The cannabis industry needs to be both “rational and rationalized” to gain investor support, Cramer said. As it stands today the market is neither, he said.
The cannabis sector no longer represents an “incredible opportunity” for investors, as the industry is “not what it was cracked up to be,” CNBC’s Jim Cramer said Thursday on “Mad Money.”
What Happened
The bullish case for the pot industry was based in part on the market’s small size and large potential to expand globally. But now that recreational legalization in Canada has played out for more than a year, the opportunity is “much smaller” than initially thought, Cramer said.
The legal cannabis market is seeing a combination of declining purchase prices and expanding production, he said.
The “equilibrium price for cannabis” is also lower than expected, which represents another “major change” for investors, the CNBC host said.
Photo by Dia Dipasupil/Staff/Getty Images
Why It’s Important
Pot stocks have lost much of their buzz, including a 50% drop in one of Cramer’s top picks, Canopy Growth CorpCGC 9.57%, since former CEO Bruce Linton was fired over the summer.
The Canadian market is “flooded” with too much marijuana, and the consumer can produce their own strains at home with minimal equipment, he said.
“The problems in the Canadian market are structural and they won’t be going away anytime soon.”
What’s Next
The cannabis industry needs to be both “rational and rationalized” to gain investor support, Cramer said. As it stands today the market is neither, he said.
For sentiment to improve, companies need to close, funding needs to “dry up” and mergers have to take place, the CNBC host said.
“Until then, these stocks are now sell-in-the-strength detritus,” Cramer said. “A casualty of a market not yet ready for prime time or anytime, for that matter.”
Big-box retailers plan to enter the cannabis market by selling you all the marijuana accessories you’ll ever need.
Zane Witzel thought Bloomingdale’s was mistaken. This past summer, a Bloomingdale’s rep contacted Witzel about carrying his company’s product — a humidor, like the one cigar aficionados swear by, but for your weed. Witzel, the CEO of Cannador, couldn’t understand why. In his mind, Bloomingdale’s sold khakis and cologne, not cannabis accessories. They had the wrong idea, Witzel told Bloomingdale’s, and pushed back against any possible sale.
Lucky for Witzel, Bloomingdale’s insisted otherwise. In select stores, they planned to stage a special holiday gifts section with the intention of placing Cannador products front and center. A pot box was the item Bloomingdale’s believed would most catch customers’ attention while Christmas shopping. Later, Witzel asked the Bloomingdale’s sales team if they’d ever sold any cannabis-related accessories or products in their stores. Nope, they replied, the Cannador would be the first one.
“This was crazy to me because we’d been fighting an uphill battle with everything for years,” Witzel told The Fresh Toast. “For us to call somebody or talk with them about Cannador, even to advertise about it or put it on social media, we’ve always been walking on eggshells.”
Department stores like Bloomingdale’s previously avoided all things marijuana, due to the plant’s federally illegal status. Companies feared possible retribution, either from customers or the feds, if they were seen tacitly supporting the business of marijuana. Witzel didn’t approach big-box retailers in the past for this reason, thinking it was a waste of time. Now they were knocking his door down.
Marijuana has never been more popular. Despite a nationwide vaping crisis, support for marijuana legalization reached an all-time high last month, according to a Gallup poll. In addition, the majority of presidential candidates have called for federal marijuana legalization this election season. Legal marijuana was a $10.4 billion industry last year and projections tag legal cannabis as a $22 billion-plus industry by 2022.
Photo courtesy of Cannador
Big-box retailers and department stores want in, though they still won’t do business with companies that touch the plant. This gives a huge advantage to companies like Cannador and Magical Butter, the latter of which just received its first purchase order from none other than Walmart. Yes, the biggest name in retail will now sell a device that allows consumers to create their own marijuana-infused edibles and tinctures at home. Magical Butter CEO Garyn Angel told The Fresh Toast to expect more partnerships with big-box retailers in the United States and Canada to be announced soon.
“Many big box retailers have limitations on cannabis, CBD and, and accessories, but that doesn’t mean they don’t want to sell products to that audience,” Angel said. “They just don’t know how to do it yet. Magical Butter’s ecosystem presents a friendly introduction to those customers.”
Photo courtesy of Magical Butter
If you talk with some within the cannabis industry, you’ll find dour moods and diminished expectations. Many marijuana stocks have underperformed and the biggest names in the industry, like Canopy Growth, have had to reset and reshuffle C-suite leadership. But cannabis accessories have enjoyed newfound success in this climate, as their products allow a bridge between marijuana consumers and traditional retailers that couldn’t be built otherwise.
