MJBizMag February 2022 - 36

LIQUID
GOLD?
Threat or
Opportunity?
Most marijuana companies believe D-8 and D-9 can coexist,
but safety is paramount
By Omar Sacirbey
D
elta-8 THC has been most
popular in states where
traditional delta-9 cannabis
is prohibited or highly restricted,
a difference experts attribute to
availability and access.
Because marijuana isn't legal in
those states, there are no licensed
retailers, just illicit market sources.
Delta-8 THC, meanwhile, is readily
available in CBD and vape stores as
well as gas stations, convenience
stores and other storefronts.
But D-8 is also finding fans in
recreational states because of its
purported effects. Many consumers say
the delta-8 high is milder than delta-9
and doesn't cause the anxiety that some
consumers feel with marijuana.
Widespread Interest
Harold Jarboe, owner of hemp-based
product maker Tennessee Homegrown,
said he's even received D-8
orders from consumers in states with
recreational marijuana.
" This was truly a customer-driven
phenomenon, " Jarboe said, noting that
the first retailers to sell D-8 were vape
stores and head shops, " which have
always been in that notorious gray area. "
In fact, Jarboe's D-8 products
have become so popular that they've
cannibalized his CBD sales. He
estimated 35%-40% of his sales are D-8.
36 February 2022 | MJBizMagazine
Market Considerations
But not all cannabis entrepreneurs
are excited about the explosive
popularity of D-8 and other lab-made
cannabinoids.
" It's definitely having some impact
in legal markets, " said Morgan Fox, a
spokesman for the National Cannabis
Industry Association at the time of this
interview who has since joined NORML
as political director.
" A lot of these businesses are
understandably upset because it's
taking away market share. And now it's
being taken away by people that haven't
had to jump through all the hoops that
they have had to-or have to pay as high
taxes as they do. So I can understand
that it's pretty frustrating. "
Jim Makoso, CEO of Seattle-based
extraction company Flowe Technology,
told MJBizMagazine that he doesn't
see delta-8 THC as a competitor
to Washington state's regulated
marijuana market.
" As far as I can tell, the competition
is not between delta-9 THC products
and delta-8. ... At least in the regulated
state markets, " he said. " In Washington,
for instance, there are so many delta-9
products available-and the amount of
testing and regulation involved with
getting a product to market is such
that-why would you go and purchase
a product at the gas station or at your
Morgan
Fox
head shop when you can go into a
regulated store? "
" I think (D-8) will have some market
implications at the margin, but there's
a bigger conversation. And that's
around the safety of the products that
are available ... because there isn't the
same amount of rigor associated with
getting a delta-8 product to the market, "
he said.
Safety First
Makoso is one of many cannabis
professionals who want to see D-8
regulated like D-9, especially when it
comes to third-party lab testing. His
safety concerns include:
* What chemicals are being used to
transform CBD into delta-8 THC?
* What byproducts are produced
during the process?
* Are delta-8 THC products free of
pesticides, residual solvents and
mycotoxins?
MJBizMag February 2022

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