Welcome to the latest edition of “Last week in Weed,” catching you up on the latest breaking news and industry developments in the world of cannabis.
Here’s what you may have missed over the last week:
Federal Court Nixes COVID Tax Relief for Cannabis Companies
A federal court ruled that cannabis companies are not eligible for COVID-era employee retention tax credits (ERTCs), citing the notorious IRS code 280E—a regulation that prevents businesses dealing in federally illegal substances from claiming standard business deductions. The decision is a blow to cannabis operators already navigating razor-thin margins.
Cannabis Cutting Into Booze Profits, Says Jack Daniel’s Parent Company
Brown-Forman, the parent company of Jack Daniel’s, reported a dip in profits and blamed some of that decline on the rise of legal marijuana. CEO Lawson Whiting noted that cannabis legalization is creating “pressure” on alcohol sales, especially among younger consumers. As legalization continues to expand, we may see more traditional vice industries either pivot or push back. Keep an eye out for lobbying dollars to follow.
Cresco Labs CEO to White House: Keep Your Promises
In an exclusive with Benzinga, Cresco Labs CEO Charles Bachtell said the cannabis industry is ready to hold the Biden administration accountable for campaign promises around reform. While he acknowledges some recent movement, he says the industry is prepared to “take any movement at a federal level” and will keep pushing. The clock is ticking in D.C. With rescheduling still unresolved and SAFE Banking stuck in limbo, industry leaders like Bachtell are making it clear: a few regulatory breadcrumbs won’t be enough come election time.
Blockchain Transparency Hits Beta Phase in Cannabis
GMGZ announced a beta launch of a blockchain-powered platform aimed at improving transparency in the cannabis supply chain. The system promises better traceability for products from seed to sale, targeting fraud, mislabeling, and quality control issues. Tech-forward solutions like blockchain may help legitimize the industry in regulators’ eyes while also giving consumers confidence in what they’re buying.
Cannabis Stock Watch: Winners & Losers This Week
Stock highlights from the past week show a mixed bag. While Verano Holdings and Curaleaf posted gains, others like Tilray Brands and Trulieve dipped amid regulatory uncertainty and market stagnation. Investors are still riding the wave of hope for federal reform, but without concrete movement, volatility is the name of the game.