Furthermore, when cannabis-related products are sold on the same shelves you find gardening tools and designer jeans, it makes marijuana one step closer to true normalization.
“[Cannador being sold in Bloomingdale’s], it’s very small in the grand scheme of thing,” Witzel told The Fresh Toast. “This is a grain of sand, right? Like whoop-de-doo, your weed products are sold at Bloomingdale’s. But for those in the industry, it’s like, okay, this is one more step. It’s a baby step, it’s a tiny step. But it’s a step.”
For Angel, this moment represents an opportune Trojan horse for marijuana businesses, both big and small. They have something everyone wants, but it’s upon brands to ensure they get it to customers.
“Even though it seems like a tumultuous time in the industry, I actually feel it’s the exact opposite,” Angel told The Fresh Toast. “Right now is the f****** opportunity, man. You go. If you’re not in people’s faces right now, getting your product on store shelves, and pulling it off with a high conversion, you’re missing the opportunity.”
Instead of eating until you’re full, you should eat until you’re not hungry. Easier said than done.
As the holidays quickly approach, the thing on almost everyone’s mind is eating, how much can I eat, how many more days until I can stuff myself and just how much can I eat? But here’s some advice according to a dietician that might help you feel less stuffed than the poor bird you’re likely to consume on Thanksgiving.
According to one expert, the best way to prevent overeating is to simply listen to your body. Sounds simple enough.
Kristin Kirkpatrick R.D.N, a consultant for the Cleveland Clinic, tells Men’s Health that instead of eating until you’re full, you should eat until you’re not hungry. This is a pretty simple rule, yet one that we break almost all of the time. Food is a source of relief for most of us, something to turn to when we’re bored, alone, stressed out or have nothing better to do.
There are a million reasons behind why we choose to eat when we’re not hungry, with each of them varying depending on the day and our mindset. What matters most is listening to your body and learning the difference between being hungry and having some other type of feeling.
Photo by Arminas Raudys via PexelsKirkpatrick says that we should think of hunger on a scale, with 1 being extremely hungry and 10 being extremely full. You should only eat when you’re on a 2 or a 3, and should work hard to stay at this level throughout the day, consuming foods that are healthy and filling. “You don’t want to be full, and you don’t want to be hungry; you want to be at a status quo,” Kirkpatrick says, so you should steer clear from numbers above 7 on the hunger scale.
Having this structure at the forefront of your mind when you’re out eating in a restaurant or at a party can help you monitor what you consume.
Habits like this one have existed for a long time, with people eating “mindfully” or until they’re “80% full.” By not advocating for a strict diet of items you’re supposed to eat and foods you’re supposed to avoid, these plans tend to work best since they’re adaptable from person to person.
Many traditional topicals contain ingredients that would be treated as drugs if accompanied by health or therapeutic claims. These products include but are not limited to essential oils and menthol.
As we have previously discussed, the sale and marketing of hemp-infused cannabidiol (“Hemp-CBD”) cosmetics, such as salves, lotions and creams (collectively “Topicals”), present the lowest risk for businesses wishing to enter this booming industry. We have quite a few clients pursuing this path, from small-batch manufacturers to national retail outlets.
Generally, a Topical may be lawfully sold in interstate commerce if it is not (1) adulterated (i.e., unsafe) or misbranded; and (2) intended to be used as a drug. A drug is defined as an “article[] intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease (other than food) intended to affect the structure or any function of the body or man or other animals.” Consequently, any Topical marketed as providing therapeutic values will be deemed a drug (possibly a drug and a cosmetic if the product is also advertising as beautifying or cleaning the body) by the Food and Drug Administration (“FDA”).
If you follow our blog, you know that the FDA has taken issue with Hemp-CBD companies that have made health claims about their products. This is because drug products cannot be marketed without having undergone the FDA’s drug approval process. Accordingly, we have repeatedly advised our Hemp-CBD clients to mitigate the risk of enforcement by avoiding any claims about human health in marketing their products. This precautionary measure has proven particularly important for Hemp-CBD Topicals.
Indeed, many traditional Topicals (i.e., free of Hemp-CBD) contain ingredients that would be treated as drugs if accompanied by health or therapeutic claims. These products include but are not limited to essential oils and menthol.
Because cosmetics are not as heavily regulated as foods, dietary supplements and drugs, the FDA has taken more limited enforcement actions against cosmetic companies, which seems to have emboldened the cosmetic industry to make certain health claims about its products. Statements such as “get glamorously beautiful and enjoy rejuvenating health with menthol crystals” and “our peppermint oil will help you boost energy and aid digestion” have become common on traditional Topical labels.
