California’s Crackdown on Cannabis Products Intensifies with Another Recall
California regulators are ramping up efforts to ensure the safety of cannabis products. This year alone, the state has issued an unprecedented number of recalls, signaling a more intense crackdown on the industry.
Let’s dive into the details of these actions and what they mean for consumers and producers alike.
Surge in Recalls
So far in 2024, California’s Department of Cannabis Control (DCC) has issued 23 cannabis product recalls, a significant increase from just three in 2023 and 2022.
This surge is attributed to heightened inspections and rigorous product testing. DCC spokesperson Moorea Warren explains that these efforts aim to safeguard consumer health.
Aspergillus Concerns
Several recalls this year have been due to the presence of aspergillus, a harmful fungus that can develop on cannabis plants. This fungus poses serious health risks, particularly for those with weakened immune systems.
Enhanced testing protocols have helped identify and remove these contaminated products from the market.
Flower Product Recall
On June 3, 2024, the DCC issued a mandatory recall for specific flower products from BloomBox Flower and Pat’s Flower, sold since October 9, 2023. The recalled items include LA Pop Rocks x Purple Push Pop, in both 1 gram and 14 grams.
These products, packaged by Stella Farms in North Hollywood, were sold at a Dr. Greenthumb dispensary near LAX.
Stella Farms’ Response
Stella Farms, the cultivator behind the recalled products, has not responded regarding the recall.
The lack of response from such a significant player in the industry highlights the ongoing challenges regulators face in ensuring compliance and transparency.
Infused Soda Health Warnings
Last week, the California Department of Public Health (CDPH) warned consumers against drinking Mary Jones hemp-infused sodas.
These products were discovered to contain banned hemp-derived THC isolate. The CDPH emphasized that these mislabeled sodas could pose a serious risk to consumers.
Specific Soda Products Recalled
The recalled sodas include Mary Jones Orange & Cream, Berry Lemonade, and Green Apple Hemp-infused Sodas, available in 5 mg and 10 mg delta-9 THC variants.
Manufactured in Michigan, these sodas were distributed widely across California, both in retail stores and through online sales.
Legal Implications for Hemp Products
Industrial hemp products are legal in California but must not contain THC isolates. The CDPH’s findings that several soda stock-keeping units (SKUs) violated this law underscore the need for strict regulatory enforcement.
The agency is actively working to remove these products from shelves and educate the public about the risks.
Governor Newsom’s Directive
In April, Governor Gavin Newsom directed state agencies to address the sale and distribution of illegal hemp products. This directive includes potential civil or criminal penalties for distributors and retailers who continue to sell recalled items.
Newsom’s initiative reflects a broader effort to tighten regulatory control over the cannabis market.
Jones Soda Company’s Position
Despite the recalls, Jones Soda Company has not issued a voluntary recall of its hemp products. In a May earnings report, CEO David Knight highlighted the success of their delta-9 THC-infused drinks, indicating continued growth in this product line.
However, the company faces scrutiny and potential enforcement actions for non-compliance.
Financial Impact on Jones Soda
In the first quarter of 2024, Jones Soda reported a 29% year-over-year revenue increase, reaching $5 million.
Despite this growth, the company also reported a net loss of $1.2 million. The ongoing regulatory challenges may impact their financial outlook and market expansion efforts.
Future of Cannabis Regulation
As California’s cannabis market evolves, increased regulatory scrutiny and consumer safety measures will play a crucial role. The state’s commitment to rigorous inspections and product testing aims to protect consumers and uphold industry standards.
Staying informed about recalls and adhering to health warnings is essential for safe consumption in this growing market.