Happy 4/20 everyone!*
*Except those who are (and will be) profiting off the cannabis boom without a shred of thought towards social justice, especially those incarcerated and disproportionately impacted within Black and Brown communities.
This is an open letter to any member of the business community who has, or will, profit in some way from the cannabis boom, as the US cannabis industry will be worth $100B by 2030.
We must continually ask: Who are we leaving behind?
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When I am asked “how did you cope with COVID lockdown?” or “what was your vice for the crushing anxiety of a traumatic global pandemic?” my response is like that of many Americans:
Cannabis.
The industry hit record highs last year as 2020 saw a massive spike in cannabis consumer demand:
Stay-At-Home requirements and cannabis delivery’s designation as an essential service dramatically shifted the narrative about weed, moving it beyond the definition of a wellness tool into the category of an essential product.
Where I live just outside of Boston, it is easy to get a variety of pre-rolled joints, flower and gummies of every variety delivered to my front door by a local dispensary.
Sometimes I score same-day delivery.
Massachusetts residents voted to legalize the recreational use of cannabis in 2016, and we’ve now got a growing number of boutique-like experiences to choose from. It’s a far cry from the future promised by Reefer Madness – a 1936 propaganda film about the dangers of the devil’s lettuce.
I’m one of many Americans with a medical card as 36 states have legalized cannabis for medical purposes.
I’ve also enjoyed it recreationally for years – well before boutique dispensaries and digital technology ecosystem made it possible to order cannabis delivery the same way I do sushi, delivered by a smiling member of the gig economy and accompanied by automatic text updates and loyalty points.
I enjoy, like so many white Americans, a cushy and privileged experience with weed – one that is about to explode as the green rush gains momentum along with changing public opinion.
According to a Gallup poll, support for legal marijuana reached a new high (heh) to 68% as of November 2020.
Cannabis is big business in 2021
As I write this, it is of course the unofficial holiday of the stoner, April 20th. To celebrate today you could buy a bong chew toy for your puppy.
Or you can grab a new limited-edition sneaker from Adidas featuring South Park’s Towelie’s red eyes and featuring a secret stash compartment.
During the pandemic, knowing full well which vice I’d chosen, a friend bought me a journal intended for use while stoned (it’s fun, highly recommend):
New products are coming to market at a rapid pace, from THC-infused beverages like Cann now available in cities like Chicago to Martha Stewart’s line of CBD wellness gummies and oils (featured in the New York Times style section of course.)
Former Goop executives are cashing in with a “curated online cannabis boutique offering” Fleur Marché, while clothing brands explore incorporating CBD-infused fabric on leggings and sports bras to “align with major muscle groups.”
Weed-related tech companies like Eaze based in San Francisco are seeing millions in VC funding, a trend expected to increase given the performance of cannabis-friendly ecommerce tech like Dutchie, which dramatically increased their market share in 2020.
The boom is here – the US cannabis industry is worth $61B and projected to be worth $100B by 2030 – an enormous market opportunity that will affect every type of business – from grow lights to consulting to point of sale software.
But, as we jump head-shop-first into the green rush, the glamor of this industry stands in stark contrast to the experience and history of Black and brown communities as they relate to marijuana.
It’s important we go into this with eyes wide open.
Eye-opening stats about cannabis-related incarceration.
Despite equal rates of use, Black people in the US are 3.64X more likely to be arrested for cannabis possession than white people. (ACLU)
The war on drugs in the US included sentencing requirements that resulted in unequal outcomes for people of color. Black and Latino people are far more likely to criminalized although rates of drug use and sales are similar across racial and ethnic lines, according to the Drug Policy Alliance.
In some states, Black people were up to six, eight, or almost 10 times more likely to be arrested. This trend is only getting worse over time: In 31 states, racial disparities were actually larger in 2018 than they were in 2010 (ACLU).
The University of Baltimore Law Review notes:
“… retroactive ameliorative relief is not widely available to those who were convicted under circumstances that are now legal, and as a result, stains remain on the records of a disproportionate number of blacks.
Marijuana has become a big business, often being compared to the Gold Rush and referred to as the Green Rush. However, regulations across states that are a part of this Green Rush effectively wall out those once convicted (overwhelmingly blacks) for participating in, and profiting from, the very same industry.”
