🌿 Biden doubles down on weed promises

Happy Weed Wednesday. Thanks for checking out the newsletter that makes you smarter about weed in 4 minutes and 20 seconds or less. Here’s what we got for you this week:

  • Federal reform: Biden doubles down as a new senate bill is set to be introduced

  • Business highlights: Cannabis stocks soar on report of decriminalization bill, hemp clothing sales reach $6 billion, Cookies continues to expand across the U.S.

  • Colorado sales: Things aren't going so great for weed businesses

  • Pot Politics: Britney Griner case continues in Russia, Germany one step closer to legalization, cannabis stores coming soon to Connecticut

Best of social media

Before we get to the news, here's the funniest thing we saw on social media this week. With inflation hitting a 40 year high, it's only right for each of us to reach new highs as well.

Federal decriminalization is back in the headlines

President Biden isn't very good at reading teleprompters but he's pretty good at reading this newsletter. Last week we wrote about Biden falling off bikes and falling short on cannabis reform promises. This week Biden doubled down on one of his weed promises and told reporters "we're working on the Crime Bill now." He is also getting support from his buddies in the senate who are planning to introduce a decriminalization bill as soon as this week.

If the bill is successful, under federal law, you'll be able to legally smoke Snoop Dogg's 'Sleepy Joe OG' anywhere in the country.

The details

Per The Hill, senate democrats are finally ready to roll out a cannabis decriminalization bill and they aren't just blowing smoke this time. Sen. Cory Booker (D-N.J.), who has been leading the legislative push along with Senate Majority Leader Charles Schumer (D-N.Y.) and Sen. Ron Wyden (D-Ore.) have confirmed that the Cannabis Administration and Opportunity Act will be introduced soon.

Among other things, the bill would remove weed from the Controlled Substance Act. However, states would still be able to create and maintain prohibition on cannabis distribution and production. The bill would also require that federal non-violent cannabis arrests and convictions be expunged within one year of enactment. If successful, this would fulfill the major cannabis promises that Joe Biden made on the campaign trail. All this sounds great, but getting this bill passed is going to be an uphill battle.

Does it have a chance?

With a split senate, it's going to be extremely difficult to get the 60 votes that are required to pass the bill. Traditionally, republicans have been against decriminalization and there are even a few democrats like Sen. Jeanne Shaheen (D-NH) and Sen. Jon Tester (D-MT) who oppose decriminalization. Flipping republican senators won't be easy but it might be possible given how popular weed has become across the country. Just take a look at these recent poll results from Texas, which has traditionally been a very conservative state.

No idea how this ends but it's good to see decriminalization back in the headlines. It's also good to see President Biden get back up on the bike. Hopefully he rode straight back to the White House to help get this bill passed.

Business highlights

Colorado cannabis sales continue to decline

Weed sales were all good just a year ago in Colorado. Things aren't looking that great this year though with sales decreasing for the twelfth month in a row.

Through the first five months of 2022, Colorado has sold about $1.8 billion in legal weed products. Yes, billion with a 'B', which sounds like a very big number but it's actually the lowest total for that time period since 2019. So what's the deal, do people in Colorado not like weed anymore?

Demand is not the issue

People not liking weed is definitely not the problem. If anything, people love weed more than ever these days. According to a study by BDSA, consumer cannabis penetration is over 50% in adult-use markets across the country. As long as there are girls posting stuff like this on Twitter, I don't think businesses need to worry about consumer demand. Instead, the focus for businesses should be on the supply of weed and the wholesale price.

Per Westword, wholesale weed prices have been plummeting in Colorado. The Colorado Department of Revenue reported that the average wholesale price per pound of flower is down about 59% between January 2021 and June 2022. What's even crazier is that people in the dispensary and cultiva business say that the decrease has been even more significant than what is being reported. You know, kinda like the actual inflation we are experiencing versus what the government is reporting.

Tough road ahead

With a recession on the horizon, it's not looking like things are going to get better any time soon. Luckily for weed businesses, their products are pretty essential so there's no doubt the demand will be there. Unfortunately, especially for smaller businesses, there's also no doubt that a massive supply will continue to be there as well.

Pot politics

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Quick hits

  • Drake's confusing weed situation with cops in Sweden

  • Former NBA player Al Harrington signs CBD partnership with NBA Players Union

  • New report shows consumer penetration is over 50% across adult-use markets

  • NYPD will continue with Marijuana testing even though memo said they would stop

  • The annual World Drug Report says there are 209 million global cannabis users

  • New York firefighters will not be tested for cannabis

Meme of the Week

Before we go, here's the best meme we saw this week. Promise we'll take it easy on President Biden once he follows through on his weed reform promises. Until then, everything is fair game, including creepy stuff like this.

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