Seattle Mayor Bruce Harrell developed a trio of bills in partnership with city council members and industry stakeholders to help address equity in the industry.
When Washington State voters legalized adult-use cannabis in the November 2012 election—joining Colorado as a reform guinea pig in the U.S.—social equity was an afterthought, at best.
With a greater emphasis on addressing the past harms of prohibition in today’s legalization world, nearly a decade later, regulators and elected officials in Washington are now pursuing avenues for a more equitable industry.
In Seattle, Mayor Bruce Harrell put forward a trio of bills Aug. 9 he developed in partnership with city council members and industry stakeholders that are intended to address equity in the space by helping to foster a more diverse industry and supporting cannabis store workers.
“For a thriving Seattle economy, every worker and business deserve safety and the opportunity to learn, grow and prosper,” Harrell said in a press release. “As the cannabis industry continues to develop, we must course correct and support the communities who too often have been left behind. Equity in this industry means safe working conditions and fair treatment for workers, store ownership that includes the communities most impacted by the war on drugs, and a commitment to fairness, innovation and opportunity.”
The bill package aims to implement immediate actions as well as structures for long-term solutions. If passed, it would require the following:
The mayor’s announcement of the bill package came nearly a week after Washington State Liquor and Cannabis Board (LCB) regulators announced Aug. 3 that they proposed rules to create a Social Equity in Cannabis program.
RELATED: Washington Regulators Propose Rules to Create Social Equity in Cannabis Program
While LCB has the authority to license and regulate the industry at the state level, the proposed legislation in Seattle would allow the city to take tangible steps toward improving fairness and opportunity in the industry, according to Harrell’s office.
“While these policies alone cannot solve generations of injustice, they are critical first steps and a clear commitment to a One Seattle approach, where we make progress through partnership, working with state and federal leaders, industry stakeholders and store workers to continue moving forward,” the mayor said.
As social equity cannabis licenses are allocated across Washington, Harrell’s proposed legislation would help ensure Seattle is situated to enhance local equity efforts, he said.
In crafting the bills, the mayor partnered with City Councilmember Teresa Mosqueda.
“After years of community asking for greater equity in the cannabis industry, this legislation represents an initial step in the right direction towards creating local equity applications, improving workforce standards, and focusing on safety for workers in the cannabis industry,” Mosqueda said in the mayor’s release.
The mayor and city council also partnered with the Craft Cannabis Coalition, an association of more than 70 retailers and allied producers statewide, including half of Seattle cannabis retail stores.
They also worked with the United Food and Commercial Workers (UFCW) Local 3000 labor union, which includes more than 50,000 members working in various industries, including cannabis, across Washington State, northeast Oregon and northern Idaho.
The 50th store spans 4,500+ square feet of retail space and reflects the elevated retail design showcased at the two recently opened Ayr adult use dispensaries in Greater Boston and representing the future of the company’s presence in Florida.
MIAMI, Aug. 11, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Ayr Wellness Inc., a vertically integrated U.S. multi-state cannabis operator, announces the opening of its 50th Florida dispensary, located in Jacksonville.
“Since acquiring Liberty Health Sciences in 2021, we have rapidly expanded our footprint in Florida, adding an additional 19 retail stores in prime locations,” said Jonathan Sandelman, founder and CEO of Ayr. “We’re proud to deliver on our mission of making high-quality cannabis more accessible to Florida patients by serving 50 local communities throughout the state, with more to come. We’ve invested heavily in the state of Florida because we believe it will be one of the largest cannabis markets in the country, and we’re excited with the progress that our team has made.”
The 50th store spans 4,500+ square feet of retail space and reflects the elevated retail design showcased at the two recently opened AYR adult use dispensaries in Greater Boston and representing the future of the company’s presence in Florida.
The store is located at 8050-1 Philips Highway, conveniently situated southeast of Downtown Jacksonville, minutes from the St. John’s River. Between this newest Jacksonville store and the already operating Jacksonville Beaches store, located just off the beach on A1A at 1222 3rd St., Ayr can now strategically serve Northeast Florida patients, with easy access to Jacksonville, Jacksonville Beaches, University of North Florida and St. John’s Town Center.
“Opening our 50th retail location in Florida is a milestone to celebrate how far Ayr has come in the market, not only with our fresh approach to retail expansion and design, but with our wide variety of product offerings,” said Rhonda Kratz, who leads retail at Ayr. “All 50 of our Florida stores feature Ayr’s full line of concentrates, edibles, vapes, and an evolving selection of high-quality flower, with an evolving omnichannel consumer experience which includes proprietary digital ecosystems, e-commerce, merchandise, and retail stores.”