A green rush so white.
As prohibition of alcohol drove booze underground, prohibition of weed drove Black and brown communities into jail. After decades of putting people behind bars for selling weed, now we’re watching an entire industry bloom around it.
Who are we leaving behind?
Headlines like this one demonstrate the stark contrast in cities like Chicago, where 3X the number of African Americans were arrested for marijuana-related offenses than other ethnicities combined in 2020:
The article calls this situation a “parallel world” where “some are able to enjoy marijuana without consequence, while others continue to suffer from the policies of the drug war era.”
There is a growing call for justice in this space.
And, as with all social movements in 2021, you can buy merch showing your stance on this issue. A company called Political Potheads dropped new keychains today that say “no one belongs in prison for weed” and the especially woke “crush blunts and smash the patriarchy.”
Or, Humble Bloom’s “Buy Weed From Women” tote bag.
Brands are at risk of exploiting yet another social justice imperative if we sit by passively.
The barriers to entry in cannabis
Ben and Jerry’s released an infographic about the state of cannabis injustice, with trademark clever copy “legalization without justice is half baked.” It notes that 81% of cannabis business owners are white:
Additional research reveals a bit more to this story, as 17% of executive positions in the marijuana industry in 2017 were held by minorities (greater than the average across all US businesses).
What’s creating friction for people of color in this industry is the same as any other – obstacles like lack of access to capital, networks, or advisers.
Richard Harding, a Boston equity advocate who co-founded a group called Real Action for Cannabis Equity said that here in Massachusetts, bigger, established cannabis companies and medical marijuana dispensaries are monopolizing the market. Larger companies have the capital necessary to jump to the head of the line.
Prior felony convictions for marijuana possession obstruct one’s ability to obtain a cannabis business license in many states:
California, for example, forbids anyone with a felony controlled substance offense within the past three years from obtaining one.
To obtain a license in Colorado, applicants can't have any controlled substance felonies within the past decade.
Nevada requires anyone working in the industry, in both medical and retail, to undergo a criminal background check. Those convicted of “excluded felony offense” in Nevada are not allowed to work in cannabis.
Justice in the cannabis industry will be up to businesses.
The truth is, equality in the cannabis industry cannot only be a legislative-driven solution.
To be clear, legalization matters. In March, NY became the 15th state to legalize recreational cannabis, including expunging records for those convicted of offenses that are no longer criminalized.
The ACLU recommends further “legalization repair the harms that prohibition has wreaked on communities of color” – such as the program in NY that will reinvest millions in cannabis tax revenue to minority communities ravaged by the war on drugs.
That said, so far, the picture on the ground of these rollouts hasn’t been enough to move the needle on this front. Crain’s Chicago notes that:
“Social equity programs written into marijuana laws have been ineffective, at best, and a nightmare for wannabe entrepreneurs, at worst.”
Like all major initiatives, change will require the support of the business community as well – especially those who now claim to be an ally of racial justice.
Justice in the green rush.
Today, 1 in 3 Americans live in a state where recreational marijuana is legal. As we continue to see states make moves towards legalization and look towards action at a federal level, it’s only a matter of time before these troubling trends of exploitation become the de facto norm.
I believe any business profiting off the green rush must consider the social justice considerations of entering this space.
Consumers cringe as brands barge head first into spaces like LGBTQ equality or racial justice without fully understanding the movements, their history, why they exist, or what they are asking for.
Are white consultants, tech leaders, celebrities, or VC firms entering this space with any understanding of the context? With any true consideration to the impact of its history?
If the answer was “yes” I think we’d see a lot more social justice built into the way these organizations enter this space.
The Black Lives Matter movement asks organizations to look to understand the ways in which racism permeates decision-making and gatekeeping throughout their operations – from human capital to supply chains.
As cannabis becomes a vertical market opportunity for businesses from software to consulting services, every brand involved has an imperative to contribute to a more just version of this industry.
Continuing at the existing trajectory is a recipe for more of the same.
Like every other social movement currently working its way into the consciousness and decision-making of corporations, this too will be a matter for private enterprise to take up.
