The cannabis industry saw major developments this week across regulation, corporate earnings and consumer trends. The Centers for Disease Control and Prevention (CDC) introduced a federal cannabis strategy while France moved to ban raw flower in medical cannabis sales. Uruguay made an unexpected regulatory appointment and Spain's top medical cannabis advocacy group shut down in protest of restrictive policies.
On the business side, High Tide reported record revenue but faced margin concerns, while SNDL reached break-even free cash flow despite weakness in its liquor segment. Charlotte's Web continued its mainstream retail expansion, while Agrify doubled down on THC beverages. Edible Brands launched Edibles.com, bringing its consumer trust into the hemp industry and Poseidon-backed Herb Haus prepared to open a social equity dispensary in New Jersey.
Consumer trends continued to shift, with three in four young adults now substituting cannabis for alcohol at least weekly. Meanwhile, Curaleaf and Fab 5 Freddy teamed up to train 175 new cannabis workers and Ted Cruz and Elon Musk stirred conversation with jokes about smoking weed on air.
Regulatory And Policy Updates
CDC Unveils Federal Cannabis Strategy
The Centers for Disease Control and Prevention (CDC) released a cannabis strategic plan, outlining a public health approach to cannabis use in the U.S., as first reported by Green State’s Rachelle Gordon. The plan highlights concerns over rising THC potency and increased cannabis consumption, while also acknowledging potential benefits.
The strategy focuses on monitoring trends, expanding research, supporting healthcare providers and increasing public awareness. The CDC will also examine cannabis use in key populations, including pregnant women, adolescents and workers in safety-sensitive jobs. While largely focused on risk management, the plan represents a shift toward a more research-driven federal stance on cannabis.
France Proposes Medical Cannabis Rules, Excludes Raw Flower
France submitted its proposed medical cannabis regulations to the European Commission, favoring single-use cartridges while banning raw flower sales. The government argues that restricting flower will prevent overlap with recreational use, though critics note that Germany and the Netherlands allow vaporized flower for medical patients.
The regulation would allow tamper-proof cannabis cartridges for fast-acting relief while tightening controls on cultivation, import and distribution. The move places France among the most restrictive medical cannabis markets in Europe, contrasting with broader reforms elsewhere.
Uruguay Names New Cannabis Regulator In Unexpected Move
Uruguay appointed MartÃn RodrÃguez as the new director of the Institute for Regulation and Control of Cannabis (IRCCA) after Daniel RadÃo declined the position, reported El Planteo. RodrÃguez, who led IRCCA from 2015 to 2019, is seen as an industry insider with a track record in cannabis regulation.
The appointment shifts control to the ruling Frente Amplio party, raising speculation over potential regulatory changes. Uruguay's legal cannabis market has cut illicit trade by 50% and the new leadership could shape its next phase.
Spain's Leading Medical Cannabis Group Shuts Down
After a decade of advocacy, Spain's Observatorio Español del Cannabis Medicinal (OECM) announced its closure. Founder Carola Pérez blamed government inaction and restrictive policies, particularly the refusal to legalize raw flower or full-spectrum oils for patients.
While Spain grants cultivation licenses for export, domestic patients are limited to expensive pharmaceuticals like Sativex and Epidiolex. The OECM's closure is seen as a setback for patient access, even as the country finalizes long-awaited medical cannabis regulations.
Benzinga Cannabis Capital Conference Returns To Chicago
The Benzinga Cannabis Capital Conference is set to return to Chicago on June 8 to June 10, 2025, bringing together top investors, executives and industry leaders. The event will feature exclusive networking opportunities, market insights and discussions on the future of cannabis investing and business strategy. Attendees will hear directly from some of the most influential voices shaping the cannabis landscape. For more details and registration, visit bzcannabis.com.
Market And Earnings Updates
High Tide Reports Record Revenue But Faces Margin Pressure
High Tide (NASDAQ:HITI) reported CA$142.46 million ($99.76 million) in first-quarter revenue, an 11% increase year-over-year. The company now has 5.66 million Cabana Club members, including 85,500 paying Elite members, up 13% quarter-over-quarter.
