Michigan’s Recreational Cannabis Market Is Booming

Michigan’s Recreational Cannabis Market Is Booming

Michigan’s legal cannabis market is continuing to thrive and grow.
Just more than a year after recreational cannabis sales began in Michigan, the state’s legal cannabis market has grown by leaps and bounds and shows no signs of slowing down any time soon. In December, Michigan showed the highest growth in sales of any legal cannabis market in the U.S., posting a 146% gain in gross merchandise value over the previous year, according to data from wholesale cannabis marketplace LeafLink.

Jeff Radway, the CEO of premium cannabis purveyor Skymint, says that Michigan’s recreational cannabis market has developed “at the speed of light” since legalization.

“It’s been a fascinating challenge to keep pace with. In December of 2019, Michigan became the tenth state in the U.S. to legalize adult-use cannabis,” Radway wrote in an email to High Times. “Less than a year in, it surpassed Nevada to become the fifth highest-grossing state for cannabis sales and is now on track to surpass $1 billion in sales in 2021. In addition to its fast-growing new recreational market, Michigan’s medical market is ranked #2 in the country, second only to California.”

Medical Marijuana Leads The Way

Michigan’s success is due largely to its existing infrastructure for medical marijuana, which was legalized in 2008. With a well established medical marijuana program in the state prior to recreational legalization, Michigan already had a large customer base that was ready to see the market grow. But David Egerton, laboratory director at Infinite Chemical Analysis Labs, said that some of the credit for Michigan’s success should also go to state regulators. He said that officials with Michigan’s Marijuana Regulatory Agency (MRA) have been much more open to feedback from businesses in the industry than their counterparts in California, where his company began its foray into licensed cannabis laboratory testing.

So far, “the MRA has made more than 40 changes to the initial set of regulations to prioritize public health and safety, update testing regulations, and make it easier for companies to operate and develop new products.”

Pivoting To The Adult-Use Market

While by some measures the legalization of recreational pot has been a resounding success, Egerton notes that the medical marijuana operators that pioneered regulated cannabis in Michigan haven’t fared as well.

“The transition to the adult-use market has up-rooted the small-scale, caregiver focused supply chain in an analogous manner to California in 2016 to 2017, and the ripple effect is still being felt across the industry,” he said. “While some of the caregivers were able to shift to the licensed marketplace, many others have dropped out as multi-state operators have moved in to compete.”

One of the medical providers navigating the path to the regulated adult-use market is Ghostbudster Farms, an operation with six years experience in Michigan’s medical market. Part-owner Chris Michael says that the transition has been a difficult one, particularly because of steep financial requirements.

“You have to show $500,000 in liquid assets for just a cultivation license,” Michael said in a telephone interview, referring to a Class C license which allows up to 1,500 plants.

“If you wanted a processing license, you had to show another $500,000,” and so on. “You’re looking at millions of dollars in just showing in assets and liquid before you can actually even get approved.”

“It wasn’t steered toward the grassroots movement,” Michael added. “This is where it came from and these are the people that originally started this movement. And they started this and it just spiraled out and turned completely corporate.”

Michael says that Michigan has seen an influx of capital from out of state funding operations that he believes see profit as the prime motivator.

“I’m out here doing it for the love of cannabis and the properties of this plant and what it can actually do,” he said. “There’s a lot of people that are here just for the money grab. It’s like that in every industry, but this one specifically a lot more.”

The Future Looks Bright

That isn’t the case with Skymint, which is 85% self-funded. Radway said that he is proud to have built his company from the ground up in his home state of Michigan. He’s optimistic about the future of the state’s regulated cannabis market, and said that companies with a strong brand strategy are likely to continue to grow as Michigan’s cannabis industry sees more players enter the market this year and beyond.

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What Could California Learn from Michigan’s Cannabis Lab Standards?

What Could California Learn from Michigan’s Cannabis Lab Standards?

