MjLink Cannabis Business News and Press

You and your team are plotting a business strategy that will get you into the fast-growing solventless segment. This is distinct from solvent-based processing, and the lab build-out needs are different. In terms of pure equipment purchasing, where should you begin?

Developing a complete equipment list is one of the most important steps along the way. While you’re working out your facility design with architecture experts and contractors, you’ll need to be cognizant of what, exactly, you’re going to be using in the building. The equipment list is your guide. And to understand the list, you need to understand the basic elements of solventless processing. Vendor partners can help.

“Having the ability to work with quality equipment and more importantly, quality business partners, is crucial to anyone’s success in this rapidly evolving cannabis market,” says Jillian Krall, director of hash production at Papa’s Select. 

1a. Ice water hash vessel

The first step in the solventless process is to wash your fresh-frozen cannabis plant material with RO water in an appointed vessel. You will want a food-grade surface in your hash vessel; this is an example of best practices that will keep your lab ahead of the curve and ready for future regulations. While many legacy labs might still be using trash cans or other receptacles for their washing process, it’s important to prepare for future regulations and to make the switch to stainless steel, food-grade vessels for this task.

Based on your output goals, hash vessels vary by size. Boutique labs may err on the side of hand-washing. Larger labs with goals at a greater scale may look to automated solutions.

As numerous states have banned delta-8 THC, industry members have debated whether the psychoactive, intoxicating cannabinoid delta-8 THC is a federally controlled substance when derived from hemp.

In a Nov. 2 blog post, cannabis and hemp attorney Rod Kight of Kight Law, who has been closely following and commenting on delta-8, highlighted that the U.S. Drug Enforcement Administration (DEA) has clarified in 2021 that hemp-derived delta-8 is not a federally controlled substance.

Kight points out in the blog post that in a June virtual town hall meeting, the Florida Department of Agriculture and Consumer Services’ (FDACS) cannabis director, Holly Bell, asked the DEA’s chief of intergovernmental affairs, Sean Mitchell, if delta-8 is federally legal.

Mitchell responded: “Sure, and I also want to expand beyond delta-8. There’s delta-8, there’s delta-10, there’s all kind of different cannabinoids associated with Cannabis sativa L. that are kind of out there and making the rounds. So, what I want to say—and I’ll be very deliberate and clear—at this time, I repeat again, at this time—per the [2018] Farm Bill, the only thing that is a controlled substance is delta-9 THC greater than 0.3% based on a dry-weight basis.”

Another communication from the DEA that Kight cited in the blog post is a September letter written by Dr. Terrence L. Boos, Ph.D., chief of the DEA’s Drug & Chemical Evaluation Section in its Diversion Control Division. In that letter, addressed to Donna C. Yeatman, R.Ph., executive director of Alabama’s Board of Pharmacy, Boos states that delta-8 THC can be naturally occurring in the cannabis plant or “synthetically produced from non-cannabis materials.” Boos also explains that the Controlled Substances Act (CSA) doesn’t control tetrahydrocannabinols in hemp.

Boos writes: “Accordingly, cannabinoids extracted from the cannabis plant that have a D9-THC concentration of not more than 0.3 percent on a dry weight basis meet the definition of ‘hemp’ and thus are not controlled under the CSA.”

At face value, solventless processing is a simple concept. You and your team are using heat and pressure in a lab setting to develop a spectrum of concentrated end products for the cannabis consumer. 

And while there are many ways to go about that task, there are several commonalities among all successful solventless producers—and several things you’ll want to make sure you avoid along the way.

Efficiency is key, says Mallory Tjaden, Marketing Coordinator for PurePressure, and she’s seen how brands of all sizes can save time and money while turning out top-tier products for dispensaries. It’s a delicate and studied process, but the solventless technique provides the full expression of the cannabis plant to consumers, and you’ll want to bear that in mind as you and your team are going about the day-to-day work.

DO: Develop a five-year plan with phased rollouts

Earning a processing license can be a major challenge in most cannabis markets, so it’s natural that an upstart business team will want to focus all energy on that task. But the brand’s long-term needs are important, right from the jump. With solventless products currently ranking as the fastest-growing concentrates segment in the U.S., your team will want to keep a close eye on short-, mid- and long-term time horizons--and plan accordingly.

“You want to know where you want to be eventually,” Tjaden says. “You want to start a lab based on where you think you’ll be--not where you currently are.”

