From political maneuvering in Washington to major corporate developments across the global cannabis landscape, this week has been packed with pivotal moments for the industry. In the U.S., Florida Governor Ron DeSantis is doubling down on his opposition to recreational cannabis, predicting that a renewed 2026 ballot initiative will face “big-time trouble.”
On the business side, Village Farms International VFF officially launched sales in the Netherlands, marking a significant milestone for Europe’s evolving cannabis market. In Canada, Aurora Cannabis ACB reported a record-breaking quarter with soaring international sales, while Canopy Growth CGC managed to exceed revenue expectations despite ongoing struggles in the consumer sector.
In New York, a new bill aims to decriminalize all drug possession, a move that could reshape the state’s approach to substance use. Meanwhile, Chile is facing political controversy as lawmaker and cannabis advocate Ana María Gazmuri challenges the country’s mandatory drug testing policy for public officials.
On the lifestyle front, Tilray Brands TLRY continues expanding into the craft beer market with a high-profile partnership placing Montauk Brewing beers on JetBlue JBLU flights. And in an industry-first, New York cannabis retailer The Travel Agency has secured ad space in Playbill, bringing legal cannabis into Broadway’s mainstream culture.
Now, let’s break down the biggest stories of the week.
In Today’s Issue Of ‘The Week In Cannabis’
Politics & Policy
- DeSantis: Florida Legalization Faces ‘Big-Time Trouble’ in 2026
- New York Bill Proposes Full Drug Decriminalization
Market & Business Developments
- Village Farms Begins Legal Cannabis Sales in the Netherlands
- Aurora Cannabis Reports Record Medical Sales Growth
- Canopy Growth Beats Revenue Expectations Despite Challenges
- iAnthus Sells Arizona Assets for $36.5M to Sonoran Roots
- Tilray Expands Craft Beer Reach with JetBlue Partnership
Culture & Regulation
- Chilean Lawmaker Fights Mandatory Drug Testing for Officials
- Panama Approves Hemp Law After Years of Delays
- New York’s Cannabis Scene Breaks into Broadway
Industry Trends & Market Analysis
- US Cannabis Growth Slows, Business Failures Rise
- Elon Musk Pushes Drug Testing for Federal Employees
Politics And Policy: Reform In The Spotlight
DeSantis: Florida Legalization Faces ‘Big-Time Trouble’ in 2026
Florida Governor Ron DeSantis has already set his sights on stopping a new recreational cannabis ballot initiative for 2026, after the 2024 measure failed to reach the 60% approval needed. He warned that the initiative will struggle to make it onto the ballot, citing expected legal challenges from the Florida Supreme Court.
Comparing cannabis policy to “pregnant pig care in the U.S. Constitution,” DeSantis argued that legalization should be left to lawmakers, not voter referendums. Meanwhile, Florida’s medical cannabis industry remains one of the nation’s most profitable, making the state a key battleground for reform.
New York Bill Proposes Full Drug Decriminalization
New York lawmakers introduced Senate Bill S3600, aiming to eliminate criminal and civil penalties for personal drug possession, shifting policy toward public health. Sponsored by State Senator Gustavo Rivera, the bill would expunge past convictions, prevent penalties for parolees, and replace arrests with fines or treatment referrals.
The proposal follows global models in Portugal and Oregon that have reduced overdoses and incarceration. Critics warn that New York must expand treatment access before decriminalization, but supporters argue it’s a necessary step to end ineffective drug criminalization.
Market And Business Developments: Expansion, Earnings And Deals
Village Farms Begins Legal Cannabis Sales In The Netherlands
Village Farms International has officially launched cannabis sales in the Netherlands through its wholly owned subsidiary, Leli Holland. The company completed its first harvest in December and will begin supplying Dutch coffeeshops on February 7.
Leli Holland is one of 10 licensed producers in the country’s regulated recreational cannabis program. Village Farms CEO Michael DeGiglio called the Dutch market “one of the most attractive cannabis investment opportunities globally,” citing strong demand, a favorable pricing environment, and a zero-tax policy on regulated products. Full-scale operations are expected by Q2 2025.
Aurora Cannabis Reports Record Medical Sales Growth
Aurora Cannabis posted a 37% revenue increase in Q3 2025, reaching CA$88.2 million, with its global medical cannabis business growing 51%. CEO Miguel Martin highlighted all-time highs in medical sales, net income and free cash flow.
International medical cannabis sales surged in markets like Australia, Germany, Poland and the UK, helping offset a 15% decline in consumer cannabis revenue. The company also saw a 22% increase in plant propagation revenue. Aurora expects further growth next quarter, driven by international expansion and seasonal demand for plant propagation.
Canopy Growth Beats Revenue Expectations Despite Challenges
Canopy Growth reported Q3 sales of CA$74.76 million, surpassing analyst expectations but reflecting an overall decline from the previous year. Growth in Canada’s medical cannabis and international markets offset weaker performance in the consumer sector.