Alexander Beadle- Science Writer

This summer, the American Council of Independent Laboratories (ACIL) sent a letter to the California Bureau of Cannabis Control (BCC) highlighting a concerning trend of compromises and poorer testing standards within the state cannabis testing sector. This practice of “lab shopping” threatened the integrity of the industry, said the ACIL. But there were solutions, according to the lab group.

One lab analyst well placed to see how regulations could be done differently is Josh Swider, founder and CEO of Infinite Chemical Analysis Labs.

After a successful few years testing cannabis out of San Diego, Swider and his business partner decided to open a second location in Jackson, Michigan. The move has given the lab operators a new perspective on California’s situation, and they believe that adopting some aspects of Michigan’s approach could greatly benefit the Golden State’s market.

To learn more about these interstate differences and what Michigan’s approach could offer, Analytical Cannabis caught up with Swider to talk all things testing.

Talking reform with Infinite CAL

“One thing that’s great in Michigan is the labs,” Swider tells Analytical Cannabis. “There’s only 11 out there right now compared to 34 in California, but once a month we have a phone call with the various people high up that can make changes, and actually get the ball rolling.”

“[Regulators] believe we’re the people on the ground that should probably have the best opinion, because we are the scientists. I feel like we’re treated out there [in Michigan] with a lot more respect for what we do.”

Whether it be due to the smaller number of labs or just having a different regulatory process, Swider says that the regulators in Michigan have also been quicker to make changes based on the opinions of the scientific testing staff.

“For example, in Michigan last week I talked about how I think it’d be very important to have a training session quarterly that every lab jumps on, where they go over problems that they’re seeing or to clarify some regulations and things like that, a simple thing,” Swider says.

“Within one week they set up a meeting[…] to start going over the rules and make sure everything’s fine – clarifying things. So, to see Michigan within one week make a change based upon a suggestion that they thought was a good idea, it’s amazing. And that’s what I’d love to see California do.”

A closer look at testing

Back in August, the ACIL’s letter highlighted two aspects of cannabis testing that could benefit from further reform in California: pesticide testing and sample homogenization.

Under current state regulations, labs define their own limits of detection (LOD), any result above that LOD is considered a failure, even for category 1 pesticides. But the ACIL argues that this system is inadvertently incentivizing lab shopping.

“This puts a large burden on producers and sometimes encourages them to choose a lab with higher LODs to ensure their products pass,” Antonio Frazier, president of CannaSafe and an executive committee board member of the ACIL’s Cannabis Working Group, told Analytical Cannabis back in August.

“Lab shopping creates the race to the bottom with safety. As the letter points out, cannabis states that have been regulated longer have already experienced this. There is no need for the world’s largest cannabis market to make these same mistakes.”

Swider agrees. Speaking to Analytical Cannabis, he remarked that the current LOD system is “a nonsensical thing” for any analytical chemist.

“Since we use pesticides in the United States, we need to decide what that limit is that could be harmful,” he adds. “I understand the point of why it’s probably not being done – not a lot of people were smoking pesticides previously. No one ever did research into what ‘happens when I smoke my apple;’ that’s why we see these things more defined in edibles. But even category 1 pesticides in [cannabis] edibles are [measured as] detectable/undetectable, which is a nonsensical thing.”

In terms of sample homogenization, the ACIL wants the BCC to issue guidance on different preparation methods for each cannabis matrix. Sample preparation is one of the largest sources of error within a cannabis testing facility and outlining a set of best practices for technicians could be a straight-forward but impactful measure to reduce these errors.

“I’ve heard some very far-out-there methods for how they’re homogenizing their product,” Swider recalls. “I’ve heard of people beating a bag of marijuana with a rubber mallet, and that’s a certified testing lab.”

“I’ve heard of people homogenizing vape pens, but they heat up the vape pens to get the distillate out. Well, if you’re doing that it has residual solvents in it, potentially harmful ones, you’re removing them. So there’s a lot of aspects that people really need to think about it.”

The future for cannabis testing in California

In its letter, the ACIL also highlighted three more issues: a desire for introducing a proficiency testing program, defining requirements for validation and data packages, and enforcing regulation more strongly.