Despite revenue growth, gross margins fell to 24.9%, the lowest in company history, prompting Beacon Securities to lower its 12-month price target from CA$6.25 to CA$5.75 despite maintaining a “Buy” rating. Management expects margins to stabilize as the company expands its Canna Cabana store count, with plans to open between 20 and 30 locations in 2025.
SNDL Achieves Break-Even Free Cash Flow Amid Cannabis Growth
SNDL (NASDAQ:SNDL) posted fourth-quarter revenue of CA$257.68 million, up 3.7% year-over-year, exceeding analysts’ estimates of CA$248.10 million. Full-year revenue reached CA$920.4 million, a 1.3% increase from 2023.
The company's cannabis operations saw a 42.4% sales jump, driven by provincial board and business-to-business distribution. However, SNDL's liquor retail segment struggled, with sales down 3.4% year-over-year. Same-store sales in the cannabis segment rose 6.3% in the quarter and 3.5% for the year.
Despite a fourth-quarter operating loss of CA$76.1 million, SNDL achieved positive free cash flow of CA$11.6 million in the quarter and CA$8.9 million for the full year. CEO Zach George noted that the company exceeded its commitment to reaching break-even free cash flow while continuing to invest in expansion.
Industry And Business Developments
Edible Brands Enters The Hemp Market With Edibles.com
Edible Brands, the parent company of Edible Arrangements, launched Edibles.com, an e-commerce marketplace focused on hemp-derived products. The platform, led by former Theory Wellness CMO Thomas Winstanley, aims to bring Edible Brands’ reputation for quality to the fast-growing hemp industry.
The platform launched in Texas on March 20 and plans rapid expansion into Florida and Georgia. Select products will be available for nationwide shipping where legally permitted.
Poseidon Backs New Jersey Social Equity Dispensary
Poseidon Investment Management has financed Herb Haus, a social equity dispensary in Carlstadt, New Jersey. The dispensary is strategically located near MetLife Stadium and the Meadowlands Sports Complex, aiming to serve a high-traffic customer base.
Founder Joe Kanegieser secured a social equity license and was selected for the New Jersey Economic Development Authority’s Cannabis Equity Grant Program. With New Jersey's cannabis sales growing 25% in 2024, Herb Haus is positioned for success in the state's expanding market.
Consumer Trends And Cultural Shifts
Young Adults Increasingly Replacing Alcohol With Cannabis
A Bloomberg Intelligence report found that 74% of consumers aged 18-24 substitute cannabis for alcohol at least weekly. The trend is reshaping the beverage industry, with major cannabis operators like Trulieve and Curaleaf expanding THC-infused drink offerings.
A YouGov poll reinforced the shift, showing that a majority of Americans now believe regular alcohol consumption is more harmful than cannabis use.
Fab 5 Freddy, B-Noble And Curaleaf Support Free Cannabis Job Training
Curaleaf (OTC:CURLF) partnered with Green Book Academy and B-Noble to train 175 aspiring cannabis workers free of charge. The program provided hands-on training, resume workshops and industry networking. Hip-hop legend Fab 5 Freddy made a surprise appearance, emphasizing the importance of education in cannabis career development.
Elon Musk And Ted Cruz Joke About Smoking Weed On Air
During a recent podcast, Ted Cruz and Elon Musk joked about smoking cannabis live, referencing Musk's infamous 2018 interview with Joe Rogan. The exchange, reported on Benzinga, reignited conversations about cannabis normalization in politics and business.
With 4/20 approaching, industry watchers are speculating whether Musk will once again make headlines around the topic.
Grassland Movie Spotlights Cannabis Incarceration
Grassland, a new social justice drama, is now available for pre-order on Apple TV. Starring MÃa Maestro, Quincy Isaiah, Jeff Kober and Ravi Cabot-Conyers, the film explores the human impact of cannabis incarceration in the U.S. during the 2008 economic recession.
The story follows a single mother running an illegal cannabis business to support her family, only to face potential exposure when her son befriends the new neighbors--including a police officer. The film's official trailer has just dropped, offering a gripping look at the challenges of cannabis criminalization.
Stay tuned for more cannabis news on Benzinga.
