Business
Canadian cannabis companies back off from US hemp CBD market
Back in the regulated marijuana industry’s more heady days, a U.S. hemp-derived CBD subsidiary seemed like the must-have accessory for any Canadian cannabis company worth its bud.
Canopy Growth Corp. owned a hemp farm in Springfield, New York, and planned to build a $150 million industrial park in Kirkwood, New York, to produce hemp products.
Aurora Cannabis bought Reliva – a Massachusetts-based producer of hemp-derived CBD products – in a $40 million deal that included potential earnouts.
And Cronos Group spent hundreds of millions of dollars to acquire the Lord Jones hemp CBD brand.
The purchases came after the passage of the 2018 U.S. Farm Bill that legalized low-THC hemp, including hemp-derived CBD.
That legislation generated optimism about a new, multibillion-dollar market for hemp-derived products.
Now, after investor exuberance about the cannabis sector has largely worn off, several Canadian marijuana companies have retreated in one way or another from the hemp-derived CBD market south of the 49th parallel:
- Canopy announced in 2020 that it would stop farming hemp in New York in the face of “an abundance of hemp,” although it continued producing and selling hemp-derived CBD products. The Kirkwood project was abandoned, local media reported.
- Cronos announced in June it was exiting the U.S. hemp CBD market and relaunching Lord Jones in Canada.
- This month, Aurora said it was closing Reliva.
- Green Roads, a Florida CBD manufacturer acquired by Canadian cannabis manufacturer The Valens Co. – which was subsequently acquired by Canadian producer SNDL — filed for bankruptcy earlier this year and was acquired by Global Widget, parent company of Hemp Bombs.
The Canadian pullback from hemp CBD in the U.S. partly reflects the diminished fortunes of once-high-flying Canadian cannabis licensed producers.
It also reflects a general lull in the American hemp-derived CBD market, given the U.S. government’s continuing struggle over how to regulate products containing CBD.
“It’s a very, very difficult market in the U.S. right now,” said Bethany Gomez, managing director of Chicago-based cannabis analytics firm Brightfield Group.
Brightfield Group data shows the U.S. CBD market peaked in 2021 at roughly $4.7 billion in sales before contracting to $4.4 billion in 2022, with another decline expected in 2023.
Canadian ambitions
When big Canadian cannabis companies originally invested in U.S. hemp-derived CBD assets, they were well-capitalized and eager to expand their operations around the world.
“And around 2020, it was starting to become clear that there’s only so much that these cannabis companies can grow within the country of Canada – Canada’s only so big, and there’s only so much cannabis that can be consumed there,” Gomez explained.
Canadian licensed producers (LPs) invested heavily in international markets, but Gomez said the U.S. was “the golden prize.”
As publicly traded companies in the U.S., those LPs couldn’t deal with a substance that’s federally illegal.
The American hemp-derived CBD market seemed like a way “to get a foothold there without violating federal law,” Gomez said.
“They could play in the CBD space and then eventually take that presence in CBD into the (high-THC) cannabis space. ”
For Canadian firms, operating in the U.S. CBD space was meant to be “an opportunity to plant the seed of a brand early on (and) get that into the mainstream,” said Beau Whitney, chief economist of Portland, Oregon-based hemp and marijuana data and analysis firm Whitney Economics.
“And then, as the adult-use market opens up, you’ve already got a brand established – and then you just convert over to your adult-use product line.”
American hemp CBD headwinds
So far, the plan to leverage U.S. hemp CBD assets to get a leg up on adult-use cannabis in the event of federal legalization hasn’t played out as expected.
“Fast forward to 2023 – there’s no movement at all on federal legalization for cannabis,” Brightfield’s Gomez said.
“There’s very little optimism in federal legalization toward cannabis, there’s no movement from the (U.S. Food and Drug Administration) on (regulation) of CBD, and that market has really hit a standstill.
“And there’s not a lot of promise, in the near term, of cannabis taking off, or having a type of triggering event that would allow them to really tap the U.S. cannabis market.”
In the meantime, the cannabis industry faces an ongoing “capital crunch,” Gomez added – and investors aren’t willing to wait for businesses to become profitable given the uncertainty of federal legalization.
“There’s this pressure to get rid of anything that is not profitable. … Cash is king, and people are starting to run low on cash in many areas.”
