The cannabis industry has grown in leaps and bounds following the legalization boom, and is currently worth $10 billion and employs 250,000 people in the U.S. alone. By 2017, marijuana-related stocks skyrocketed, becoming the hot topic among investors. Further driving this point home, cannabis-investement group Arcview and BDS Analytics have estimated that sales will grow 38 percent to $16.9 billion by the end this calendar year. 

These stats are impressive and are no doubt urged on by continued expansion of legalization for both medical and recreational use. But there has also been a sharp growth in interest following the demystification of many concerns about CBD oil’s side effects. However, there is still a big distinction between the cultivation aspect of the business, e.g. opening dispensaries, and trading shares in cannabis companies.

That being said, tech and the internet can help you exploit the industry's margins (though we strongly recommend you acquaint yourself with federal and state laws and regulations first), especially if you are an individual with shallower pockets than those of major players. Below are a select few.

1. Sell cannabis-related paraphernalia online. 

It's not uncommon to see cannabis-inspired artwork, t-shirts, dog collars, glassware, ashtrays and other items displayed on sites like Etsy. The cheapest way to make a business out of this movement is to start an e-commerce store where you can sell hand-made accessories or re-sell stuff you find online if craftsmanship isn’t your forté.

You can also sell edibles like cannabis-infused snacks like teas, hash browns, pies and even cakes! One other viable option gaining popularity is cannabis-infused cosmetics and body products, as research continues to reveal the plant's antiviral and antibacterial properties.

If you decide to sell wearables like T-shirts, neck scarves, hats or bags, print-on-demand platforms like Teespring and Cafepress are seamless options that allow you to make a profit with little or no overhead costs; these companies just take a percentage off sales, remitting the remaining earnings to you.

2. Develop cannabis-related content.

This could mean starting a website or blog that reports on cannabis events and legal developments. Royal CBD is an example of a company that has become a go-to for accurate information on various CBD products and their use, helping provide clarity in an industry that doesn't always promote transparency as a cornerstone focus. You could also create a cannabis product-review site, though you would need to have significant knowledge to help consumers make informed decisions. This is also a great way to leverage expertise as a means to secure consulting relationships with companies looking for guidance.

3. Start an online cannabis-consulting practice.

This option is largely for those who have a legal degree and are willing to jump on the bandwagon and make a profit. Starting a virtual law firm is the cheapest way to go about entering this aspect of the market. Not that it's a walk in the park, but all you need to launch is knowledge in a field where demand exists, e.g. FDA compliance for hemp-derived CBD businesses, and you’re off to the races.

Diverse legal regulations are governing the production, handling and sale of cannabis and cannabis-related products. These regulations also extend to how it's marketed and consumed, and they are so dynamic that they vary across the entire country. Businesses will certainly be willing to pay for legal advice and consulting, especially for partners and firms with this niche area of experience.
Related: How to Start a Cannabis-Focused Branding and Design Business

4. Start developing apps, websites and software.

As expected, there has been a sudden proliferation of online resources that cater to the cannabis industry, ranging from online apps that connect farmers with dispensaries to software that helps companies market their cannabis-related products. LeafLink, for example, offers a technology platform that connects brands with retailers, and MassRoots provides maps of local dispensaries to recreational and medicinal cannabis consumers alike. Last but not least, Kannatopia has taken the long road in creating the "Facebook of pot," a social media platform that connects marijuana users with businesses in the industry. Being able to market your background as a freelance app developer for cannabis-based businesses is sure to provide dividends in the short term as well as down the road as this boom continues. 

These ideas may not seem like the most financially rewarding way into the cannabis biz, but when implemented properly, they could become a viable new income stream that allows you to sidestep some legal restrictions while pivoting your skillset into a rising industry. 

Talking about the wider landscape of medicinal cannabis research and development in Malta, John Charles Ellul explains more.

John Charles Ellul serves as Advisor to the office of the Prime Minister in Malta. Attending the MJBiz European Cannabis Symposium in May, he emphasised the importance of the medicinal cannabis market to the island, along with the cannabis research and development.

On 6 May 2019, Health Europa attended the MJBiz European Cannabis Symposium in Copenhagen, Denmark. At the event, a panel led by Alfredo Pascual (International Analyst for Marijuana Business Daily) discussed the future of Cannabis in Europe, with an Advisor to the Office of the Prime Minister in Malta – John Charles Ellul – taking part.

