Category: Cannabis

Marijuana More Popular in U.S. Than Cigarettes: Poll

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American adults are now more likely to smoke marijuana than tobacco cigarettes.
That’s according to new survey data from Gallup finding that 15 percent of U.S. adults reported that they smoke cannabis, which is more than the 11 percent of those who told the polling firm that they had smoked any cigarettes in the past week.
“While not statistically different from the average of 14 percent in 2021-2022,” Gallup said of the latest two-year average of U.S. marijuana use polling data, the rise to 15 percent is “consistent with the upward trend in recent years.”
Among other findings, the latest data—from 2023 to 2024—indicate that men are more likely than women to report smoking marijuana, at 17 percent compared to 11 percent, media reports. Younger adults, ages 18 to 34, were also more likely (19 percent) to smoke cannabis than adults aged 35 to 54 (18 percent) and those 55 and older (10 percent).
Gallup says the results are reported in two-year averages to improve statistical reliability.
November 17, 2024
Organigram Closes Second BAT Tranche

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Organigram Holdings closed the second of three tranches of a CAD124.56 million ($92.2 million) equity investment by British American Tobacco’s BT DE Investments subsidiary.
Pursuant to the second tranche closing, the investor acquired 4,429,740 common shares and 8,463,435 Class A preferred shares at a price of CAD3.22 per share for gross proceeds of $30.82 million. The remaining 12,893,175 shares subscribed for are due to be issued at the per share price in the final tranche on or around Feb. 28, 2025.
“With two tranches of the Jupiter pool now funded, combined with our strong balance sheet and targeted investment strategy, Organigram is well on its way to executing on its ambitious growth plan focusing on international, technological and product expansion,” said Organigram CEP Paolo De Luca in a statement.
“Our inaugural Jupiter investment in Open Book Extracts marked our second investment in the U.S. market, and our first international investment in Sanity Group represents a significant first step in our ambitions to grow our footprint in the fast-growing German market,” he added.
September 5, 2024
UKVIA Warns Against ‘Spice’ Vapes

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The U.K. Vaping Industry Association (UKVIA) has cautioned consumers about an increase in illegal “Spice vapes” and called for urgent government action to protect young people.
The warning follows reports of people misusing “open” vape devices—which allow consumers to add e-liquid—to deliver synthetic cannabinoids such as Spice and the psychoactive chemical THC, which is found in cannabis. Spice is a nickname for a substance containing one or more synthetic cannabinoids.
UKVIA stated that the regulated nicotine vape industry is in no way connected with the trend of using open vape devices as a delivery mechanism for illegal drugs.
“Consumers can feel confident that when they buy regulated products from any reputable vape supplier, that they will be getting nicotine vapes which are designed to help them transition from cigarettes,” said UKVIA Director General John Dunne in a statement.
“I am worried, however, that there are vape devices available from unofficial sources which may contain illegal drugs and that those who buy them may have no idea what is contained in these products.”
According to Office for Health Improvement & Disparities statistics, of the 12,418 young people under 18 in contact with alcohol and drug services between April 2022 and March 2023, cannabis was the most common substance (87 percent) for which young people sought treatment. While 10,837 young people reported having a problem with cannabis only 1,737 said they had a problem with nicotine.
“We need the government to step on now with a nationwide education campaign in traditional and social media to highlight the dangers of obtaining vape devices from unofficial sources and explaining the differences between legal and illegal vape products,” said Dunne.
“Unless a clear distinction is made between the regulated vape market supplying adult smokers with products which are 95 percent less harmful than cigarettes and the unofficial supply of illegal products, then people will become wary of all vapes with the potential to drive smoking rates back up again.”
August 28, 2024
U.S. Drug Agency Schedules Cannabis Hearing

