together with

Happy Friday Pre Rollers! Welcome to another edition of The Pre Roll, the cannabis newsletter that keeps you up-to-date on the industry happenings you need to know.

Here’s what we’re rolling up this week:

• Netherlands begins trial of cannabis legalization

• Adweek reveals top 10 cannabis marketing campaigns of 2023

• Tax Foundation explores cannabis tax policy in the United States

…and more. Let’s get to it.

Was this email forwarded to you?

🚨 Roll Call

World

Caption. The Netherlands, known for its famous cannabis coffeeshops, is beginning a trial to fully legalize cannabis.

While there are currently 570 coffeeshops across 102 different municipalities in the Netherlands, the cannabis sold is illegally cultivated and supplied, unregulated, and exchanged between producers and shops under the table.

This is a massive step for a country that’s cannabis market has existed in a legal gray area since the 1970s.

Business

Marketing campaign trail. Adweek, the leading source of news and insight in the world of brand marketing, revealed its list of the top 10 cannabis marketing campaigns of 2023. Despite hurdles to advertising in the industry, cannabis business found creative ways to get their messages across.

Here are the campaigns that made the cut:

• Edie Parker x Madison Avenue (for 4/20)

• Weedmaps x The Freak Brothers

• Last Prisoner Project | ‘The Pen to Right History‘ by McCann New York

• MariMed | ‘Boston THC Party’

• Green Thumb Industries | ‘Thanks, Dick‘

• Magnolia Bakery x Green Thumb Industries

• Show-Me Organics | ‘Ask Your Doctor’ by Bandits & Friends

• Cannabis Media Council | ‘I’m High Right Now’ by Sister Merci

• Show-Me Organics | ‘Buoyant Bob’ by Powderbox

• Embarc dispensaries | ‘Devil’s Lettuce’ (in-house)

Reply and let us know which is your favorite!

Policy

Tax Rules Everything Around Me. In a recent report, the Tax Foundation, a nonpartisan tax policy nonprofit, examined cannabis taxation across U.S. state markets.

The following key takeaways were outlined in the report entitled “Cannabis Taxation: Lessons Learned from U.S. States and a Blueprint for Nationwide Cannabis Tax Policy”:

• As of the time the research was conducted, 21 states had taxes on recreational cannabis.

• A variety of tax designs were implemented including ad valorem rates applied at the wholesale and retail levels, and ad quantum taxes levied separately on cannabis seeds, flower (mature and immature), leaves, trim, clones, whole plants, concentrates, and edibles.

• Tax rates need to be low enough to undercut the illicit market.

• Revenue potential from cannabis is substantial; federal legalization could generate $8.5 billion in tax revenue.

• Tax consistency across jurisdictions will be important if interstate commerce is legalized

• Potency-based taxation is ideal, but a weight-based tax or a hybrid weight-based tax based on a limited number of potency categories is the most effective tax design until testing becomes less costly.

🇺🇸 State of the Industry

Arizona: Combined sales of medical and recreational cannabis surpassed $1 billion in 2023, reaching the mark all the way back in September.

California: A new law that goes into effect in 2024 will protect workers that use cannabis in their free time with the exception of federal employees and trades who work in building and construction.

Missouri: Regulators found nearly a quarter of the microbusiness licenses issued in October didn’t meet eligibility requirements.

New York: To almost no one’s surprise, another lawsuit has been filed against the Office of Cannabis Management and its Cannabis Control Board that could stop the industry in its tracks.

Wisconsin: A proposal to legalize medical cannabis will be reintroduced in January.

📊 Business

MedMen calls it quits in Arizona and Nevada

The multi-state cannabis operator, which has encountered struggles of late, announced that it will exit the Arizona and Nevada markets after reaching definitive agreements to sell its non-core assets in each state to Mint Cannabis.

💨 Quick Hitters

• In a follow-up to his “give up smoke” announcement and the subsequent PR stunt for a limited-edition metal fire pit, Snoop Dogg released a line of cannabis-infused beverages called Do It Fluid.

• Theory Wellness is opening a THC beverage dispensary in Medford, Massachusetts.

• AYR Wellness is opening two new dispensaries in Florida, bringing its retail presence to 64 locations in Florida and 91 locations nationwide.

📚 What We’re Reading

• Cannabis remains an 'industry interrupted' without federal change (Reuters)

• The French Laundry Would Really Appreciate It if You Don’t Name Your Cannabis Strain After Them (Eater)

• U.S. Cannabis Rescheduling May Happen Close to 2024 Election (Barron’s)

• Floundering Weed Stocks Test Wall Street’s Faith in 2024 Rebound (Bloomberg)

• New York medical cannabis companies enter adult-use market amid mixed reactions (NY Cannabis Insider)

🎙️ Potcasts

• Would-be weed merchants hit a 'grass ceiling' (The Indicator from Planet Money)

• Science of cannabis: The weed of the future (New Scientist)

🔎 Job Board

• California General Manager

  • Nabis

• Implementation Specialist

  • Distru

  • $65,000—$80,000

• Sales Development Representative

  • LeafLink

  • $45,000—$60,000

📨 Puff, Puff, Pass Reeferal Program

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

*Did someone forward you this newsletter? Sign up here.