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:
Texas Chooses Regulation Over Ban
After years of debate, Texas lawmakers stopped short of banning THC entirely, opting instead for tighter oversight. Senate Bill 2024, effective September 1, bans the sale and marketing of cannabinoid vapes, sets stricter testing requirements for hemp-derived THC, and restricts sales to consumers 21 and over. The law is expected to complicate compliance for operators but also provide clearer guidance after long-standing uncertainty.
FinCEN Data Highlights Ongoing Tensions
The Financial Crimes Enforcement Network (FinCEN) released new data showing that most banks continue to file “marijuana limited” Suspicious Activity Reports (SARs) when working with cannabis businesses. These filings indicate institutions believe companies are in compliance with state law but still flag them due to federal prohibition. Roughly 13 percent of reports were classified as “marijuana termination,” signaling banks cutting ties. While this shows progress in cannabis banking access, the lack of federal protections still creates uncertainty and operational hurdles.
Charlotte’s “Happy Sauce” Blends Food and Cannabis
In Charlotte, Villa Taco has introduced “happy sauce,” a salsa infused with 10 milligrams of THC. Customers can add it to tacos, burritos, or other menu items. The launch is part of a collaboration with Hemp & Tea Company, which also operates a nearby cannabis lounge. This experiment reflects the growing overlap between cannabis and culinary culture, though local regulatory clarity may determine how sustainable such ventures are.
Tariffs Threaten Pre-Rolled Product Segment
A recent move by the Trump administration to impose a 50% tariff on imports from India is hitting one of the cannabis industry’s fastest-growing sectors: pre‐rolled cones. India supplies roughly half the world’s cones, with Indonesia supplying much of the rest. Pre-rolled product sales reached about $2.3 billion last year, showing growth of nearly 12% from 2023 to 2024.
The tariffs are expected to raise costs significantly. Some companies are considering absorbing the added cost, while others may pass it on to consumers or attempt to shift to alternative suppliers—though those options are limited in scale or quality. For example, switching to non-custom, generic cones could damage branding for many firms. There’s also interest in moving production domestically—both for cones and for tips—but that brings its own cost, engineering, and time trade-offs. Across different state markets, pricing sensitivity will play a big role: higher-price states may tolerate increases, while more price-competitive ones may see disruption.
UK Considers Adjusting CBD Limits
The UK’s Food Standards Agency (FSA) is reviewing its daily CBD dosage limit, which was reduced from 70 milligrams to 10 milligrams in 2023. Industry leaders argue the cap is overly restrictive, while regulators weigh new warning requirements. A final decision is expected in early 2026 and could reshape the British CBD market by either loosening or tightening restrictions further.
Triad Program Targets Merchandising Standards
Accessory companies LuvBuds Hoodie and Sparkplug have unveiled the Triad Program, a merchandising initiative designed to elevate visual standards in cannabis retail and drive measurable sales growth. The program marks a shift toward more polished consumer experiences, reflecting a broader industry trend toward professionalization and differentiation in a competitive market.
Cannabis Stocks: Volatility and Bright Spots
Cannabis stocks remain a mixed bag. Tilray Brands has climbed off recent lows but remains far from its highs, reflecting cautious investor optimism tied to regulatory developments. Canopy Growth reported 24 percent year-over-year revenue growth but still struggles to achieve profitability. Smaller names like Incannex Healthcare continue to trade at speculative levels. Turning Point Brands has emerged as a standout, posting 25 percent revenue growth and declaring a quarterly dividend—an unusual move in the sector that sent its stock to a new 52-week high.
