The harvest is in and the first day of legal commercial sales of adult-use marijuana has passed. But the California cannabis industry is not saved. There are problems facing California’s new cannabis economy
Uncertainty and speculation take the place of facts and figures. Many of the same problems that plagued us way back in December, when everything was “still just medical,” harry us still. And they demand answers.
Lost in nearly all of the heady coverage from Jan. 1, when crowds lined up in the darkness a few hours into the New Year to buy a taxed-and-(somewhat)-regulated gram of legal marijuana, are the unfinished business and unresolved questions looming in the shadows. They’re too big to ignore and could make the marijuana industry too unwieldy, problematic, or expensive to succeed.
In terms of problems facing California’s new cannabis economy, here’s what’s keeping us down:
1. Legal Marijuana Is Really Expensive—Too Expensive?
It didn’t take long after the first legal sales on Monday morning for the joy and novelty to clear. And once those vapors dissipated, the sticker shock to set in.
The first gram sold at Oakland’s Harborside—sold to Harborside’s lawyer—cost $20 and change. At Berkeley Patients Group, once state and local taxes factored in, top-shelf eighths were $75 out the door. In cannabis-growing country in Sonoma County, the asking price for an eighth of Sapphire Kush was $70. Before taxes.
Admittedly, this is for the best (and, ergo, priciest) cannabis on the market. But these price points are rightfully stoking fears of a black market lingering around for quite a while after legalization. And, quite possibly, becoming a permanent fixture, unless prices can become competitive.
Once you add in all the various levies, there’s an effective rate of around 40 percent. California’s pot taxes may be the highest in the nation. Marijuana sellers know they’re not the only game in town even if they’re the only licensed operation. And they are absolutely aware that consumers won’t cheerfully fork over 40 percent more money for the same product forever.
As it always does, time will tell if these open and serious concerns prove prophetic warnings, but consumers don’t typically react well to sudden, sharp increases in prices (but, just as often, markets don’t care). And high prices is just one of the problems facing California’s new cannabis economy.
Navigating Canada’s Underground Edibles Scene With EP Infusions
Epileptic 5-Year-Old May Now Bring Cannabis-Based Medicine to School
Maine Restaurant Sedating Lobsters With Cannabis Under Investigation
Hungarian Bioengineering Giant Developing Cannabinoid Production Process
Malaysian Court Sentences Man to Death for Distributing Free Cannabis Oil
Hot Pot Products: 4 Must-Haves for Cannabis Cultivators
Canadian Dispensary Clerk Fights off Three Burglars With a Giant Bong
Study Suggests CBD May Have Antipsychotic Effect in High-Risk Individuals
Guides6 days ago
What Do The Colors of Marijuana Mean?
Health7 days ago
Tobacco vs. Weed: The Differences, Pros, and Cons
News6 days ago
South African Court Rules Private, Adult-Use Cannabis is Legal
Medical Marijuana6 days ago
Canadian Cannabis Company Tilray to Export Products to United States
Celebrities5 days ago
Kristen Bell Opens Up About Weekly Cannabis Use and Exploring Other Drugs
News6 days ago
Woman Finds Package of Weed in Food Subscription Box
News5 days ago
New Report Says Concentrates are the Fast Growing Favorite Among Consumers
News4 days ago
First Clinical Trial of MDMA Treatment for Autistic Adults Sees Success