Ellul serves as an Advisor for the Parliamentary Secretary for Reforms, Citizenship and Simplification of Administrative Processes.1 Prior to his involvement in the cannabis industry he served in the army and later the police force, rising through the ranks to the prestigious role of senior inspector specialising in forensic laboratories during a career spanning 13 years and leading to multiple opportunities for him to explore his highly transferrable skills.2

In opening the panel discussion Pascual asked Ellul about the role of Malta in Europe in the wider landscape of medicinal cannabis reform, which he answered: “In Malta, we are looking into two dimensions which are very important –the legal aspect and the social and political perspective. We are combining these two elements in order to make sure that everything we do is to the benefit of the patient and the industry.”

Ellul went onto discuss how companies can become certified in Malta: “This is in the making – it’s a question of being a highly regulated market which needs to meet compliance in line with the highest standards of the pharmaceutical industry. As a result, rushing this would bring pain and damage to the industry. We need to ascertain that everything we are doing; we are doing within the parameters of the law. I think it’s only a matter of time before we see the first producers who will be fully fledged and licensed in Malta.”

Europe: the largest future market

Continuing his contribution Elllul added: “Malta is a very small country, so the investment does not merit the [potential] consumption. The market is intended for beyond our shores, and even the scale of the operations that the investors are looking at are quite considerable. For investors to investigate such considerable investment, it is obvious that the European market has a future of growth, which in my opinion is in the near future. I am sure that other states in the European Union will follow suit, and perhaps we might also have European homogeneity within the European legislation. I see the European market being one of the biggest markets in the future.”

Ellul then went on to address what needs to be solved, and how Malta can achieve this: “The aspect of the lack of knowledge and education of the substance, is a curve that we need to inject more education into in order to remove the elephant from the room which is unnecessary fear of legalisation. Once we manage to tear down that wall, I think it is something that many other countries will follow.”

A unique standing in the industry

Expanding on why Malta already has the ideal framework to build a flourishing medical cannabis industry, Ellul added “as it has been said, expertise is one of the most important and critical aspects, but it needs to align with the expertise of the European pharmaceutical industry. Malta is very well aligned – the pharmaceutical industry is one of the biggest industries in Malta. The investment is only a question of whether you have a local operator who has already got everything required to start up and see the company grow, or to align with a foreign company, acquire a brand name and synergise to have something on the market.

“Again, in the first move, advantage plays a huge role in this business. The way the market is being shaped, and the way the market is being developed in such a way, I think there is room for quite a good number of players. The industry will not be restricted to a small number of players, so it therefore depends on how creative the formulations can be, how strong the research is, and the investment into research and development. I think these aspects will be a game changer in this industry.

“I also think there are two facets to this story – one is providing the impulse of the need for THC and all the other formulations that come with this, and then the specifics of having those targeted formulations which can be prescribed for a specific reason. When you look at these two together then the competition will start shaping itself in such a way that obviously those who put the most into research and development, will have a unique standing in the industry.”

Collaboration across Europe

Continuing, Pascual went onto ask Ellul “When you want to get a pharmaceutical expert to work in a cannabis company, do you need to pay more than the pharmaceutical industry to get the best people, or do you find that they actually want to do something new and exciting?” Ellul responded with: “It is a sparse resource, let’s put it that way. This level of expertise is not available off the shelf. Finding a person with the necessary ingredients and qualifications is very important and it is [like finding] a jewel in the industry. In Malta, we cannot boast that we have an abundance of this resource, but the limited resources that we do have [are people] who are very highly qualified and specialised in this field.

“We have the luxury of knowing each other in the industry, and perhaps this pooling or sharing of resources facilitates the operators in Malta. Obviously, the more the numbers grow, it might require importing expertise or experts from Denmark for example. This is something in the equation where there is room for anyone to play in this industry, and we see our professions moving to other countries abroad, and professions and foreigners coming to Malta to work in the industry for the same reason.

“The mobility of human resources now is no longer a concern, unless you need your own homegrown expertise. Obviously having your own, is an advantage because it gives you more flexibility but there’s no restriction in having more as it is creating opportunities for whoever is in this industry” he concluded.