The U.S. Drug Enforcement Administration (DEA) has scheduled a Dec. 2 hearing on its proposal to lower the classification of marijuana to the less dangerous level of Schedule III, according to a public announcement late Monday.
The DEA had never issued any timeline for its process to potentially change the Schedule I classification of cannabis for the first time since the Controlled Substances Act went into effect in 1970. Still, some in the cannabis industry had hoped for a final decision before the U.S. election.
The DEA had already received 43,000 comments on its proposal, initially made on May 21, with a comment period that closed late in July. The DEA said the comments included requests to hold a public hearing.
DEA administrator Anne Milgram said she would determine who will participate in the hearing and name a presiding officer to run the meeting, which will take place on Dec. 2 at 9 a.m. Eastern Time at 700 Navy Drive, Arlington, Virginia.
The government said the meeting may also be moved to a different location, continued from day to day, or recessed to a later date without notice.
August 27, 2024
Vapor Industry Cheers Pot Reclassification

Photo: Africa Studio
Representatives of the U.S. vapor industry have welcomed a decision by the Biden Administration to reclassify marijuana.
“The decision clearly underscores this administration’s commitment to listening to constituents and demonstrates a willingness to recognize and accept real-world, category-wide scientific evidence, said Tony Abboud, executive director of the Vapor Technology Association (VTA) in an e-mailed statement.
“In light of today’s decision, VTA is encouraging other agencies within the Biden Administration, specifically, the U.S. Food and Drug Administration, to follow the similarly overwhelming body of evidence on the use of vaping products as effective harm reduction and smoking cessation tools for adult smokers.
“In just the past year, FDA’s selective pattern of prioritizing politics over science has led to the approval of more than 650 new cigarettes. VTA reiterates its call for the FDA to follow suit with other agencies in the Administration to stop turning a blind eye to the overwhelming body of science proving the benefits of flavored nicotine options to Americans looking to quit smoking.”
May 3, 2024
Real Brands Acquires Vapor Shark Assets
Real Brands has signed a letter of intent (LOI) to acquire Vapor Shark’s assets.
Since 2010, Vapor Shark has been a pioneer in the online B2B and B2C business, developing sales channels and e-commerce back-end pick and ship capabilities able to manage regulated product distribution. It also maintains recognizable service brand reputation in the vapor markets.
“The Vapor Shark transaction brings an established brand in the vapor consumer and retail markets to Real Brands,” said Real Brands President and CEO Thom Kidrin in a statement.
“This deal will bring new distribution channels to Real Brands that would enlarge Real Brands’ existing distribution channels. This outstanding opportunity should enable Real Brands to capture market share of the tobacco and hemp vapor industry, which is expected to grow to $29.3 billion by 2029.”
Real Brands is the result of a 2020 merger with Canadian American Standard Hemp that brought together industrial scale hemp CBD oil/isolate extraction and processing, wholesaling of CBD oils and isolate, and production and sales of numerous hemp-derived CBD consumer brands of smokable, edible and topical products.

Photo: Tobacco Reporter archive
May 3, 2024
White House Asked to Reclassify Marijuana
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The U.S. Drug Enforcement Administration plans to reclassify marijuana as a less dangerous drug, which could have far-reaching implications for American drug policy.
The proposed measure, which is yet to be reviewed by the White House Office of Management and Budget, aims to acknowledge the medical benefits of using cannabis and recognize the fact that it is less prone to abuse in comparison to some of the most dangerous drugs in the country and reclassify cannabis as a Schedule III drug.
However, it does not seek to legalize marijuana for recreational purposes.
Five people familiar with the matter who spoke on the condition of anonymity to discuss the sensitive regulatory review confirmed the agency’s move to the AP on Tuesday. The move clears the last significant regulatory hurdle before the agency’s biggest policy change in more than 50 years can take effect.
According to the DEA, the following are examples of Schedule I drugs:

