Marijuana Moment is republishing the following press release with the permission of Grasslands.
‘I Am Absolutely Gutted’:
As The Denver Post Cuts Staffing to Groundbreaking Marijuana News Vertical The Cannabist, Site’s Founder and Original Editor Laments its Unjustified Collapse
Once Considered Among the Hottest Brands in New Media, Industry-Leading Marijuana Journalism Site The Cannabist No Longer Has a Dedicated Staff After The Denver Post Lays Off One-Third of its Newsroom
DENVER, Colorado—April 27, 2018—Embattled Colorado newspaper The Denver Post is no longer staffing its groundbreaking, first-of-its-kind marijuana news vertical The Cannabist, newsroom leadership confirmed Friday—a decision that is surprising cannabis and journalism circles today.
The Cannabist was founded in 2013 by veteran journalist Ricardo Baca as the world’s first adult-use cannabis market was about to launch in Colorado. As The Post’s first-ever Marijuana Editor, Mr. Baca and his team created the site from scratch and developed a robust national readership that appreciated the unique vertical’s journalism-first approach to covering the newly legal industry, the policy surrounding it and the culture that grew from legalization. Feature-length documentary Rolling Papers—a film “more about marijuana journalism than the big picture, and as such it’s a worthwhile endeavor,” wrote Chicago Sun-Times film critic Richard Roeper in his three-star review—documented both The Cannabist’s debut and the 2014 world premiere of state-regulated legal marijuana sales.
As the site’s founder and original editor-in-chief, journalist and thought leader Ricardo Baca was brokenhearted to hear the news.
“I am absolutely gutted today,” says Mr. Baca, who founded Grasslands: A Journalism-Minded Agency in early 2017 after resigning from The Post, where he worked as a reporter, critic and editor for 15 years. “We were so lucky to know The Cannabist as we did, and The Denver Post was lucky that we caught this lightning in a bottle during those historic days. We avoided the blind, pro-legalization activism of publications like High Times, and we also were an objective news source to counter prohibitionist misinformation that had plagued so much of the mainstream media’s irresponsible coverage of cannabis throughout the last eight decades.
“But it’s devastating to have helped create a news and culture site that changed the way so many people, journalists included, talked about marijuana—and to watch it fall apart, especially now that legal cannabis is increasingly becoming the law of the land. Now more than ever, we need serious journalists covering these state-legal marijuana markets, but this trend is not encouraging, as we’re also seeing staff reductions at the San Francisco Chronicle’s Green State vertical and elsewhere. If The Post’s most recent staff reduction broke my heart, which it unquestionably did, this news about The Cannabist losing its dedicated staff is thoroughly drubbing the rest of my internal organs with a meat tenderizer.
“These layoffs are putting The Cannabist on life support and destroying The Post’s ability to comprehensively cover Colorado, and it is entirely to blame on Alden Global Capital, the black-hearted hedge fund that owns Digital First Media and 100 American newspapers, including The Post. These vulture capitalists are literally hated throughout Denver, and while everyone from Gov. John Hickenlooper and Mayor Michael Hancock stands in support of The Post, we need to continue to let Alden Global Capital know that they are not welcome in Colorado, and they need to sell The Denver Post to a more responsible owner who will finally curb this undemocratic bloodletting.”
In less than two years under Mr. Baca’s leadership, The Cannabist was luring more readers than veteran publication High Times’ website, according to media-tracking organization comScore. In less than three years, Mr. Baca had grown the staff from just himself to a seven-person full-time team that included four editorial and three advertising employees.
But after Mr. Baca resigned from The Post in December 2016, the newspaper started making cuts to the vertical’s staff, nixing the General Manager advertising position and reassigning the remaining two Cannabist-focused sales staff in early 2017. That December, The Cannabist’s editorial staff was cut from four to three during a separate newsroom-wide staff reduction.
And in April 2018, after the newspaper’s editor told newsroom staff that it would be laying off one-third of its editorial employees, two Cannabist staffers announced they were leaving for other opportunities; later that month, Cannabist editor-in-chief Alex Pasquariello was told the paper was cutting editorial staffing to the site and that his position no longer existed.
