Federal banking regulations have made the operation of a cannabis business both a complicated and dangerous proposition. Because cannabis is still classified as a Schedule I drug under federal law, any transactions made at a cannabis business operating lawfully under state law are, nonetheless, considered illegal drug money under federal law. This is a problem for banking institutions, because they are subject to federal law and banking regulations. Most cannabis businesses have no alternative other than to operate exclusively in cash. Continue reading
The legalization of recreational marijuana in California has created a revolution within the cannabis business sector. As cannabis business owners prepare to adapt to the regulatory and financial overhaul of an entire industry, many are looking to the craft wine sector as a model of profitability in a highly regulated industry. Some ambitious entrepreneurs are even looking to combine the two in a potent combination of craft pairings.
The Craft Strategy
The overhaul of the cannabis industry in California is an expensive proposition, and many owners of smaller cannabis businesses simply do not have the resources to adapt their business model to new regulations. They are addressing this problem in many different ways. Some small farm owners are banding together to form marijuana co-ops, which will help all participants adapt to the changing industry. Others are borrowing the business model of the craft wine industry: by focusing on a specialized product which commands a premium in the marketplace, their profit margins increase dramatically.
Leafly reports on the case study of one Sonoma County grower who has eschewed the mass market strategy with great success. Sam Edwards grows loose, airy buds that have little value on the flower market, but are “absolutely great for extracts”. Indeed, his vape cartridges command a premium of nearly double the price of other cartridges. Edwards himself worked in the wine industry, and it was there that he learned this business strategy. By developing a high-end specialty product with local character, niche wineries were able to compete with large, mass-production wine companies. Edwards does the same to compete with mass market cannabis growers. Continue reading
For the first time in global history, gym members can get lit while lifting.
It’s happening at a new gym in San Francisco, founded by a former professional football star who has been a staunch advocate for marijuana use. Ricky Williams, a former running back who scored the Heisman Trophy in college and played in the National Football League for the Saints, Ravens and Dolphins, teamed up with snowboard company executive Jim McAlpine. The company, Power Plant Fitness, allows members to smoke marijuana before or after working out, and also has edibles and topical gels for those who want to avoid actual smoke. It will officially open in May.
Many users say marijuana helps them to focus during or relax after workout sessions. The goal, according to the company’s website, is to promote “optimal states of wellness and peak performance.” As Alpine told Outside magazine last year, cannabis brings you in the “eye of the tiger mode.” Continue reading