Heroin
Lysergic acid diethylamide (LSD)
Cannabis
Methamphetamine
Methaqualone (Quaalude)
Peyote
According to the National Institute for Health, California became the first State to make it illegal to possess cannabis. In the 1930s, the then U.S. Federal Bureau of Narcotics warned of the increasing abuse of cannabis, and by 1937, 23 States had criminalized possession.
By 1970, the Controlled Substances Act passed, and the Federal government categorized marijuana as a Schedule I substance.
The planned DEA rule change followed an August 2023 recommendation from the Department of Health and Human Services (HHS) that DEA reschedule marijuana from Schedule I to Schedule III. Any change to the status of marijuana via the DEA rulemaking process would not take effect immediately.
May 2, 2024
Germany Legalizes Recreational Marijuana

Image: Oksana Smyshliaeva
Germany has legalized possession and home cultivation of recreational marijuana, according to Vaping360.
When the law goes into effect, adults aged 18 and older will be allowed to possess up to 25 grams of cannabis in public spaces and up to 50 grams in private homes. Each household will be allowed to grow up to three plants.
The law could take force as early as April 1 but could be pushed back; the bill must still go through the Bundesrat, the legislative body representing German states, and could be referred to a mediation committee, which would delay final adoption.
Due to European Union concerns, the bill would not allow for sales in licensed dispensaries and pharmacies but creates a plan for nonprofit “cannabis social clubs” that will grow and distribute cannabis to a maximum of 500 members per club. The clubs could begin operations as early as July depending on the status of the bill.
There are plans for another bill that would establish pilot programs for commercial sales in some German cities, according to Marijuana Moment; however, that legislation would need to be reviewed by the European Commission beforehand.
When the bill goes into effect, it will make Germany the ninth country to legalize recreational cannabis and third EU member to do so.
Not all lawmakers welcomed the legislation. Bundestag conservatives have made it clear that if they take power in next year’s election, they will roll back legalization completely.
February 26, 2024
Filling the Gaps

