Issue 42: When The Going Gets Tough, The Statements Get Snippy

Facing criticism, the largest companies in the space are getting a bit cantankerous. Plus, an announcement.

Apr 21, 2023

Welcome to Issue #42 of Burn After Reading! You can check out last week’s issue here. If you haven’t subscribed already, head here.

When The Going Gets Tough, The Statements Get Snippy

Has anybody else noticed that some of the largest MSOs in the space are getting a little bit more aggressive in their statements to the press lately? I’ve already documented the supposed “outrageous act of political retaliation” that Curaleaf was complaining about in New Jersey last week, but they’re not the only company that has been ramping up their rhetoric; fellow cannabis giant Trulieve has also been getting a bit more cantankerous in recent days.

It’s clear the company is getting frustrated with the amount of heat they are getting on social media and in the press. I first noticed this when CEO Kim Rivers decided to spar with journalists and activists on twitter a few weeks back, but their response to MJBizDaily’s reporting on a recent lawsuit that they settled was particularly notable for the amount of sass it contained.

Here’s a brief summary of the lawsuit: a black woman who was employed as a middle manager at Trulieve's call center noticed that she was being paid less per hour than her white, male counterparts. When she took this complaint to higher-ups, they allegedly retaliated against her.

Luckily, after Trulieve did a thorough review of their own policies, they found no evidence of wrongdoing (shocker!). Still, the company decided to settle the lawsuit barely a month after it was filed, rather than let the full facts of the case be discussed openly in court. Here’s MJBizDaily reporter Chris Roberts describing what went down when they reached out for comment:

In a lengthy statement emailed to MJBizDaily on Tuesday night, Trulieve said it “took the allegations of Ms. Bennet’s case very seriously. However, after a thorough review, we found she was the third-highest paid employee in her department and that the raise disparity was due to an administrative error and nothing more.”
The company also made allegations about Bennett and her attorney that MJBizDaily could not confirm.
The statement went on to single out MJBizDaily‘s coverage of Trulieve:
“MJBiz has a documented history of holding Trulieve to a different standard with 40% of their stories in the past two years focused on rehashing negative instances at Trulieve as clickbait.”

I was under the impression that words in the English language had specific, agreed upon meanings, but this statement from Trulieve suggests otherwise. This story was in no way “clickbait,” and it’s not unusual for a cannabis trade publication to pay attention to the goings-on at one of the largest companies in the industry. Trulieve and Curaleaf love pointing out the scale of their operations when it attracts investors and praise, but seem to have an issue with the levels of scrutiny that come with being a company with clout.

I guess Trulieve isn’t happy that a mere 60% of stories that MJBiz writes about them are positive or neutral, but I’ve hardly noticed any particular obsession towards the company from the publication. They’re also not the only publication to report on this story or other “negative instances” at the company. Even Benzinga — a finance-focused media company who has taken sponsorship money from Trulieve to support their cannabis investor conferences — has covered some of the various scandals the MSO has faced.

In the race to become the world’s largest publicly traded cannabis business, there’s apparently no time to stop for a moment of self-reflection, even when you just settled a lawsuit with a black woman who just showed that — “administrative error” or not — you were paying her less than her white, male counterparts.

From what I’ve seen so far, the only time you’ll here Trulieve, Curaleaf or other mega-MSOs use any language that could be considered to be apologetic over regulatory violations or other accusations is when there is a middle or low level employee they can throw under the bus in the process. Otherwise, the game plan is simple: you attack the people making the accusations, you attack the journalists who report on them, and then you attack the regulators who are expressing concern.

When you’re part of the sprint to monopolize a multi-billion dollar industry, there’s no time to glance behind you to contemplate the destruction you could be leaving in your wake.

Announcing a new project: Blunt Banter

I’m excited to announce that I’ve teamed up with Ravon Williams to launch a weekly web show on the cannabis space! You can check out our first official episode below. Moving forward, the plan is to drop a new episode every Thursday afternoon.

Some Half-baked Musings

I’m on my way down to the National Cannabis Festival in D.C, and I thought I’d finish up the newsletter from the comforts of Amtrak’s business class. Unfortunately, the entire car is vibrating at an alarming rate, making work difficult. So here are a few short thoughts I’ll try to get down on the page before my laptop shakes itself apart.

Dangerous Tik Tok challenges come to the cannabis space: At risk of sounding like an old man, can we please stop with the dumb weed-related social media challenges. It really seems like people are racing to see who can become the first influencer to die as a result of cannabis asphyxiation.
In the last day alone, I’ve seen a man dressed like a giant bong use a leaf blower to fill his costume full of smoke, and a video where a man put his dad into a giant plastic bubble, filled it with weed smoke, and then pushed him into a lake (!?!), nearly killing him in the process. Not only are these stunts a massive waste of weed, they’re making us all look bad (and by us, I mean humanity).
Layoff Report: Sadly the layoffs in the cannabis space continue. Massachusetts-based INSA cut workers this week, as did the National Cannabis Industry Association. There’s also been some rumors that Tilt Holdings is planning to shutter their Cambridge, MA retail location today, also laying off workers in the process.

