New Poll Determines Majority of New Jersey Voters Support Adult-Use Cannabis Legalization
Sixty-eight percent of the state’s voters support legalization, according to the first in a series of polls conducted by Brach Eichler LLC’s cannabis law practice.
New Jersey voters will decide whether to legalize adult-use cannabis this fall after lawmakers decided to place the issue on the state’s November ballot, and a new poll has revealed that the majority of voters support the legalization measure, according to an NJBIZ.com report.
In the first in a series of polls, Brach Eichler LLC’s cannabis law practice and DKC Analytics questioned 500 registered New Jersey voters from July 7 through July 12, the news outlet reported.
Sixty-eight percent of respondents said they would vote in favor of the ballot question in November, while 26% indicated they would oppose the measure and 6% said they were unsure, according to NJBIZ.com.
Seventy-eight percent of Democrats indicated support for legalization, while 19% said they would oppose it, the news outlet reported. Fifty-seven percent of Republicans answered in favor of legalization with 39% opposed, and Independents had 63% in support of the measure and 27% opposed.
A Monmouth University poll, released in April, also found strong support for cannabis legalization with sixty-one percent of roughly 700 registered voters indicating that they would vote in favor this fall.
Photo courtesy of Platinum
Red White & Bloom Brands Acquires Platinum Vape
The company has signed a binding letter of intent to purchase Platinum, a producer of vape cartridges, edibles and flower that is spearheaded by father-and-son team George and Cody Sadler.
Previously focused on the Michigan, Illinois, Massachusetts and Florida cannabis markets, RWB will enter California’s market through its first acquisition since going public earlier this year.
Platinum sells its products at more than 700 retailers throughout Michigan, California and Oklahoma, and co-founder and President George Sadler said the company has been building a relationship with RWB for the past few years.
“It was maybe three years ago when [RWB] talked to us about doing a purchase and at that time, it just didn’t work out—[it] just didn’t seem feasible,” Sadler told Cannabis Business Times and Cannabis Dispensary. “This all came along kind of rapidly, but our relationship has been there for quite some time.”
For Sadler and his son, Cody, Platinum Vape has been their baby for the past nine years, since the company’s inception, and both Sadler and RWB CEO Brad Rogers said they view the acquisition as more of a partnership between the two companies.
“It’s not something we want to do in a walkaway deal,” Sadler said. “It was more incorporating us with what their future plans are and growing. Having that freedom for Cody and I has been paramount.”
The acquisition will not change the structure of Platinum’s business, he added, and Rogers agreed that the Platinum team will be critical in the future success of both companies.
“When you buy Jack Daniels, you want Jack to come with it,” Rogers said. “I wouldn’t even look at it as a buy, really. It’s a partnership because these guys aren’t going anywhere. … This is a phenomenal operation. We don’t want to touch it other than [to] give them the resources and the power to go and build.”
Platinum’s roughly 200 employees will continue in their roles, Sadler added, and RWB’s support will allow the company to continue to grow.
“It’s on a path, but I think now, with Red White & Bloom, it’s a much bigger path,” he said. “I think together, we’re going to see a lot of the growth.”
Photo courtesy of Red White & Bloom
RWB has previously focused on the Michigan, Illinois, Massachusetts and Florida cannabis markets, and will now expand into California with the acquisition of Platinum.
The merger reflects the broader M&A landscape in the cannabis industry, Sadler added, pointing to the market’s explosive growth in 2017 versus the slowdown the industry has seen in recent months.
“These companies have been valued at a billion dollars, and look at what some of these companies have done,” he said. “Some have finished off these deals on paper only, and there’s no backbone to any of these deals other than inflated values that go into the market and get people to purchase overpriced stock. … That’s why this deal here, I think, is pretty solid. [It looks] to the truth of where these companies are and … [where they will be in] the future versus just, ‘Hey, you’re worth this much money. We’re going to pay you out and then you’ll be on your way.’ … Platinum Vape is going to be around for a long time, not just [the] next year or two and then get liquidated and thrown off to the side.”
For Rogers, the value of the acquisition lies in reaching Platinum’s broader audience and market share with the Sadlers’ vision leading the way.
“On our end, … there’s no change on the direction, just a lot of backbone from Red White & Bloom,” Sadler said.