The current legal situation in Malta

The medical cannabis industry is regulated by the Production of Cannabis for Medicinal and Research Purposes Act which came into effect on April 17 2018. The Act describes cannabis as:

1. Fresh or dried cannabis;
2. Cannabis oil;
3. Cannabis plant or seeds;
4. Derivatives of cannabis; and, or
5. Any substance and, or product set out in guidelines issued by the regulatory authority to be used exclusively for manufacturing of products for medical use.3

The legislation introduced “the possibility of producing cannabis in Malta however, such production is limited solely to medicinal and research purposes within a regulated and controlled environment. It accentuates that no form of cultivation, importation or processing of cannabis and no production or trade of any products intended for medicinal and/or research purposes deriving from or resulting from the use of cannabis shall be carried out in Malta unless all the necessary approvals, authorisations, licences and, or permits are granted by the Medicines Authority.

“Furthermore, a manufacturing company operating in Malta within the medicinal and research cannabis space, needs to satisfy the Good Manufacturing Practices (‘GMP’) requirements. These requirements are mainly concerned with production and quality control. Applicants are also required to comply with the Production of Cannabis for Medicinal and Research Purposes (Fees) Regulations, (the ‘Fees Regulation’). The Fees Regulation states that the Medicines Authority shall receive the specified fees, from persons intending to apply to carry out importation, wholesale distribution, cultivation and processing, and/or production of cannabis for medicinal use and/or research purposes.4

References

1. https://mjbizconference.com/speaker/john-charles-ellul/
2. https://www.maltachamber.org.mt/en/john-charles-ellul—the-ceo-has-to-carry-a-dream-and-be-a-driver-for-change
3. http://justiceservices.gov.mt/DownloadDocument.aspx?app=lp&itemid=28891&l=1
4. https://www.fff-legal.com/the-production-of-cannabis-for-medicinal-and-research-purposes-in-malta/

What could have been a threat to alcohol and the beverage industry, has now turned into one of the beverage’s biggest opportunities since hops met barley.

Both the cannabis and beverage industries saw dollar signs when Constellation Brands added a $4 billion investment to its already ample investment into Canopy Growth. The beverage biggie, that owns Corona, certainly turned heads as cannabis brands, and leading beverage companies began inking deals to ensure their brands showed up in drink coolers across the country. 

Headset recently came out with an extensive report examining the rapidly developing cannabis-infused beverages industry, stating that although beverages don’t make up the majority of cannabis product sales, they are “a category within cannabis that’s worth watching.” 

The Growth of Infused Beverages

While market share has experienced an incremental increase, the overall market for infused beverages has doubled, moving from $1.5 million to $3 million in 2019. 

Infused beverages sales are concentrated in Washington, Colorado, and Nevada. California will be next to enter the beverages race when Lagunita’s HiFi Hops hits the shelves. Most recently, in Q2 2019, Washington led in beverage sales ($4.2 million), followed by Colorado’s $3.9 million. 

What Are People Drinking?

Infused sodas are reigning supreme in the beverages category, gaining 3.9% of the overall beverages market share. Surprisingly, warm drinks like teas, coffee, and hot cocoas lost market share, as did Iced Tea, Lemonade and Fruit Drinks. Infused sodas accounted for 70% of Washington’s beverage sales in 2019, while in Colorado and Nevada, 18% and 26% of respective sales were represented by soda. 

“Mocktails” also made gains over the last year, but the impact is not yet significant enough to believe that cannabis will become an alcohol replacement drink, although Nevada can attribute 12% of beverage sales to cannabis mocktails, which is aligned with Vegas’ reputation as a party town.

Headset even went as deep to look at the flavors that people were preferring. In Washington, lemon, lime, orange, and apple flavors make up 52% of the infused soda market, with the rest of the flavors being made up of distinct fruit flavors like huckleberry, hibiscus, and honeydew, just to name a few. In Colorado, the majority of the soda consumers prefer a flavorless beverage (this is also because drops, mixes, elixirs, and syrups sell the most in this state); in California, they love the taste of cold tea; and in Nevada, Fruit Punch tickles the most palates. 

Headset attempted to compare the prices people are willing to pay for beverages across states, but couldn’t find any correlation. For example, Tea, Coffee, and Hot Cocoa are amongst the highest priced items in Nevada, but of the lowest-priced items in Washington. Headset speculates that there is a different brand landscape in each state that attributes to these nuances in what people are willing to pay.

