Gov. Gavin Newsom on Wednesday said California will not renew a multimillion contract with Walgreens after the pharmacy chain said it would stop selling abortion pills in Republican-led states.

Walgreens said March 3 that it was halting sales of mifepristone in 21 states following warnings by Republican attorneys general of legal action against the company as well as CVS Health Corp. The two retailers could face legal consequences if they mail and distribute abortion medication in those states.

A contract due for renewal by May 1 would have extended a deal between the California Department of General Services and Walgreens, allowing the state to buy prescription drugs for the California Department of Corrections and Rehabilitation and its correctional health care system.

Newsom’s office said the contract was worth roughly $11.5 million in 2022 and a combined $54 million over the last eight years.

The state now will look for other options to supply the drugs in those systems.

“California will not stand by as corporations cave to extremists and cut off critical access to reproductive care and freedom,” Newsom said in a statement issued Wednesday. “California is on track to be the fourth largest economy in the world and we will leverage our market power to defend the right to choose.”

Crypto mess leads to first bank failure since 2020

Silvergate Capital Corp. plans to wind down operations and liquidate its bank after the crypto industry’s meltdown sapped the company’s financial strength.

“In light of recent industry and regulatory developments, Silvergate believes that an orderly wind-down of bank operations and a voluntary liquidation of the bank is the best path forward,” the company said in a statement.

Silvergate, based in La Jolla, collapsed amid scrutiny from regulators and a criminal investigation by the Justice Department’s fraud unit into dealings with fallen crypto giants FTX and Alameda Research. Though no wrongdoing was asserted, Silvergate’s woes deepened as the bank sold off assets at a loss and shut its flagship payments network, which it called “the heart” of its group of services for crypto clients.

The company told investors March 1 that it was reviewing whether it would be able to stay in business. It’s the first bank failure in the U.S. since 2020, according to the FDIC’s website, which listed four during the first year of the pandemic.

Hershey rolling out vegan Reese’s Peanut Butter Cups

Reese’s Peanut Butter Cups are getting the vegan treatment.

The Hershey Co. said Tuesday that Reese’s Plant Based Peanut Butter Cups, which go on sale this month, will be its first vegan chocolates sold nationally. A second plant-based offering, Hershey’s Plant Based Extra Creamy with Almonds and Sea Salt, will follow in April.

The chocolates are made with oats instead of milk, Hershey said.

Hershey said consumers want choice and are looking for products they consider healthier or with fewer ingredients, including reduced sugar and plant-based options. Hershey also introduced an organic version of Reese’s Cups in February 2021.

Younger consumers, in particular, are looking to reduce consumption of animal-based products, says Euromonitor, a market research firm. In a 2021 survey, Euromonitor found that 54% of Generation Z consumers were restricting animal-based products from their diets, compared with 34% of baby boomers.

Nestle has sold its KitKat V, a vegan KitKat bar, in Europe since 2021, while Cadbury sells a vegan chocolate bar in the United Kingdom. But so far, U.S. vegan chocolate options have generally been limited to premium brands, like Lindt, or organic chocolatiers like Hu Kitchen.

Compiled from staff, Bloomberg and Associated Press reports.