Platinum will continue its planned expansion to Arizona’s market, he added, as well as continue with planned product launches in the coming months. However, the company can now lean on RWB’s deeper knowledge of operating in multiple states to more rapidly achieve its goals.
“I just see [these things] happening a lot quicker, and with the depth that we now have, there’s a lot more knowledge behind it,” Sadler said.
RWB is in discussions with Big Box retailers, such as Walgreens and CVS, to expand product distribution across the U.S., and will rely on Platinum’s brand awareness and robust marketing strategies to grow both brands.
“George and Cody are integral in the growth and the pieces of how this is going to play out and what we’re bringing together right now,” Rogers said. “You’re going to see a lot more come from us collectively in a very short order."
Gen Z and Millennials: A New Age of Cannabis Consumers
The final segment in this three-part series on generational marketing offers insights into millennial and Generation Z cannabis buying preferences.
Millennials have surpassed baby boomers to become the largest living generation in America, according to the U.S. Census Bureau.
In the process, they’ve cast off slacker stereotypes, redefined work-life balance and rewritten “adulting” rules as they moved from parent-influencing children to parenthood.
According to cannabis analytics and research company BDS Analytics, millennials and Gen Z make up 38% of cannabis consumers age 21 and older in fully legal states. Gen Zers, just one year into legal age, account for 2% of that figure.
The following millennial/Gen Z (M/Z) insights can help dispensaries meet the needs of these consumers as they reshape the cannabis industry.
1. Traditional stigmas against cannabis aren’t in play.
When the youngest millennials were born and the oldest Gen Zers conceived, California had already legalized medical cannabis. These generations have matured in a time when medical and adult-use legalization is becoming the norm.
Jennifer McLaughlin, vice president of merchandising for cannabis operator Calyx Peak Companies, points out that many M/Zers have parents and siblings who consume cannabis—and who work in the industry.
“They’re growing up in a time when they’re watching cannabis become official and be considered beneficial,” she says. “The stigmas for these kids just won’t be there. I see a big shift in knowledge at a younger age and a totally different attitude toward it.”
Jessica Lukas, senior vice president of commercial development at BDS, echoes that sentiment, saying more consumers are coming of age into a legal market. “When you think about this evolution of thinking, the younger consumers have fewer stigmas, fewer preconceived notions and more interest in trying something,” she says.
2. Recreational and social use fuels M/Z consumption.
Recreational and social reasons top the list of why M/Z cannabis consumers consume, according to BDS. About half of M/Z cannabis consumers also use cannabis to treat self-perceived health and wellness issues, most notably to relax or “mellow out.”
McLaughlin points to lifestyle. “They’re living their life the way they want to live it,” she says. “It’s all about the social interaction for them now—socially interacting with cannabis. Market to the fact they have these rich lifestyles. Market to what they’re doing in their lives.”
BDS offers additional insights about M/Z consumers:
They want mood and effect labeling so they know what to expect.
They’re more likely than older generations to consume before going out in public.
Six in 10 consume with at least one other person or in group settings.
About half consume daily. That’s on par with Gen X, but more than boomers.
3. Retail experiences and budtenders are key.
“Millennials tend to be all about the experience more so than most other groups,” says Jennifer Culpepper, founder of cannabis branding agency Brand Joint. She believes millennials will gravitate toward dispensaries that create a unique dispensary experience that’s right for their audience.
McLaughlin stresses the need to involve this group of customers in the task and individualize the experience. “Create an environment where we allow the customer to create their own adventure,” she says. “If we think of it that way, it will really resonate with them.”
BDS data reveals dispensaries and budtenders are important educational resources for this group. About 60% obtain their cannabis from an adult-use dispensary, and about four in 10 say the recommendation of the budtenders is very influential in their decisions.
Of millennials and Gen Zers who consume, 6 out of 10 do so with at least one other person or in group settings, according to BDS Analytics.
M/Z consumers prefer inhalables over other product formats; 82% of millennials and GenZers say they’ve consumed inhalables in the past six months, which is higher than BDS reports for other generations.
While flower still holds the lead, its use is declining across all age groups, according to BDS. Close to half of M/Z cannabis consumers use vape products. “Ease of use” is the main driver behind that choice. Two-thirds consume edibles/ingestibles; one-third uses topicals, BDS reports.