Photo by Moose Photos via Pexels
Given the common use of the statements on Topical labels, it is only natural for Hemp-CBD companies to assume that such claims are safe and acceptable. However, the agency’s growing concerns towards the use of CBD and its scrutiny of the Hemp-CBD industry, have heightened the risks of enforcement actions against Hemp-CBD companies that are making any health claims, even claims other companies have gotten away with, and that do not address the medicinal values of CBD.
This point is highlighted in some of the warning letters issued by the agency against Topical companies that promoted the therapeutic value of their product ingredients, including essential oils, menthol and CBD. For example, in 2018, the FDA took issue with the following statements made by Signature Formulations LLC:
“Included in the Herbal Muscle Mist formula are menthol and camphor for pain relief, invigoration of tired muscles and joints, and cramps. MSM (methylsulfonylmethane) provides sulfur and methy (sic) groups that are used for healing and repair by our joints and connective tissue. Clove Oil and Sweet Birch Oil may help to stimulate circulation and reduce tension and spasms in muscles. Also included are the essential oils of peppermint and eucalyptus to help reduce inflammation and soothe aching feet and irritated nerves.”
and…
Fast absorbing gel reduces inflammation and pain quickly with triple active ingredients. Our gel combines the natural anti-inflammatory power of CBD with the soothing effects of Camphor and Menthol. CBD Gel helps relieve arthritis pain and sore, overworked muscles.
As the agency explained in the letter, Topicals that contain essential oils and menthol and that are marketed to temporarily relieve minor aches and pains of muscles and joint are treated as over-the-counter (“OTC”) external analgesic drug products. Because OTC external analgesic products are drugs, their use in a product marketed to temporarily relieve minor aches and pains of muscles and joint or other medical conditions violates the Food, Drug and Cosmetic Act.
Note that the same products if free of health claims and strictly advertised to cleanse the body or make a person more attractive would be treated as a cosmetic. Consequently, any Hemp-CBD company wishing to infuse their Topicals with ingredients such as essential oils or menthol have a legal pathway to do so long as they refrain from making any therapeutic claims about their product, to ensure that they remain within the confines of “cosmetics” as defined under federal law. Note that in addition to not being intended as drugs, these products may be lawfully sold and marketed in interstate commerce if they are safe/properly manufacturer and comply with FDA labeling requirements.
For more information on this issue, feel free to contact our regulatory team.
Cannabis and cannabinoids like THC and CBD can deliver various medicinal benefits and relieve many painful side effects caused by this injury.
What would you do if, one day, you couldn’t feel your arms or legs anymore? What if you couldn’t perform your regular work and life activities and instead, you had to rely on others to make it through each day? Although one may be able to imagine themselves in this situation, it’s nothing compared to living it.
According toBrainandSpinalCord.org, each year, as many as 5 million Americans are impacted by a spinal cord injury (SCI). At this moment though, around300,000 people are living with a SCI in the U.S.. On average, spinal cord injuries are often debilitating, and they take a toll on an individual’s quality of life. On the bright side, cannabis and cannabinoids like THC and CBD can positively impact one’s well-being by delivering various medicinal benefits and relieving many painful side effects caused by this injury. Read on to learn more about spinal cord injuries, their prevalence, how cannabis can help treat their side effects, and how cannabinoids can improve one’s quality of life.
The Purpose of Spinal Cords & The Causes and Prevalence of Spinal Cord Injuries
There are various causes of spinal cord injuries including sports, violent events/trauma, falls, and motor vehicle accidents. It turns out that around42 percent of all SCI are due to motor vehicle accidents. SCI can affect anyone of any age, but the majority of SCI affect people from ages 16-30, and about80 percent of those cases are men. As mentioned above, annually, 4-5 million Americans are diagnosed with SCI. Overall, once the spine is impacted by trauma, one experiences a loss of many functions including a loss of sensory motor function.
In addition, the spinal cord is a vital part of the central nervous system. Thepurpose of the spinal cord is to control, coordinate, and synchronize various activities within our bodies. Also, our spinal cord has different jobs with one of them being the communication of messages between the brain and the body. As a result, this gives us the opportunity to move about and feel different sensations. When it comes to SCI, the severity depends on the cause, and based on where the injury is exactly and its height, the severity of it will differ. Generally, SCI affect one’s sensory motor function in addition to delivering painful side effects.