Following the acquisition of Florida-based Liberty Health Sciences in February 2021, Ayr relocated its U.S. headquarters from New York City to Miami, underscoring the company’s commitment to the region. Since the acquisition, Ayr has expanded its retail footprint by more than 60% and has introduced its full suite of national brands and products to its dispensaries statewide. Today, Ayr Wellness proudly employs more than 680 people across the state of Florida between corporate, retail and field positions.
Florida has more than 740,000 patients enrolled in its medical marijuana program as of Aug. 5, 2022, per Florida OMMU. Florida’s cannabis market ranks fourth in the nation by total legal cannabis sales, per BDSA, and generated over $1.8 billion in medical cannabis revenue in 2021. BDSA expects Florida’s legal cannabis market to generate $3.4 billion per year by 2026.
For more information about Ayr Wellness or to locate your nearest dispensary, please visit https://ayrwellness.com.
31% increase in branded cannabis net revenue to $10.0 million from $7.6 million in the prior year.
TORONTO, Aug. 11, 2022 (GLOBE NEWSWIRE) --PRESS RELEASE-- Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) reports its financial results for the three months ended June 30, 2022, its first quarter of its fiscal year ending March 31, 2023.
Branded cannabis net revenue, quarter over quarter, increased 25%: Aleafia Health continued its upward sales growth trend, with branded cannabis net revenue increasing 24% to a record $10.0 million from $8.0 million quarter over quarter. In the key branded adult-use market, the company’s net revenue increased 107% to $6.7 million from $3.2 million in the same period last year.
“Our pivot to a branded cannabis strategy is the success story driving the three pillars of company revenue: adult-use branded cannabis, a ‘sticky’ recurring medical cannabis revenue stream and growing higher margin international sales,” said Aleafia Health CEO Tricia Symmes. “As a result of revenue increases, the company has achieved the 2nd highest growth rate amongst top 12 Canadian LPs in retail sell through over the prior quarter while achieving a #12 ranking for market share in our core markets for Q2 CY2022.”
“Due to our successful branded growth strategy, the company continues to target a top 10 standing in our key markets and reaffirms our expectation to reach breakeven Adjusted EBITDA profitability during the second half of FY2023,” said Aleafia Health CFO Matt Sale. “Showing continued success in retail sell through provides us the confidence to reaffirm our guidance to deliver at least $53 million in total net revenue in fiscal year 2023, with a current run-rate of $48 million.”
Divvy Brand Leadership: “In each of the three largest revenue categories - flower, pre-rolls and vapes - the company is gaining in market share and continuing to deliver excellent growth rates,” Symmes said. “In the Ontario value category, Divvy flower enjoys a #7 market share ranking (with 3.4% share), pre-rolls enjoy a #5 ranking (with a 6.9% share), and our recently launched vape products continue to grab market share amidst a highly competitive format, and enjoy a 1.4% market share.”
Medical: The company reported a 4% increase in medical cannabis net revenue to $2.8 million in Q1 FY2023 over $2.5 million in the prior quarter. This represents a $11 million run-rate net revenue base. Moreover, the company has attained a milestone 7.5% market share in the overall Canadian medical market, according to Health Canada data. “In a competitive medical cannabis segment, market share has increased and we have restarted our growth trajectory over the last two quarters,” said Symmes. “We continue to penetrate the Quebec market with a 71% quarter over quarter increase in patient registrations. Growth in Quebec has helped to offset industry wide medical channel decline which has also affected our business. Sales to veterans also increased 4% quarter over quarter.”
“Anchored by our Emblem brand, we continue to view medical as a core part of our diversified sales mix, and is synergistic with our branded adult-use channel given the ability to sell products into both segments,” said Sale.
International Revenue Growth: “International revenue is a competitive advantage and a differentiating factor for Aleafia, as we leverage our high quality, diversified flower supply and export it to the higher margin international sales markets,” Symmes said. “Current international agreements have led to more than $0.5 million in sales to Germany and Australia this quarter. We have also secured a new European partner with a $4.6 million sales commitment, representing further channel development. International success leverages both the company’s products and its brands.”
“The newly signed agreement improves revenue and cash flow visibility, locks in attractive margins, and improves our overall cash conversion cycle and net working capital performance,” said Sale.