“I believe all of these can be addressed during the agency consolidation this year,” Frazier said at the time. “We know that the BCC is aware of some of these items and has plans to address them. They have done a good job of providing facts sheets and FAQ updates for some of the other unclear items.”

Swider also believes that the BCC is doing a good job of trying to move with the desires of the industry and its scientists, but that the bureau was simply hampered by starting out with too little funding and too few staff, and this has led to it needing to play catch-up with the industry. To help the BCC continue to make positive strides, Swider wants to see a wider consolidation of the cannabis-focused departments from different state regulators into a central governing body.

“I honestly think you need to put it all under one roof; all the regulators for cannabis need to be one item,” Swider says. “So not having the BCC do the testing labs, but then the California Department of Public Health doing the manufacturing and the California Department for Agriculture doing the cannabis growing. It [makes] everyone too spread out, no one’s really knowing what’s going on. I think a tight industry would only benefit all the people doing the things right.”

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Infinite Chemical Analysis Labs Reports Milestone Growth Year in 2020 and Further Expansion

Infinite Chemical Analysis Labs Reports Milestone Growth Year in 2020 and Further Expansion

San Diego-based Testing Lab Continues to Expand Following Grand Opening of Secondary Michigan-based Facility San Diego, California, Nov. 23, 2020 (GLOBE NEWSWIRE) — via NewMediaWire  Infinite Chemical Analysis Labs (“InfiniteCAL” or “the Company”), a full-service analytical testing lab for the cannabis and hemp industries, announced today that the Company has reported a 31% increase in revenue through the first three quarters of 2020 in comparison to the first three quarters of 2019. The continued growth is a result of an increase in demand due to cannabis being deemed an essential business this year prompting the need for new hires to the team, the launch of the Company’s second lab based in Jackson, Michigan, and plans for a larger lab in San Diego to increase customer intake set to open in early 2021.

Since the height of the global pandemic in March, InfiniteCAL has added nine employees to their team noting key hires including Lab Managers Andy Sattler, Ph.D. and Joe Maricelli, Ph.D., and Lab Director David Egerton at the Jackson facility and Senior Analyst I Erik Paulson, Ph.D. at the San Diego facility. In addition, the Company has built out a communications team to better serve clientele, handle intake, and respond to real-time regulatory and compliance developments within the cannabis space.

InfiniteCAL’s Michigan based lab, which launched in August, is the second lab in the state to hold adult-use licensing and is on track to seize 50 percent of the market share after just three months in operation. The Company plans to increase its revenue in Michigan by 25% month over month.

“InfiniteCAL is proud to be on the frontlines of cutting edge science and protocols within the cannabis laboratory testing space,” said InfiniteCAL Co-founder and CEO Joshua Swider. “We have recruited top talent and implemented validated methods and procedures to best support operators with their testing needs. Expanding our operations from California into the recently created adult-use market in Michigan allows even more consumers to access safe and compliantly tested cannabis products. We look forward to continuing to enhance our operations as we enjoy further growth in 2021 and beyond.”

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New Jackson lab aims to provide quality cannabis testing

New Jackson lab aims to provide quality cannabis testing

 Updated: 

David Egerton, and his team of experts at Infinite Chemical Analysis in Jackson are using science to make sure cannabis products are safe to consume.

 

“In Michigan there are fairly robust regulations for the sale of cannabis. There is almost 60 pesticides that we are looking for that are commonly used within the cannabis industry,” said Lab Director at Infinite Cal, David Egerton.

The team also tests vaping products, a recent controversial topic here in Michigan.  A new study from the company showed that nearly 80% of illicit cannabis vapes were deemed unfit for consumption.

“The vitamin E acetate problem was mostly confined to the illegal industry. It just really goes to show how much good regulation can prevent a lot of these problems before people even know about them ,” said Egerton.