Cronos, for example, said it was exiting its American hemp CBD operations “to improve its cash flow in the near term and position itself to directly enter the U.S. THC market” when regulations permit.
Cannabis economist Whitney said Canadian LPs are “pulling back (and) focusing in on their core business” as well as cutting fixed costs in both the U.S. and Canada.
Whitney noted another challenge for companies operating in U.S. hemp CBD: State-level uncertainty amid a lack of federal regulatory guidance.
“And so this is also a risk-mitigation play,” he said, citing shifting state regulations regarding hemp-derived cannabinoids.
Despite the pullback, Canadian cannabis companies haven’t entirely abandoned the U.S. hemp market.
Canopy Growth still sells Martha Stewart and This Works CBD products in the U.S.
Tilray Brands’ Canada-based wellness brand, Manitoba Harvest, operates in the U.S., although Brightfield’s Gomez noted the Tilray subsidiary is more focused on hemp foods than CBD products.
Village Farms International, the parent company of Canadian LP Pure Sunfarms, also owns hemp CBD company Balanced Health Botanicals, although Village Farms isn’t strictly Canadian.
Evolving business practices
The continuing Canadian pullback from U.S. hemp CBD comes as overall hemp production has declined, with U.S. Department of Agriculture data showing a nearly 50% decline in planted hemp acreage between 2021 and 2022.
For hemp CBD, “the amount of licensed acres in the United States right now is less than what it was before the 2018 Farm Bill,” economist Whitney said.
“And so, the number of cultivators have been dramatically reduced for cultivation of hemp with the intention of cannabinoid use, or cannabinoid productization.”
Meanwhile, Whitney sees an evolution in the way some companies approach the cannabis market, citing as an example Canopy’s move toward an “asset-light model” with third-party sourcing.
Whitney expects companies will “develop that very same model for hemp and hemp-derived products.”
By way of analogy, Whitney offered ketchup.
Canadian LPs and U.S. multistate marijuana operators alike have “tried to be experts in the equivalent of growing tomatoes, of processing tomatoes, of making ketchup and distributing that ketchup,” he said.
But ketchup kings such as Heinz or Hunt’s “don’t do that with their ketchup,” he continued: They contract out to tomato growers and processors, then brand and sell the ketchup themselves.
“I think that’s the very same model that we’re starting to see evolve for cannabis, for the LPs out of Canada, and for some of the MSO brands in the United States,” he said.
“Now it’s starting to come into a branding play and an outsourcing play, (a) contract-manufacturing play, much more so than a vertical-integration play – even though, with the Trump tax cuts a few years ago, it was favorable to develop a vertically integrated model.”
The retreat of some companies from the American hemp CBD sector might benefit those who remain, suggested Brightfield’s Gomez.
Hemp CBD assets are “being sold at a fraction of the cost that these companies paid for them,” she said, “which indicates that valuations are an order of magnitude lower, and there’s a lot of people that are out there right now that are shopping for distressed assets.”
Source: https://mjbizdaily.com/canadian-cannabis-companies-back-off-from-us-hemp-cbd-market/
Aviation
IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?
Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.
Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.
Root Cause: IndiGo’s Market Monopoly
The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.
This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.
Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.
Government Intervention and Regulatory Weakness
The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.
Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.
The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.
If Telecom Giants Fail: A National Paralysis
The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?
If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.
In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.
E-commerce Monopoly: Another Fragile Ecosystem
The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.
Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.
A Wake-Up Call for Regulators
The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.
As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.
Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.
Agriculture & Life Sciences
Canada’s Cannabis Industry Urges Government to Support Growing Export Market
BuzzBuzz Cannabis Business News — 24 November 2025
Canada’s cannabis sector is calling on federal and provincial governments to recognize its fast-growing export potential and extend the same support other regulated industries receive. Industry leaders warn that Canada is losing its early global advantage due to slow regulatory processes, lack of trade promotion, and limited access to government-backed financing.
Canada’s medical-cannabis exporters now generate more than half a billion dollars annually and ship products to major markets including Germany, the UK, Australia, and Poland. Despite this, cannabis remains largely absent from Canada’s official trade and export strategies.
Industry Calls for Streamlined Export System
Paul McCarthy, President of the Cannabis Council of Canada, says the country has everything required to dominate the global medical cannabis trade—except government alignment.