Photo by Olenka Kotyk via Unsplash
Debilitating Side Effects Caused by SCI
Aside from different forms of paralysis, those with SCI often experience negative complications and side effects including chronic pain, sleeping difficulties, and muscle spasms. Out of all side effects caused by SCI, themajority of SCI patients experience chronic pain regularly. Those with SCI can experience pain in regions where sensations are in addition to areas where there aren’t any sensations. The different types of pain that are felt by SCI patients includeneuropathic, musculoskeletal, and visceral pain. As a result, many of these individuals suffer from a decline in their quality of life and overall well-being.
Cannabis as a Natural Treatment Method for SCI: How It Can Help
Fortunately, though, different research findings have shown that cannabis, CBD, and THC can help deliver relief to SCI patients. Not only can the cannabis plant help reduce the side effects and complications caused by SCI, it’s also believed that the plant can help the body fix itself. For centuries, cannabis has been used as apain-reliever, and to this day, cannabis and CBD are used as natural analgesics. It has been discovered from one study thatcannabis works to regulate pain perception amongst those suffering from different levels of pain. Anotherstudy found that when cannabis is combined with massages, the most pain-relief was experienced by SCI sufferers.
Although the cannabis plant is an effective pain-reliever, it can also deliver many other medicinal and therapeutic benefits. For example, from one study, numerous researchers suggest thatcannabis can arouse a neuroprotective response. The following was stated in conclusion of thestudy, “Our results suggest that the endocannabinoids acting through CB1 and CB2 receptors are part of an early neuroprotective response triggered after SCI that is involved in the spontaneous recovery after an incomplete lesion.” Thus far, since cannabinoid usage delivers analgesic properties and aneuroprotective response, there’s hope for SCI patients.
Research Findings about Cannabis Helping Treat Muscle Spasms: A Common SCI Side Effect
Although the study’s participants were MS patients, these results are noteworthy, and they represent potential for the treatment of muscle spasticity due to SCI. Additionally, researchers concluded the following about anotherstudy related to muscle spasticity and pain: “…Cannabis extracts have shown effectiveness to relieve some symptoms of the patients with Multiple Sclerosis mainly for pain and spasticity.” Also, there’s a significant amount of anecdotal evidence and stories regarding cannabis’s ability to help SCI patients.
Cannabis’s Ability to Help Treat Sleep Disorders Due to SCI
Besides pain and muscle spasticity, those with SCI often experience problems with sleeping. Specifically, themajority of SCI sufferers experience sleep disorders like sleep apnea. Unfortunately, a lack of sleep can weaken and damage the body’s immune system. However, onestudy revealed that cannabis can help improve one’s quality of sleep and the length of it. Then, anotherstudy found that the combination of CBD and THC can help those struggling with various sleep issues.
Improved Mobility Due to Cannabidiol Usage
Usually, a SCI is permanent, and it significantly impacts one’s daily mobility. However, onestudy discovered that CBD improved mobility in rats that had spinal cord injuries. The study’s researchers concluded bystating the following about these findings: “Cannabidiol improved locomotor functional recovery and reduced injury extent suggesting that it could be useful in the treatment of spinal cord lesions.”
Although this study hasn’t been conducted on humans yet, these findings represent the positive impact CBD can have on sensory motor and functioning in SCI patients. It’s also possible that different cannabinoids can help restore functioning, which can dramatically improve the quality of life of SCI patients.
Overall, despite varioustraditional treatment methods available for SCI like physical therapy, therapeutic massages, acupuncture, cognitive restructuring, and psychotherapy, they aren’t effective for everyone. Oftentimes, certain medications are prescribed for pain management, but many SCI patients have turned away from them due to their slew of side effects and addictive profile. Besides cannabis being a natural treatment method, it can also relieve numerous painful side effects due to SCI while also improving one’s quality of life and ability to be themselves again. Further research should be conducted on the link between cannabis, CBD, THC, and spinal cord injuries, but the research findings that have been released so far are both significant and hopeful.
Fox Media is trying to trademark the phrase in order to adapt it into a TV series.
“OK, Boomer”, otherwise known as “that meme that’s become the most efficient way of burning anyone over the age of 50” is officially positioned to become a TV show. What will it be about? No one has a clue.
The Guardian reports that Fox Media is attempting to trademark the phrase for entertainment purposes, as if the meme in its original form wasn’t funny and transcendent enough. Although nobody seems to know what a TV show based on a meme will look like, according to the filing, the series would be a reality, comedy or game show called “OK BOOMER.”
