By Jason Harris. Originally published at ValueWalk.
California is a state where, if you make it there in the cannabis industry, you can make it anywhere. There are not many brand names that somebody is going to walk into a dispensary and ask for at the moment and on a national level. There is still so much opportunity.
The Cannabis Market
People go to a bar and they might ask for a Budweiser or Corona. Here, we’re gonna ask for an eighth or a quarter. If you like good cannabis, you’re gonna want to go a certain direction of everyday working man cannabis and get the best bang for your buck. If you want the best cannabis, you’re gonna go in a different direction.
So, I see that California as a state is setting up a great model for people to look at and understand how the flow works.
After California, you’ve seen Oregon come in hot. It came in with a lot of cannabis and overgrew and saturated the market with cannabis, creating pricing that didn’t work for farmers.
And you can see how failure has happened up there in a couple of different ways.
I also believe that in these new states, before national legalization, most important is the tourist industry. And where there’s that, there’s definitely potential to have a great market, with a great business.
I’m in Las Vegas right now, and we can see here in Nevada an incredible market that’s gone haywire because we have a lot of money into this thing, and a lot of people coming through town,who are gonna buy cannabis when they’re in Sin City.
But, cannabis can only be grown in large-scale commercial venues that are fully enclosed. Over time, we need to adjust the rules and regs so that whichever state you’re growing in, you’re going to be able to grow the premium cannabis for your area, depending on climate, elevations, harvest stability, and all these different things factor into how good the weed.
For Humboldt County, California, you’re going to get a certain Champagne Edition of cannabis, as opposed to growing it out here in the desert in Nevada, where you’re going to get a different kind of cannabis and have different strains and techniques.
Watching the different states. In the end, as national legalization happens, each state will have its own premium area that people can grow good cannabis outside with. And that’s going to be an important factor in the overall market. Not everybody wants indoor cannabis. Not everybody wants outdoor cannabis. So, to supply the market properly, things need to be adjusted a little bit. And states will find their niches.
Right now we’re working in California primarily. We just opened up here in Nevada. The biggest challenge for us is moving genetics around and having more genetics in different states. That’s one of the biggest challenges.
Many other states that are just opening up: There’s a bum rush for New York, when we won’t see a legal dispensary there for the next year and a half or two years. I’d like to stay focused in California and stay focused where we know. And then that way we can use that successful model to move out to other states in the future.
About the Author
Jason Harris is founder of Jerome Baker Designs (JBD), a leading cannabis company established in 1991. Harris is considered by Leafly one of the top 11 glass artists who changed the cannabis glass art game. JBD is tokenizing its entire product line, starting with the BakerBots digital collection. Learn more at jeromebaker.com
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