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As it seeks to reduce its reliance on tobacco, Zimbabwe is investing in cannabis research.
By Daisy Jeremani
In a bid to bridge the knowledge gap in Zimbabwe’s burgeoning cannabis industry, the Zimbabwe Industrial Hemp Trust (ZIHT) has identified 63 medical doctors for training to equip them with skills to conduct medical and clinical research on cannabis.
They are in a flexible 12-month online program that was designed in Australia by the International College of Cannabinoid Medicine. Students can study at their own pace but are expected to finish the course within 12 months.
Nesisa Ncube, a junior resident medical officer at Mpilo Central Hospital in Bulawayo, Zimbabwe’s second biggest city, views her selection to participate in the course as an honor and an opportunity to learn more about the new medicinal cannabis sector.
She hailed the training as “insightful” as it delves, among other modules, into pharmacokinetics of medicinal cannabis and also what to consider when planning to prescribe medicinal cannabis to a patient.
“It has been interesting to learn how some conditions which don’t have clear and effective treatments are now being treated with medicinal cannabis, and there have been some good outcomes,” she said in an interview with Tobacco Reporter.
The southern African nation, which is also the continent’s biggest tobacco producer, has been working to diversify that sector amid the intensifying campaign against the golden leaf over environmental and health concerns. Zimbabwe identified cannabis production as among the possible pathways to diversification.
In April 2018, it became Africa’s second country (after Lesotho) to issue licenses for production of cannabis for medicinal and scientific use. Thereafter, the government created a licensing and enforcement desk to administer the relevant statutory instrument on behalf of the health ministry. The desk’s mandate covers applications for licenses of sites, applications for renewal, variation or amendment of licenses for sites or persons, the production, handling, import and exportation of controlled substances and all compliance issues relating to controlled substances.
Locally produced cannabis is largely for export purposes only, with domestic use restricted to research and development purposes.
In its 2022 annual report, The Medicines Control Authority of Zimbabwe (MCAZ) says that it has issued 59 licenses for production of cannabis for medicinal and scientific use. Fifty-eight licenses were active with 56 of them being for cultivation and production and two for cultivation and research.
Last year,, the MCAZ received two applications for production of hemp-based cannabidiol products as complementary medicines. It issued one of the applicants with a pharmaceutical manufacturer’s license restricted to complementary medicines manufacture.
Among the major licensees is Swiss Bioceuticals, which launched a $27 million medicinal cannabis farm just outside Harare in May 2022.
ZIHT CEO Zorodzai Maroveke said most of the ZIHT’s activities are to fill gaps and needs in the hemp industry, and one of the gaps it has identified is the lack of knowledge among local medical health professionals. It is against this background that the ZIHT has facilitated the year-long training program.
“It is the study of a very huge biological system called the endocannabinoid system,” she said.
The local medicinal cannabis industry has not developed as fast as expected since the first license was issued five years ago due to what Maroveke describes as tight compliance requirements by the regulator and failure to comply by most players. The enormity of resources required for entry is the biggest hurdle, she observed.
ZIHT is worried over these challenges, which are frustrating more effective participation into this specialized area by local investors.
“The industry remains capital-intensive, the market dynamics present a market access challenge, [and] lack of localized expertise have all affected the participation of local investors,” said Maroveke.
Although ZIHT’s primary area of interest is industrial hemp, she said, their support for medicinal cannabis is because there was no active representation of the sector by its major stakeholders.
Ncube is optimistic that the training she is undergoing will advance her career as it covers an area that is not yet part of the curriculum at local medical schools. The increase in the number of health professionals who are conversant with this novel treatment system, she observed, will add diversity to the medical fraternity.
“The training will help advance my career by educating me on the mechanisms of action and prescribing considerations for medicinal cannabis, which is not really a subject that was covered in med school, and this will benefit the medicinal cannabis sector because this increases the number of health professionals who have knowledge on the subject, which enables expansion of the sector into other countries like mine,” Ncube said.
“I see expansion of the industry with distribution centers all over the world with safe prescription and monitoring of patients by properly trained health care professionals on the subject.”
Zimbabwe is battling an increase in psychiatric cases due to abuse of various illicit substances, cannabis included. Up to 80 percent of all admissions to Ingutsheni Psychiatric Hospital in Bulawayo are due to drug and substance abuse, including marijuana, officials say.
Percy Mukwacha, who is also training in psychiatry at the University of Zimbabwe and is also undergoing training under the ZIHT scheme, said he was mostly impressed by the potential of cannabinoid not only to treat a number of illnesses but to also ease the burden on local healthcare.
“In mental health, we get a lot of morbidity from cannabis use. That’s what interested me to join this training where cannabis can have positive effects on the society,” he told Tobacco Reporter.
“I guess an understanding of this ubiquitous substance with problematic consequences has to be helpful in my career.”
Treatments derived from cannabis, said Admire Machongwe, a medical doctor in private practice in Harare, have potential to revolutionize patient care in the country.
“We were notified of the scholarship but were already intrigued by the way cannabinoid medicines were being used to treat chronic pain and other ailments,” he said.
“It [training] will be quite beneficial,” he added. “We expect cannabinoid medicines to be licensed in Zimbabwe in the near future. Treatment of otherwise difficult-to-treat conditions like chronic pain and depression might be achievable.”
December 1, 2023
The Potential of Pot

