Legal Weed Is Being Ruined By Corporate Greed

Summary

The video script exposes how large corporations like Trulieve are monopolizing the cannabis industry, exploiting policy loopholes and using aggressive lobbying tactics. It delves into the company's controversial beginnings in Florida, its anti-competitive practices, and the broader implications for the industry if federal legalization favors big business over social equity, worker rights, and consumer interests.

Takeaways

• 🌿 The cannabis industry is facing monopolization by large corporations like Trulieve, which control significant market shares and exploit policy loopholes.
• 🏭 Trulieve's dominance is exemplified by their control over 50% of the legal cannabis market in some states and their ability to saturate the market without consumers' awareness.
• 🤝 Trulieve has been associated with questionable practices, including leveraging connections and policy manipulations to secure advantageous licensing positions.
• 💼 The company's leadership has backgrounds in finance and real estate rather than cannabis cultivation, indicating a profit-driven rather than a product-driven focus.
• 🚨 There are concerns about the health and safety of workers in the industry, with examples of occupational hazards leading to fatalities being ignored or downplayed by companies like Trulieve.
• 🛑 The script highlights the importance of anti-monopoly regulations, drawing a parallel to the post-Prohibition era's tier system that prevented monopolization in the alcohol industry.
• 🌱 The cannabis industry's regulatory landscape is still being shaped, with states like New York implementing social equity and anti-monopoly measures to prevent corporate control.
• 🗳️ Lobbying by large cannabis, alcohol, and tobacco companies, as well as tech giants like Amazon, is influencing federal legalization efforts, often with a focus on corporate interests rather than public welfare.
• 🛑 The potential federal legalization of cannabis could favor large corporations if it focuses solely on legalization without addressing monopolization and worker protections.
• 🛑 Vertical integration by companies like Trulieve, where they control every part of the supply chain, is a strategy that could lead to a monopolized market similar to what regulators in the 1930s sought to avoid in the alcohol industry.
• 🌐 The script suggests that the focus should be on comprehensive legalization that includes social equity, worker rights, and anti-monopoly measures to prevent the cannabis industry from being dominated by a few large corporations.

Q & A

What is the main concern raised in the script about the cannabis industry?

The script raises concerns about large corporations, such as Trulieve, dominating the cannabis industry, potentially harming consumers, workers, and the overall market by exploiting policy loopholes and using their power to influence legalization.

How much of the legal cannabis market does Trulieve control in some states?

Trulieve controls over 50% of the legal cannabis market in some states.

What is an example of Trulieve's market dominance mentioned in the script?

In Florida, combined with their two biggest competitors, they sold enough cannabis in 2022 to give every Floridian seven joints.

What is the connection between Trulieve and the Beshear family?

Trulieve was formed through a partnership involving Simpson Nurseries, which is the oldest nursery in Florida and the family company of Representative Halsey Beshears.

How did Trulieve manage to secure one of the first licenses for medical cannabis in Florida?

Trulieve secured the license by meeting the stringent requirements of an amendment to the bill, which was allegedly influenced by JT Burnette, who later married Kim Rivers, the CEO of Trulieve.

What is the significance of the tier system implemented by the U.S. government after Prohibition?

The tier system was implemented to prevent monopolies in the alcohol industry by ensuring that no single company could be the manufacturer, distributor, and retailer of alcohol products.

What is the role of lobbyists in the current push for federal cannabis legalization?

Lobbyists, particularly from large cannabis, alcohol, and tobacco companies, are pushing for federal legalization with the aim of creating a corporate free-for-all that favors their interests.

How does Trulieve's strategy of buying existing businesses in other states impact small businesses?

Trulieve's strategy is detrimental to small businesses because it reduces the availability of licenses, which are already scarce, and consolidates power in the hands of a few large corporations.

What is vertical integration and how does it relate to Trulieve's business model?

Vertical integration is when a company owns every part of the process from production to retail. Trulieve's business model includes vertical integration, which regulators in the 1930s recognized as a potential monopolistic practice.

What are some of the negative consequences mentioned in the script regarding Trulieve's treatment of workers?

