Welcome to Senior Cannabis Digest. This week we look at scams offering “free CBD,” more evidence that mature consumers are turning to cannabis for pain management, the growing trend toward luxury cannabis products and services and more. Enjoy.
CBD Scams
Not only is there no such thing as a free lunch, the Better Business Bureau (BBB) is now warning consumers there is probably no such thing as a free bottle of CBD either.
According to an article that appeared in Hemp Industry Daily, the Bureau—a national consumer-advocacy group—says that it has received dozens of reports from frustrated consumers who thought they had signed up for a free trial offer of a CBD product only to find they were being billed hundreds of dollars for those “free” CBD samples.
The Bureau warns that the phony “free” trial offers frequently begin by asking shoppers to pay a nominal amount for shipping and then enrolling those consumers—without their consent—in monthly subscription services that can be difficult to cancel.
In one case cited in the article, the U.S. Federal Trade Commission recently fined CBD maker Bionatrol Health and Isle Revive of Pleasant Grove, Utah $20,000 for using what it described as deceptive pricing techniques to mislead customers. In this case, customers who clicked on an ad that said, “Get My Free Bottle!” weren’t told they were actually signing up to buy five bottles of CBD.
You can learn more by reading the article,”Better Business Bureau Warns of CBD ‘Free Trial’ Scams.” It appeared in the May 5, 2021 issue of Hemp Industry Daily.
hempindustrydaily.com/better-business-bureau-warns-of-cbd-free-trial-scams/?
Cannabis Quote of the Week
“Pain management is one among key applications identified by medical cannabis consumers as reason for their use. Research into the medical applications of cannabis has found support for its use as an analgesic. Additionally, with the explosion of opioid use over the past two decades — and the attendant issues of addiction and dependence associated with opiates — medical cannabis has shown promise as an alternative means for pain management. Indeed, New Frontier Data recently found 45% of all cannabis consumers reporting pain management as one of their top reasons for cannabis use, with 59% of medical consumers citing it.”—Josh Adams, Ph.D., Senior Industry Analyst, New Frontier Data.
Adams’s comment comes from a new report from New Frontier Data, Medical Cannabis & Pharmaceuticals: Growth & Disruption in U.S. Healthcare.
The report—a deep dive into the reasons consumers turn to cannabis for relief—predicts the number of registered medical cannabis patients in currently legalized states will grow to 4.9 million by 2025.
While pain management was the leading reason medical consumers gave for using medical marijuana, those interviewed also said they used it to promote relaxation and stress relief, reduce anxiety and improve the quality of their sleep.
The data from the report suggests there may be some overlap between those who describe themselves as medical consumers and those described as recreational users, given that 67 percent of recreational consumers cited stress relief as a reason for using cannabis and 44 percent of recreational users said they also use cannabis to improve the quality of their sleep.
You can learn much more by reading Josh Adams’s article,”Medical Cannabis Consumers and Pain Management.” It appears in the May 10, 2021 issue of CannaBit, a publication of New Frontier Data.
newfrontierdata.com/cannabis-insights/medical-cannabis-consumers-and-pain-management/?
Spotlight On Safety
Many supporters of legalizing cannabis contend that a major benefit of legalization is that it presents an opportunity for regulation, something the black market does not offer.
In fact, in the states where medical and recreational cannabis are legal, when consumers purchase their product of choice it comes with a detailed summary of the “seed to sale” chain of testing the product has undergone prior to purchase.
Unfortunately, many consumers, particularly those who are new to the world of cannabis, find they are “blinded by science” when they try to decode what the testing results actually mean. Others are only interested in the THC profile of their purchase when, in fact, there are additional test results that offer some insight into other factors that can contribute to the consumer’s safety and cannabis experience.
To help, Joseph Billions, writing for Cannabis.net, has penned a useful guide to what he describes as the six most important tests cannabis products are subjected to. Here are three.
For starters, there is what Billions refers to as preharvest testing. This is carried out before and after a seed is planted and is done to test the soil for contaminants—such as heavy metals, micronutrients and other chemical agents. He makes the point that pre-harvest testing helps detect and correct or eliminate contaminants prior to harvest.
Next comes shelf life and stability testing. The effectiveness of cannabis products and the cannabinoids they contain can be diminished when exposed to oxygen, light, and temperature changes. That’s why it is important to check that the producer has conducted a shelf life and stability test and posted it on the product’s label.
Said Billions, “With shelf life and stability testing, you know the point at which your products lose THC and CBD potency, as well as other cannabinoids. It also lets you know the environmental conditions a product needs to remain of good quality.”
A third test is called residual solvent testing. Residual solvents, such as butane and ethanol and others, are unstable chemical compounds that are sometimes used to remove terpenes and cannabinoids from a plant when producing vapes, as well as some edibles, and tinctures.