 

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Infinite Chemical Analysis Labs Brings Proven Cannabis Testing Expertise to Michigan Market

Infinite Chemical Analysis Labs Brings Proven Cannabis Testing Expertise to Michigan Market

Leading San Diego, California, Cannabis Analytical Testing Lab Opens Second U.S. Location

San Diego, Aug. 12, 2020 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE —

Infinite Chemical Analysis Labs (“InfiniteCAL” or “the Company”), a full-service analytical testing lab for the cannabis and hemp industries, announced today that the Company opened its cannabis analysis lab in the expanding market of Michigan, marking its second location in the U.S. The lab will begin testing cannabis products immediately, and is approved to service both the state’s medical and recreational markets. InfiniteCAL’s newest analytical testing lab will be located at 4400 Ann Arbor Road, in Jackson, Mich.

Founded by two PhD chemists Josh Swider and Dave Marelius, InfiniteCAL aims to set the standard for quality cannabis testing nationwide. Drawing from the Company’s proven success in the California market, Michigan cannabis businesses can trust that InfiniteCAL utilizes top-of-the-line instruments and offers a faster turnaround time for testing results than currently available in the state of Michigan.

“Expanding on the success we have experienced at our founding facility in San Diego has been a long-time vision of mine and bringing this new lab online is such an honor and exciting milestone for our company,” said Infinite Chemical Analysis Labs CEO Joshua Swider. “While these are very difficult times for many Americans, we have been working diligently for over a year to open this new lab in the rapid-growth market of Michigan. With many cannabis businesses being deemed essential, and medicinal users still needing their medicine, we have moved forward with this opening and are proud to be a part of the important movement in Michigan. I would like to thank our dedicated team in the state who have fought through hard times to make this dream a reality.”

Michigan’s 2020 adult-use sales will total between $400 million and $475 million, growing to $1.9 billion-$2.4 billion by 2024, according to The Marijuana Business Factbook. InfiniteCAL is positioned to become a leader in this burgeoning market with its exceptional team of seasoned industry professionals, including PhD chemists and biologists.

For more information about Infinite Chemical Analysis Labs in Michigan, visit https://infinitecalmi.com/

About Infinite Chemical Analysis Labs
Infinite Chemical Analysis Labs offers a wide range of quality assurance analyses in addition to state compliance testing to uphold brands to the highest standards for premium products. InfiniteCAL believes the purpose of quality assurance and compliance testing is for public safety. The Company holds scientific integrity above anything else and delivers consistent and factual results for all clients.

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USDA reopens comment period on hemp regulations as lawmakers, growers worry rules could stunt budding industry

USDA reopens comment period on hemp regulations as lawmakers, growers worry rules could stunt budding industry

The new comment period is open until Oct. 8

By Tyler Olson | September 9, 2020

The future of regulations on the hemp industry is up in the air as the United States Department of Agriculture (USDA) reconsiders a slate of proposed rules ahead of the 2021 growing season.

These include directives on the testing and disposal of hemp that growers and even some U.S. senators have said could stunt the growth of the industry that was created by the 2018 Farm Bill.

On Sept. 4 the USDA announced that it would reopen the comment period for the interim final rule (IFR) on domestic hemp production, seeking input from the public on a variety of provisions. At the center of the issue are two regulations — one that requires labs testing farmers’ hemp to be registered with the Drug Enforcement Administration (DEA) and one that would require disposal of hemp plants with non-compliant levels of THC (the active chemical in marijuana that is found in much lower levels in hemp) to happen with law enforcement involved.

Both of those rules had their implementation delayed until October 2021 earlier this year, but still have been the subject of criticism, including from Senate Minority Leader Chuck Schumer, D-N.Y., who wants the USDA to delay the implementation further into 2022.

Mickey Wilbanks, the California Department of Food and Agriculture account manager with InfiniteCal, one of the largest cannabis testing labs in the state — which tests both hemp and marijuana — echoed similar concerns about the involvement of law enforcement in both the testing of hemp and the destruction of plants that do test hot.

“I know a lot of registered growers in California and they’re all trying to follow these regulations to a tee,” she said. “The fact that regulators now want to involve the DEA so much, it’s almost like they’re treating these registrants as criminals when hemp has been federally legalized and it’s just not necessary.”

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