Photo: Konrad
Despite regional setbacks, global cannabis sales are still getting higher.
By Stefanie Rossel
Global cannabis sales continue to grow, albeit at a slightly slower pace than before, facing headwinds in comparatively mature markets, such as Colorado or California. Euromonitor International expects the value of the global legal cannabis market to grow from $41 billion in 2022 to $98 billion by 2027. Despite increasing access and acceptance, the stigma around cannabis remains and regulatory uncertainty prevails.
The main growth drivers are innovation, investments from tobacco companies and consumer perception. Cannabis caters to the needs of consumers unnerved by economic, environmental and political uncertainties along with the spread of armed conflicts. Indeed, data from Israel’s ministry of health shows a spike in demand for a medical marijuana program one month into the war with Hamas. Meanwhile, the government of Ukraine—another country at war—is preparing to legalize medical cannabis.
Euromonitor expects noncombustible cannabis products to gain share as consumers become more concerned about their health. Further legislation of adult-use cannabis would have significant implications for other fast-moving consumer goods, according to the market intelligence providers, with innovations in cannabis involving topicals, beverages or edibles.
Alert to opportunity, the major tobacco players have already ventured into the sector. Philip Morris International has invested in Vectura Fertin Pharma, a contract development and manufacturing organization specializing in gums, pouches, tablets and other solid oral systems for the delivery of active ingredients. According to news reports dated July 2023, PMI is also planning to take over Syqe Medical, an Israeli company, which manufactures a metered-dose inhaler for pain reduction using medical marijuana.
BAT, for its part, has stakes in 13 cannabis startups. In April, the company entered a joint venture with Charlotte’s Web Holdings, a cannabidiol (CBD) producer based in Denver, Colorado, USA. Since 2021, it also holds a minority stake in Organigram, Canada’s second-largest licensed cannabis producer. In early November 2023, BAT boosted its interest in the company through a cad124.6 million ($90.15 million) investment. Last year, it invested $37.6 million in a leading German cannabis company called Sanity Group.
Imperial Brands acquired a stake in Auxly in 2019, while Altria is represented in the cannabis market through Cronos of Canada.

Despite the growth of the market, Canadian companies are struggling to profit from legal cannabis.
(Image: JHVEPhoto)
Successful Experiment
Presently, two markets are of particular interest for investors in the cannabis space: Canada, which in October celebrated the fifth anniversary of legal recreational cannabis; and Germany, which was supposed to legalize cannabis in November.
Canada’s government had committed itself to reviewing its Cannabis Act after three years, but the Covid-19 pandemic delayed that exercise. In October, the government published a summary of feedback provided by industry, healthcare and community groups. Its conclusions were sobering. Despite the growth of the market, companies across the supply chain are struggling to profit from legal cannabis. Legal producers are burdened by significant regulatory fees, distributor markups and taxes in a hyper-competitive market. The illicit market, meanwhile, still represents 40 percent of the business.
In their rush to compete with illegal products, sellers of legal cannabis have dropped their prices dramatically, selling products for as low as cad3 per gram instead of the cad10 per gram originally envisaged by the government. Due to advertising and packaging restrictions, communication with consumers, even to inform them about different varieties of cannabis and their effects, is nearly impossible. As a result of such challenges, several first players have exited the market or reduced manpower.
Legalization has also impacted public health: The Canadian Institute for Public Health noted that cannabis-related emergency department visits and hospitalizations increased 14 percent between 2019 and 2021. Despite its shortcomings, Deepak Anand, principal of Vancouver-based ASDA Consultancy Services, deems legalization a success. “Legalization has resulted in about a 50 percent reduction in illicit market sales,” he says, quoting a recent survey in which 48 percent of cannabis-using respondents stated that they purchased all their products at a licensed retailer.
“Retailer availability and proximity is an important metric in increasing overall market penetration and facilitating access,” says Anand. “No one expected the illicit market to disappear on day one or year five of legalization. The fact that we are at almost 50 percent reduction says a lot about the progress made.”
Altogether, 64 percent of Canadians supported legalization, according to the probe. The survey also showed that people aged 45 and older increased their cannabis intake the most of all age groups following legalization, whereas those under 17 reduced their consumption.

