Cannabis Market Pulse Sept 29th to Oct 5th

An eventful week for cannabis

From strikes disrupting supply chains in British Columbia to major tax shifts in Michigan and international market expansions, the cannabis sector saw significant developments this week. Below is a concise roundup of key stories across Canada, the United States, and the international stage.

Canada

Labor Strike Hits B.C. Cannabis Stores Unionized government workers in British Columbia escalated their strike by picketing 11 provincial cannabis stores. The action followed a month of job disruptions aimed at securing higher wages and better benefits. Retailers are concerned that prolonged supply interruptions could push consumers back toward the illicit market, especially in rural areas. The strike highlights the vulnerability of government-run distribution systems in maintaining consistent supply chains.

Ontario Retailers Call for Crackdown on Illicit Shops Legal cannabis retailers in Ontario are pressuring the provincial government to close hundreds of unlicensed storefronts and online sellers. They argue that uneven enforcement undermines legitimate businesses that have invested heavily to comply with regulations. Local licensing officials say municipal efforts are insufficient without stronger provincial coordination. The issue is becoming increasingly pressing as illicit shops continue to draw significant market share.

Cannabis Pill Shows Pain Relief Promise A Phase-3 clinical trial of a THC–CBG–CBD capsule demonstrated significant reductions in chronic lower back pain. Over 800 adults participated, and many reported improved neuropathic symptoms and sleep quality without needing to increase doses over a year. This suggests cannabis-based formulations could provide sustainable pain management alternatives. Medical researchers are now examining how such products could reduce reliance on opioids.

Industry Embraces GS1 DataMatrix Barcodes Canada’s cannabis sector adopted GS1 DataMatrix barcodes nationwide, replacing older linear codes. The new system improves accuracy in inventory tracking and facilitates more robust product traceability across provincial systems. It also frees up valuable label space for regulatory information. This modernization effort reflects the increasing maturity of the supply chain in the legal market.

THC Variability Prompts Potluck Chillows Recall Authorities issued a national recall for Potluck’s Hot Cinnamon and Winter Mint gummies after THC testing revealed inconsistencies. Some packages contained significantly more THC than allowed, raising concerns about consumer safety and regulatory compliance. Although no adverse effects were reported, the recall highlights the importance of maintaining stringent quality control. Manufacturers face growing pressure to meet exacting potency and labeling standards.

$122 Million Illicit Grow Busted in Ontario Police dismantled one of Ontario’s most extensive illicit cannabis operations, seizing over 72,000 plants and sophisticated equipment. The site was linked to organized crime groups exploiting jurisdictional gaps on Indigenous land. Ten people were charged, and officials noted that the proceeds did not benefit the local community. The raid highlights ongoing challenges in curbing large-scale unregulated cultivation.

Village Farms Launches Share Buyback Program Village Farms announced a significant share repurchase initiative valued at $10 million. Executives framed the move as a sign of confidence in the company’s financial health and future growth opportunities, particularly in European markets. The program gives the company flexibility to return value to shareholders while pursuing expansion. It comes amid ongoing consolidation in the Canadian cannabis industry.

Manitoba Adds Cannabis Disclosures to Property Sales Starting in November, property sellers in Manitoba must disclose any history of illegal cannabis cultivation or excessive storage. The goal is to protect buyers from hidden issues such as mould or electrical damage caused by unregulated grows. Real estate professionals expect the rule to increase transparency during transactions. It also reflects broader efforts to normalize cannabis within regulatory frameworks.

Yukon Appoints New Licensing Board Member The Yukon government appointed Haley Mitander to its cannabis licensing board for a three-year term. The move ensures stable oversight of retail and consumption regulations in the territory. Continuity on the board is viewed as crucial for managing licensing renewals and policy development. It also signals an ongoing commitment to structured governance in smaller markets.

