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Women And Baby Boomers Are Increasingly Embracing Marijuana, New Market Report Finds

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In the eyes of experts and the general public, the profile of the “typical marijuana consumer” continues to be a white male under 35, without children, who lives in or near a major West Coast city.

But as the latest “State of Cannabis” report from San Francisco-based marijuana-delivery software platform Eaze suggests, that impression is increasingly wrong.

And that’s good news for cannabis industry investors and entrepreneurs seeking new consumers—who are indeed flocking to marijuana after adult-use cannabis sales became legal in California on January 1, 2018.

Women and “baby boomers” are the fastest-growing consumer segments among marijuana users, according to Eaze.

Not only that, boomers are spending the most money per order on cannabis than any other generation, according to the report, which was released on Wednesday. (Must be nice to enjoy relative job and housing security and lack crushing student debt!)

Image courtesy of Eaze

The company culled its database of 450,000 consumers as well as answers from 4,000 survey respondents to make the claims contained in the report. It did not define its generational boundaries.

Thirty-eight percent of Eaze customers in 2018 were women, an increase of 3 percent from 2017.

Image courtesy of Eaze

And reflecting both the sizable increase in consumers overall —as well as the vanishing stigma associated with marijuana—the “total number of women consumers grew 92 percent,” according to the report.

Eaze used data from California only for the purposes of the survey, though the platform has long been said to be eyeing expansion into other states.

“First-time buyers,” that is, Eaze customers using the company’s services for the very first time—lured perhaps by the promise of aggressive discounts—grew by 140 percent, according to the report, which did not provide raw figures behind most of the percentages.

Other takeaways:

  • CBD, or cannabidiol, the less-psychoactive marijuana compound associated with anti-inflammatory and anti-anxiety effects, continues to grow in popularity. In 2018, 4.8 percent of Eaze’s consumers bought CBD, compared to 2.6 percent in 2017.
  • 71 percent of respondents said they are using less over-the-counter pain medication, like Advil, thanks to cannabis—and 35 percent said they are ditching prescription pain pills, like opiates, for marijuana products. Boomers led both categories in ditching pharmaceutical industry medication for marijuana.
  • 29 percent of regular CBD customers are “female boomers,” according to Eaze.
  • The most popular edible item—among age-verified, adult marijuana consumers purchasing in California’s strictly regulated market—are gummies.
  • Marijuana users are replacing both alcohol and tobacco as well as prescription drugs with cannabis. Specifically, 63 percent of Millennials are drinking less, and 32 percent of Gen Z-ers are using less tobacco.
  • The most popular reason for using cannabis is as a sleep aid. Eighty-four percent of women and 79 percent of men said they use marijuana for sleep.
  • April 20 is a the big cannabis holiday, but by far the top day of the year for sales is “Green Wednesday,” or the day before Thanksgiving.
  • Some things aren’t changing. Millennials who probably work in tech—which is to say, Millennials who are probably white and male—still dominate cannabis sales.
  • Tech-worker hubs like South of Market and Mission Bay in San Francisco and Venice Beach and Santa Monica in Los Angeles are the top markets for Eaze-assisted marijuana sales. (Which might not be good news if the company wants to expand its market beyond its obvious target demographic.)
  • The average age of a cannabis consumer is 31.
Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

Chris Roberts is a reporter and writer based in San Francisco. He has covered the cannabis industry since 2009, with bylines in the Guardian, Deadspin, Leafly News, The Observer, The Verge, Curbed, Cannabis Now, SF Weekly and others.

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California Governor Signs Marijuana Tax Fairness Bill But Vetoes Cannabis In Hospitals

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California Gov. Gavin Newsom (D) announced on Saturday that he signed several marijuana-related bills into law—including one that will let legal businesses take advantage of more tax deductions—but also vetoed another measure that would have allowed some patients to use medical cannabis in health care facilities.

Under a section of current federal law known as 280E, marijuana growers, processors and sellers are unable to deduct expenses from their taxes that businesses in any other sector would be able to write off. Until now, California policy simply mirrored the federal approach.

But under AB 37, the state tax code will depart from Internal Revenue Service policy when it comes to 280E, allowing licensed state cannabis firms to take deductions just like other business.

Newsom, who campaigned for the state’s successful marijuana legalization measure that voters approved in 2016, also signed SB 34, which allows businesses to provide free medical cannabis to low-income patients, and exempts those products from state taxes.

