Welcome to Senior Cannabis Digest. This week we have a detailed look at some of the generational differences among cannabis users, a guide to how cannabis REITs operate, a sentimental pick for this week’s Kentucky Derby and more. Enjoy.
Stats of the Week
New Frontier Data recently took a close look at what it described as generational differences among cannabis consumers and found out more than just the usual take that cannabis use has increased among older consumers.
Molly McCann, Ed.D., Director of Industry Analytics for New Frontier Data, took a deep dive into New Frontier’s research on how cannabis use differs by age and found a number of revealing facts about mature consumers—from how often they use cannabis to who they tell about using it.
McCann said New Frontier Data’s research revealed that 85 percent of consumers 55 and older said their family knew about their cannabis use, 89 percent of their friends knew about it and 61 percent of that same group said their family generally supported their using cannabis.
At the same time 71 percent of mature consumers said they try to be discrete about using cannabis, although 28 percent did say they have recently become more open about using it.
And when they do use it, McCann said the research revealed 25 percent of those 55 and older do not consume flower, 35 percent consume both flower and non-flower forms, such as tinctures, and 40 percent reported that they consume only the flower form of cannabis.
When it came to how frequently they used it, 32 percent of those 55 and older said they use it every day or two while 31 percent were at the other end of the spectrum, saying they use it less than once a month. Seventeen percent said they use it multiple times a day.
McCann also noted that from 2009-2019, rates of monthly cannabis use increased most among some of the oldest Americans. Over that time, monthly cannabis consumption among Americans ages 55-59 increased 131 percent, among those ages 60-64 it increased 367 percent, and among ages 65+ consumption increased 483 percent —moving from less than one percent to 3.5 percent.
And just for the record, New Frontier’s research revealed that 43 percent of Americans now live in what can be described as “adult use states” —states where recreational use of cannabis by adults is legal.
You can learn more about mature consumers and others by reading Molly McCann’s insightful analysis. It appears in the April 26, 2021 issue of New Frontier Data.
newfrontierdata.com/cannabis-insights/generational-differences-among-cannabis-consumers/?
Investor News and Notes
If you are a regular reader you may remember our suggestion that given the turbulent nature of the cannabis marketplace, investors may do better by betting on the barn instead of the horse.
Said another way, investing in the real estate that is used for a cannabis operation may, given the current investment climate, be a more rewarding investment strategy than trying to “pick” the next hot cannabis company.
One of the more popular ways to invest in real estate associated with one or more cannabis companies is through a Real Estate Investment Trust or REIT.
According to an article produced by the folks at Vicente Sederberg, llp for the website JD Supra, REITs generally raise money from outside sources—such as investors—and use those funds to buy, develop, operate, and sell income-producing properties. A company must meet certain qualifications to qualify as a REIT. For instance, most of the income of a REIT must be generated by income-producing real properties (e.g. rents, sale proceeds, and interest on mortgages) and it must annually distribute most of its income to shareholders.
A REIT makes it possible to invest in a real estate sector without having to worry about managing properties. A cannabis REIT is a vehicle that allows an investor to be involved in the cannabis sector without investing in a particular company.
Recently we came across an article by the attorneys at Vicente Sederberg, llp that provides a comprehensive overview of REITs, describing different types (equity, mortgage, hybrid and sector), the ways cannabis companies use REITS ( such as sale-leaseback transactions) and why cannabis REITs in particular have become such a hot ticket recently.
The article also identifies the REITs that are currently the major players in the arena and the unique challenges faced by investors who may want to become involved in the sector, such as zoning challenges and what happens if a cannabis company that is a tenant at a property that is part of a REIT loses its license.
Simply put, the article is essential reading for any investor thinking of getting involved in cannabis REITs. The Vicente Sederberg llp law firm has been at the leading edge of cannabis law for the past ten years. The website JD Supra.com is a daily source of legal intelligence, distributing news, commentary and analysis from leading lawyers and law firms.
