February 28, 2020
The Morning Buzz presented by TRICHOMES brings you late-breaking news that tells you what’s happening within the cannabis industry.
TRICHOMES.com
** We’ve got Medmen getting back to basics and Great news for hemp farmers. Today is February 28th and this is your TRICHOMES Morning Buzz.
** Struggling retailer Medmen wants to go back to basics
According to a report from CNN, the popular, yet troubled, cannabis dispensary chain wants to get out of the business of growing and producing cannabis so it can focus on its retail stores.
“While vertical integration has been a big focus for the industry, our growing belief is that cannabis is evolving like every other consumer vertical: with a fragmented value chain and specialists at each layer,” Ryan Lissack, MedMen’s newly appointed interim CEO said during the company’s second-quarter earnings call on Wednesday.
In addition to outsourcing cultivation and production operations, MedMen plans to put each existing store under a microscope to ensure they will generate cash. If that’s not the case, then stores might be temporarily or permanently shut down.
“We cannot continue to invest in assets that are not producing near-term cash returns,” said Zeeshan Hyder, MedMen’s chief financial officer.
** The USDA no longer requires the DEA requirement for hemp testing
An article from Hemp Industry Daily explains, Federal agriculture officials are dropping the requirement that all THC testing on hemp crops must be performed at laboratories registered with the U.S. Drug Enforcement Administration, according to industry sources.
“This about-face by the USDA means that farmers can continue to use their trusted local and regional analytical testing labs to ensure compliance with USDA rules,” Josh Schneider, CEO of San Diego-based young plant producer Cultivaris Hemp, told Hemp Industry Daily.
“Getting rid of this ridiculous DEA testing requirement is a step in the right direction by the USDA,” he added. “Hopefully this means that the USDA has come to their senses and will be making better and smarter rules going forward.”
FDA has not provided a timeline for when it will release guidance on CBD regulation.
**Manufacturers are starting to use hemp to create renewable cannabis packaging
An article from merryjane.com says Hemp-based plastics are being used in 3D printing or injection molding processes to create toothbrushes, sustainable cannabis packaging, and more.
Several new companies are turning to hemp to create renewable bioplastics that can serve as an alternative to traditional, oil-based plastics. As the amount of plastic waste in oceans and landfills reaches epic proportions, researchers are working to create plastic alternatives from renewable sources like straw, wood, food waste, or hemp.
Denver-based Sana Packaging is one company that is using both hemp-derived plastic, as well as recycled ocean plastic, to create sustainable packaging for the cannabis industry. Retail regulations in Canada and US adult-use states often impose extreme packaging requirements on legal products, which have resulted in an excessive amount of single-use plastic pot packaging.
“Because of the ability to [easily] produce plastics, we got ourselves into single-use disposable culture, and that has caused a dysfunctional system,” said Sana CEO Ron Basak-Smith to United Press International (UPI). Sana now uses plastics with hemp fillers to create sustainable injection-molded packaging for around 200 legal cannabis companies.
** And that was today’s buzz! Sound off on these stories and more with the cannabis community at trichomes.com/morningbuzz and be sure to follow us on all social media platforms @trichomesdotcom, my name is______
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