Another bill signed by the governor, SB 153, directs state officials to develop and submit to the U.S. Department of Agriculture an industrial hemp program plan in accordance with the provisions of the 2018 Farm Bill, which federally legalized the crop and its derivatives—including CBD.

“The California hemp industry looks to become a significant force nationally thanks to” the bill, Eric Steenstra, president of Vote Hemp, said in a press release.

But Newsom “begrudgingly” vetoed legislation, SB 305, that would have required certain health care facilities to allow terminally ill patients to use medical cannabis on site.

“This bill would create significant conflicts between federal and state laws that cannot be taken lightly,” the governor wrote in a veto message that suggested facilities would be at risk of losing Medicare and Medicaid funds if they allowed use of federally illegal cannabis.

“It is inconceivable that the federal government continues to regard cannabis as having no medicinal value,” Newsom said, adding that its “ludicrous stance puts patients and those who care for them in an unconscionable position.”

California NORML Director Dale Gieringer said in an email that the group is “disappointed” with the governor’s veto, noting that the legislation had already been watered down from an initial version that covered more than just terminal patients.

“The bill even allowed exemptions in the case that federal agencies ruled or notified the facilities that they were violating the law,” he said.

Other legislation Newsom signed includes measures on marijuana testing laboratories, vape cartridge labeling, appellations and marketing, cultivation canopy sizes, industry labor peace agreements and equity license applicants.

He also signed the appropriately numbered AB 420, which expands cannabis-focused research.

Last week, Newsom signed a bill to allow parents to administer medical cannabis to students at schools.

This piece was first published by Forbes.

Photo courtesy of Carlos Gracia.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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Former Congressman Who Fought Marijuana Legalization Joins Cannabis Company Board

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A former GOP congressman with a long track record of opposing marijuana legalization efforts is now cashing in on the legal cannabis industry.

FSD Pharma, a Canadian company that is a licensed producer of “pharmaceutical grade cannabis” through its subsidiary FV Pharma and researches cannabinoid-based therapies, announced on Friday that former Rep. Steve Buyer (R-IN) joined its board of directors. Missing from the press release is mention of his legislative history that includes repeated actions to oppose federal protections for state-level marijuana reforms.

From 1998 to 2000, Buyer cosponsored two resolutions and one bill aimed at condemning legalization and upholding federal prohibition. His opposition extended to limited medical cannabis reforms, too, voting five times from 2003 to 2007 against an amendment to protect state laws and the patients and providers complying with them from federal prosecution.

One of the anti-marijuana resolutions he signed onto passed the House but did not advance in the Senate. As introduced, it characterized cannabis as “both dangerous and addictive” and stated that “Congress is unequivocally opposed to legalizing marijuana for medicinal use, and urges the defeat of State initiatives that would seek to legalize marijuana for medicinal use.”

The version that passed, which Buyer voted for, expressed concerns that “ambiguous cultural messages about marijuana use are contributing to a growing acceptance of marijuana use among children and teenagers” and noting that federal authorities can enforce prohibition “through seizure and other civil action, as well as through criminal penalties.”

The separate bill he cosponsored sought to declare state laws that allow cannabis use as “null and void.”

“[I]t is the intent of the Congress to supersede any and all laws of the States and units of local government insofar as they may now or hereafter effectively permit or purport to authorize the use, growing, manufacture, distribution, or importation by an individual or group of marijuana or any controlled substance which differs from the provisions of the Controlled Substances Act and the Controlled Substances Import and Export Act or regulations issued  pursuant thereto,” it read.

It’s not quite clear what changed for Buyer, but his appointment to the board of a major marijuana company that has benefitted from the successful reform movement he opposed is sure to raise questions.

In response to Marijuana Moment’s query about what accounted for the former congressman’s evolution on the issue, FSD Pharma President Zeeshan Saeed simply replied, “3M options as all other Directors and $40k cash comp.”

Hours later, Saeed clarified that he intended to send that reply to another journalist.

Raza Bokhari, executive co-chairman and CEO of FSD Pharma, said in a subsequent email that he’s known Buyer for years and believes that while he “remains opposed to recreational use of cannabis,” he “has come to recognize the potential of cannabinoid molecule in drug development targeting auto-immune diseases, especially the role of synthetic cannabinoids and other cannabinoids targeting the endocannibinoid system of the human body.”

The former congressman has been on “a very personal journey, with his wife being plagued with an auto-immune disease that has no cure and others in her family also that suffer from auto-immune diseases,” Bokhari said.

