retail news in context, analysis with attitude

• The New York Times has a story about how big business - alcohol companies, soft drink companies, and tobacco companies, for example - are “swooping in” to take advantage of growing cultural and legal acceptance of marijuana usage.

“The arrival of large multinational corporations portends sweeping changes for an industry that until recently operated in the shadows,” the Times writes. “As billions of dollars pour into product development, marketing and manufacturing, these companies will be looking to create big brands with the market share to match.”

One estimate suggests that “global legal cannabis sales will reach more than $31 billion in 2021, up from less than $8 billion last year.”

The marketplace remains fragmented and in some ways, dicey; while individual states have legalized cannabis for medical and/or recreational usage, the federal government has remained opposed to such a move, which creates banking and taxation issues. But major corporations are laying the groundwork so that they are ready to move when the moment is right.

Ganjapreneur reports that California’s Bureau of Cannabis Control (BCC) has ruled that cannabis products can be delivered everywhere in the state, even those places where this segment has been banned.

The story says that the BCC ruled that “Proposition 64 - California’s adult-use legalization initiative - allows for statewide deliveries. The bureau, however, needed to add explicit language addressing the issue after several law enforcement officials said they would arrest licensed delivery drivers if they were caught in areas that had banned cannabis sales.

“Supporters say that sick or handicapped patients in regions with cannabis bans will need deliveries so that they can still receive their medication.”
KC's View:
The big question for me is when some major retailer decides to take the leap into cannabis sales. Not sure who it will be, but I’d guess it’ll be sooner rather than later.