Massachusetts is one of four states where voters passed adult-use cannabis legalization measures five years ago today, providing the most populated market in New England a head start on its neighbors.

While it took Massachusetts two years before launching adult-use sales in November 2018, it was the first state east of Colorado to serve adult-use consumers.

Also passing adult-use ballot measures in the 2016 election, Nevada voters approved Question 2 with a 54.5% majority, California voters passed Proposition 64 with a 57.1% majority, and Maine voters squeezed through Question 1 with a 50.3% majority

Launching adult-use sales July 1, 2017, Nevada was the quickest among the four states to roll out a retail program. In its fourth fiscal year (from July 2020 through June 2021), Nevada became a billion-dollar market, averaging $83.6 million in sales each month, according to data from the Nevada Department of Taxation.

Representing the largest cannabis market in the world, California launched adult-use sales Jan. 1, 2018. The retail behemoth averaged $430 million in monthly sales through the first half of 2021, according to data from the California Department of Tax and Fee Administration.

Maine took the longest, launching adult-use sales on Oct. 9, 2020. Still finding its footing, Maine has averaged $6.4 million per month in sales this calendar year, according to data from the state’s Office of Marijuana Policy.

The Washington, D.C., City Council removed proposed penalties on “gift” businesses and extended medical eligibility, but the last-minute change highlights the uncertainty and debate clouding District cannabis.

Last week, the council voted to expand its medical cannabis program by extending the eligibility of patients whose cards expired after March 2020. Patients with cards expiring after this date can now purchase medical cannabis through January 2022.

The move comes in response to a significant slowdown in medical cannabis sales during the pandemic. Council Chairman Phil Mendelson, who proposed the bill, says that more than half of all medical cannabis patient registrations have expired since spring 2020, in part due to a slowdown in government operations because of COVID-19. The new bill also doubled the amount of cannabis District patients are allowed to purchase each month up to eight ounces.

Included in Mendelson’s original proposal was a section penalizing “gift” businesses that skirt the law by selling legitimate items and providing cannabis for free. Dozens of such outfits have sprung up since cannabis was legalized in the District in 2015—many lease retail storefronts and pay taxes like any normal business. The original bill would have allowed these operators to face criminal charges and fines of up to $30,000.

After significant backlash, the suggested penalties were removed the day before vote. But the original proposal represents yet another example of the uneasy peace in the District’s cannabis industry, an undesirable situation created by a combination of Congressional interference and an inadequate medical program.

The District’s Gift Industry

The big event of the week was Election Day, although cannabis was far from the main story. We’ve got our roundup of reform narratives (see below), and the new Republican governor in Virginia will give us a transfer of power worth watching, but overall this is a season of transition for those of us in the industry. Last year brought big wins (and so did early 2021!), and next year promises more of the same.

In between now and then, though: winter.

We’re featuring a short piece from columnist Kenneth “K” Morrow this week, one that will give outdoor growers a few things to think about as early frosts come across the weather forecast. Here’s a tip: “Outdoor growers in areas prone to extreme winter conditions may want to proactively design and construct frames that allow them to easily cover plants in the event of unseasonably cold weather and/or extreme weather conditions.” There’s almost no doubt that those conditions are on their way.

It’s the first full week of November. What are you doing to prepare your business for the winter? Drop me a line and share your own tips!

We’ve rounded up some of the key cannabis headlines from the week right here.

Election Day 2021 brought its share of cannabis storylines, although it was a fairly quiet year between the watershed of 2020 and the anticipated wave of legalization coming in 2022. Read more In South Dakota, adult-use cannabis legalization advocates are racing to meet a Nov. 8 signature-gathering deadline as the state’s Supreme Court draws out its decision on the adult-use legalization measure that voters already approved one year ago. It’s a tangled web of uncertainties. Associate Editor Tony Lange has the story. Read more JPMorgan Chase & Co. has issued a letter to its prime brokerage clients informing them that they can no longer purchase certain U.S. cannabis-related securities. Read more Montana’s adult-use cannabis law prohibits licensees from growing and selling hemp, which means licensed cannabis businesses are also prohibited from producing and selling CBD products. Read more Louisiana will regulate delta-8 THC in food products as the state health department has started reviewing manufacturers’ and distributors’ plans, registering products, and issuing permits. Read more 

And elsewhere on the web, here are the stories we’ve been reading this week:

The Guardian: “Five years after cannabis legalization, California is awash with signs of an apparently booming industry. But behind the flashy facade, the legal weed industry remains far from the law-abiding, prosperous sector many had hoped for. In fact, it’s a mess.” Read more Rapid City Journal: Rapid City, S.D., gets its first medical dispensary as the state awaits a ruling on the expected adult-use market. Read more KWTV: “The Oklahoma Bureau of Narcotics says Oklahoma is now the number one black market supplier of illegal marijuana in the country.” Read more The Vermont Journal: Ludlow, Vt., shoots down cannabis retail. Read more KTVQ: Same goes for Billings, Mont., where voters rejected an adult-use retail opt-in provision on the ballot this week. Read more ]]>

A second group has filed an adult-use cannabis ballot initiative in Arkansas, according to a KATV report.

Arkansans for Cannabis Reform filed an amendment Nov. 4 to put adult-use legalization on the state’s 2022 ballot, the news outlet reported.

The proposal would allow adults 21 and older to possess and consume cannabis, as well as cultivate up to six cannabis seedlings and six mature plants at home, according to KATV.

The measure also includes criminal justice provisions that would allow those convicted of low-level cannabis-related offenses to petition the courts for release from incarceration and expungement of their records, KATV reported.

The proposal would allow the Arkansas Legislature to levy a tax on adult-use cannabis sales, according to the news outlet, and the measure allocates the tax revenue to support specific programs in the state. Fifty percent of the revenue would fund public pre-K and after-school programs, 40% would support operations at the University of Arkansas for Medical Sciences (UAMS) cancer institute and research center, and 10% would go to the state’s general fund.

Vessel, a leader in the luxury cannabis consumer technology market, will diversify Flora’s premium brand portfolio.Pending acquisition represents opportunity to fast-forward Flora’s penetration into U.S. and Canadian cannabis markets by acquiring a rapidly expanding, industry-leading company with strong revenue growth.Vessel leadership to integrate with Flora’s core management team and leverage its extensive brand building, marketing and sales experience to amplify and accelerate growth across Flora’s global portfolio.

MIAMI and TORONTO, Nov. 3, 2021 – PRESS RELEASE – Flora Growth Corp., a leading all-outdoor cultivator and manufacturer of global cannabis products and brands, announced it has entered into a definitive agreement in respect of the previously announced acquisition of 100% of Vessel Brand Inc. As set forth below, upon the closing of the transaction, Flora will acquire Vessel for aggregate consideration of U.S. $30 million, consisting of a combination of cash and the issuance of Flora common shares.

“The Flora team has been working diligently to execute on our various business initiatives and the signing of this agreement represents another significant step forward for the company in 2021,” Flora Growth President and CEO Luis Merchan said. “We are incredibly excited to have reached an agreement to add Vessel to the Flora portfolio. Not only does Vessel have an exceptional product line with strong revenue growth, but its leadership team is second to none. Integration plans with the Vessel team are already well advanced and we expect step-change improvements to the marketing and sales strategies for our core consumer brands like Stardog and Mind Naturals, as well as new brand development in support of our global growth initiatives.”

Vessel will bring a proven go-to-market strategy for direct-to-consumer sales for U.S. and international cannabis markets. Vessel has also established relationships with U.S. multistate operators and Canadian LP’s who seek access to Vessel’s premium technology offering through its white labeling business. Headquartered in Carlsbad, Calif., Vessel will serve as a key component of Flora’s North American cannabis strategy across its entire product portfolio.

Vessel launched in 2018 with a singular focus—create a more thoughtful consumer experience at all touchpoints. With significant revenue growth year-over-year, Vessel finds continued success by bringing to market innovative products and experiences that elevate consumer expectations. It has a unique lineup of high-end, dry-herb accessories and vape pen batteries, bespoke product programs for brands, and decades of go-to-market experience. These high-margin products, along with its development pipeline, are expected to drive incremental revenue and market share growth in new and existing categories.

The acquisition of Vessel is also expected to strengthen Flora’s executive leadership team with the addition of the Vessel team’s experienced cannabis, sales, marketing, design and production professionals, including founder and CEO James Choe, Chief Financial Officer Garrett Potter, VP of Marketing Jessie Casner and VP of Performance Jason Choe.

In a Nov. 3 meeting, the New York Cannabis Control Board (CCB) approved new rules for the state's hemp program, allowing for the sale of hemp flower but prohibiting the sale of delta-8 THC products in the state.