Unfortunately, these chemicals can be harmful when ingested at high levels. Residual solvent testing detects the presence of impurities, trace residues, and potentially harmful compounds, letting the consumer know that the cannabis products they have selected are fit for consumption.
To learn more about other standard tests, we suggest you read Joseph Billions’s detailed article on testing. It appeared in the May 7, 2021 issue of Cannabis.net.
cannabis.net/blog/opinion/beyond-thc-the-top-cannabis-and-hemp-test-results-you-should-look-at-first
Stats of the Week
One aspect of the cannabis business experienced a sharp increase during the pandemic and it may be here to stay. That’s using a delivery service when purchasing cannabis products.
That’s a conclusion derived from a poll conducted by Ganja Goddess, a California-based, online brand for cannabis consumers. According to the poll, 89.9 percent of respondents said cannabis delivery services became their primary purchasing method during the pandemic—that’s an increase of 70 percent from pre-pandemic times.
In addition, only 6.4 percent of people polled said they go to retail shops, and 60 percent said they used delivery apps out of convenience, which some think means this new commercial model should be here to stay if businesses want to keep consumers happy.
Said Ganja Goddess CEO Zachary Pitts, “Since the start of the pandemic, Americans are spending more time than ever at home, leading to an overwhelming national demand for delivery services. The initial spike in cannabis delivery sales was noteworthy, but its continued prevalence more than one year later speaks volumes. A rise in cannabis consumption and greater emphasis on managing health further highlight the impact of these challenging times.”
Clearly, it should be noted the poll numbers reflect a consumer trend in a state where such services are legal. This is not the case everywhere. In some states delivery services are not available while in others they are allowed for medical marijuana but not for recreational cannabis.
However, the poll numbers do indicate that when the service is available, consumers make use of it and it may one day be a standard part of cannabis commerce.
You can learn more by reading the article .”New Poll Shows Cannabis Delivery Has Had Increasing Popularity and Demand.” It appeared in the May 6, 2021 edition of the website 420Intel.com.
Consumer Trends
Two recent articles indicate that increasingly, mature consumers are looking for luxury products and services when shopping for cannabis and related products.
For example, Marianne Wilson, writing in an issue of Chain Store Age, profiles a new retail operation in Humboldt County, California that features a curated dispensary, tasting room, luxury day spa, outdoor food truck and consumption lounge.
Called Papa & Barkley Social, it is a collaboration between the established cannabis producer Papa & Barkley and Humboldt Social, a Humboldt County, California-based group of businesses that says its mission is “to normalize connections between hospitality and cannabis.”
To that end, consumers who visit the operation can take advantage of cannabis-infused massages and beauty treatments offered by the day spa or dine on selections from a food truck located on the locations’ expansive patio.
Wilson also describes an outdoor consumption lounge “where visitors can enjoy the finest locally sourced cannabis products,” a “wellness shop,” stocked with CBD products and a dispensary which will sell Papa & Barkley cannabis products along with products from a trio of local woman-owned cannabis farms.
In another article, Kim Bhasin, writing for BloombergQuint.com, makes the observation that upscale cannabis-related products are catching on with consumers as the stigma around marijuana use has started to fade away.
Said Bhasin, “Cannabis accessories are getting the luxury treatment, from $800 bongs designed by artists to $600 bespoke tabletop lighters and $300 vanity trays”—items, she says, that are meant to double as home décor and art, rather than paraphernalia that’s stashed away when company arrives.
As Lucky Handa, chief executive officer of cannabis brand Leune, which is in part backed by NBA stars Carmelo Anthony and John Wall, told Bhasin, “For a very long time, the only choice that a consumer had was inside the stoner meme, or the stoner-centric world. Does that describe every consumer? No, not even close.”
Bhasin also makes the point that, “Shoppers that routinely splurge on discretionary purchases like designer clothing or luxury cars are also likely willing to spend a premium on cannabis gear.”
A designer bong with an $800 price tag seems to clearly indicate that the cannabis experience is indeed changing.
To learn more about the trend toward luxury products and experiences we urge you to read Marianne Wilson’s article in the April 26, 2021 edition of Chain Store Age. She is also the publication’s executive editor. Kim Bhasin’s take on upscale cannabis culture appears in the May 10, 2021 edition of BloombergQuint.com.
chainstoreage.com/new-concept-latest-cannabis-retailing?mc_cid=8f1ad4e77e&mc_eid=e61e3aecf0
www.bloombergquint.com/business/pot-users-splurge-on-800-bongs-as-stigmas-fade-cannabis-weekly
Senior Cannabis Digest is compiled and edited by Joe Kohut and John Kohut. You can contact them at joe.kohut@gmail.com or by calling 347-528-8753.