“Our requests are simple,” McCarthy said. “Expedite Health Canada’s export-permit process, integrate cannabis into federal export programs like Global Affairs Canada trade missions and CanExport, and ensure provinces include cannabis in their export strategies.”
He stressed the need for mutual recognition agreements with importing countries to eliminate redundant testing and documentation. Access to Export Development Canada (EDC) and Business Development Bank of Canada (BDC) services also remains off-limits to cannabis exporters, placing them at a steep disadvantage.
“This industry does not just need permission to operate,” McCarthy added. “It needs to be treated like every other legitimate contributor to Canada’s trade objectives.”
Competitors Are Moving Faster
McCarthy warns that while Canada pioneered medical cannabis standards, other countries are rapidly advancing with more flexible and export-friendly systems.
“Faster approvals, lower compliance costs, and active government-backed strategies are helping other nations catch up,” he said. “Canada’s regulatory friction is already costing us global market share.”
Export permits currently must be issued for each shipment—a process that can take weeks—and Canadian testing standards often differ from international requirements, forcing companies to repeat expensive compliance checks.
High Tide CEO: Canada Needs a National Export Strategy
Raj Grover, CEO of High Tide Inc., says Canada risks surrendering its leadership if policymakers remain inactive.
“Canada developed the world’s most advanced cannabis regulatory system and contributed $76.5 billion to GDP since legalization,” Grover said. “But without a National Cannabis Export Strategy, we will lose ground to Australia, Israel, Portugal, and other emerging competitors.”
He noted that Canada’s industry table created by Innovation, Science and Economic Development Canada (ISED) has not met in more than a year—an opportunity wasted.
Grover urged the federal government to introduce domestic GMP certification and potency standards to streamline international market access. “Canadian producers must currently get GMP approval country by country. It’s duplicative and costly. Canada should be setting global benchmarks, not chasing them.”
Germany: A Key Market for Canadian Firms
High Tide recently expanded into Europe with its majority acquisition of Germany’s Remexian Pharma GmbH, giving the company a direct import and distribution channel in Europe’s largest medical-cannabis market.
“Our German strategy is already structured for success,” Grover said. “Through Remexian, we can supply premium medical cannabis at the lowest possible price, helping meet Germany’s quality and cost demands.”
Grover also warned that U.S. companies are already purchasing Canadian firms to stage their own international expansion—another sign that Canada’s leadership position is slipping.
Government Response Remains Limited
In response to industry concerns, a Global Affairs Canada spokesperson said the Trade Commissioner Service “continues to support exporters of cannabis for medical and scientific purposes that have obtained Health Canada permits.”
However, industry leaders argue that this support is minimal and does not include key tools such as trade missions, export credits, or bilateral agreements that other sectors routinely receive.
A Closing Window of Opportunity
With medical-cannabis exports already exceeding $500 million annually, industry executives say Canada must act quickly to preserve its competitive edge.
As McCarthy warns, without coordinated government support, Canada risks losing high-value pharmaceutical manufacturing, research investments, and thousands of skilled jobs.
And as Grover’s expansion into Germany demonstrates, the industry is moving forward—but whether Canada moves with it may determine if the country remains a global leader or becomes a pioneer that let others capitalize on its breakthroughs.
Business
A Tipping Point for Cannabis: President Trump Champions CBD & Cannabis Science on Truth Social
When the President of the United States shares a video about the life changing potential of hemp derived CBD on his personal social media platform, it is more than news, it is a cultural shift.
For decades our government lied to us about cannabis. It demonized the plant, waged war on its users, and filled prisons while allowing pharmaceutical companies to flood the nation with addictive and deadly drugs. For over a century we have been fighting uphill, not just for legalization, but for truth, for science, and for the right to heal ourselves naturally.
Now in 2025, the most powerful political figure on Earth is using his own voice and platform to talk about the endocannabinoid system and the science backed benefits of CBD. That is monumental. It is validation for everyone who has fought, been arrested, been silenced, and been dismissed for telling this truth. The President’s video post is already being described as a pivotal moment in cannabis history, and President Trump CBD Cannabis Science Truth Social is trending across platforms as advocates celebrate the breakthrough.
