News in Brief

Metrc Announces Cannabis Track and Trace Contract with Guam

Metrc, the leading provider of cannabis regulatory systems in the United States, has announced a new contract with the US territory of Guam. This will be Metrc’s first client in the eastern hemisphere and its 17th government contract for a track and trace system.

‘Metrc is thrilled to be a partner with the Department of Public Health and Social Services as they continue efforts to effectively regulate and monitor Guam’s medical use market. We look forward to working with both regulators and licensed business owners to implement the island’s first cannabis track and trace programme,’ said Jeff Wells, CEO of Metrc.

Guam has had a legal medical cannabis programme in place since 2014, when it became the first US territory to adopt such a programme. While Guam’s population is one of the smallest in the US, it is a tourism hub for nearby Southeast Asian countries.

‘As an island territory and tourism hotspot, Guam’s cannabis market faces unique challenges when it comes to regulation and oversight,’ said Department of Public Health and Social Services Director Arthur San Agustin. ‘We’re pleased to bring on an experienced provider like Metrc to help us bolster our compliance and enforcement efforts as this market continues to develop.’ Metrc now holds exclusive government contracts in every region of the United States, including Alaska, California, and Washington, DC.

Connecticut Chooses BioTrack for Cannabis Seed to Sale Tracking

While Metrc currently provides cannabis track and trace to governments in 15 US states plus Washington, DC and Guam (see previous article), the state of Connecticut has decided to go with a different supplier.

Forian Inc’s BioTrack inventory tracking system has been chosen by Connecticut’s Department of Consumer Protection Drug Control Division to monitor the movement of all medical and adult use cannabis products in the state.

BioTrack software will track cannabis from when it is first planted as a seed to the point of sale to the consumer. All licensed cannabis establishments will be required to participate in the system and log the movement of cannabis as it is grown, manufactured into other products, packaged, tested, and sold to qualifying patients or consumers.

The system will also help recall cannabis plants and products deemed as unsafe/adulterated, and prevent adulterated and regulated materials from reaching the black market.

Illicit Cigarette Problem in South Africa is ‘Bigger’ than SARS

During a recent parliamentary briefing, the South African Revenue Service (SARS) commissioner, Edward Kieswetter, advised that the track and trace project for clamping down on illicit tobacco, for which a tender had been issued in 2019, had subsequently been discontinued by SARS because ‘it did not respond to managing risk across the entire supply chain’.

Kieswetter added that the project was like locking the front door with the most ‘modern safe’ and then leaving the back door open.

During a briefing in September 2020, Kieswetter similarly said that SARS had started a new process to develop a system that would be embedded throughout the value chain of multiple industries.

There was currently a review taking place of the management of all supply chains, which would form part of SARS’ customs modernisation programme, he told members of parliament.

In the meantime, SARS was still in a ‘reactive and defensive mode’ when it came to illicit tobacco trade, said Kieswetter, and that despite recent efforts, the agency was just ‘scratching the surface’ of an industry riddled with challenges.

‘We have seen, particularly during lockdown, a significant proliferation of the sale of illicit cigarettes that now has embedded itself as an alternative to the regular brands. People have become spoilt and used to buying cigarettes at significantly lower prices and they have become brand aware. We are fighting a losing battle in this regard. This problem is significantly bigger than SARS, it is a whole of government response to deal with this,’ he advised.

De La Rue Authentication Closes on £100 Million in Sales

A buoyant first-half performance has put De La Rue’s Authentication division on track to reach £100 million ($134 million) in sales for the current financial year, which would represent a sizeable advance on the prior year.

The Authentication division is responsible for De La Rue’s physical and digital technologies used to authenticate products through the supply chain and protect them from counterfeiting, as well as to track taxable goods and fight against illicit trade. The division grew by 28% in the first half of 2021/22 to just over £44 million, despite the impact of the pandemic.

The performance helped to raise De La Rue’s overall revenues slightly to £179 million, backed by a 5% gain for the Currency division – which is focused on the printing and design of banknotes – and offset by the sale of the company’s international identity solutions business.

‘The results from our two ongoing divisions, Authentication and Currency, have more than offset the cessation of the UK passport contract last financial year,’ said Chief Executive Clive Vacher, who has been tasked with turning around the company since coming on board in October 2019.

The Authentication division was boosted once again by countries adopting tobacco authentication label schemes to comply with the EU Tobacco Products Directive – which is in the process of being revisited – as well as the World Health Organisation’s Framework Convention on Tobacco Control.

Meanwhile, a recently announced expansion at its manufacturing unit in Malta is being delivered on time and within its £80 million budget, and will double the capacity for tax stamps and brand protection labels, as well as building capacity in currency.