The script mentions that Trulieve has been involved in union busting and has denied responsibility for the death of a worker due to occupational asthma caused by poor ventilation in their facilities.

What is the potential impact of rescheduling cannabis from Schedule I to Schedule III on the cannabis industry?

Rescheduling cannabis to Schedule III could favor large companies that can afford the lengthy and costly FDA approval process, potentially shutting down smaller businesses and increasing the power of big cannabis businesses.

What is the 'asteroid' metaphor used in the script to describe the threat to the cannabis industry?

The 'asteroid' metaphor refers to the threat posed by enormous companies like Altria and Amazon, which could potentially dominate the cannabis market and overshadow the competition between existing cannabis businesses of all sizes.

Outlines

00:00

🌿 Corporate Dominance in the Cannabis Market

This paragraph discusses the monopolistic practices of Trulieve, America's largest cannabis company, which controls over 50% of the legal market in some states. The company's influence extends to creating deceptive small-brand-like entities and partnerships with celebrities. Trulieve's rise to power is attributed to exploiting policy loopholes in legalization and using their sway to create such opportunities. The company has also secured the only minority-owned dispensary license in Alabama through questionable means. The paragraph also draws a comparison to the repeal of Prohibition, illustrating how past mistakes in regulation can be informative for the current cannabis industry.

05:01

📜 The Origins of Trulieve and Regulatory Manipulation

This section delves into the inception of Trulieve and the corruption behind Florida's first cannabis legalization initiative. The bill was crafted by influential figures with vested interests, including Matt Gaetz and Halsey Beshears, to favor established nurseries like Simpson Nurseries, which eventually became Trulieve. The amendment to the bill, allegedly influenced by JT Burnette, set stringent requirements for licenses that only a few could meet, effectively creating a barrier to entry for new businesses. The paragraph also highlights the connections between Trulieve's founders and their backgrounds in finance and real estate, suggesting a lack of genuine interest in the cannabis industry beyond profit.

10:05

💼 The Threat of Corporate Monopolies in Cannabis Legalization

The final paragraph warns of the potential dangers of corporate monopolies in the cannabis industry, particularly if federal legalization occurs without stringent regulations. It points out that large companies like Trulieve, as well as tobacco, alcohol, and even tech giants like Amazon, are pushing for legalization without considering the social and labor implications. The paragraph emphasizes the need for equitable laws that protect small businesses, workers, and consumers, using New York's approach as a positive example. It also raises concerns about the potential for large corporations to exploit any legal changes to their advantage, ultimately undermining the goals of public health, racial equity, and workers' rights.

Keywords

💡Trulieve

Trulieve is the largest cannabis company in America, controlling over 50% of the legal cannabis market in some states. The video highlights how Trulieve built an empire through exploiting policy mistakes in legalization and engaging in corrupt practices, reflecting the broader issue of large corporations dominating the cannabis industry.

💡Vertical integration

Vertical integration refers to a company controlling every part of the production and distribution process. Trulieve's vertical integration strategy, where they own everything from production to retail, mirrors historical monopolistic practices in other industries, posing a threat to small businesses and consumer choice in the cannabis market.

💡Lobbying

Lobbying is the act of attempting to influence policymakers and regulators. The video emphasizes how Trulieve and other large cannabis companies use extensive lobbying efforts to shape legislation in their favor, thereby securing their dominance and perpetuating anti-competitive practices.

💡Monopoly

A monopoly is when a single company or group exclusively controls a commodity or service. The video discusses the monopolistic tendencies of Trulieve and other large cannabis companies, drawing parallels to historical monopolies in the alcohol industry and highlighting the risks of unchecked corporate power in the cannabis sector.

💡Social equity

Social equity involves fair access to opportunities and resources, particularly for marginalized groups. The video contrasts the exploitative practices of large cannabis companies with more equitable approaches, such as New York's focus on granting initial cannabis licenses to nonprofits and individuals affected by the War on Drugs.

