Business
Canadian Beer Consumption Has Been Dropping Ever Since Cannabis Was Federally Legalized
Canada is showing a trend of dropping booze for weed that other US states are seeing!
As cannabis legalization continues to gain momentum, a new trend is emerging in the beverage industry. According to national data, beer sales have declined since cannabis legalization. Although experts predict that it may take years, or even a generation, for this trend to fully manifest, early signs point to a shift in consumer preferences.
But so far, many have found relief in the newfound ability to purchase cannabis with clear information about its THC and CBD content and strain. By experimenting with different products, many individuals have discovered the perfect combination to help them relax and unwind at the end of the day. They now choose cannabis over alcohol as a safer alternative. In fact, a significant percentage remark that cannabis could be something they choose over alcohol to relax and mark the end of the day.
As more and more consumers switch to cannabis, the beer industry may have to adapt to a new reality. But while it is still too early to tell the full extent of this shift, it is clear that cannabis legalization impacts the beverage market.
The Beer Industry Taking The Hit
An increase in cannabis legalization across Canada is being felt in the beer industry. According to statistics, beer sales have significantly dropped in provinces with a high concentration of cannabis retail stores, such as Newfoundland and Labrador and the three Prairie provinces. However, this trend is less prominent in provinces like Ontario and Quebec, which have been slower to establish a retail cannabis market. Additionally, in British Columbia, where cannabis was more readily available before legalization, the effect is less pronounced.
The only exceptions to this trend are the three Maritime provinces, where beer consumption remains unchanged despite an increased rate of cannabis use. Additionally, in provinces that are actively expanding their cannabis retail networks, such as Alberta, the decline in beer sales has intensified. In December 2019, for example, sales of domestic beer in bottles and cans in Alberta were down 6.4% from the previous year.
According to Rebecca Haines-Saah, a health sociologist at the University of Calgary, this trend may be because cannabis is now a legal substance, and people are choosing the experience of being intoxicated from it over alcohol. She notes that while the alcohol market is not disappearing, it is being substituted with cannabis consumption.
A Shift In Consumer Behavior
Experts also are noticing a shift in consumer behavior. Dan Malleck, a health policy historian from Brock University, notes that this shift is “fairly significant” as more people are opting for cannabis instead of beer, whisky, or other spirits to unwind at the end of the day.
Haines-Saah, a health sociologist, suggests that this trend may be due to people looking for a healthier substance to help them detach from life’s stressors. She notes that people are turning to cannabis as a relief, aiming to improve their quality of life and promote relaxation. Additionally, as people weigh the harms and benefits of cannabis against alcohol or prescription drugs, they may find that cannabis is a safer and more effective option.
Experts are pointing out that cannabis may be a safer alternative to alcohol. A lower percentage of users become addicted to cannabis than alcohol, and alcohol is linked to a wide range of health situations, including cancer and liver disease.
As people age, they tend to have sleep problems and deal with various stressors such as children, aging parents, the workplace, and financial concerns. In light of these challenges, more people may turn to cannabis to find relief. However, the profound social acceptance of alcohol may impede the shift toward cannabis. Everyone interviewed by Global News acknowledged that while the change towards cannabis is significant, it may take some time to fully take place.
Despite the increasing acceptance of cannabis use, it is still considered less socially acceptable than alcohol consumption, particularly in social settings. Anindya Sen, an economist from the University of Waterloo, notes that it is uncertain how long it will take for this perception to change, as many people still view cannabis as a gateway to more dangerous substances.
However, Haines-Saah, a health sociologist, sees this shift as a potential benefit to public health. She notes that based on current evidence, it would be more beneficial to legalize cannabis and make alcohol and tobacco illegal due to their higher net health harms. Furthermore, she points out that the harms associated with cannabis are primarily a result of prohibition and not the substance itself.
In fact, some experts even jokingly suggest that if everyone consumed cannabis at a hockey game, there would be no more riots or fights in the street after a Stanley Cup final, as cannabis has a calming effect on individuals.
