Marijuana Business Magazine October 2019

October 2019 | mjbizdaily.com 43 sell to distributors; distributors can sell only to retailers, and retailers sell to consumers. Some states control the entire distribution supply chain, while others control part of it. This happened because states wanted the tax money from alcohol sales. Yes, smaller breweries don’t have to sell to distributors in some states, so positioning your marijuana company as a smaller, artisanal business could be advantageous if the U.S. follows this path. But how many marijuana business executives are really hoping to stay small forever? That’s not the American way. The King of Bud? If we’re really honest, I’m guessing the majority of cannabis companies out there would prefer to become the Budweiser of marijuana—sold every- where and one of the most recogniza- ble brands on the planet—and not the local craft beer that’s only well known in one town or region. Never mind their high-minded claims of quality and good intentions. But, in order to achieve that, companies will have to play by the rules that states create. Another hurdle: Oregon cannabis companies can’t export to businesses in other states unless they are other licensed marijuana companies. How will states be able to ensure the products they’re importing meet their own strict standards and regulations? How will that be enforced? And will the added expense for resources be worth it? My sense right now is that small cannabis business owners don’t need to fear federal legalization and a total end to prohibition any time soon. States will try their best to protect their existing industries. Likewise, Oregon growers probably won’t be able to sell to the entire U.S. cannabis market—at least not in the short term. As of now, according to my sources, the wholesale prices for flower in Oregon (and Colorado and Washington state) are creeping back up to prices not seen since 2016, so maybe Oregon’s growers won’t be as desperate to offload their wholesale product. Maybe, if prices keep going up, selling to other states won’t even be necessary. Wouldn’t that be nice? Bart Schaneman covers cultivation and extraction for Marijuana Business Magazine. Reach him at barts@mjbizdaily.com. www.kannamill.com | techsales@kannamill.com | 1-800-447-4634 Find us at MJBizCon, booth #C6113 Improved efficiency and better yield for processing cannabis and industrial hemp. Whether you’re processing 50 pounds or 50 tons per hour, KannaMill® is the most efficient, fully scalable equipment on the market for cannabis and CBD processing.