The Denver Post has been in the national news recently because of a historic staff reduction and the resulting editorial-page public revolt against the newspaper’s hedge-fund ownership via a package of op-eds and columns. Mr. Baca returned to newsprint recently to pen one of the cover op-eds for The Post’sattention-grabbing opinion section.
Mr. Baca’s agency Grasslands is in early discussions with Post leadership about potentially purchasing The Cannabist should they decide to sell it.
# # #
Grasslands is a journalism-minded agency, helping clients in a variety of industries with informed public relations, thoughtful content marketing, contextual social media, top-notch thought leadership work, impactful newsletter campaigns and compelling event execution. The Content Team, led by 20-year newspaper veteran Ricardo Baca, has nearly 45 years of top-level journalism experience at outlets including The Denver Post, the Chicago Sun-Times, the Rocky Mountain News, The Daily Beast and elsewhere. The Public Relations Team, led by 20-year New York City agency veteran Shawna McGregor, has nearly 35 years of high-level communications experience with clients including People magazine, IKEA North America, K12 Inc. and the American Wind Energy Association. Join the Grasslands conversation on Facebook, Twitter and Instagram.
Senate Schedules Hearing On Marijuana Business Banking Access
In one of the clearest signs of marijuana reform’s growing momentum on Capitol Hill, a Republican-controlled Senate committee has scheduled a hearing for next week that will examine cannabis businesses’ lack of access to banking services.
The formal discussion in the Senate Committee on Banking, Housing and Urban Affairs on Tuesday comes as legislation aimed at resolving the marijuana industry’s financial services problems is gaining momentum. A House cannabis banking bill that cleared that chamber’s Financial Services Committee with a bipartisan vote in March now has 206 cosponsors—nearly half the body—while companion Senate legislation has 32 out of 100 senators signed on.
(Marijuana Moment’s editor provides some content to Forbes via a temporary exclusive publishing license arrangement.)
American Bankers Association Demands Answers About Hemp And CBD
The American Bankers Association (ABA) recently sent a letter imploring top federal financial regulators to provide explicit guidance on how the banking sector can lawfully service hemp businesses.
The letter—sent to the heads of the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), the Treasury’s Comptroller of the Currency and Financial Crimes Enforcement Network (FinCEN) last week—describes ongoing uncertainty among financial institutions since hemp and its derivatives were federally legalized under the 2018 Farm Bill.
ABA Executive Vice President Virginia O’Neill wrote that “banks remain uncertain about the degree to which they can serve hemp-related companies, and the compliance and reporting requirements that such relationships require.”
“Although other federal regulators have issued helpful clarifications regarding hemp production, banks are subject to a complex set of legal requirements and regulatory expectations and require specific guidance to ensure they are acting appropriately,” she wrote. “Furthermore, the unique nature of hemp as a low-THC strain of marijuana, which remains a Schedule I substance under the [Controlled Substances Act], means banks must have a reliable mechanism to distinguish legal hemp from federally illegal marijuana with extreme confidence.”
There have been other attempts to elicit clarification from federal regulators in the months since hemp was legalized.
Rep. Andy Barr (R-KY) asked FDIC Chair Jelena McWilliams about the issue in May, telling her that he has constituents who’ve told him their access to financial services has “actually deteriorated since we descheduled industrial hemp” and requesting further guidance.
In a similar letter to federal regulators this month, Sen. Michael Bennet (D-CO) also complained about the continued lack of access to banking services for hemp producers. The 2020 Democratic presidential candidate said he hopes the agencies “can work expeditiously and in a coordinated manner to issue guidance describing how financial institutions can offer financial products and services to hemp formers and processors.”
But so far, the closest the regulators have come to assuaging the concerns of banks is a statement from a top Federal Reserve official who said during a Senate hearing earlier this month that “hemp is not an illegal crop.”
ABA said it appreciated the comment but that “a formalized statement from the agencies is necessary to enable banking services for the hemp industry on a meaningful scale.” O’Neill requested confirmation of five specific areas of interest.
