Friday, November 15, 2019

CALIFORNIA'S "LEGAL" WEED INDUSTRY HAVING TROUBLES

by Bob Walsh

Yes, it is sad but true. "Legal" pot is not nearly the boon to the formerly great state of California was promised when the new laws were passed. Flow Kana, East and Weedmaps, all pot suppliers, are now laying off staff.

A lot of the problem is cost. Semi-legal weed sold from licensed shops has to undergo extensive and expensive testing for THC content and contaminants. If you buy your weed there you KNOW what you are getting. But it costs significantly more than black-market weed. It is estimated by the legal weed market that about 3/4 of the money spent on weed in CA is spent on unlicensed product.

There is currently one legal weed store for every 35,000 adults in California. That makes the legal retailing outlets pretty thin on the ground. And the number of outlets is shrinking, not growing. The high taxes on legal pot and the lack of access to a banking structure is causing significant operating problems. The industry groups want to state to restructure their business to look more like the current Craft Brewery business.

Maybe they should just kick back, smoke, have a few bags of chips and a quart of Ben and Jerry's, and chill out. Don't worry. Be happy.

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