FOX has filed a trademark application for “OK BOOMER.”
The media giant filed the application on November 11th.
According to the filing, FOX intends to launch a reality, comedy and/or game show called OK BOOMER.
Fox isn’t the only player in the game. Ever since the news broke, there have been other businesses interested in reaping the benefits of “OK, Boomer”, trying to make money in the shape of clothing, stickers, a stage play, you name it.
Internet fads and memes don’t make for the most inspiring stories, especially since they’re so intrinsic with the way in which we communicate online. The magic of “OK, Boomer” and memes in general is the fact that anyone can make something go viral if they come up with a good enough version of the joke. But, hey, who are we to judge what Fox does with its money?
Let’s hope the show doesn’t end up becoming a sort of meme-ception, one that likely boomers put together and that ends up being embarrassing because it tries too hard to hang out with the kids.
Cory Booker addressed Joe Biden’s recent comments that marijuana is a “gateway drug,” a view other presidential candidates did not share.
On national television Wednesday night, as Democratic candidates debated their viability to become President, Cory Booker did something radical. He said what everyone at home watching was really thinking.
The moment centered around former Vice President Joe Biden’s recent antagonism toward marijuana. Biden opposes legalization, still unsure if cannabis is a “gateway drug,” despite national research institutes stating otherwise.
Booker had some thoughts on Biden’s stance.
“This week I hear him literally say that, ‘I don’t think we should legalize marijuana,’” Booker started. Then he turned to Biden and added, “I thought you might have been high when you said it.”
Booker calls out Biden on his stance against legalizing marijuana: “I thought you might have been high when you said it” #DemDebatepic.twitter.com/21ysS5kndt
“Marijuana in our country is already legal for privileged people,” Booker said. “It’s why the war on drugs has been a war on black and brown people.
“With more African Americans under criminal supervision in America than all the slaves since 1850, do not roll up into communities and not talk directly to issues that are going to relate to the liberation of children. Because there are people in Congress right now that admit to smoking marijuana, while there are people, our kids, who are in jail right now for those drug crimes.”
The former Vice President responded to the criticism, reiterating his belief marijuana should be decriminalize and marijuana-related records should be expunged. He remained fixed in the belief marijuana should not be legalized yet, and that lawmakers need more information before doing so.
” I do think it makes sense based on data that we should study what the long-term effects are for the use of marijuana, that’s all it is,” Biden said.
That said, I’d view it as personal failure if I did share this fantastic meme of Joe Biden’s face melting when Booker smoked him for his marijuana views.
Though doctors and the pharmaceutical industry continue to stand behind traditional sleep aids, the marijuana industry is already marketing products designed to help get a good night’s rest.
Half of Americans suffer from some degree of insufficient sleep, from missing a few occasional hours, to debilitating insomnia and other sleep disorders. It’s little wonder many cannabis consumers, both medical and recreational, cite insomnia or other conditions can lead to loss of sleep, like anxiety or stress, as primary reasons for their cannabis use.
A recent study from the University of New Mexico found a connection between access to marijuana and a decrease in sales of over-the-counter (OTC) sleep aids, concluding that legal weed would have a significant impact in the billion dollar OTC market.
The UNM study looked at sales data for OTC medication in select Colorado counties and found a correlation between demand for sleep aids and cannabis access, measuring UPC-level data and number of dispensaries among other metrics. Drug store staples diphenhydramine — the active ingredient in Benadryl, and doxylamine, sold under the brand name Unisom — were most affected. These drugs are primarily antihistamines that can cause drowsiness with low levels of efficacy in treating sleeplessness.
Photo by Ivan Obolensky via Pexels
Indica Works For Sleep
Though doctors and the pharmaceutical industry continue to stand behind traditional sleep medications, presumably until the connection between cannabis and sleep is further investigated, the marijuana industry is already marketing products designed to promote better sleep habits. These include indica strains, which have long been considered particularly effective at inducing sleep and providing a sense of calm and wellbeing.
The study did not conclude that cannabis is more effective in treating disturbances however, merely that consumers preferred marijuana over traditional OTC alternatives. Researchers further urged that investigations into both the efficacy and the side-effects of cannabis compared to over-the-counter treatments is needed right away, so as to better treat sleeplessness while minimizing any potential harmful side effects.
Despite marijuana’s popular use as a sleeping aid, sleep-related illnesses are not specifically listed as a qualifying medical condition covered by state medicinal use laws, the researchers further noted.