London Police Shut Down Illegal Dispensary Again Police in London, Ontario, raided an unlicensed cannabis shop for the second time in two months. Officers seized tens of thousands of dollars in illicit products, and a young employee faces charges. The shop had reopened after an earlier closure, highlighting enforcement challenges. Authorities continue to grapple with repeat offenders exploiting regulatory loopholes.

United States

Michigan Approves 24 % Wholesale Cannabis Tax Michigan lawmakers have passed a new wholesale tax, expected to generate hundreds of millions of dollars in revenue for infrastructure projects. Industry leaders warn that layering this tax on top of existing retail and sales taxes will make legal cannabis less competitive. Many fear it will drive consumers to cheaper illicit sources, ultimately reducing total tax collections. The move has already triggered protests and potential legal challenges.

Hemp Beverage Maker Joins Alcohol Lobby A Kentucky-based THC beverage company became the first of its kind to join a primary national alcohol trade association. This partnership reflects the growing convergence between the cannabis beverage sector and traditional alcohol distribution networks. Industry observers believe it could accelerate regulatory integration and expand access to retail channels. However, it also raises questions about potency limits and the enforcement of age restrictions.

California Brings Hemp Under Cannabis Rules California enacted a law bringing intoxicating hemp products under the same regulatory framework as cannabis. The law bans synthetic cannabinoids and restricts inhalable hemp products to licensed dispensaries. Supporters argue the change improves consumer safety and helps protect minors from unregulated high-THC products. It also levels the playing field between hemp producers and licensed cannabis operators.

Massachusetts Regulator Pledges Oversight Reforms Massachusetts’ cannabis regulatory chair promised to rebuild trust with industry operators following months of scandals and operational disruptions. The state faced audits, bribery allegations, and a temporary shutdown of its lab, which shook confidence in its oversight systems. Officials plan to strengthen lab testing protocols and simplify complex regulations. These reforms are seen as critical to stabilizing one of the country’s more mature legal markets.

TerrAscend Exits Michigan Market A major multistate operator sold its remaining Michigan dispensaries and exited the state entirely. Executives cited oversaturation, falling prices, and thin margins as reasons for the withdrawal. The company intends to focus on regions with stronger profitability, such as the U.S. Northeast. This strategic retreat highlights the challenges faced by operators in crowded markets.

Ohio Businesses Sue Over Advertising Rules Several Ohio cannabis companies filed a lawsuit challenging new state advertising restrictions. They argue that limitations on strain names and promotional language conflict with voter-approved legalization measures. Businesses say the rules are vague, complex to follow, and potentially unconstitutional. The case could set an essential precedent for how far states can regulate cannabis marketing.

Wisconsin GOP Introduces Limited Medical Bill Republican legislators in Wisconsin introduced a cautious medical cannabis bill targeting severe health conditions. The proposal bans smoking, requires patient registration, and establishes a regulatory office. Advocates see it as a first step in a state with no existing cannabis program. Opponents argue that the bill is overly restrictive and excludes many potential patients.

Michigan Industry Pushes Back on Tax Hundreds of Michigan cannabis operators rallied at the state capitol to oppose the new wholesale tax. They argue the measure violates the original voter-approved legalization law and threatens the survival of legal businesses. Trade groups have threatened to sue the state if the law proceeds. The confrontation highlights growing tension between industry stakeholders and policymakers.

Colorado Recalls Surge Amid Price Drop Colorado issued a record number of cannabis product recalls this year, affecting hundreds of retailers. Regulators say that falling wholesale prices are encouraging some producers to cut corners, which can lead to contamination issues. Mold, fungus, and pesticide violations have all contributed to the spike. The trend reflects how market pressures can impact product safety standards.

Curaleaf Faces Diversion Lawsuit in Illinois A former compliance director filed a lawsuit accusing a major operator of systemic diversion and pesticide violations at a cultivation facility. The plaintiff claims he was terminated after raising concerns to regulators. The case raises questions about internal controls and regulatory oversight in large multistate companies. It could have significant implications for compliance practices across the industry.

