In this series, I’ll take exactly 420 words of your day to discuss social, political, and legal topics related to the business and science of the emerging cannabis industry. I promise to address any feedback in the comments.
To set the mood, just listen to Cab Calloway tell you how it is…in 1932 (five years before cannabis became illegal in the United States).
Also check out my latest interview with Annenberg Media at the University of Southern California regarding the new cannabis business regulations in Los Angeles.
Previous installments in this series:
- Gooey’s Coffee Shop Cannabis, Part 1
- Gooey’s Coffee Shop Cannabis, Part 2
- Gooey’s Coffee Shop Cannabis, Part 3
- Gooey’s Coffee Shop Cannabis, Part 4
Selecting an Industry Segment
Some of my clients are quite certain of the cannabis industry segment they wish to enter. Others are less sure. This is especially true with small, non-institutional investors with between, say, $100,000 and a million dollars to invest.
Such clients can’t engage with me to develop a permit application until they have decided upon an industry segment and jurisdiction. Given the population density of Southern California, this is no small task. Often, investors and entrepreneurs want to position their business close to home, typically to minimize their commute and support their local communities.
However, other investors and entrepreneurs are less tied to a particular jurisdiction. In these cases, difficult decisions must be made with respect to location. When there’s no outside influence pushing the selection of a particular jurisdiction for the location of a cannabis business, spreadsheets and application fees come into play.
Why Edibles Will Rule
While nobody has a crystal ball, several of my colleagues and I have come to a few basic conclusions regarding the emerging cannabis industry. Let’s consider the basic market dynamics of adult use legalization in a state like California.
There is a significant portion of society that simply will not indulge in an activity if it is illegal; let’s call them Legal Only Adopters (LOAs). There’s also a large portion of society that regards the act of smoking as vile and offensive—regardless of what is being smoked. The anti-tobacco backlash of the past few decades has created a generation with a serious disdain for smoking.
We’re predicting that LOAs who also dislike smoking will be the majority of the consumer market. This is really important if you’re considering entering the cannabis industry. While many consumers who were willing to break laws to indulge in cannabis consumption will forever combust the herb, smoking is simply not the future of cannabis consumption in the United States.
Edibles, topicals, and vaping (including the increasingly popular vape pens for mobile users) will rule the day. Some startups that intelligently position themselves as “craft” producers of specialty small-batch edibles, such as cookies, cakes, and artisanal chocolates, will become immensely successful.
More to come….
All text and photos, unless otherwise noted, Copyright © 2003-2017 Gooey Rabinski. All Rights Reserved.
Gooey Rabinski is a technical writer, photographer, and compliance documentation specialist for cannabis businesses who has contributed feature articles to magazines and media outlets such as High Times, CannaBiz Journal, MERRY JANE, Emerald Magazine, Grow Magazine, Herb.co, The Kind, Skunk, Cannabis Culture, Whaxy, Heads, Weed World, Green Flower Media, Cannabis Health Journal, Green Thumb, and Treating Yourself.
He is the author of Understanding Medical Marijuana, available on Amazon Kindle.