Getting “Buzzed Over Stoned”

In 2017, 100mg THC infused products made up most of the market share at 90.9%; in 2019, it’s dropped 67.1% and has been replaced by microdosed formats in the 0-5mg range. This leads Headset to conclude that “consumers are more interested in getting buzzed than stoned.” If people are indeed using cannabis-infused beverages for alcohol-replacement, they are likely consuming multiple beverages in one sitting, as they do beer or wine. Despite speculation, Headset projects that there is “a lot of room for low dose beverages”.

The Who and Why of Infused Beverages

Perhaps surprising, the Silent Generation is the largest consumer of infused beverages in Colorado, while in Nevada, enjoyment of these beverages is more evenly distributed across age groups. It makes more sense when you remember that in Colorado, drops, mixes, elixirs and syrups are of the leading product categories, which makes it easy for people of the Silent Generation to easily dose cannabis in a cup of tea.

POS data collected by Headset suggests that cannabis-infused beverages are an impulse buy or an add-on item. People buying beverages are usually purchasing pre-rolls or edibles and throw in beverages as a last thought. Beverages are most commonly bought alongside edibles, suggesting that beverages are more appealing to those who do not prefer to smoke or combust their cannabis.

CBD is Having Its Moment

CBD infused beverages are currently holding at 25% of the infused beverages market share, according to Headset. With the passage of the U.S. Farm Bill of 2018, hemp-derived CBD products could be a threat to THC-infused beverages that can now be sold in coffee shops and retail stores.

Crack Open a Cold One

The cannabis-infused beverages market isn’t yet massive but shows a great opportunity for cannabis and CBD companies to get in on the ground. Headset has concluded through their analysis of 4 states that tracking and predicting data trends across states is not linear, and that piecemeal, state-by-state legalization affects sales. This shows that brands in individual states are shaping the markets of those states. Had cannabis been federally legalized, it would be easier to notice more consistencies across consumer preferences. 

Headset predicts that sodas will continue to grow, as will mocktails. People are now getting into lower dose beverages, recognizing that it’s rare that people can consume a 100mg beverage in one sitting. 

While Headset was reluctant to name cannabis-infused beverages as an alcohol replacement, several data points such as lower doses and the rise in popularity of sodas show that cannabis-infused beverages are becoming part of social circles and scenes.

Anyone who has ever seen a loved one losing themselves to conditions that come with age – such as Alzheimer’s disease and dementia – know how hard it can be for everyone involved. It’s heartbreaking to watch someone you care about struggle to grasp thoughts, memories and concepts. But what if there were a potential treatment? Right now, at best, we have options that slow down the degeneration of cells and brain function. However, a recent study suggests that THC, the most well-known active cannabinoid in cannabis, could reverse the brain’s aging process in low doses. 

The study, published in back in May and conducted by scientists at the University of Bonn with colleagues from The Hebrew University of Jerusalem (Israel), used mice as their subjects. These mice were all between 12 and 18 months of age and were broken into two groups. The first group was given low doses of THC daily for a total of four weeks, while the second group received a placebo. 

“It looked as though the THC treatment turned back the molecular clock,” says Professor Andreas Zimmer.

Researchers found that the mice treated with a daily low dose of THC showed signs of reversed brain aging. This included noticeable improvements in memory and other age-related brain problems, like learning and cognitive speed. The researchers also looked at the brain tissue and gene activity, which now resembled that of 2-month-old mice. The mice who received the placebo, however, continued to show the expected signs of aging. 

“The promotion of knowledge-led research is indispensable, as it is the breeding ground for all matters relating to application. Although there is a long path from mice to humans, I feel extremely positive about the prospect that THC could be used to treat dementia, for instance.”

Things are changing in the world of medicine as we continue to learn about the endocannabinoid system – which, until fairly recently, was somewhat of a mystery. While research in the U.S. might still be difficult to accomplish due to federal prohibition, there are parts of the world – like Israel – where scientists are able and willing to work on better understanding how cannabis can be used to our benefit. In this case, the endocannabinoid system appears to play a significant role in changes in brain function as we age – and adding low doses of THC on a regular basis could potentially be an effective treatment for Alzheimer’s and dementia.