You can learn much more by reading the article, “What Is A Cannabis REIT?” It appears in the April 26, 2021 edition of JDSupra.com.
www.jdsupra.com/legalnews/what-is-a-cannabis-reit-7813228/?mc_cid=08880201c9&mc_eid=e61e3aecf0
Speaking of Horses
What we know about horse racing could be stuffed into a horse’s feed bag and there would still be room for plenty of apples and oats.
Still, if you’re the type of bettor who picks promising ponies by playing timely hunches tied to cosmic connections, you may want to place a small wager on a horse running in this week’s Kentucky Derby. It’s owned by a Central New York businessman and Syracuse University men’s basketball coach Jim Boeheim.
Among the longest of long shots—50 to 1 as we go to press—the horse carries a name that mature cannabis consumers may think is lucky. It’s called Hidden Stash. Maybe you can find room for it as part of a super exotic exacta.
Charlie Miller’s charming profile of the horse and its owners appeared in the April 15, 2021 edition of Syracuse.com—and no, we do not think the horse’s name has anything to do with cannabis. Really. No, really.
Senior Celebrity Spotlight
Actress, talk-show traffic cop and mature cannabis consumer Whoopi Goldberg is back in the cannabis business. Ian Mohr, writing for the New York Post’s Page Six, reports that Goldberg, a long-time cannabis advocate, will soon introduce a product line called Emma & Clyde.
Named after her mother and brother, her new cannabis operation, described as having an “elevated and socially conscious product line” will soon be open for business in California and offer edibles, pre-rolls, flower and accessories. It’s expected the company will eventually begin operating in other legal markets.
Goldberg, aged 65, is no stranger to the cannabis realm. Last year she shut down another cannabis brand called Whoopi & Maya, after a run of four years.
Recently, according to Steve Bloom, writing for the publication CelebStoner, she was featured on the cover of the inaugural issue of a magazine called Black Cannabis. Publisher Hazey Taughtme said he founded the magazine as “a must-read cultural hub and content mecca highlighting Black excellence in cannabis.”
You can learn more by reading Ian Mohr’s article for Page Six. It appeared in the April 18, 2021 issue of the New York Post. Steve Bloom’s article about Whoopi Goldberg’s new venture appears in the April 21, 2021 issue of CelebStoner.com.
pagesix.com/2021/04/18/whoopi-goldberg-tells-new-cannabis-mag-shell-launch-another-pot-brand/?
www.celebstoner.com/news/celebstoner-news/2021/04/21/whoopi-goldberg-emma-clyde-cannabis-brand/?
Cannabis Quote of the Week
“A lot of the young kids [in Braddock] had these stupid weed charges. They got caught with a blunt or whatever, and it would really hold them back. In many cases, it was the start of a criminal record—it’s ridiculous….We mint 20,000 weed arrests every year in Pennsylvania. We can fill [Penn State’s] Beaver Stadium with stupid new weed charges every five years. And that is just a tragedy.”—Pennsylvania’s Lieutenant Governor John Fetterman.
Fetterman, currently running to be the Democratic nominee for the up-coming senate race, is the former mayor of Braddock, Pennsylvania, a small town just outside of Pittsburgh, and a staunch supporter of legalization.
The quote comes from an article written for Forbes by Will Yakowicz. Said Yakowicz, “Now that neighboring New York and New Jersey have legalized cannabis, Fetterman thinks that it’s obvious what his state and the country must do next.”
Yakowicz’s article,”Welcome to the Last Illegal 420,” takes a close look at the history of the 420 holiday and the forces driving the current push for federal legalization. It appears in the April 20, 2021 issue of Forbes.
www.forbes.com/sites/willyakowicz/2021/04/20/welcome-to-the-last-illegal-420/?
Senior Cannabis Digest is compiled and edited by Joe Kohut and John Kohut. You can reach them at joe.kohut@gmail.com or at 347-528-8753.
