Marijuana Business Magazine - April 2017 - page 10

cannabis market dynamics.This all makes our Spring 2017
Marijuana Business Conference & Expo even more timely
and important than ever, as it will be held right in our
nation’s capital. We will discuss a host of crucial industry top-
ics, including Trump’s first 100 days in office and managing
risk in multistate growth.
We look forward to seeing you in Washington DC along
with over 3,500 industry professionals and executives at the
largest event of the first half of the year.
Onward and upward!
George Jage
President & Publisher
Many executives in the marijuana industry have long
recognized the inevitability of consolidation, expecting it to
happen after national legalization.
But the wave is starting now.
This month’s cover story dives deep into Sweet Leaf ’s
success in building a chain of retail stores in Colorado and
Oregon.The company’s success story is its own, but the con-
cept of cannabis chain stores is not.
Other retailers in Colorado such as LivWell,The Green
Solution and Native Roots are building large chains in the
state at a rapid clip, while companies in other states are doing
the same. Columbia Care, for instance, now has locations
in eight legal cannabis markets, Harvest Inc. retails in four
states and MedMen has nine dispensaries under manage-
ment in New York and California.
Cannabis without borders is not exclusive to retail. In
the February magazine, we covered Dixie Elixirs’ game plan
for building a national infused products brand, while other
companies in this area of the industry – such as Wana Brands
and Zoots – are making similar moves.
Despite the cannabis regulatory structure that drives a
state-centric business model, there is enough critical mass
by well-capitalized proven operators to begin the inevitabil-
ity of consolidation. Some new markets are axing or loosen-
ing residency requirements for cannabis business owners.
And even when states include such requirements, national
“partners” often can come in with their brands, capital and
intellectual property.
Expansion-focused companies can get a huge leg up on
their competitors by taking advantage of economies of scale
to start up more quickly, develop a supply chain more effi-
ciently and market more pervasively than newbies.
How quickly the industry continues to move along the
path of consolidation remains to be seen. Federal interfer-
ence could derail it significantly. And such interference is
now plausible: At the end of February, White House Press
Secretary Shawn Spicer sent shockwaves through the canna-
bis industry with obscure comments that the Department of
Justice may take on the recreational marijuana markets. But
in effect, he also indicated the federal government will take a
hands-off approach to medical marijuana.
These are truly interesting times we live in, with major
changes in our economy, federal regulatory policy and
Paddling to Catch the Next Wave
• Marijuana Business Magazine • April 2017
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