💡Federal legalization

Federal legalization refers to the process of making cannabis legal at the national level. The video critiques the current push for federal legalization driven by large corporations, arguing that without comprehensive regulations, it could lead to a corporate free-for-all, benefiting big businesses at the expense of smaller operators and public interests.

💡Rescheduling

Rescheduling is the process of changing the classification of a drug within the federal drug scheduling system. The video discusses the potential rescheduling of cannabis from Schedule I to Schedule III by President Biden, noting that this move could empower large companies who can navigate the costly FDA approval process, thus disadvantaging smaller businesses.

💡Anti-monopoly provisions

Anti-monopoly provisions are regulations designed to prevent monopolies and promote competition. The video highlights New York's effective use of anti-monopoly provisions in its cannabis regulations, which prohibit companies from controlling the entire supply chain, contrasting this with states where monopolistic practices prevail.

💡Occupational asthma

Occupational asthma is a type of asthma caused by inhaling fumes, gases, dust, or other harmful substances while on the job. The video mentions the case of Lorna McMurrey, a Trulieve worker who died from occupational asthma due to poor ventilation, illustrating the company's negligence and poor working conditions.

💡Union busting

Union busting is the practice of preventing employees from forming or joining a union. The video discusses Trulieve's repeated union-busting activities, which undermine workers' rights and contribute to unsafe and unfair working conditions in the cannabis industry.

Highlights

Giant corporations are dominating the cannabis industry, negatively impacting consumers, workers, and the market.

Trulieve, America's largest cannabis company, controls over 50% of the legal market in some states.

In 2022, Trulieve and its competitors sold enough cannabis in Florida to give every resident seven joints.

Trulieve uses deceptive branding to appear as small businesses and partners with trusted celebrities like Wiz Khalifa.

The company exploits policy loopholes and has a significant lobbying presence in Washington.

Trulieve obtained the only minority-owned dispensary license in Alabama through questionable means.

The repeal of Prohibition and the tier system implemented to prevent monopolies offer lessons for the cannabis industry.

Florida's medical cannabis bill was influenced by amendments favoring specific nurseries, leading to Trulieve's formation.

Trulieve's founders come from finance and real estate backgrounds, not cannabis, healthcare, or retail.

The company has been involved in union busting and has faced worker safety issues, including a fatality.

Lobbying by large cannabis, alcohol, and tobacco companies, and Amazon, aims for a corporate free-for-all in legalization.

Trulieve's acquisition strategy stifles small businesses by monopolizing licenses.

Vertical integration by companies like Trulieve mirrors practices that regulators sought to prevent in the alcohol industry.

New York's approach to cannabis legalization prioritizes social equity, anti-monopoly measures, and labor rights.

President Biden's potential reclassification of cannabis could inadvertently empower large cannabis companies.

The real threat to the cannabis industry may be from enormous conglomerates like Altria and Amazon.

Advocates argue for comprehensive legalization that includes public health, racial equity, and workers' rights.

Transcripts

Here's a wild story I've been looking into.

Weed isn't even federally legal yet,

but giant corporations are already ruining it -

for consumers, for workers, and for everyone, really.

Trulieve, the largest cannabis company in America, controls

over 50% of the legal cannabis market in some states.

If you combine them with their two biggest competitors in Florida,

for example, they sold enough weed in 2022

to give every Floridian seven joints.

You are basically taking over the Southeast.

Is there any type of goal there?

Yeah, that's it.

You could be using their products without even knowing it.

They create brands that evoke small brands and pair up with our most

trustworthy celebrities like Wiz Khalifa and whoever

these guys are.

Trulieve built an empire by exploiting policy mistakes in legalization,

using their power to create those mistakes and taking advantage

of well-meaning programs.

For example, the giant publicly traded corporation

somehow got the only minority- owned license for a dispensary in Alabama.

And they're already working to do the same tricks they did in states, federally.

Do you have a lot of lobbyists in Washington right now?

Yes. Yes, we do.

The Trulieve story shows us what we can learn about how a weed economy

shouldn't be run, and how a good one could be run.

This is the Class Room from More Perfect Union.

And today we're talking about

how to stop big industry from bogarting our weed economy.

