Zinger Key Points
- "We are buying seeds from all over the world to create our own strain," a Cartel-employed cannabis producer told BI.
- "The juniors," El Chapo's sons, "are a different litter... They want to live well and stop being a target for the government,"
- Discover Fast-Growing Stocks Every Month
The Sinaloa Cartel wants to regain its share of the cannabis business it once led. This time, it seems that the criminal organization wants to do it the right way and avoid the illegal side of the business.
According to Business Insider (BI), the three sons of notorious drug lord Joaquín "El Chapo" Guzmán (the former Sinaloa Cartel leader currently serving a life sentence following extradition to the U.S.) are supervising the cartel's weed operations in Culiacán.
See Also: Narco Slaves Worked To Death On Illegal Cannabis Farms: Report Reveals Heartbreaking Reality
El Chapo's sons, known as "Los Chapitos" or "juniors," include:
- Ivan Archivaldo, 39, known as "El Chapito,"
- Jesús Alfredo, 36, known as "Alfredillo"
- and Ovidio, 32, known as "El Raton"
They "gave us the trust to start producing the best weed in Mexico," a Cartel-employed cannabis producer told BI. "They asked me if I knew what I was doing. I said yes, and through another person, they became the godfathers of this project."
Currently, operatives and producers working for "Los Chapitos" are in the process of creating a new strain and launching a brand.
"We are buying seeds from all over the world to create our own strain, to produce top-notch Sinaloa weed and to develop a strong brand even better than the gringos," the producer continued.
Interestingly, they are also pushing for the legalization of cannabis in Mexico (Cannabis has been decriminalized in Mexico, but Congress has yet to pass a full legalization law to establish the legal guidelines to grow, sell, and possess for all adults).
"The juniors are not only investing in producing and branding weed," the operative said. "They are also investing in lobbying with Mexico's top politicians to legalize weed."
A Sinaloa Cartel commander, a connection between Los Chapitos and Culiacán's cannabis producers, says the "Los Chapitos" want to run a legal cannabis business.
"The juniors are a different litter. They are educated. They want to live well and stop being a target for the government," he said. "So weed could be their option to go out of the illegal [trade] and become successful businessmen in Mexico and leave all the crime behind."
Mexico's Marijuana Legalization Efforts
In the meantime, cannabis has been prohibited in Mexico for decades. In 2018, Mexico's Supreme Court struck down the prohibition, at least as it applies to personal use. The ruling was general and did not specifically create a framework for legalization involving possession and cultivation limits or a regulated industry.
In 2020 the Senate greenlighted a measure legalizing the recreational use of marijuana. That bill sought to set up a regulated cannabis market that will enable people 18 years and older to buy and own up to 28 grams of cannabis legally. Shortly after, the Chamber of Deputies amended it and passed it in 2021, sending it back to the originating chamber. Once Senate lawmakers took up the amended measure, some of the leaders pointed out that the proposal was unworkable, reported Marijuana Moment.
Earlier this year, former Mexican president Vicente Fox once again called for the legalization and regulation of recreational cannabis. Fox, who partially owns chain stores selling CBD products, stressed that legalization would curtail drug cartel activity by creating opportunities for ordinary Mexicans.
About a decade ago, Mexico was smuggling a significant amount of marijuana for the U.S. illegal market, according to the DEA. But as more states continue to legalize cannabis in the U.S., Mexico is now seeing an uptick in American-made pot entering its side of the border.
Photo: Courtesy of Pablo García Saldaña on Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Cannabis is evolving – don’t get left behind!
Curious about what’s next for the industry and how to leverage California’s unique market?
Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!
Get your tickets now to secure your spot and avoid last-minute price hikes.