Episode 112 – Cannabis and Hemp in 2022

 

 

Joe: On this episode of the "CPG & CBD University" podcast, we're getting the latest look at cannabis around the world. A new study from Oregon State making headlines, an update on novel foods in the European Union, the state of the industry, where things are heading in the year ahead, it's all on this episode of the "CPG & CBD University" podcast. And it starts right now.

Joe: I'm Joe Agostinelli, host of the "CPG and CBD University" podcast. And welcome back to our podcast. We invite you to subscribe to our podcast wherever you get your podcasts, the audio version, or you can catch a video on the Global Widget YouTube channel, the YouTube channel also of our brands. And last time my guest was on, and we used it in our 100th episode video retrospective, and the teasers, he said and I quote, I went back to look, so, "Anyone who is a player in the industry is going to be on Joe's show." So with that mind, it's a player in the industry, so we're having him back, Michael Patterson.

Michael: Hey, Joe.

Joe: CEO of U.S. Cannabis and Pharmaceutical Research. Welcome back.

Michael: You know what, some smart guy said that. So I agree with you on that.

Joe: Yeah, one of my favorite quotes from our first 112 episodes.

Michael: There you go. Because the thing is, if you're a player, you're gonna be on Joe's show. That's the way it is.

Joe: Yeah. That's how it goes.

Michael: I love coming to talk to you, Joe.

Joe: Awesome. And we love having you on. I know we do it every, probably, four to six months, but it's always great to get...

Michael: It's great.

Joe: ...from the global perspective. And you're all over the place.

Michael: I'm all over the place.

Joe: We're not just talking the U.S., we're talking all over the globe. So here we are, a month into the new year, as crazy as that sounds. Cannabis industry seems to be picking up a lot of steam. So let's start off with some of the latest news where we hear about the medical side of cannabis, and a couple of recent studies now. One from Oregon State shows cannabis compounds and the effectiveness in combating COVID-19. But what types are we talking about? We're not talking about some of the type of cannabis consumers may be used to?

Michael: No. This is a very small study and using different cannabinoids. And a lot of times, there's a lot of noise in the press releases. But the main thing that I want people in the industry to realize is the biggest thing about this report is it's a psychological, and it's a sociological impact. Because the way cannabis will become legal, it's going to be through the winning of the hearts and the minds. And it's not going to be by force. So what you're seeing is, now you're seeing COVID come in. We know of studies in our group in Italy who have been working with groups to do studies on all types of cannabinoids, and they're showing very good promise. In Italy, I was told by our chief executive officer in our European Division for MGMC that the Italian government treats CBD as a COVID treatment.

So we're already seeing this in different countries. And so the U.S... The thing I love is that we all knew we were right. And now we're getting all the proof to show the entire planet that this is going to move forward, and this is going to move humanity forward. And so to give you an idea... If you don't follow me on LinkedIn, please do, Michael Patterson, U.S. Cannabis Pharmaceutical. I had on that post, Joe, I had over 12,000 views on that one post. And that's huge. So I mean, it's a huge story. We definitely want to see it move forward. But you're going to see more of those coming out. And the walls of legalization are starting to crumble. And we can get into that in a little bit.

Joe: Yeah, absolutely. Well, and real quick, cheap plug, the link to his LinkedIn profile, you can find out in the description of this podcast, his name will be hotlinked. So just click on that. That'll go right to his LinkedIn.

Michael: Thanks.

Joe: See? Hey, anytime.

Michael: I like hotlinks. That's good.

Joe: Staying on top of the CBD and cannabis side, and you just alluded to this, we've also seen the FDA sign off on human CBD trials for opioid addiction. But the FDA has yet to regulate here in the US. So is them signing off on studies like this, and looking at that medical side maybe a sign of things to come?

Michael: Oh, it's coming. This is the thing. Remember, the thing about CBD is they've already done the studies for liver toxicity, and they came back negative. Okay? Because we're dealing with...I know the companies who were doing it, and as an aside, if you're listening to this, the cannabis world is fairly small. And this is not just the United States, this is global. So you're able to meet a lot of different types of people. Like, I've known Joe now for probably over two years. And so by making those connections, it really helps. But we see it where the industry is definitely going to look at the FDA, and the government regulations. I think they're basically...this is the next stage, this is a good step. And I tell everybody, it's not a matter of if, but when. And so it's just a matter of when.

So all these little things have to happen, because we all want legalization to go like that, "Oh, it's legalized." But what we all need to realize is it depends on how it's laid out, and how the law is written, and how this system is going to be successful. And I think you need to look at all the almost 50 states that is legal now, we all have different state regulations, which creates a lot of problems. So I want people who are listening, think about how we can streamline this process. Because for this new law, which will go through some time to really benefit everybody, we need to really think about this because it can get extremely complicated.

