Investor Ideas Potcasts #631, Cannabis News and Stocks on the Move - 420 Roundup
Delta, Kelowna, BC - April 22, 2022 (Investorideas.com Newswire) www.Investorideas.com, a global news source covering leading sectors including marijuana and hemp stocks and its potcast site release today's podcast edition of cannabis news and stocks to watch plus insight from thought leaders and experts.
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Today's podcast overview/transcript:
In today's podcast we look at a few private and public company announcements.
Happy Belated 4/20! In today's podcast we will be looking at a few different reports and news articles focussing on where the cannabis industry is today, where it's going and how this year's 4/20 highlighted some of these findings.
Looking at a new report from New Frontier Data titled "Cannabis Consumers in America: Dynamics Shaping Normalization in 2022" we see that "Across both legal and illicit markets, consumption patterns are normalizing to where demographic variables such as age and gender are more influential than market legality in predicting behaviors that are increasingly routine. The report's findings concluded that cannabis consumers are becoming more intentional with the plant's use, and the primary reasons for consumption now span relaxation, pain management, improving sleep outcomes, treating medical conditions and improving overall wellness.
Since 2018, New Frontier Data has surveyed more than 20,000 consumers to benchmark and analyze cannabis consumer behavior for endemic and non-endemic organizations.
"Cannabis is no longer a one-size-fits-all industry," noted Gary Allen, CEO, New Frontier Data. "It's now a commercial imperative for brands, retailers and operators to do the homework required to understand their ideal customer, why they consume and what products they prefer."
In the report it was stated that "With combined U.S. legal and illicit sales estimated at $97 billion in 2021, can- nabis consumer demand in America now exceeds what the nation annually spends on spirits, and roughly matches what it spends on beer. Continued strong growth in legal demand, which is expected to serve most U.S. demand by 2030, is driving surging interest in cannabis among CPG companies, investors, and entrepreneurs alike."
"Furthermore, as science continues to affirm the comparative health effects of alcohol and tobacco relative to cannabis, and social acceptance of cannabis increases, more consumers will expectedly substitute cannabis for alcohol in the coming years, and in the process, increase the acceptability and use of cannabis in American social society."
Some of the other key takeaways from the report were:
- Nearly half (46%) of all survey respondents report using cannabis daily as product selection expands with more convenient, discreet and precise consumption methods.
- Flower accounts for half of all legal sales nationally, but the majority of consumers are now using non-flower products, as the quality and selection of products expands.
- The collective curiosity of consumers to try new forms of cannabis is fueling product innovation and highlighting the importance of targeted brand and loyalty strategies.
- Positive outcomes from medical cannabis use are driving increased acceptance as half of medical cannabis patients report their conditions improved significantly and 93% report at least some improvement.
The report also included that "Cannabis consumers were more than twice as likely to self-identify as LGBTQ compared to the general population. The overindexing of cannabis use within the LGBTQ community presents an opportunity for further research into why cannabis use is so much higher among that group, and for brands to understand the importance of the LGBTQ community in their consumer bases. While Pride Month has become a major celebration on the U.S. retail calendar, given the large representation of the LGBTQ community in the cannabis consum- er base, cannabis brands and retailers would be advised to consider opportunities to serve the community not just during Pride Month, but throughout the year."
The report also conlcluded that "With more than half of the country now living in states where cannabis is legal in some form, and with an additional 18 states poised to legalize either medical or adult-use programs over the next decade, nearly all Americans (96%) could be living in legal cannabis markets by 2030."
Another sign pointing to renewed interest in the cannabis industry was with Roundhill Investments who announced its debut of its cannabis-themed exchange-traded fund yesterday.
The Roundhill Cannabis ETF (WEED) will invest in exchange-listed equities and total return swaps that have exposure to the cannabis and hemp markets, according to a filing with the U.S. Securities and Exchange Commission. It will be listed on the Cboe BZX Exchange.
"While publicly-listed cannabis companies have recently underperformed, we believe that the cannabis market may be entering an inflection point in terms of both profitability and regulatory momentum," Will Hershey, Roundhill's chief executive officer, said in a statement. "WEED allows for U.S. retail and institutional investors to gain exposure to U.S. operators, potentially in advance of positive legislation."
Pot ETFs have grown in popularity on Wall Street over the last two years, with the market for cannabis and psychedelic funds pulling in about $2.3 billion in 2021, up from $686 million the year before, according to data compiled by Bloomberg.
The uptick came as more U.S. states adopted the legalization of marijuana for medical or recreational purposes. So far, 37 states have legalized marijuana for medical use, while 18 states and Washington D.C. have legalized it for recreational use, according to the National Organization for the Reform of Marijuana Laws.
In recent news in Germany yesterday, at least 500 pro-legalization protesters gathered in front of Berlin's Brandenburg Gate to try to urge the government to move forward with its plans to decriminalize the drug.
It was Chancellor Olaf Scholz's new government who last December announced that "We will introduce the controlled distribution of cannabis to adults for recreational purposes in licensed stores," the government promised, before detailing its reasons. "This will ensure quality, prevent the proliferation of impure substances and guarantee youth protection. We will evaluate the law's social consequences after four years."
After more than five months and there has still been no word or timetable about when legal stores might be opened, pro-cannabis activists are getting impatient at what they consider unnecessary foot-dragging. After all, the Green Party, now a part of the government coalition, has already presented a draft law to the Bundestag in the last few years and seen it defeated.
"All they have to do is sign it," said Martin Montana, dressed in a suit decorated from head to foot with florescent green marijuana leaves. "What's important is protecting young people, making sure it's not dealt in schoolyards - all that's logical, just like with alcohol."
Montana is a former soldier who said he used cannabis to cope with the symptoms of post-traumatic stress disorder. "I need it to control my flashbacks, and for the last 20 years I've managed to do that," he said. "I just want to do that peacefully and legally."
If you're in New Jersey, 4/20 starts today as starting today adult-use marijuana sales are now legal in the Garden State, opening the doors to what analysts believe could be a $2 billion market by 2025. It's been a long wait for New Jersey's proponents of recreational cannabis: Voters in the state first approved a ballot measure legalizing recreational marijuana sales in Nov. 2020, and Gov. Phil Murphy signed the bill into law in Feb. 2021.
Delays in establishing a regulatory framework for the industry have left consumers waiting more than a year for the moment when anyone over the age of 21 can walk into one of the state's dispensaries and walk out with legally purchased cannabis.
So now after a long wait, New Jersey's dispensary owners are expecting today's launch to have something of "a celebratory aspect to it, for sure," Joe Bayern, CEO of cannabis company Curaleaf, tells CNBC Make It. "People just want to be part of the experience and learn and come from an educational standpoint, to see what it's all about."
In another recent news article, 60 year old Michael Barrows was one of dozens of people who lined up before dawn to join the celebratory scene.
"It's pretty amazing, exciting and if I get pulled over on the way home and I'm ever asked if I have any drugs in the car now I'm allowed to say only this," Barrows said, holding up the canister of marijuana flower he had just purchased. Possession of cannabis is legal now in New Jersey, though driving under the influence is still prohibited.
Barrows, joined a steady stream of other novelty seekers, longtime marijuana users and medical patients at RISE in Bloomfield, near the state's biggest city, Newark, and not far from New York City.
Hagan Seeley, 23, said "It feels right. It feels safe. It feels like everything you'd want it to be rather than anything you could get anywhere else."
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