Edelman research from 2018 finds that 64% of consumers look to CEOs to take the lead on change, rather than waiting for government to impose it. That number is ticking up to 68% in their most recent 2021 study.
What support may look like:
Help to fund more Black cannabis entrepreneurs, especially women. Between 2009 and 2017, firms founded by Black women only raised 0.0006 percent of all VC funding. (Mashable). Eaze funds an accelerator program with partners Ultranative and Bail Capital for underrepresented cannabis business founders.
Create more employment opportunities for those with criminal records related to cannabis. Known as “collateral consequences” – an arrest or conviction follows a person through their lives, affecting their ability to earn a living. 1 in 4 Americans is locked out of the labor market under existing circumstances.
Lobbying efforts – such as Ben and Jerry’s core call to action from it’s content around 4/20 encouraging consumers to write to their senators to pass the MORE Act, which would deschedule cannabis from the Controlled Substances Act and enact criminal and social justice reform including the expungement of prior convictions.
Who is working to solve this?
The Last Prisoner project – made up of attorneys, criminal justice reformers, advocates, and justice-impacted individuals working to “redress the past and continuing harms of these unjust laws and policies.” They estimate that 40,000 people are currently incarcerated on cannabis-related charges in the US.
I want to highlight what they believe:
“We believe that anyone profiting from or freely engaging in the legal cannabis industry has a moral imperative to work towards restorative justice.
Humble Bloom – a cannabis education and advocacy platform co-founded by Solonje Burnett and Danniel Swatosh, working to help build “strong brands… built through an inclusive humanist approach to branding and marketing.”
Hood Incubator – working to help transition underground cannabis dealers into the legal market, “ensuring that people harmed by the drug war can benefit from the cannabis industry and organizing the legal industry around a political agenda for justice.”
The non-profit provides a free crash-course in business and networking to people of color aspiring to cannabis entrepreneurship, funded by a mix of foundations, corporate sponsors, individual donors, event revenues, and member dues.
Vangst is a staffing firm for this space “on a mission to cultivate a more diverse and progressive cannabis industry.”
Cannaclusive – calling for the cannabis and hemp community to prioritize accountability.
Their open letter calls for direct action from businesses such as:
25% of shelf space dedicated to products created by Black, Latinx, Indigenous and people of color (POC) within retail or e-commerce marketplaces
Dedicated Corporate Social Responsibility role for companies with 100 or more employees
Introducing blind new hire processes to eliminate bias decision making practices
Amplify marginalized voices through platforms actively
Attend lobby and government meetings and bills that push to end the drug war & reverse its impacts (i.e. Ban the Box)
Today they posted 42 brands founded by Black, Latinx, Indigenous, Asian, Middle Eastern, and other POC.
Leafly has resources to help explain social justice in cannabis, writing “In order to build a socially just cannabis industry, we must make sure that we are upholding fairness in our systems, communications, and organizations.”
The company continues:
“There is an American tradition of creating obstacles for certain people to access cannabis, whether that be due to their socioeconomic, racial, sexual, gender, or immigrant status. Cannabis has many health benefits, and we must ask ourselves why there are so many barriers and rules around the possession of adult-use cannabis. “
I can imagine a cannabis industry without exploitation. Can you?
It will require business leaders to be held accountable to the consequential history of a product they are now poised to profit from.
It requires us to pay attention.
When former Speaker of the House John Boehner changed his tune in 2019 from cannabis-opponent to industry advocate, he was asked about the flip, claiming to have “no regrets.”
When asked about the 400,000 people incarcerated for cannabis related charges during his tenure as Speaker, he said:
“Frankly, it never crossed my mind.”
That sentiment reflects the dark truth of an industry hell bent on profit at the expense of a community unjustly affected by its history.
I am a very privileged white cannabis consumer, and an advocate for more honesty around its use and benefits. As the sea change occurs in what consumers expect from the businesses they buy from, especially around ideas of justice, we must pay attention.
The ACLU pulls no punches as it describes the US’s war on cannabis as a “45-year drug prohibition charade.”
Let’s ensure the next chapter of legalization and the resulting green rush for businesses does not merely perpetuate a charade of social justice.
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