Brands are low on the list of drivers influencing product choice, according to BDS’s analysis. Market volatility and product availability often keep brand awareness and loyalty low, the research firm reports.
But when brands are a factor, Culpepper says M/Z seek those with substance.
“One thing you want to watch out for is that you’re not creating things just to be flashy and new and trendy, because if you do create something trendy, trends come and go pretty quickly,” she says.
Culpepper says that socially conscious companies have an edge with younger consumers. “As younger people are starting to see the world and see all the things that need to be done, they are looking to companies to do their fair share, and they’re willing to support those companies that do good,” she says. Doing, not just saying, is critical.
Interest in sustainability is higher among younger consumers than older generations, according to BDS. A sizable portion of the M/Z group wants manufacturers to do a better job of making their packaging more sustainable and eco-friendly, according to BDS findings.
A sense of community also is an important part of the puzzle—for all generations—in Culpepper’s eyes. “People are going to be more likely to shop at your store because they feel some type of connection,” she says, adding that the core values that guide a dispensary is a good place to start.
“You really can cut through a lot of different demographics … when you look at it more in terms of their other interests, the other elements of their lifestyles that could overlap,” Culpepper says. “To me that is a much stronger way of marketing because you’re going to be making connections that are based on something that is real and authentic.”
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Proposed Spending Bill Amendment Could Extend Federal Law Enforcement Protection to Adult-Use Cannabis Businesses
Once again, the U.S. Congress is taking up a CJS Appropriations bill that contains a layer of protection for cannabis businesses.
Once again, the U.S. Congress is taking up a Commerce, Justice, Science (CJS) Appropriations bill that contains a layer of protection for cannabis businesses. Whether the cannabis amendment gets through is a routine matter of debate in Washington, D.C., and this latest iteration is even more of an open question.
Historically, the Rohrabacher-Blumenauer amendment has conferred protection from federal law enforcement on state-licensed medical cannabis businesses. Because of its placement in the CJS bills, the amendment specifically bars the U.S. Department of Justice (DOJ) from using federal funds to prosecute state-compliant medical marijuana operators in states that have legal cannabis programs. It has been included in every budget deal passed in Congress since its introduction in 2014.
Now, the measure has morphed into the Blumenauer-McClintock-Norton-Lee amendment, and it’s been written to extend that federal protection to state-licensed adult-use cannabis businesses. This latest revival of the amendment was first reported by Marijuana Moment.
“It is time for Congress to expand these important protections to adult-use legalization states,” the team at NORML wrote in a message to its audience. “Today, nearly one in four Americans reside in a jurisdiction where the adult use of cannabis is legal under state statute. This expanded language passed the House last year, but was later removed by the Senate leadership.”
Chicago-Based Cannabis Company NuMed Changes Name to NuEra
The business, which operates three dispensary locations, is now vertically integrated after taking over ownership of the Hillcrest Cultivation Center in Rochelle, Ill.
CHICAGO, JULY 28, 2020 - NuMed, a rapidly expanding Chicago-based vertically integrated cannabis company, has launched its new name and brand NuEra. NuEra covers its three current Illinois retail locations, a newly acquired cultivation center in Rochelle, Ill., and its new brand of flower and prerolls.
The name NuEra highlights the fact that legalization in Illinois didn't just change the laws on the books - it unleashed a whole new era of cannabis. An era in which cannabis is safer, higher quality and available in a greater variety than ever before. Canna-consumers have more methods of consumption, more strains, more precise dosage labeling, and better information about the effects of each of our products than any generation before them.
NuMed has been a pioneer in the Illinois cannabis market, one of the first licensed operators in the medical pilot program and has been serving the Illinois medical cannabis community since 2016 with locations in Chicago, East Peoria, and Urbana.
NuEra recently took over ownership of the Hillcrest Cultivation Center in Rochelle, Ill., and is the newest vertically integrated cannabis company in Illinois.
The change from Med to Era highlights its expansion to serving both medical patients and the newer “recreational” cannabis consumers
“We will always remain committed to our medical patients and medicinal values, which is why we are one of Illinois' best providers of cannabis products for all people of legal age,” said Robert Fitzsimmons, CEO.
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