CEO Luc Mongeau pointed to strong medical cannabis sales, Storz & Bickel vaporizer revenue and the launch of Claybourne-infused pre-rolls in Canada as key drivers. Adjusted EBITDA improved significantly year-over-year, but challenges remain as the company navigates shifting consumer demand.
iAnthus Sells Arizona Assets For $36.5M To Sonoran Roots
iAnthus Capital Holdings ITHUF is selling three dispensaries and two processing facilities in Arizona to Sonoran Roots for $36.5 million. The deal includes $20 million in cash and a $16.5 million secured promissory note.
The move aligns with iAnthus’ strategy to focus on key markets like Florida, Maryland, New Jersey and New York. CEO Richard Proud said the sale will help the company “double down on markets where we can deliver the most value to our customers.” iAnthus will maintain one dispensary in Mesa and continue selling its MPX brand in Arizona.
Tilray Expands Craft Beer Reach with JetBlue Partnership
Tilray Brands continues its push into the alcohol market with a new partnership placing Montauk Brewing’s Surf Beer Golden Ale on all JetBlue flights. The deal marks the first time JetBlue will serve Montauk’s flagship beer, giving the cannabis company greater exposure in mainstream beverage distribution.
Tilray has aggressively expanded its beer portfolio through acquisitions of brands like SweetWater, Blue Point and Shock Top. While cannabis remains its core business, CEO Irwin Simon has positioned Tilray’s beverage division as a strategic bridge for future cannabis-infused drinks once regulations allow.
Culture And Regulation: Cannabis In Society And Policy Shifts
Chilean Lawmaker Fights Mandatory Drug Testing for Officials
A political storm erupted in Chile’s Congress after lawmaker and longtime cannabis advocate Ana María Gazmuri refused to comply with mandatory biannual drug testing for public officials. As a result, she was penalized with a 15% salary reduction, but she remains defiant, calling the policy “poorly designed, lacking transparency, and infringing on fundamental rights.”
Gazmuri, a medical cannabis user with a legal prescription, also disclosed her guided use of psilocybin mushrooms but emphasized that her refusal to take the test was about principle, not personal drug use. She argued that if the real goal is uncovering ties between politicians and drug trafficking, financial investigations should take priority.
Right-wing lawmakers have responded by proposing a constitutional amendment that would remove any public official who consumes illegal substances. Gazmuri, however, remains firm in her stance, vowing to continue pushing for broader drug policy reform.
Panama Approves Hemp Law After Years Of Delays
Panama’s long-awaited hemp regulation finally passed after years of bureaucratic delays, clearing the way for industrial hemp production, commercialization and export. The legislation had been stalled under the previous administration but gained momentum with new lawmakers and business sector support.
Advocates argue the new hemp industry could create jobs, attract investment and even help alleviate Panama’s struggling social security system. However, the fate of the law now rests with President José Raúl Mulino, who has yet to sign it. If approved, Panama could position itself as a leader in the regional hemp market.
New York’s Cannabis Scene Breaks Into Broadway
New York cannabis retailer The Travel Agency has made history as the first marijuana business to advertise in Playbill, the iconic magazine of Broadway theater goers. The campaign, which promotes cannabis as a way to “Experience a Matinee for Your Mind,” coincides with the company opening a third retail store near Radio City Music Hall.
The Travel Agency has also partnered with Broadway productions like An Axemas Story and launched an online guide featuring cannabis products tailored for theater lovers. Industry insiders see this as a major step in normalizing cannabis within mainstream cultural spaces.
Industry Trends And Market Analysis: Growth, Struggles And The Road Ahead
US Cannabis Growth Slows, Business Failures Rise
Despite posting its 11th consecutive year of revenue growth, the US legal cannabis industry saw its expansion slow in 2024, with sales increasing just 6% to around $30.5 billion, according to Whitney Economics.
The number of struggling businesses is rising, with nearly 1,000 fewer active cannabis licenses by year’s end. A staggering 72.7% of operators reported being unprofitable, with many blaming federal inaction on banking, tax reform, and interstate commerce.
Michigan was a rare bright spot, hitting $3.3 billion in sales, partially fueled by out-of-state buyers. New York also exceeded expectations after regulatory changes, while Florida underperformed due to a slowdown in medical patient registrations. Meanwhile, mature markets like Colorado, Oregon, and Washington saw demand flatten or decline.
Whitney Economics warns that without major policy changes, business failures will continue accelerating in 2025.
Elon Musk Pushes Drug Testing For Federal Employees
Elon Musk has thrown his support behind a proposal for mandatory, immediate drug testing across the federal workforce, a move that aligns with his broader push to shrink government operations.
The idea, first floated by former National Security Council official Joshua Steinman, was met with Musk’s simple endorsement: “Great idea.“ While federal employees in certain positions already undergo drug screenings, Musk’s proposal could drastically expand testing.
Ironically, Musk himself was subjected to random drug tests for a year after smoking cannabis on Joe Rogan’s podcast in 2018. He has since spoken openly about using ketamine for depression and has supported psychedelics research.
His latest stance comes as Senator Elizabeth Warren has urged Musk to cut “wasteful“ spending on cannabis enforcement, a move that could save hundreds of millions annually. Whether Musk will act on that remains to be seen.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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