Let's go back to the last time America decided

to make a substance illegal and then changed its mind.

The repeal of Prohibition.

Incredibly influential businessmen like John D. Rockefeller

had once supported Prohibition.

When they saw it simply wasn't working, they moved to end it.

Rockefeller specifically took a surprising stance

for one of the most bloodthirsty capitalists of all time.

He wrote, quote, “Only as the profit motive is eliminated is there

any hope of controlling the liquor traffic in the interests of a decent society.”

And that's coming from a dude who really understands profit motive.

Back in the thirties, the United States government took

antitrust - that's preventing monopolies - far more seriously than it does today.

So in an attempt to keep the alcohol industry from becoming monopolized,

they implemented a tier system.

No one company

could be the manufacturer, distributor and retailer of alcohol products.

Now, giant alcohol companies are a problem today,

but the problem could have been way worse without that regulation.

But let's look at weed, zooming in on Florida's

first legalization initiative and the dawn of Trulieve.

In 2014, the Florida state legislature was building out a bill

to legalize certain low THC strains of cannabis for medical uses.

The bill wasn't written by a progressive cannabis advocate like you might think,

but by Matt Gaetz, then a member of the Florida House of Representatives.

Yeah, that guy.

It was boosted by strong supporter Representative Halsey Beshears.

Medical cannabis laws are complicated because they basically have to create

an entire industry and how it runs from scratch.

There need to be regulations on everything from labels to who can get licenses.

During the debates on the bill,

an amendment was added by Representative Matt Caldwell that said, in order

to get a license to grow the newly legal cannabis, a nursery

must already have approval to grow 400,000 plants

and have operated as a registered nursery in this state for at least 30 continuous years.

Thirty years.

The amendment also added requirements for preexisting real estate ownership

and capital, requiring wannabe licensees to give the government

$5 million in cash as assurance they could run the business.

Who could possibly meet all of those qualifications?

Well, there was Simpson Nurseries, the oldest nursery in Florida,

opened in 1902.

Simpson Nurseries was the family company of the Beshears.

Yeah, that guy, the Representative from earlier.

To fully meet the qualifications, Simpson entered a partnership

with Hackney Nurseries, also run by the Beshear family.

The combined partnership got one of just five licenses

that Florida gave out after that bill.

The combined company was Trulieve.

But wait, there's no evidence of corruption here, right?

Beshears being involved isn't enough.

Where would he have even gotten the idea for this?

His family was supposedly, quote, “opposed” to growing cannabis.

Well, like so many great scandals, there was a total idiot involved.

In 2016, a Florida businessman JT Burnette was being investigated

for a number of crimes, and undercover FBI agents recorded a conversation with him.

He bragged to the FBI agents that he had, quote,

worked through the bill with

a childhood friend of his over the course of one afternoon

and convinced him to push little tweaks to the bill.

Those little tweaks were the amendment

that broke the whole cannabis law, the one we just told you about.

At the time, Burnette had a girlfriend, Kim Rivers.

Today, they're married and Rivers is the CEO of Trulieve.

Do you have a lot of lobbyists in Washington right now, Kim?

Yes. Yes, we do.

Burnette and Rivers don't come from backgrounds in cannabis, health care,

criminal justice or even retail, but rather finance, including Inkbridge LLC,

a firm notorious for using government funding for private ventures.

It's also invested in Trulieve.

Burnette and Rivers were also involved in real estate and construction

and used their own companies to build Trulieve properties.

Florida's first cannabis law and its largest cannabis business,

Trulieve, were built on corrupt, pro-business, anti-worker, anti-consumer,

anti-competitive practices by people with only their own interests in mind.

But this is by no means limited to Florida or limited to Trulieve.

The lobbying for federal legalization currently is dominated by large cannabis

companies and large alcohol and tobacco companies,

and Amazon has endorsed federal legalization as well.

What's really important to notice is that their job is easy,

because they want a corporate free for all.

So all they have to ask for is legalization and nothing else.

This is Shaleen Title, a drug policy advocate

who's been instrumental in passing equitable cannabis laws.