A Complex Relationship Between Alcohol and Cannabis
The relationship between alcohol and cannabis use is complex and not fully understood, particularly as legal cannabis has only recently become widely available. However, early research suggests that as legal cannabis becomes more accessible, certain forms of alcohol consumption may decrease.
A study in the United States revealed that student binge drinking was less prevalent in states where cannabis is legal and has become even less common following legalization. The study’s authors suggest that when cannabis and alcohol are similarly available from legal sources, fewer individuals turn to alcohol, resulting in less problematic alcohol use.
Cannabis-infused beverages, which provide the effects of THC faster than edibles, may also contribute to a decrease in alcohol consumption. However, producing cannabis drinks on a large scale has proven to be a challenge for manufacturers. Currently, cannabis-infused beverages, except tea, are not widely available for purchase in Canada.
A separate 2017 study in the United States also found that the availability of medical cannabis led to a significant decline in alcohol sales. A 2018 survey of self-reported cannabis users also revealed that nearly half of the respondents would drink less alcohol if cannabis were legalized. However, it should be noted that intentions and actual behavior may differ.
Conclusion
While the relationship between cannabis and alcohol use is complex and not fully understood, early research suggests that as legal cannabis becomes more accessible, certain forms of alcohol consumption may decrease.
Studies conducted in Canada have revealed that student binge drinking is less prevalent in provinces where cannabis is legal, and has become even less common following legalization. Additionally, cannabis-infused beverages may also contribute to a decrease in alcohol consumption.
However, it should be noted that the relationship between cannabis and alcohol is still an evolving area of research and more studies are needed to fully understand the impact of cannabis legalization on alcohol consumption.
Business
New Mexico cannabis operator fined, loses license for alleged BioTrack fraud
New Mexico regulators fined a cannabis operator nearly $300,000 and revoked its license after the company allegedly created fake reports in the state’s traceability software.
The New Mexico Cannabis Control Division (CCD) accused marijuana manufacturer and retailer Golden Roots of 11 violations, according to Albuquerque Business First.
Golden Roots operates the The Cannabis Revolution Dispensary.
The majority of the violations are related to the Albuquerque company’s improper use of BioTrack, which has been New Mexico’s track-and-trace vendor since 2015.
The CCD alleges Golden Roots reported marijuana production only two months after it had received its vertically integrated license, according to Albuquerque Business First.
Because cannabis takes longer than two months to be cultivated, the CCD was suspicious of the report.
After inspecting the company’s premises, the CCD alleged Golden Roots reported cultivation, transportation and sales in BioTrack but wasn’t able to provide officers who inspected the site evidence that the operator was cultivating cannabis.
In April, the CCD revoked Golden Roots’ license and issued a $10,000 fine, according to the news outlet.
The company requested a hearing, which the regulator scheduled for Sept. 1.
At the hearing, the CCD testified that the company’s dried-cannabis weights in BioTrack were suspicious because they didn’t seem to accurately reflect how much weight marijuana loses as it dries.
Company employees also poorly accounted for why they were making adjustments in the system of up to 24 pounds of cannabis, making comments such as “bad” or “mistake” in the software, Albuquerque Business First reported.
Golden Roots was fined $298,972.05 – the amount regulators allege the company made selling products that weren’t properly accounted for in BioTrack.
The CCD has been cracking down on cannabis operators accused of selling products procured from out-of-state or not grown legally:
- Regulators alleged in August that Albuquerque dispensary Sawmill Sweet Leaf sold out-of-state products and didn’t have a license for extraction.
- Paradise Exotics Distro lost its license in July after regulators alleged the company sold products made in California.
Golden Roots was the first alleged rulebreaker in New Mexico to be asked to pay a large fine.
