a “total loss,” are in wildfire burn zones, based on the fire zones during the fires’ height, Pettinger said. Eight are cultivators, one is a testing lab and the rest, including retailers, are in an “other” category.
Out of 64 businesses that responded to the OLCC’s Wildfire Impact Study that it sent out Sept. 17, 34 said they were given Level 3 evacuation orders (“go”), five were given Level 2 orders (“be set”) and another five were given Level 1 orders (“be ready”).
Seven companies who responded to the survey said they suffered a complete crop loss, 12 experienced partial losses or damage, and 15 didn’t know if their crops were lost or damaged, or if so, by how much.
Six licensees temporarily transferred product to another business, three of which have received that product back, according to the OLCC.
Lulla | Adobe Stock
Arkansas Medical Cannabis Sales Top 24,000 Pounds
The state’s patients have purchased $154 million worth of medical cannabis products since sales launched in May 2019.
Arkansas’ medical cannabis sales have surpassed 24,000 pounds of product, according to a KARK.com report, with the state’s patients spending $154 million on medical cannabis since sales launched in May 2019.
The state has 83,779 patients, the news outlet reported, with 29 dispensaries currently open and eight more working toward becoming operational.
Earlier this month, dispensaries’ average daily sales reached $600,000.
Miravision | Adobe Stock
University of Montana Study Estimates Legal Cannabis Could Generate Up to $52 Million in Annual Tax Revenue
UM’s Bureau of Business and Economic Research released a study earlier this month about the market’s potential.
The University of Montana’s Bureau of Business and Economic Research released a study earlier this month estimating that a legal cannabis market in the state could generate between $43.4 million and $52 million in annual tax revenue, according to an NBC Montana report.
The figures are based on a 20% tax on legal cannabis sales that is included in Initiative 190, a measure on Montana’s 2020 ballot that would legalize adult-use cannabis in the state.
New Approach Montana, the campaign behind the ballot initiative, submitted enough signatures in June to place two complementary measures on this year’s ballot. I-90 is a statutory initiative that would legalize, regulate and tax cannabis, and CI-118 is a constitutional initiative that would set the legal age for purchasing, possessing and consuming cannabis at 21.
The Montana Secretary of State certified both measures for the November ballot in August, and the Governor’s Office of Budget and Program Planning estimated at that time that legal cannabis could generate $3.5 million in tax revenue in fiscal year 2022, with the market growing to $38.5 million in 2025, according to a Great Falls Tribune report.
I-90 mandates that 10.5% of the tax revenue generated from an adult-use cannabis market must go into the state’s general fund, which supports many different programs, although an estimated 54% of the funds go toward K-12 education, NBC Montana reported.
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Melissa Schiller
Patrick Williams