She was also a commissioner for the Massachusetts Cannabis Commission,

the body formed to regulate cannabis when that state legalized.

So when I served as a regulator, I was lobbied.

Lobbying is something that anybody can do,

but it tends to be the larger corporations that have the ability

to really closely follow this regulation making process

and then to come to the regulators with exact language.

And the industry is taking notes from alcohol and tobacco lobbyists.

They have front groups like patients or consumers or workers

claiming to represent their own interests, but in fact they are representing

the corporation’s.

But back to Trulieve.

They had a little problem.

In other states, the licensing structure had also been perverted by people

like them, meaning it was very hard for new businesses to move in.

But they had something those other businesses didn't: capital and power.

So they just started buying existing businesses

and their licenses in other states.

This strategy is deadly

for small businesses because licenses are in such small supply.

By 2021, they were operating in five states

through a series of acquisitions and made their biggest purchase yet:

Harvest Health, which gave them six more states.

It also allows Trulieve to continue vertical integration.

That's where they own every part of the process from production to retail.

The very same thing that regulators in the 1930s

knew would monopolize the alcohol industry.

Trulieve’s size also puts them in a position of power

over their workers, who they've union busted multiple times,

all while workers are dying in their facilities.

Twenty-seven year old Trulieve worker Lorna McMurrey died from what the CDC

ruled to be occupational asthma due to poor ventilation in the plant.

Trulieve denied all responsibility and just went harder on union busting.

Because cannabis is such a young business, we as a nation haven't decided

how it'll be run yet.

This isn't oil. This isn't pharmaceuticals.

This isn't tobacco or alcohol or railroads.

Any of the other exploitative businesses that have plagued America for decades.

This is something new.

New York has been a great example of a state

that has learned lessons from every other state.

First, they focused on social equity,

which means that they gave the first licenses to nonprofits

and to people who had been harmed by the War on Drugs.

But then the second thing that they did was they enforced anti-monopoly provisions.

So in New York, you can't control the entire supply chain.

New York also has pro-labor provisions, like mandatory labor

peace agreements for acquiring licenses.

Because New York has put the most effective rules in place,

they've also got, in my observation, the most pushback,

a whole campaign really to represent the New York agency as irresponsible,

when in fact it has taken these really effective measures.

And even the most well-meaning regulations can be exploited by corporate cannabis.

Like I said earlier, the only minority owned license in Alabama went to Trulieve.

So that tells us what we should look for if the United States ever

outright legalizes cannabis.

But let's get back to reality.

President Biden might reclassify cannabis soon.

That means moving it down from Schedule I,

where it sits with cocaine and heroin, down to Schedule III.

But while rescheduling cannabis

might get Biden a quick win in the polls, it really doesn't do anything

and could give big cannabis business even more power.

It's a step in the wrong direction, in my opinion.

Schedule III would only protect products

that have been approved by the FDA.

So that's a process that could take about ten

years, millions of dollars.

And only the biggest companies can do that.

The big guys also have resources and motive to use that preferred

legal status to shut down the little guys who couldn't afford to get FDA approval.

But here's the thing.

We just spent all this time talking about giant weed conglomerates,

and they may not even be the real problem here.

So I have likened this to dinosaurs

squabbling when the asteroid is coming.

Right now we have cannabis businesses of all different sizes.

They're competing to see who can do the best in the cannabis market.

But there's this asteroid, which is the enormous companies, for example, Altria.

Altria's market cap is bigger than the entire cannabis industry combined.

And it goes even bigger.

Amazon has been supporting federal cannabis legislation,

and I highly doubt it's because their shareholders

just really want to stop people from getting needlessly arrested.

And our friends at Trulieve have been focusing on federal legalization too.

Just legalization is essentially handing a monopoly to these companies.

If you care about public health, about racial equity, about workers’ rights,

you have to ask for all of these things to be incorporated into legalization,

because in the end, if we end up just having two or three companies

that are making all of the profits from marijuana

and perhaps lying to consumers and exploiting workers

and the environment, then I'm not sure that we even made an improvement.