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As the largest generation in the United States, millennials are reshaping consumer spending trends – including expenditures on cannabis, where that age group dominates the pre-roll market.

Millennials - currently ages 28-43 – are leading the charge in consumption of pre-rolls, accounting for 45% of the $3 billion market, according to a recent study.

"They're at that sweet spot where they have more money and they have more freedom than younger generations," Custom Cones USA co-founder and CEO Harrison Bard told MJBizDaily.

"Compared to older generations, they grew up consuming cannabis."

The study combined survey data from more than 900 cannabis users nationwide with Headset analytics to create a comprehensive look at pre-rolls consumers and their buying habits.

The average price for a pre-roll, according to Headset data, is $6.44 per gram, a number that's been declining for years.

In September 2022, the average, equalized price for a pre-roll was $8.13.

While millennials account for the biggest share of consumers purchasing pre-rolls, other generations are close behind. Read story >

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F R E E   W E B I N A R

With recent shifts in federal policy, cannabis businesses face an unprecedented opportunity to challenge 280E. Despite the IRS's warnings of increased enforcement against companies that do not comply, many cannabis companies are taking bold action by amending tax returns and refusing to reduce deductions. 

Join MJBizDaily and Justin Botillier, CEO of Calyx CPA on Thursday, Nov. 21 at 2:00 p.m. ET for a free webinar that will dive into: 

• A historical overview of the cannabis industry's strategies to mitigate the effects of 280E.
• The justifications being used by MSOs like Trulieve to amend tax returns and reclaim disallowed deductions.
• The lawsuit pursued by Verano Holdings and Canna Provisions and its implications if successful.  
• Recent Supreme Court actions that undermine the applicability of the CSA and, therefore, 280E.
• The implications of the imminent reclassification of cannabis to a Schedule III substance. 
• The statutes of limitations for amending returns and the potential risks of taking bold actions. 

Weekly roundup of MJBizDaily's most-viewed stories

P O L I C Y

Marijuana stakeholders walk fine line to join rescheduling hearing

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The next step in the yearslong marijuana rescheduling process could be a brief hearing where an administrative law judge informs witnesses why they aren't qualified to participate, observers told MJBizDaily.

The cannabis industry advocates and business leaders asked to participate in a Dec. 2 hearing addressing the rescheduling of marijuana were given the difficult challenge of explaining how they would be harmed by moving the plant from Schedule 1 to Schedule 3 of the Controlled Substances Act.

To do that, anyone in favor of rescheduling marijuana must reconcile two seemingly counterintuitive ideas if they want to engage in the process, according to interviews and a review of filings obtained by MJBizDaily:

• Schedule 1 is untenable.
• Moving marijuana to Schedule 3 without imposing other controls also "adversely" affects them.

It might seem like a delicate balancing act – if not outright contradictory.

But that's the fine line the 25 "designated participants" listed in an Oct. 31 letter from DEA Chief Administrative Law Judge John Mulrooney II must tread if they want a voice in the historic marijuana rescheduling process. Read story >

C U L T I V A T I O N

California cannabis farmers call 2024 'best harvest season'

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California cannabis farmers growing their plants under the sun said the weather cooperated during the 2024 growing season.

A cold, wet spring followed by a hot, dry summer with fewer wildfires combined to improve yields – and, potentially, prices.

Sun-grown cannabis is celebrated for its rich terpene profiles and earthy, distinct aromas, which enthusiasts often describe as more natural or complex than indoor-grown strains.

"For Emerald Triangle farmers, this could be the best harvest season I've ever seen," said John Casali, who grew up growing cannabis on Huckleberry Hill Farms in Humboldt County.

Sol Spirit Farm co-founder Judi Nelson said the weather delayed spring planting, so she was still bringing in the last of the "Croptober" harvest in Trinity County.

Nelson said planting and harvesting late is a double-edged sword: The moisture from spring rains kept wildfires at bay, but a later harvest could put the crop at risk for mold as California enters its rainy season.

Regardless, she added, "It was a really nice summer for us." Read story >

F I N A N C E

Eaze, Green Dragon find new life after $10 million capital infusion

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Newly rebranded California-based marijuana operator Eaze raised $10 million to acquire select assets of Eaze Technologies, its predecessor company, to fund the reopening of 70 Eaze and Green Dragon locations across California, Colorado, Florida and Michigan.

The now-defunct Eaze Technologies, which purchased Denver-based Green Dragon about three years ago, announced in October that it would close its Colorado and Florida operations.

Billionaire Jim Clark, founder of defunct tech company Netscape, provided the funding and now has controlling ownership of the new entity, Eaze.

CEO Cory Azzalino said the company does not intend to reimagine its business model, which it shifted four years ago from a delivery platform to a plant-touching entity. Read story >

F I N A N C E

South Dakota's first non-tribal medical marijuana dispensary to close

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South Dakota's first licensed medical marijuana dispensary not on tribal land is closing next month.

Unity Rd. said on social media that it and The Hartford Connection in Hartford, South Dakota, will cease operations Dec. 7.

The company opened on July 27, 2022 – 20 months after voters approved medical marijuana sales.

The decision comes after South Dakota voters rejected a ballot measure on Nov. 5 that would have legalized recreational marijuana.

B.J. Olson, co-owner of Unity Rd. and The Hartford Connection, said he sees no path forward for the business without the potential of adult-use sales.

"I don't see the positive outcome for us continuing down the road of medical marijuana," he said. Read story >

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