The Science Behind the Endocannabinoid System
The video begins by introducing something most people, including many doctors, still know little about, the endocannabinoid system. Discovered in the 1990s, the ECS is a network of receptors and signaling molecules that works as the body’s master regulator, coordinating communication between major systems like the nervous, immune, cardiovascular, and digestive systems.
The roots of this discovery go back much further. CBD was first isolated in 1940 by American chemist Roger Adams, but it was Dr. Raphael Mechoulam, an Israeli organic chemist, who fully elucidated the chemical structure of CBD and identified its stereochemistry in the 1960s. His pioneering work not only opened the door to modern cannabinoid science but also earned him the title “Godfather of Cannabis Research.” It was this foundation that led to the identification of the endocannabinoid system itself decades later, revealing how cannabinoids interact with our physiology on a fundamental level.
The ECS is now widely recognized as a vital part of human biology, with extensive research supported by the National Institutes of Health. When functioning properly, the ECS acts like the conductor of an orchestra, ensuring every section plays in harmony. As we age, the system weakens. That imbalance is linked to inflammation, chronic pain, cognitive decline, sleep problems, and many other conditions associated with aging.
Mainstream medicine often addresses these issues with pharmaceutical band aids, dangerous and addictive drugs that treat symptoms rather than root causes. Lifestyle changes such as diet and exercise help, but they only partially support the ECS and do so slowly over time.
Hemp Derived CBD: A Game Changer for Aging
Here is where the science gets exciting. As the video explains, the ECS can be restored much more quickly with hemp derived CBD. Strengthening this system naturally helps the body regain balance, reducing pain, improving sleep, lowering stress, slowing disease progression, and even extending healthy lifespan.
It is not theoretical. One in five seniors is already using CBD to manage pain, arthritis, cancer symptoms, sleep disorders, Alzheimer’s, and more. Despite decades of research and acknowledgment from institutions like the National Institutes of Health, most physicians receive no training on the ECS. There are still no FDA standards for CBD products on the market. If that were the case for any other class of medicine, it would be considered malpractice.
The World Health Organization has confirmed CBD’s excellent safety profile and non addictive nature in its critical review report. The result is that millions of older Americans are suffering unnecessarily when a safe and natural solution exists.
Hemp derived CBD is a powerful first step in restoring balance to the endocannabinoid system, but it is only part of the picture. Research shows that full spectrum cannabis extracts, which include a broader range of cannabinoids and terpenes, can work even more effectively. Complete concentrated cannabis oil, containing the full spectrum of natural endocannabinoids, may deliver the most profound results for certain patients. Expanding access to these therapies will be essential if we want to unlock the full healing potential of this plant.
The Economic and Social Impact
The video cites a powerful figure. A PricewaterhouseCoopers analysis estimates that fully integrating cannabis into the healthcare system could save the United States nearly 64 billion dollars annually. These savings reflect reduced pharmaceutical dependency, fewer hospitalizations, improved chronic disease outcomes, and enhanced quality of life for aging Americans. You can read more about PwC’s research on healthcare innovation here.
It is a financial argument, but it is also a moral one. Why should our elders endure pain, anxiety, and cognitive decline when nature has given us tools to help them live longer, happier, and healthier lives?
A Call to Action: Finish What the Farm Bill Started
The message concludes by crediting the 2018 Farm Bill, championed by President Trump, for legalizing hemp and laying the groundwork for today’s CBD market. The Farm Bill was just the first step.
Now the call is for bold next moves.
- Educate doctors about the endocannabinoid system
- Include CBD under Medicare coverage
- Provide clear federal standards for CBD quality and dosing
These steps would constitute the most significant senior health reform in modern history, one that would transform aging and cement a powerful legacy for any administration that makes it happen.
What This Means for Future Cannabis Medicine
For those of us who have been in the cannabis community for decades, this is not just another news story. It is a signal that our movement is winning. A conversation that was once criminalized and censored is now being amplified by the President of the United States on his own platform.
It means the science is undeniable. It means the truth can no longer be buried. It means the wall of prohibition is cracking, not just legally, but culturally, scientifically, and politically.
It also means that everything we have been fighting for at 420 Magazine since 1993, education, access, healing, and justice, is finally moving full steam ahead. The President Trump CBD Cannabis Science Truth Social moment is proof that science and policy are finally converging.
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