Despite struggles at well known companies like Eaze and MedMenLeafly reporter David Downs argues the world’s largest legal REC market is poised for a recovery this year.

“On a bureaucratic and social timescale, California is still at hour one of day one of legalization,” Downs writes.

Reasons for optimism:

  • More than 3.2M Californians 25 and older used cannabis in the past month.
  • California’s 13,000 liquor stores outnumber licensed dispensaries 21 to 1.
  • While 67% of state local jurisdictions don’t allow dispensaries, “cities and counties are now beginning to compete to attract cannabis dollars.”
  • Delivery services are expanding their reach.
  • BDS Analytics sales data from several states, including California, show vape sales began to recover late last year.
  • Leafly‘s annual cannabis jobs report found California leads the nation in pot jobs. WW California has more.
  • Jeff Schultz, an executive with investment firm Navy Capitalcontinues to see opportunity amid the volatility.

“I think California is fucking fantastic,” Graham Farrar, CEO of Glass House Farms and a WeedWeek Council member, told Leafly. The company just opened a massive 355,000 square foot greenhouse in Santa Barbara County. The company believes its 500,000+ square feet of greenhouse canopy may make it the largest such operator in the country. Forbes

Still, not all is rosy. Among other issues, MJBiz says taxes are still a major headache for California businesses.

  • In addition to the industry hated federal tax rule 280E, state tax collectors have weighed on company finances because they’re quick to levy heavy penalties for late payment.