Joe: Yeah. And another thing alluding to that, and we talk about now really the economic impact, bringing up my next point, an interesting news that came out just the end of the year. We've discussed farming on past episodes, including one we had with the Commissioner of Agriculture and Consumer Services here for the state of Florida, Nikki Fried. Cannabis farming now a top five industry in the U.S. We're talking billions of dollars, supporting farmers, families, and farm communities. That's a lot of money and a lot of economic impact.

Michael: Well, think about it, when this country was formed, everybody grew hemp. So it's really not that far off of a concept to where I expect hemp and cannabis combined to probably be one of the top three crops that United States grows. Because think about our acreage, think about what hemp is going to be able to do, to be able to move this whole planet forward. I posted yesterday that it was that the U.S. Hemp Council is putting the recommendations for hempcrete for the U.S. building codes. That's a big deal. That's a very big deal. Because once we can get these approved through the building codes, now it's going to be into ESGs or environmental sustainability goals, and with your companies that you're dealing with, hemp can fit in there, and it can fit in very nicely, because then we can do drywall, we can do all the construction materials. And so this is a very big deal.

And so right now, especially the hemp industry is everybody's kind of all...everything's up in arms right now because it's still so new. So what we need is we need that regulation to come in, and then you're going to start to see the big money come in, and you're going to start to see this grow. And so people who are in the industry now, you need to understand where this is going to go. And you need to seek out those people who you need to educate on what you do. And let me give you a brief example. I know a really good group out of Michigan, and they were talking about industrial hemp and hemp concrete, or hempcrete. They went to talk to one of the biggest concrete manufacturers in all of Michigan, and they hardly knew anything about hemp concrete or hempcrete. So it's a lot of education that needs to go out there because these construction companies, they can invest in this technology. With the Biden administration, there could be some potential benefit to be able to invest in new types of technology. This could be qualified because it's environmental as well.

Joe: And shifting our focus from here in the U.S. to overseas. And way back on episode 67, we first introduced you to novel foods with UK regulatory services. Refresher for our listeners and viewers, especially overseas. But CBD, a novel food in the European Union and the European Food Safety Authority may be trying to make it easier to acquire a novel food dossier. Good or bad for the industry overseas?

Michael: Well, the novel food, in my opinion, is basically EU GMP. And so, if you're familiar, it's European Union good manufacturing practices, it's just another hoops you got to jump through. So the key when you have a GMP certification or novel food, I know where they're going with it. You have to allow...it all depends on the bottleneck. So if you make this so hard that nobody can get through that bottleneck, then you're going to see whoever does get through, they're going to make a ton of money. And then it's going to hold up the industry, because the industry is not gonna be able to grow. But we still need those regulations to make sure we don't have the catastrophes of other industries, and people dying, and small things like that. So there's that happy balance. And I always talk about that, that balance of the industry between public safety, consumer access, and commerce. And so those three things have to balance. So I think it's how those laws are going to come out. In my opinion, they need to ease off novel food just a little bit, and then ease off GMP just a little bit, so we can get the right product in. Because what we've learned in the United States and Canada is that if you set your prices too high, then the black market will thrive. And so we have to set up a legal structure in order to do that to where we can keep prices down and bureaucracy low.

Joe: And with that in mind, as we go forward here in 2022, what do you keep an eye on in the industry here as we get going with the new year, and cannabis and hemp in the next few months here in the first half of the year?

Michael: I see a lot of change in a short amount of time. And so can I put my finger on one thing? No. But what I can put my finger on is a couple different things. One, international trade. You're going to start to see now this start really picking up, because we're involved in working with the Government of South Africa to do an educational session for their entire government offices, to educate them on the benefits of export of cannabis from South Africa. That's just cool. I mean, I just really want to do that because this is what we need to do. The people who know need to educate the people who don't know. Because, let me tell you, everybody loves talking about cannabis. So you got to take that window. You got to be able to start the conversation because I know that we and others can help benefit the Government of South Africa for exports to Europe, to Latin America, to Australia, as well as the United States. In my opinion, we need to build the infrastructure to handle the U.S. influx when we go legal, because we do not feel there's going to be enough legal product, making sure the word legal product will be in the system when America goes legal, because we feel the bureaucracy is going to really put a choke point, just like we have the CBD issue with the FDA. So that's one thing I see.

