Cannabis News Update September 25, 2020
Today in the world of cannabis: A CBD company teams up with The Vitamin Shoppe to expand its market reach, Illinois continues to break cannabis sales records on the regular, and sometimes it really feels like High Times can’t catch a break.
The Morning Buzz presented by TRICHOMES brings you late-breaking news that tells you what’s happening within the cannabis industry.
Check in with the cannabis community at TRICHOMES.com
First up: In a distribution deal signed with wellness product retailer The Vitamin Shoppe, Hemp Industry Daily reports that the CBD producer Papa & Barkley is expanding its market reach from 20 to 48 U.S. states.
Headquartered in Eureka, California, Papa & Barkley says that its deal with The Vitamin Shoppe will expand its CBD product availability from 462 to 1,034 retail locations. Beyond The Vitamin Shoppe, Papa & Barkley will also be selling its CBD products in Equinox gyms, Natural Grocers markets, the health-food chain Erewhon, Thrive Market online grocery, and medical supplier PDM Healthcare.
“We are excited to be partnering with national retailers that share our passion for quality products that improve people’s lives,” said Adam Grossman, Founder and Executive Chairman of Papa & Barkley. “We have maintained our leadership position as the top-selling cannabis wellness brand in the California market by making truly differentiated and life-changing products. With these key retail partners, we are now poised for explosive national growth, providing clients with safe access to the health and wellness benefits of Whole Plant Full Spectrum™ CBD products.”
** And next: Ganjapreneur reports that cannabis sales in Illinois to interstate customers have nearly doubled since sales started at the beginning of the year. According to data from Center Square, from January to August, sales jumped from $8.6 million to $17.2 million.
In August, Illinois saw over $600 million in cannabis sales while the state generated $52.8 million in tax revenue from January to July. Because Michigan is the only other state in the Midwest that allows recreational cannabis access to adults, Brandon Costerison, member of the National Council on Alcoholism and Drug Abuse, said that the rise in sales “makes sense” as cannabis demand has jumped during the pandemic.
In April, during the first wave of broad pandemic lockdown procedures, cannabis sales in Illinois maintained its pace, recording $37.3 million in sales during the month. Of that, only $7.6 million of sales were to residents of other states.
The latest numbers come as Illinois appears to set new cannabis sales records monthly. In May, the state recorded $44.3 million in sales. In June, $47.6 million. In July, $61 million. And in August, $64 million.
** And finally: In the latest of many tumultuous situations for the cannabis culture brand High Times, the company appears to have lost two important leases that were meant to be a part of their $80 million retail acquisition. This according to MJBizDaily.
High Times announced the acquisition deal in April which included two San Francisco cannabis properties. SF Weekly and MZBizDaily reported that both properties are now listed as up for lease.
This comes as High Times has made other company announcements that hang in the balance. For example, the company has been working on a Reg A small investor public stock offering for two years. However, until the company files its 2019 audited financials, which it hasn’t done yet, High Times cannot close on the offering.
In August, High Times announced another acquisition of two cannabis properties in Shasta Lake, California which the company says will be rebranded into High Times retail locations.
It has been reported that High Times lost the two San Francisco properties to Arizona multistate operator Harvest Health & Recreation.