A couple of hours after its launch, plenty of hacked accounts appeared on the dark web, where subscriptions were selling for as low as $3.
Much has been said about the release of Disney Plus and their much anticipated/dreaded competition with Netflix. Since the streaming service’s release on November 12, there’s also been plenty of hacking.
Although Disney Plus was announced some months ago and it was released only the U.S, the Netherlands and Canada, the launch was plagued by technical glitches due to heavy traffic. ZDnet reports that a couple of hours after launch, plenty of hacked accounts appeared on the dark web, where subscription were selling for as low as $3. Some of them were even sold for $11, making no sense at all since the standard price for the Disney Plus monthly subscription is $6.99 a month.
DISNEY+ HAS BEEN OPEN FOR LIKE 10 HOURS AND MY ACCOUNT HAS ALREADY BEEN HACKED pic.twitter.com/YBv6CfwTlh
While there’s a possibility that people’s accounts were hacked due to the use of repeated passwords and emails that have been previously involved with data breaches, some users report that their hacked accounts’ log ins were exclusive to Disney Plus.
According to a statement from Disney, the site is perfectly secure and their systems have not been compromised. “Disney takes the privacy and security of our users’ data very seriously and there is no indication of a security breach on Disney Plus,” a Disney spokesman told the BBC.
The launch of Disney Plus has been one with a lot of build up. After a couple of years of partnership with Netflix, the media conglomerate decided to pull their content from all sites and to create a space to store it and where people would also have access to new shows and movies. After terminating their Netflix shows, Disney canceled series on Hulu, Freeform and other channels.
The point is: if you want to watch more Marvel or Star Wars, you’re going to have to pay for Disney Plus. Or steal someone’s password. Who’s going to be the genius that’s going to reinvent cable? We’re waiting.
Cannabis lounges seems like a natural extension for the burgeoning legal weed landscape, but the idea has yet to gain the same kind of momentum other pot businesses have seen.
Cannabis legalization has opened an opportunity for many entrepreneurs and investors, and these nascent years of above board cannabis sales have spurred a lot of ideas seeking to capitalize on legal weed. On the surface, on-premise pot consumption lounges seems like a natural extension for the burgeoning legal cannabis landscape, but the idea has yet to gain the same kind of momentum that other pot businesses have seen, and the nature of weed consumption might be a large reason why.
On-premise cannabis consumption is not only regulated by existing municipal codes every business operates under, including fire codes, parking, etc. marijuana dispensaries operate under an additional set of rules, and some either have explicit rules making on-site consumption prohibited, or require special permits. Moreover, selling alcohol and cannabis together is also usually not allowed, any on-site pot lounges would have to sell non-alcoholic beverages to accompany their buds.
Another challenge to on-site consumption is the prohibition on indoor smoking in most businesses. Smoking marijuana buds remains the most popular form of consumption, and not being able to smoke a joint or bowl would limit the audience of a consumption bar. Some indoor smoking prohibitions also prohibit vaping as well. Outdoor smoking, or smoking in public is generally still not allowed, even in legal states. Some Colorado consumption lounges have skirted that state’s indoor smoking ban by operating as private, members-only clubs that are BYOC, Bring Your Own Cannabis.
Cannabis lounges would also be competing with non-cannabis businesses, and subject to the same market challenges that restaurants, bars, lounges, and other social and entertainment outlets aimed at adults also face. Consumption locations, whether selling on-site or BYOC, are likely expected to serve food and beverages, have a comfortable sitting area, with games and maybe music, including live acts. These businesses often operate at a loss initially, with slim margins being the norm.
Photo by FangXiaNuo/Getty Images
The ways alcohol or coffee, the common types of beverages served in businesses designed for lounge and leisure, are consumed differently than cannabis. Weed is usually consumed with extended breaks in between, the potential turnover times for tables at a consumption lounge would likely be too long without enough revenue to be financially viable.
Perhaps the tallest hurdle to cannabis consumption lounges might be that consumers would rather toke at home. One study conducted by Emerging Insider Communications, a consultancy firm, found that 78% of high household income smokers would only smoke at home, even in a legalized state. Their study focused on weed customers with an annual income of at least $150,000, but may point to a broader attitude towards public consumption. It also means that the coveted cannabis consumer with a lot of disposable income is unlikely to patronize a consumption lounge, eliminating a market segment with a lot of discretionary income.
For all the challenges making a cannabis lounges a tough nut to crack business-wise, several states are moving ahead in permitting such establishments, giving weed entrepreneurs an opportunity to successfully decode the on-site marijuana consumption model.