Legalization has resulted in about a 50 percent reduction in illicit market sales.
Deepak Anand, principal, ASDA Consultancy Services
Lessons to be Learned
Anand emphasizes that legalization is a process rather than an event and that the experiences of Canada show other countries what works and what doesn’t. Lessons, he says, include the importance of avoiding over-taxation and overregulation of a nascent industry, particularly when one of the goals of legalization is to transition consumption from illicit to licit channels.
What’s more, tax earnings derived from legalization must not be used solely to fill government coffers. “Revenues must be reinvested by providing the industry with data, research and tools to support the nascent industry and transition supply from criminal and illicit channels.”
Governments must also guard against setting the age of access too high or the THC limits too low, according to Anand. Furthermore, they should make sure that social justice reform is baked into any legalization programs.
Anand expects the final report on Canada’s Cannabis Act, which will be tabled before Parliament in March 2024, to take into account industry suggestions on taxation and THC levels, concerns from academics about the lack of research and a call for an overhaul of the medical system.
The Canadian cannabis market, he predicts, will see only the fittest companies surviving. “Strong business fundamentals and financial discipline will be rewarded,” says Anand. ”Companies and teams that focus on the plant and the consumer will thrive as we are seeing in the market currently. Cannabis isn’t going anywhere; it is an industry that is here and will not only stay but also thrive in the future.”
Disappointing Move
Meanwhile in Germany, legalization appears to have lost some of its momentum. Hopes were high when, in 2021, a new coalition government announced it would permit licensed shops to sell recreational cannabis to adults, i.e., those from the age of 18. The move would have made Germany the biggest EU cannabis market by far. With the legalization, the government aimed to starve the illegal market, decriminalize occasional users, lower criminal justice expenditures and protect public health. The expected cannabis tax, experts predicted, could contribute up to €1.8 billion ($1.92 billion) annually to the state treasury.
Two years on, all that remains of the lofty plans is a watered-down version. After realizing that full legalization of recreational cannabis would interfere with the U.N. Single Convention on Narcotic Drugs (1961) and EU legislation, the cabinet on Aug. 16, 2023, approved a bill that would allow adults to possess up to 25 grams of the drug, grow a maximum of three plants and acquire weed as members of nonprofit cannabis clubs. The government said it would also launch a pilot project to test the effects of a commercial supply chain for recreational cannabis over five years—a proposal for which it will need to present separate legislation.
The legislation was scheduled to pass Parliament on Nov. 16, 2023, making cannabis legal from Jan. 1, 2024. However, after meeting fierce opposition from numerous parties, among them conservative policymakers who warned that legalization would encourage cannabis use and create more work for authorities, industry associations and consumer advocacy groups, the final reading was delayed to mid-December.
In a Nov. 6 parliamentary hearing, the German Cannabis Association (DHV) pointed out that the possession cap of 25 grams per year made home cultivation impossible, as it referred to fresh flowers, which tend to lose weight after drying. “Under these conditions, no one will take the trouble to cultivate cannabis,” says DHV Managing Director Georg Wurth. “The limit would be a promotion scheme for the black market.”
DHV also advocates to allow private growers to cultivate more than three plants and criticizes the distance rule, which stipulates that consumption will neither be allowed in cannabis clubs nor within a 200-meter distance of schools, kindergartens, playgrounds or cannabis clubs. “Such a distance—or any obligatory distance—would mean that in populated areas there would be no space left for legal consumption,” he says. “The idea to completely prohibit consumption on the premises of clubs whose only aim is to cultivate cannabis is unrealistic and makes no sense. The envisaged distance rule for cannabis clubs is similarly absurd, as it does nothing for youth prevention.”
Furthermore, the punishments for violations described in the proposed legislation are too harsh, according to Wurth. The bill stipulates imprisonment of up to three years for the possession of 26 grams of cannabis or the cultivation of four plants. Consumption-related offences involve high fines. Smoking pot in a 190-meter radius from a school, for example, could cost the user up to €100,000. The DHV also calls for a legal opportunity to consume self-cultivated cannabis with friends. “After all, the goal is to deprive the black market of as much consumed cannabis as possible,” Wurth says. The association also calls for equal treatment of cannabis and alcohol in road traffic and an alignment of sanctions.
At press time, an amended version of the bill that takes into account stakeholders’ input had not been released. The first part of the planned cannabis reform in Germany is now expected to become effective on April 1, 2024, at the earliest.
Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.

December 1, 2023