International

Cannabis Aids Substance Use Recovery A UK study tracking patients in a national registry found that medical cannabis improved quality of life, sleep, and anxiety levels over six months. Patients also reduced their use of prescription opioids. The findings support the idea that cannabis can act as a harm-reduction tool in substance use disorder treatment. Researchers caution that more controlled trials are needed to confirm these results.

CBD Helps Pets Manage Pain and Seizures A systematic review of veterinary studies found that cannabidiol can help manage pain, behavioral issues, and seizures in dogs and cats. Treatments were generally well tolerated, with no serious side effects reported. Researchers noted that optimal dosing remains unclear and called for further studies. The growing interest in CBD for animals reflects broader acceptance of cannabis-based wellness products.

France’s Legalization Potential Estimated at $8.3 B A report estimated that full cannabis legalization in France could create tens of thousands of jobs and generate billions in tax revenue. Nearly half of French adults have tried cannabis, but almost all of the market remains unregulated. Legalization advocates argue that reform would also lower healthcare costs by shifting consumers to regulated products. The analysis lends economic weight to ongoing debates on legalization in Europe.

German Legalization Evaluation Shows Positive Trends Germany’s interim legalization report found that youth cannabis use declined, overall consumption remained stable, and cannabis-related offenses were cut in half. Public health indicators improved, and traffic safety was unaffected. Researchers recommended expanding pilot programs and cultivation associations. These findings strengthen the case for evidence-based legalization models in Europe.

NSW Government Rejects Cannabis Decriminalization Australia’s New South Wales government rejected recommendations to decriminalize small-scale cannabis possession despite rising public support. Proposed reforms would have replaced criminal penalties with civil fines and given medical patients a legal defense. Officials argued that the timing was not right for such changes. Advocates see the decision as out of step with shifting attitudes across Australia.

German Interim Report Highlights Decline in Offenses A separate analysis confirmed that cannabis-related offenses in Germany dropped by more than half since legalization. First-time use among youth fell, and adult use remained stable, indicating no surge in consumption. Policymakers are using these results to counter critics of the reform. The report suggests that well-regulated legalization can meet public health goals.

German Industry Pushback on Medical Restrictions Industry leaders in Germany warned that proposed restrictions on medical cannabis access could reverse recent progress. They argue that eliminating mail-order services would re-criminalize vulnerable patients and reduce availability. The debate underscores tensions between expanding access and tightening regulations. Stakeholders are urging lawmakers to maintain patient-friendly policies as reforms evolve.

New Cannabinoid Discovered in Europe Scientists in Italy and Switzerland identified a rare cannabinoid with potent antioxidant and anti-inflammatory properties. Early laboratory studies suggest potential dermatological applications, including treatment for inflammatory skin conditions. This discovery adds to the growing list of minor cannabinoids with unique therapeutic potential. Further research is planned to explore commercial viability.

Tilray Expands German Craft Flower Line Tilray added five new premium cannabis flower strains to its German medical portfolio. The products are produced at a state-of-the-art EU-GMP facility and are targeted at physicians and pharmacies seeking consistent, high-quality options. The expansion reflects growing patient demand for a diverse range of therapeutic products. Germany remains one of the most important European markets for international producers.

Morocco Expands Legal Cannabis Cultivation Morocco more than doubled its licensed cannabis cultivation area compared to last year. Thousands of farmers are participating in cooperatives, integrating traditional cultivation into a legal framework. The expansion is boosting rural economies and creating new export opportunities. Observers see Morocco emerging as a significant player in the global cannabis supply chain.

Final Thought

This week’s stories highlight a rapidly changing global cannabis scene. Labor disputes, tax debates, scientific breakthroughs, and regulatory trials are shaping markets across North America, Europe, and beyond. As legalization advances, the tension between regulation, innovation, and market forces becomes more apparent—and crucial for the industry’s future.