📈 The price of everything is going up (except cannabis 📉)

VIVA LAS VEGAS
Themes heard through 40+ podcast recordings

While my voice isn’t totally back from the 40+ podcasts the Cultivated team recorded in partnership with MJBizCon last week — I’ve had some time to pull some themes we heard last week:

The price of everything is going up 📈 (except cannabis 📉) 

More than one guest we spoke with talked about inflationary pressures on their business, but also that the price of cannabis is actually going down. Price compression has hit, or will hit, every market. And it takes time to correct itself. This doesn’t make anyone in the industry feel better, but it is a fact: the price of everything has gone up, except cannabis.

Stay strong 💪

This industry is tough and competitive — with unique regulatory and market pressures added on top. As noted a few months back at Benzinga in Chicago, only the strong will survive. But (hopefully) when they survive, they’ll be very strong. There were some long-time attendees at MJBizCon 2024, and you can recognize them right away. They are a bit weathered. But the gray hairs have brought wisdom and strength. We’d all be wise to learn from these long-timers.

Be lean (and nimble)

Companies that build and stay lean are best able to be nimble with changing circumstances. And we know that in cannabis, circumstances change rapidly. So, build lean, stay lean, and be nimble. Lilach Mazor Power, from the Mazor Collective and the Giving Tree in Arizona was very thoughtful on this point. 

Don’t bank on reform

Industry leaders had some words of caution for those whose businesses are banking on federal reform in the US: beware. Seasoned industry leaders are not banking on reform at the federal level. 

Are they paying attention? Of course. 

Are they thinking about the impact on their business? Heck yeah. 

Are they banking on reform happening on a specific timeline? Hell no! 

That’s sage advice from those that have been through Washington’s cannabis battles before. 

Tariffs and the cannabis supply chain

An interesting issue came up a number of times in conversations during MJBizCon: tariffs. 

China plays an integral part of the cannabis supply chain, from packaging to lighting to hardware like vapes. With the incoming Trump Administration threatening major tariffs on Chinese imports, the ripple effect on the cannabis supply chain could be significant. It’s something to keep an eye on as a sector, and several leaders shared that they are actively planning for both increased costs and/or supply chain disruptions. 

With that, we’ll be editing our 40+ video podcasts over the next few weeks so check back on Cultivated’s LinkedIn page, our YouTube channel, and for sure sign up for our best-in-industry daily newsletter: Cultivated Daily.

-JR

Pearls of wisdom were dropped during Cultivated’s podcast recordings inside of MJBizCon last week. Like this from Lilach Mazor Powell of the Mazor Collective and Giving Tree:

“I think if you are not comfortable with pivoting, this is not your industry. Every three months, the market is really different, and you have to adjust.” 

See the full clip and stay tuned for more from Cultivated at MJBizCon.

New York operators petitioning Cannabis Control Board ✍️

Here’s an excerpt from a letter circulating in New York petitioning the state’s Cannabis Control Board to reconsider the number of licensees being issued from the December licensing queue as well as other measures currently being considered. “The undersigned unanimously agree that deciding at this juncture to issue up to 5,000 additional licenses would have irreversible consequences for the nascent cannabis industry in New York, and that this decision would harm every single business that has worked tirelessly to open.” Read the full petition.

On Wisconsin! 🧀

No doubt Michigan and Illinois appreciate the cannabis business they get from Wisconsin. Now, Wisconsin Governor Tony Evers would like his state to start getting a piece of that sweet, sweet cannabis tax. He’s pushing against resistant Republican legislators, however, but has included legalization in his “to do” list during a recent budget listening tour, according to Fox 11 in Green Bay.

Taking aim at cannabis and hemp in Ohio 🎯

Even though Ohio voters overwhelmingly supported cannabis legalization in 2023, there are municipalities and Republican lawmakers who are doing what they can to restrict access, according to the Scioto Valley Guardian. These restrictions are also taking aim at hemp-derived THC products available in the state. 

Bay State consumption sites on the way 😮‍💨

The Cannabis Control Commission in Massachusetts revealed the license types they’re looking to issue when it comes to consumption sites in the Bay State: Supplemental, Hospitality, and Event Organizer. You can see what each of these means in the CCC’s presentation from last week.

Kansans loving Missouri cannabis ❤️

According to the Kansas Reflector, “thousands” of medical cannabis card holders from Kansas flock to Missouri for their cannabis products. The number totals more than 2,000. Kansas’ delay on legalization in Missouri’s gain.

Canopy announced that it has completed the long-awaited acquisition of Acreage. Read the full release.

M&A, interstate expansion areas for 2025 marijuana opportunities | MJBizDaily

Federal Marijuana Rescheduling Could ‘Open A Door’ For Washington, D.C. To Finally Legalize Sales Locally, Legal Analysis Says | Marijuana Moment

'Teetering on the edge': Calif. pot shops owe $1.3 billion in back taxes | SFGate