“Specifically, we ask that the agencies confirm that:
“—hemp is no longer a controlled substance, effective as of the enactment of the 2018 Farm Bill, and therefore proceeds derived from hemp businesses are not unlawful, and handling those proceeds does not constitute money laundering;
“—banks do not need to file suspicious activity reports solely because a transaction relates to hemp or hemp-derived products;
“—banks can rely on a license issued by a state department of agriculture or the U.S. Department of Agriculture to confirm that a hemp producer is operating in compliance with state and federal law, and that their product qualifies as ‘hemp’ as defined in the 2018 Farm Bill;
“—in accordance with United States Department of Agriculture (USDA) guidance, banks can serve hemp cultivators and processors operating subject to state pilot programs under the 2014 Farm Bill, effective immediately; and
“—as soon as USDA finalizes its regulations related to industrial hemp, banks will be able to serve hemp cultivators and processors operating under state approved plans or direct federal licenses.”
Further, ABA asked for specific guidance as it relates to hemp-derived CBD and information about “the appropriate procedures for sourcing those products back to legal cultivators and processors.”
While the association recognized that “this is an evolving area of law and regulation” and that questions remained among federal regulators about the implementation of hemp legalization, it said that “there are steps that can be taken now to help clarify legal and regulatory expectations for banks in the current environment.”
The letter focused exclusively on hemp and its derivatives, but there’s a simultaneous conversation going on nationally about how financial institutions can work with state-legal marijuana businesses. Bipartisan legislation that would protect banks that service such businesses has the support of all 50 individual state bankers associations.
Read the full ABA letter on hemp banking below:
Regulators Hemp 062119 by on Scribd
Photo courtesy of Brendan Cleak.
Congressional Committee Asks JUUL For Documents On Marijuana Partnerships
Is the e-cigarette company JUUL planning on expanding its stake in the marijuana industry?
That’s one question the chair of a congressional subcommittee asked the company in a letter concerning JUUL’s role in the “youth e-cigarette epidemic” earlier this month.
Lawmakers have frequently criticized JUUL for making products—specifically flavored e-cigarette cartridges—that allegedly appeal to young people at a time when rates of cigarette use are steadily declining. But while JUUL was developed by the cannabis vaporizer company PAX, it hasn’t announced plans to further partner with marijuana companies.
Rep. Raja Krishnamoorthi (D-IL), who chairs the House Subcommittee on Economic and Consumer Policy, apparently sees the possibility on the horizon, though.
In a letter sent to JUUL on June 7, the congressman said his panel was investigating youth e-cigarette usage and, specifically, how the company’s marketing tactics might be exacerbating the issue. He requested documents on everything from clinical trials on how JUUL devices divert people away from traditional cigarettes to communications on the company’s rationale for the nicotine concentration of JUUL pods.
Tucked within the extensive request is a question about potential marijuana partnerships. Krishnamoorthi asked for:
“All documents, including memoranda and communications, referring or relating to proposals, plans, and/or intended partnerships or collaborations between JUUL and any cannabis-related companies, including but not limited to Cronos Group.”
It’s not clear where the Cronos-specific mention comes from, but the company has perviously caught the interest of the tobacco industry. The maker of Marlboro cigarettes, Altria Group, invested almost $2 billion in the Canada-based cannabis company in December. Two weeks later, Altria invested $13 billion in JUUL.
Marijuana Moment reached out to JUUL, Cronos and Krishnamoorthi’s office for comment, but representatives did not respond by the time of publication.
If a partnership does emerge, it would likely be met with some controversy, as opponents and proponents of marijuana reform alike have long expressed concern that the tobacco industry would take over the cannabis market and commercialize it in a way that mirrors how it peddled cigarettes.
Of course, given that tobacco use is declining and tobacco companies generally have the infrastructure that would make a pivot to cannabis relatively simple, such a partnership would not be especially surprising.
Senate Majority Leader Mitch McConnell (R-KY) has made the case several times that tobacco farmers in his state could leverage the federal legalization of industrial hemp and its derivatives by growing the crop to offset profit losses from declining tobacco sales.
Read Rep. Krishnamoorthi’s full letter to JUUL below:
2019-06-07.Krishnamoorthi t… by on Scribd
Photo courtesy of Wikimedia.