He added that Buyer has personally invested a quarter of a million dollars in the company and compared him to former House Speaker John Boehner (R-OH), who also joined the marijuana industry after opposing cannabis reform while serving in Congress.

In a press release announcing the appointment, Buyer said the “opportunity to participate in FSD’s growth at this stage is exciting” and that he’s “attracted by FSD’s medical research to tame and define the unknown by challenging the edges of medical science to provide relief to people suffering from fibromyalgia and other serious illnesses.”

One industry that the former congressman’s actions did assist while in office and later went on to work for as a lobbyist is Big Tobacco. Buyer raised eyebrows in 2009 when he opposed legislation to regulate the tobacco industry and argued in a House floor speech that a person is just as likely to experience the health consequences of cigarettes if they were to smoke dried lettuce or grass. He insisted that it’s “smoke that kills, not the nicotine.”

Shortly after retiring, Buyer joined tobacco company Reynolds American as a lobbyist and paid consultant.

There have been several reports that noted Buyer’s decision not to run for reelection in 2010 came amid controversy over a foundation he founded. The Frontier Foundation was supposed to provide educational funding for students, but while it raked in tens of thousands from pharmaceutical interests such as Ely Lilly and PhRMA over a three-year period, it reportedly hadn’t distributed a single scholarship.

His retirement came months after USA Today and the Indianapolis Star reported on the foundation’s activities.

But now, Buyer is entering the cannabis space, and the company described his experience in the pharmaceutical industry and Congress as an asset.

“In welcoming Steve Buyer to the FSD Pharma Board of Directors and announcing a share consolidation, the Company has made an immense positive stride forward” FSD Pharma CEO Raza Bokhari said. “Steve’s addition has further strengthened the independence and profile of the FSD Pharma Board of Directors; his broad leadership experience and pharmaceutical industry relationships will help enhance our visibility, especially among U.S. Institutional investors and on U.S. Capitol Hill.”

Buyer also previously served as a special assistant U.S. attorney and an Indiana deputy attorney general.

This story has been updated to include additional comment from FSD Pharma’s CEO. 

Inside Mitch McConnell’s Private Lunch Meeting With The Marijuana Industry

Photo courtesy of Philip Steffan.

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Inventors File Patent Application For Scratch-And-Sniff Marijuana Packages

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Scratch-and-sniff marijuana packaging could be coming to a dispensary near you.

An application for a patent on the cannabis container concept was published by the U.S. Patent and Trademark Office on Thursday. In order to comply with state regulations while at the same time ensuring consumers know what they’re buying, the inventors are pitching a secure package that uses non-THC volatiles to produce the scent of the product when a sticker on the exterior is scratched.

The applicants recognized in their filing that there’s an existing patent application for scratch-and-sniff stickers that are meant to identify the flavor of coffee, but argued their idea is distinct because the other application produced the scent of coffee after it’s brewed whereas this sticker would smell like cannabis in its unsmoked form.

“A major hurdle to the purchase of Cannabis is the secure packaging laws of various states,” the application states. “Packaging can often prevent a purchaser from observing certain characteristics of the Cannabis, such as its scent.”

In a summary of the proposal, the applicants said the “general purpose of the present invention is to provide a Cannabis package and method of selection that includes all the advantages of the secure packaging, and overcomes the drawbacks inherent therein.”

Random Vaughn and Jonathan Tanzer via USPTO.

Another advantage of the proposed packaging is to help patients identify medicinal properties of different marijuana varieties, or assess quality, without having to open the product, the applicants, Random Vaughn and Jonathan Tanzer of Olympia, Washington, argued. They said that scent is is important in “selecting Cannabis for medical reasons such as seizures, headaches, or insomnia.”

The application lists two iterations of the concept. The main one would involve a sticker that would be infused with the scent of cannabis. Terpenes, which are non-intoxicating compounds in the plant that give cannabis its smell and taste, would be used to produce the scent.

For the other, the scent wouldn’t correspond with the actual small of the marijuana itself, but instead various flavor notes, which are sometimes used in cannabis marketing to describe the product’s qualities similar to what’s often done with wine. The applicants listed a diverse list of potential smells, including freshly cut grass, bread, vanilla, bacon, fish and chips, a Christmas tree, cinnamon, after shave, shampoo, the seaside, furniture polish and a Sunday roast.

Seth Rogen And Snoop Dogg Offer Marijuana Advice To First-Time Consumers

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