Another major thing is digital payments. So we have been working with a company out of Oklahoma for over five years, who has now worked through the SEC process of validating or verifying that their digital asset is legal. Now this is not a cryptocurrency. So for people to understand this, where the world is going is to have a digital dollar, or digital euro, or digital pound. It's basically a digital asset that's equal to, say, $1 or a stable coin. And that's going to be legal. And a lot of people say, "Well, why do we need that? I don't understand. What's the big deal?" Well, the big deal is, if you move money from one place in America to, say, a place in Europe, you don't have to go through a bank. And that money can go instantaneously, and then you can put it into your bank account in the foreign countries. So what that means is when cannabis adopts this, and is able to use a legal digital currency that has been verified by the United States government as lawful, it's going to start changing everything, not just in cannabis.

So I see that epicenter starting in Oklahoma, because I just know what we've done so much so far. And we've been working with them because we're trying to help fix the terrible situation going on in Oklahoma of just too much fraud, not enough oversight. And we really want to make sure the legal growers in the businesses can really succeed. And we have to put in this blockchain, stable coin system in order to help not just there, but our goal is to take this global. We really want to help people all over the world. And then 50% of the profits for our stable coin, go to help indigenous and people globally, and help save the planet. So we really have big goals. And I think that is going to affect a lot of things.

Also, you're going to see more mergers. And also, Florida is coming up with a new licensures this year, they're going to add licenses. Currently, there's only 22 licenses in Florida. They're going to almost double that. They're going up 19. So you're going to see Florida start really taking off. Now there are over 675,000 medical marijuana patients in the state of Florida. That is the largest in the world, bigger than Canada, bigger than Germany. We are the epicenter of medical cannabis. And I see that a lot of studies, whether it be formal studies or informal studies on senior citizens, because the seniors here are really liking cannabis. So you're going to start to see the senior citizen component nationally and globally start to take off. And then you're going to start seeing more governments approving this through insurance, just like Columbia did.

So there's a lot of stuff going on. But the big thing is if you're in the industry, or you want to get into the industry, the time is now. You have to work now because this industry is about to take off like a rocket, and you really need to understand it because it's moving so quickly.

Joe: And there's, wow, two good places for education. A, our podcast, but B, you also have a podcast that we got to talk about. "Everything Cannabis and Hemp with Michael Patterson," you can catch all of season one on YouTube and your favorite podcast platform. What's in store, what's coming up with season two? Is there a season two?

Michael: It's called "The Cannabis Report with Michael Patterson." So we're working on developing season two. And so one of the things we're looking to do is we're going to be at a convention, a cannabis convention in Oklahoma City in March, and we're looking to do a live episode from our booth. So we're working with our group partners called Parsl, P-A-R-S-L. It's first blockchain seed to sale software that's being used in Oklahoma. And so we work with our partners to promote it. And it'll just be fun. Everybody at the conference will be able to see us. So that's one thing. And also, right now, we're touring. We're looking for how we're going to set it up, we're looking to expand it, potentially bring in a co-host. So it should be interesting. And so a female, so no...I don't think they want to look at three more...more men. So let's bring on a great female, somebody. And so we have some people. We are interviewing people right now. It's very exciting. So we're looking to really build a strong season two, and really bring in the leaders of this industry, and really talk at a high level, because I want to see more people from the professional side, from the people who are on the medical side. I and want more people in the cannabis. We need to make sure this is done right. And there's a lot of opportunity for a lot of people.

Joe: And we'll be sure to cross promote, and help your podcast when season two is out. We'll feature it on our LinkedIn page, and get the links when there's new episodes.

Michael: The hotlinks, that's right.

Joe: The hotlinks.

Michael: The hotlinks.

Joe: The hotlinks, there you go. Yeah. So Michael Patterson, CEO of U.S. Cannabis Pharmaceutical and Research. Always a great time to catch up with you. And thank you for taking time tonight to join me on this episode.

Michael: Perfect, Joe. Thanks so much, buddy.

Joe: And thank you for tuning to this episode of the "CPG & CBD University" podcast. Check out the links in the description of this podcast. That way you can get to Michael's podcast, his LinkedIn profile, and everything else. And a reminder, you can always catch video episodes of our podcast on YouTube. That way you can see Michael and all my guests and myself right in action.

Michael: Right. You gotta watch...

Joe: I'm Joe Agostinelli, host of... What's that?

Michael: You got to watch the video.

Joe: You got to watch the video.

Michael: You got to see what I did, what Joe did [inaudible 00:16:54] You got to watch the video.

Joe: I'm Joe Agostinelli, host of the "CPG & CBD University" podcast. Thanks for tuning in.

Disclaimer: These statements have not been evaluated by the Food and Drug Administration. CBD products are not intended to treat, cure, or prevent any disease, or condition. Consult your personal physician about CBD and using CBD products. CBD should never be used by anyone under the age of 18. This podcast is not intended to provide legal advice regarding the legal status of CBD and CBD products.