Despite struggles at well known companies like Eaze and MedMen, Leafly 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 Capital, continues to see opportunity amid the volatility.
MJBiz
“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.