Headlines

New England

UMASS CANNABIS EDUCATION COALITION HOSTS 29TH EXTRAVAGANJA IN GREENFIELD (Liesel Nygard | Massachusetts Daily Collegian): “The University of Massachusetts Cannabis Education Coalition (CEC) held its 29th Extravaganja on April 15 to celebrate and educate about the legalization of recreation and medical use of cannabis in Massachusetts. This was CEC’s first time hosting at the Franklin County Fairgrounds. This year’s Extravaganja marked the event’s return following a two-year hiatus during COVID-19.”
REVENUE FROM RETAIL CANNABIS SALES IN RHODE ISLAND OFF TO SLOW START (Brian Crandall | NBC 10): “Here's what the retails sales numbers for the first three months show: $3.4 million during the December launch month, $3.5 million in January, $4.2 million in February. Compare those numbers to the state's projections last year, which estimated $41 million dollars in retail sales during the first seven months, which would be an average of just under $6 million a month.”
VERMONT OFFICIALS CAREFULLY WATCHING CANNABIS SUPPLY AND DEMAND (Bob Kinzel | Vermont Public): “The Vermont Cannabis Control Board could limit the number of new grower licenses this spring in an effort to avoid the type of market crisis that has plagued other states that have legalized recreational cannabis.”

Rest of U.S. / National

NEW CONGRESSIONAL BILL WOULD PROVIDE FEDERAL TAX RELIEF FOR MARIJUANA BUSINESSES BY AMENDING IRS’S 280E CODE (Kyle Jaeger | Marijuana Moment): “The legislation was introduced by Rep. Nancy Mace (R-SC) with days left in session in the 117th Congress. While the text isn’t currently available, its short title is identical to versions of the Small Business Tax Equity Act that were filed in previous sessions.”
EMPLOYEE NUMBERS UP AT SOME CANNABIS MSOs DESPITE CHALLENGING CONDITIONS (Kate Robertson | MJBizDaily): “The fact that employee payrolls were up for some marijuana MSOs at the end of 2022 but down for others underscores how several factors can play a role in determining a company’s health. Those factors include geographic footprint, taxes, operating costs and capital availability, experts said.”
CANNABIS SALES SOFTWARE PROVIDER DUTCHIE GOES DOWN NATIONWIDE ON 4/20 (Chris Roberts | MJBizDaily): “Technology platform Dutchie, which provides point-of-sale (POS) hardware for cannabis retailers across the United States, reported interruptions and outages on Thursday – the unofficial marijuana holiday 4/20 and one of the biggest sales days of the year in the industry.”
TAKEAWAYS OF AP REPORT ON WATCHDOG PROBE INTO DEA HIRING (Joshua Goodman and Jim Mustian | AP): “A federal watchdog is investigating whether the U.S. Drug Enforcement Administration under chief Anne Milgram improperly awarded millions of dollars in no-bid contracts to hire her past associates. That’s according to several people familiar with the widening probe who spoke to The Associated Press.”

International

🇬🇧 ENGLAND TO BECOME THE SECOND-LARGEST MEDICAL CANNABIS MARKET IN EUROPE (Investment Monitor): “New research from Prohibition Partners shows that England is set to become the second-largest European medical cannabis market, as patient numbers and demand continues to grow. Industry experts predict that 2023 will see a significant uptick in patients accessing medical cannabis legally in the UK. While more than 89,000 private medical cannabis prescriptions have been made in the UK, there have been fewer than five medical cannabis prescriptions via the NHS.”
🇻🇨 TRADITIONAL CANNABIS FARMERS BARELY INVOLVED IN REGIONAL CANNABIS INDUSTRY (Lee Yan LaSur | St. Vincent Times): “While the shift in the Caribbean from prohibition to decriminalization, and the creation of a legal “medicinal” cannabis industry in the region is appreciated, there remains serious concerns regarding the token inclusion of traditional/legacy cannabis farmers, grassroots people, and community participants in the legal and regulatory framework. One of the major concerns is the absence of any deliberate attempt to mitigate the imposed costs of entry into the formal medicinal cannabis industry.”
🇮🇪 CITIZENS' ASSEMBLY ON DRUGS HOLDS FIRST MEETING IN DUBLIN (Tadgh McNally | The Journal): “The assembly was formally established last month and is mandated to examine possible policy, legislative and operational changes to Ireland’s drug policy to reduce harm on individuals, communities and wider Irish society. The assembly itself is made up of 99 ordinary members of the public and one chairperson, namely former HSE CEO Paul Reid.”

Welcome Distraction

Did you know that former NFL quarterback Jake Plummer is now a mushroom farmer/psychedelic advocate? He sat down with Le Batard & Friends this week to discuss. Check it out here.

Cat of the Week

Say hello Miss Winnie! Thanks to reader Sarah J. for this Cat of the Week submission.

Special Bulletins

I’m still looking for sponsors for this newsletter and Blunt Banter! Reply to this email if you’d like to learn more.

That’s a wrap on this issue. Thanks for reading! If you have any suggestions or feedback, let me know by replying to this email. Be sure to subscribe if you haven’t already, and if you can afford to support my work, please consider a paid subscription.