Source: https://mjbizdaily.com/new-mexico-cannabis-operator-fined-loses-license-for-alleged-biotrack-fraud/
Business
Marijuana companies suing US attorney general in federal prohibition challenge
Four marijuana companies, including a multistate operator, have filed a lawsuit against U.S. Attorney General Merrick Garland in which they allege the federal MJ prohibition under the Controlled Substances Act is no longer constitutional.
According to the complaint, filed Thursday in U.S. District Court in Massachusetts, retailer Canna Provisions, Treevit delivery service CEO Gyasi Sellers, cultivator Wiseacre Farm and MSO Verano Holdings Corp. are all harmed by “the federal government’s unconstitutional ban on cultivating, manufacturing, distributing, or possessing intrastate marijuana.”
Verano is headquartered in Chicago but has operations in Massachusetts; the other three operators are based in Massachusetts.
The lawsuit seeks a ruling that the “Controlled Substances Act is unconstitutional as applied to the intrastate cultivation, manufacture, possession, and distribution of marijuana pursuant to state law.”
The companies want the case to go before the U.S. Supreme Court.
They hired prominent law firm Boies Schiller Flexner to represent them.
The New York-based firm’s principal is David Boies, whose former clients include Microsoft, former presidential candidate Al Gore and Elizabeth Holmes’ disgraced startup Theranos.
Similar challenges to the federal Controlled Substances Act (CSA) have failed.
One such challenge led to a landmark Supreme Court decision in 2005.
In Gonzalez vs. Raich, the highest court in the United States ruled in a 6-3 decision that the commerce clause of the U.S. Constitution gave Congress the power to outlaw marijuana federally, even though state laws allow the cultivation and sale of cannabis.
In the 18 years since that ruling, 23 states and the District of Columbia have legalized adult-use marijuana and the federal government has allowed a multibillion-dollar cannabis industry to thrive.
Since both Congress and the U.S. Department of Justice, currently headed by Garland, have declined to intervene in state-licensed marijuana markets, the key facts that led to the Supreme Court’s 2005 ruling “no longer apply,” Boies said in a statement Thursday.
“The Supreme Court has since made clear that the federal government lacks the authority to regulate purely intrastate commerce,” Boies said.
“Moreover, the facts on which those precedents are based are no longer true.”
Verano President Darren Weiss said in a statement the company is “prepared to bring this case all the way to the Supreme Court in order to align federal law with how Congress has acted for years.”
While the Biden administration’s push to reschedule marijuana would help solve marijuana operators’ federal tax woes, neither rescheduling nor modest Congressional reforms such as the SAFER Banking Act “solve the fundamental issue,” Weiss added.
“The application of the CSA to lawful state-run cannabis business is an unconstitutional overreach on state sovereignty that has led to decades of harm, failed businesses, lost jobs, and unsafe working conditions.”
Business
Alabama to make another attempt Dec. 1 to award medical cannabis licenses
Alabama regulators are targeting Dec. 1 to award the first batch of medical cannabis business licenses after the agency’s first two attempts were scrapped because of scoring errors and litigation.
The first licenses will be awarded to individual cultivators, delivery providers, processors, dispensaries and state testing labs, according to the Alabama Medical Cannabis Commission (AMCC).
Then, on Dec. 12, the AMCC will award licenses for vertically integrated operations, a designation set primarily for multistate operators.
Licenses are expected to be handed out 28 days after they have been awarded, so MMJ production could begin in early January, according to the Alabama Daily News.
That means MMJ products could be available for patients around early March, an AMCC spokesperson told the media outlet.
Regulators initially awarded 21 business licenses in June, only to void them after applicants alleged inconsistencies with how the applications were scored.
Then, in August, the state awarded 24 different licenses – 19 went to June recipients – only to reverse themselves again and scratch those licenses after spurned applicants filed lawsuits.
A state judge dismissed a lawsuit filed by Chicago-based MSO Verano Holdings Corp., but another lawsuit is pending.
Source: https://mjbizdaily.com/alabama-plans-to-award-medical-cannabis-licenses-dec-1/
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