Continued Cost Rationalization: “We are striving to achieve breakeven Adjusted EBITDA profitability by the end of FY2023,” Sale said. “Firstly, we are increasing revenue by capturing market share. SKU optimization has furthered revenue growth, which aligns the portfolio with the highest selling product formats with strongest margins, coupled with moderate and strategic price increases. Second, we are relentlessly focused on cost rationalization. In addition to difficult headcount reductions and other initiatives, the company has engaged in vendor consolidation to reduce complexity across sites while negotiating trusted vendor price improvements due to economies of scale. With all of these efforts combined, the company has extracted $20 million in annualized SG&A savings over the last four quarters, and break-even Adjusted EBITDA profitability is within our grasp during FY2023, a milestone for the company.”
“On the cultivation side of the business, all processes in our Grimsby, Ont. hybrid greenhouse have been remapped to allow it to meet anticipated growing throughput of high potency THC flower,” said Sale. “With strategic investments to improve flower consistency and quality, we continue to see steady improvements in Grimsby.”
New Nitecaps: “In Q1 FY2023, the company completed development on a breakthrough product that has just been brought to the Ontario and Alberta markets this month,” said Symmes. “Our Noon & Night Nitecaps softgels with CBD suspended in melatonin and-MCT oil are an industry first.”
“We are highly strategic and thoughtful about our new product roll-outs. In this case, Nitecaps can be leveraged in the adult-use and medical channels as sleep is top-of-mind for many patients, addressing an unmet consumer need,” said Sale.
“Aleafia Health today is a vastly different company than it was one year ago,” said Symmes. “With an extraordinary team of people at all levels, we are now positioned to reach new heights, supported by cost containment, a transforming balance sheet, and new equity financing. We are now rooted in a new era, with a relentless drive toward profitability and increased market share capture.”
The new ‘Pre-Roll Inspector’ is accurate to 0.01 gram.
August 10, 2022 – PRESS RELEASE – Canapa has announced an addition to its industry-leading series of check weighing machines, the WeightCheQ 0-250. Engineered with electromagnetic force restoration (EMFR) technology to achieve incredibly tight 0.01-gram tolerances, this high-precision machine ensures a more accurate, consistent pre-roll is delivered for final retail packaging.
The WeightCheQ can be easily paired with any semiautomated pre-roll machine or manual rolling process to double-check pre-roll weights, eliminating product waste while increasing margins.
This technology is also perfectly suited to precisely weigh gummies, capsules and other cannabis products with seamless integration into existing bagging, container filling, flow wrapping and case filling systems.
In addition to innovative EMFR weigh cell technology, this machine features a robust stainless steel frame construction, food grade belts, integrated rejection lighting system, 15-inch color touchscreen with display to three decimal points, storage for up to 20 different recipes and does not require compressed air to operate.
To watch video of the WeightCheQ 0-250 and learn more about other pre-roll solutions from Canapa, visit www.canapasolutions.ca/check-weigher.
The distribution agreement will provide Tilray with direct access to Southern Glazer’s distribution network, reaching consumers everywhere, from local bars and restaurants to independent and national grocery chains and convenience stores.
NEW YORK, Aug. 10, 2022 - PRESS RELEASE - Tilray Brands, Inc., a global cannabis-lifestyle and consumer packaged goods company inspiring and empowering the worldwide community to live their very best life, announced that Fresh Hemp Foods, Ltd., a part of the company’s Tilray Wellness division, has signed a distribution agreement with Southern Glazer’s Wine & Spirits, the preeminent distributor of wine and spirits. The distribution agreement will provide Tilray Wellness with direct access to Southern Glazer’s distribution network, reaching consumers everywhere, from local bars and restaurants to independent and national grocery chains and convenience stores.
Jared Simon, president, of Tilray Wellness and Fresh Hemp Foods, said, “This agreement helps Tilray uniquely position itself to enter the multi-billion-dollar adult beverage category with a non-alcoholic, CBD beverage alternative for consumers who want to relax and unwind.”
As a distributor of beverage alcohol and CBD beverages in the U.S., Southern Glazer’s will be the exclusive distribution partner for the Tilray Wellness CBD beverage portfolio across 13 states with additional opportunities to scale nationwide. This strategic agreement will allow Tilray Brands to develop a U.S. CBD beverage portfolio within familiar retail channels, which will transition the category out of the fringe and into the mainstream. Tilray is excited to tap into the industry’s most knowledgeable CBD sales team and be part of their industry-leading Proof e-commerce platform, so retailers can access its CBD Beverage portfolio 24/7.
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