The states that have already legalized recreational marijuana are experiencing an upswing in cannabis product distribution. In addition, consumers are becoming more aware of cannabis product creation and the industry as a whole. It is no surprise for many that the marijuana industry has now held on to the opportunity to pave the way for consumers to have a good experience while legally buying a cannabis product for consumption. This includes pre-rolled joints, topical creams, tinctures, edibles, buds, beer, coffee, and different strains. No matter what the product, the idea of having it distributed or delivered is another concern. The same is contrary to the alcohol industry. The only concern as it relates to alcohol is that the person consuming it is at least 21 years of age. Otherwise, distribution is not as restricted as is the case for a cannabis product. It so happens that the distribution laws for the small business owner is different from that of the large corporations. Many small business owners consider this unfair.
The Controlled System
In the state of California, the craft beer industry has a value of almost seven billion dollars. With its three-tiered system, the cannabis industry is looking to mimic it as their model. Will it work, though? The only way that this can happen is when the small entrepreneur is able to distribute it and at the same time, preserving the consumer’s experience. The same is true for the cannabis industry. Some people believe that if marijuana is forced to be distributed through a third party, it will does not give the small business a chance to compete with big business owners. In other words, large businesses will dominate the cannabis market.
The Medical Cannabis Regulation and Safety Act (MCRSA) was legally approved in 2015. This legislature was put in place to ensure that all marijuana products were channeled only through third party distributors responsible to get each batch tested and then retrieving them from the manufacturer on to the processor and then to the dispensary owner or the consumer. The recreational marijuana legislature for the state of California was passed in November 2016. Since then, this has created a debate over cannabis product distribution in terms of the supply chain demand and dynamics. The law passed for medical marijuana does not require any type of restrictions on the distribution process. This is very puzzling to small business owners.
Due to this controversy, the governor of California, Jerry Brown has indicated that there is a set of proposed actions that needs to be used to resolve the differences between legal regulations for recreational and medical cannabis. Doing so would simplify how the state of California would allow a cannabis product distribution business to be run and how the state would do so to reduce cost. In California, a cannabis business owner can get more than one licenses in addition to independently operated testing facilities. Governor Jerry Brown does not want the state to control the vertical integration of the industry products since it creates limitations for the business owner’s innovative model. Moreover, it does not result in consumer safety. For this reason, the state of California is set to switch its current cannabis product distribution for improved efficiency.
The state of California is gearing up to help the small business owner that wishes to self-distribute in order to improve their brand reputation. Additionally, small business owners in the cannabis industry would love to maintain the consistency of product potency and taste while still making sure that distribution is just as consistent and efficient. Self distribution could be the solution. Having a third party cannabis product distributor could hinder the brand of many small marijuana dispensaries. Most small business owners do not want to experience this. If you want to learn more about what the state of California has planned for the future as it relates to the cannabis industry, visit the Cannabis Training University.
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