During the meeting, the CCB addressed several issues regarding the advertising, processing, manufacturing, testing and packaging of hemp and hemp-derived products in New York.

The state Department of Health (DOH) initially issued the regulations for public comment before they were formally filed by the Office of Cannabis Management (OCM), which was given oversight of the state's hemp program under the enactment of the Marijuana Regulation & Taxation Act (MRTA) earlier this year, Morning AgClips reported.

Changes in Place

The regulations allow for hemp flower products to be sold as long as they are not "marketed or advertised for the purpose of smoking or [are] in the form of a pre-roll, cigar or joint," the news outlet reported.

The new rules also prohibit the sale of delta-8 THC products because they contain "intoxicating qualities." According to the news outlet, the OCM believes these products should be regulated under the state's future adult-use program. 

Matthew Schweich has started every Thursday morning for the past six months by logging onto the South Dakota Supreme Court’s opinion page and hitting the refresh button.

Twenty-seven straight weeks, the campaign director for South Dakotans for Better Marijuana Laws (SDBML), a statewide ballot question committee based out of Sioux Falls, has been met by disappointment, as time and time again he finds that the five-justice court remains a no-decision on the constitutionality of Amendment A—the 2020 voter-approved adult-use cannabis ballot measure.

In addition to being the SDBML campaign director, Schweich also serves as the deputy director of reform organization Marijuana Policy Project (MPP).

Matthew Schweich, Campaign Director, South Dakotans for Better Marijuana Laws.

“Eight o’clock sharp every Thursday morning,” Schweich said about when the South Dakota Supreme Court updates its issued opinions online each week. “I’d hate to count up all those Thursdays that there’s been no ruling on the Amendment A case.”

Last November, 54.2% of South Dakota voters cast ballots in favor of Amendment A, to legalize adult-use cannabis, but Republican Gov. Kristi Noem launched a taxpayer-funded lawsuit challenging the ballot measure, claiming it violated the state’s one-subject rule.

Without the Supreme Court’s decision, Amendment A currently sits unconstitutional, which Circuit Judge Christina Klinger ruled in February. Noem, who opposed legalization leading up to the 2020 election, nominated Klinger to the state’s Sixth Circuit Court in early 2019.

If you are a cannabis business owner who believes it is only a matter of time before cannabis becomes federally legal, you also probably believe that competition from big pharma, big tobacco, or big alcohol will be your biggest worry when that day arrives. Or, you may think that the moment legalization happens, you have to sprint across state lines to grow quickly to defend your market share. Without minimizing any of these concerns, which I share, a much bigger risk, because it is not being discussed, is poised to jump you when you are not looking—this risk: being sued.

As the climate changes and becomes more volatile, growers must learn to expect the unexpected, such as some geographic locations having fierce hailstorms or unseasonably early snowstorms.

Last growing season, I saw social media posts in which outdoor farmers dealt with both situations: plants beaten down and destroyed by hailstorms, as well as snow-covered plants a few days before harvest. In Canada, I saw a video of a grower harvesting outdoor plants in an October sleet storm that was earlier than any previous storm on record.

With that in mind, outdoor growers in areas prone to extreme winter conditions may want to proactively design and construct frames that allow them to easily cover plants in the event of unseasonably cold weather and/or extreme weather conditions.

While this is not a solution for cannabis farmers, Napa Valley vineyards have 20-foot wind machines/air movers in them; these are essentially 20-foot-tall round poles with two propellers attached to motors on top. Among the grape vines are smudge pots (also known as orchard heaters), oil-burning devices used to prevent fruit trees from freezing. These smudge pots can be filled with diesel fuel and set ablaze to keep crops warm. The smudge pots create heat, and the propellers move the warm air throughout the vineyard. While tempting to try, the smoke from the burning fuel could contaminate cannabis crops.

Temperatures are not likely to get so low for so long before a cannabis harvest that it would require the use of heaters, but weather patterns can be problematic. Cannabis growers can use quick-rising hoop houses to protect their crops from snow and/or ice storms. Covering crops is a time-tested solution used in other large-scale produce industries, including blueberry farms.

Read more: 5 Common Outdoor Cannabis Cultivation Problems (and 14 Tips For How to Solve Them) 

JPMorgan Chase & Co. has issued a letter to its prime brokerage clients informing them that they can no longer purchase certain U.S. cannabis-related securities, according to a Reuters report.

The restrictions pertain to businesses with U.S. operations that are not listed on the Nasdaq, the New York Stock Exchange or the Toronto Stock Exchange, and have a “direct nexus to marijuana-related activities,” according to the news outlet.

Effective Nov. 8, the bank will not allow new purchases or short positions in the related businesses, Reuters reported, although clients with existing positions can liquidate them.

“J.P. Morgan (JPMS) has introduced a framework that is designed to comply with U.S. money laundering laws and regulations by restricting certain activities in the securities of U.S. Marijuana Related Businesses," the bank wrote to clients, as reported by Reuters.

Other banks have taken similar action, according to the news outlet, after a high-profile collapse of private fund Archegos Capital earlier this year prompted financial institutions to evaluate how much risk they are willing to take on in their prime brokerage businesses.

In early 2021, U.S. Customs and Border Protection (CBP) agents seized cannabis extraction equipment from Root Sciences LLC at a Los Angeles port.

Root Sciences repeatedly—and unsuccessfully—attempted to contact CBP, as reported by Law Street, and eventually assumed that CBP improperly excluded the import of the equipment. Root Sciences submitted a protest, which also received no response from CBP.

The company then filed a lawsuit in March after it assumed its protest of the merchandise exclusion was denied, according to Law Street.

Root Sciences argues in its lawsuit that cannabis and cannabis processing equipment is legal under California law, meaning that the seized merchandise is exempt from Section 863 of Title 21 of the United States Code, which prohibits the import of drug paraphernalia, Law Street reported.

The case was ultimately dismissed last month by the U.S. Court of International Trade, where the presiding judge said the federal body did not have the jurisdiction to hear the case.

There were no statewide votes to legalize medicinal or adult-use cannabis in the 2021 general election, but that’s not to say balloters didn’t have a say in cannabis-related measures Tuesday night.

In Philadelphia, 73% of voters supported Question 1 to call on the Pennsylvania General Assembly and their governor to legalized adult-use cannabis for those 21 and older.

In Ohio, six of 14 municipalities approved local decriminalization measures to lower the penalty for misdemeanor cannabis offenses to the lowest penalty allowed by state law.

In Virginia, Republican Glenn Youngkin defeated Democrat Terry McAuliffe, 50.7% to 48.6%, to take control of the governor’s seat ahead of the state’s 2022 reenactment by the General Assembly to finalize legal adult-use cannabis sales provisions passed by the 2021 Legislature.

In New Jersey, as of Wednesday morning, Republican challenger Jack Ciattarelli was leading by the slimmest of margins to unseat Democratic incumbent Gov. Phil Murphy in a too-close-to-call race ahead of the state’s implementation of its voter-approved, adult-use legalization measure.

And, in Colorado, voters said “no” to Proposition 119, which aimed to increase the cannabis sales tax by 5% to provide additional revenue to charter schools.

Adds four Denver-metro retail locations and a 35,000-square-foot indoor cultivation facilityImmediately accretive to Columbia Care’s adjusted EBITDA and cash flow from operationsSolidifies Columbia Care’s position as the leading retailer, cultivator and manufacturer in Colorado

 

NEW YORK, Nov. 1, 2021 – PRESS RELEASE – Columbia Care Inc., one of the largest and most experienced cultivators, manufacturers and distributors of cannabis products in the United States, announced it has completed its acquisition of Medicine Man, a premier, vertically integrated Colorado-based cannabis company that has been serving the Denver metro area since 2009.

The total upfront consideration was $42 million, comprised of $8.4 million in cash and $33.6 million in stock, with the potential for an additional milestone payment based on 2021 performance. The transaction is immediately accretive to adjusted EBITDA and cash flow from operations. The upfront consideration of $42 million represents a multiple of approximately 4.5 times projected 2021 EBITDA.

“As the second largest cannabis market in the world, Colorado has become a global bellwether for adult-use programs and continues to show strong organic growth. The acquisition of Medicine Man enhances our position as the leader in the state by combining with a recognized operator that has been a consistent outperformer in the Colorado market since its founding,” Columbia Care CEO Nicholas Vita said. “We are grateful to the cities of Aurora, Denver and Thornton, and the state of Colorado, for their support, as well as to the Medicine Man team that has been terrific to work with throughout this process. Our vision and values are aligned, and we look forward to expanding our Columbia Care family with the addition of those who made Medicine Man such a successful company.”

This acquisition adds one cultivation facility and four dispensaries to Columbia Care’s Colorado operations, including the Medicine Man Longmont location, which is anticipated to close in Q1 2022. Columbia Care’s footprint in Colorado will now total 26 dispensaries and six cultivation and manufacturing facilities, including those under The Green Solution brand.

Montana’s adult-use cannabis law prohibits licensees from growing and selling hemp, which means licensed cannabis businesses are also prohibited from producing and selling CBD products, according to the Montana Free Press.

House Bill 701, which implements the state’s voter-approved adult-use cannabis program, also bars licensees from selling other brands’ CBD products, meaning that consumers will likely purchase CBD from gas stations and other non-specialty retailers, the Montana Free Press reported.

RELATED: Montana House Advances Three Republican Bills to Implement Adult-Use Cannabis

The Montana Department of Revenue and some cannabis industry stakeholders were caught off guard by the rule, according to the news outlet.

“Frankly, I feel like we stumbled upon it,” Kristan Barbour, administrator of the Department of Revenue’s Cannabis Control Division, told the Montana Free Press. “It wasn’t on our radar at all.”

Louisiana will regulate delta-8 THC in food products as the state health department has started reviewing manufacturers’ and distributors’ plans, registering products, and issuing permits, according to a Law360 report.

RELATED: Texas Officials Declare Delta-8 THC Illegal

Manufacturers and distributors seeking permits must submit floor plans of their facilities, plans for processing and recalls, and proofs of the labels that they plan to use on their products, according to Law360. They will also have to undergo an initial “preoperational” inspection in order to receive the permits.

Permit fees are based on the businesses’ annual sales and can cost up to $1,375, Law360 reported.

It will take the Louisiana Department of Health 10 days to issue a permit to allow a facility to manufacture and distribute consumable hemp, according to Law360.

Ball Family Farms, one of the first social equity cannabis licensees in Los Angeles, relied heavily on social media, particularly Instagram, to launch its business and promote new products before its page was shut down two months ago, wiping away the 120,000 followers the company had worked so hard to build.

RELATED: Ball Family Farms: One of the First Vertically Integrated Social Equity Cannabis Businesses in LA

Their story—and their frustration—is familiar in the cannabis industry, where businesses have long fought “shadow bans” on Facebook (when the platform omits cannabis-related pages and hashtags from users’ search results) and posts that are flagged and taken down for less-than-clear reasons.

RELATED: Facebook Users Can Search for Cannabis Pages Again, But Confusion and Obstacles Abound

While it can be difficult for cannabis businesses to navigate social media, Ball says it is well worth the effort.

LOS ANGELES, Nov. 2, 2021 – PRESS RELEASE – Hervé, maker of luxury French–inspired and cannabis-infused desserts, announced the launch of its signature macarons in California, the world's largest cannabis market. The announcement marks Hervé's first expansion outside of Nevada. Since launching in Nevada in February 2020, Hervé has created a novel category of edibles for the discerning cannabis consumer. Hervé's macarons have outsold all premium edibles in the market and, due to the quality, have commanded retail prices on average two to three times higher than competing products.

California launch flavors include raspberry, chocolate, salted caramel and celebration birthday cake. The macarons will be sold in a box containing three macarons with each macaron containing 10 milligrams of premium THC cannabis distillate, with a total of 30 mg per box. MSRP will be $20 per box plus applicable taxes. Consumers can purchase all four flavors of macarons at select retailers, including Atrium and Medicine Woman in LA, California Street Cannabis in San Francisco, One Plant in Goleta and Antioch and Planet 13 in Santa Ana, with more than 60 additional California dispensaries coming online in the coming months.

Hervé macarons will also be available for delivery direct to home throughout California at shop.herve.fr beginning Oct. 21.

"We couldn't be more excited to launch in California and are thrilled with consumer demand even ahead of our official product launch," said Cheyne Nadeau, vice president of marketing for Hervé. "We always felt that California represented exactly the type of knowledgeable consumer that would appreciate the care and quality that go into our Hervé products, and we are thrilled with all the excitement around our launch.”

Edibles have been increasing in popularity in California, with sales growing over 5% in Q1 of 2021 (from Q4 of 2020) and growing over 20% in Q1 of 2021 year over year. California also has the second largest edibles market share after Michigan.