Welcome to our Q&A with partner, Jennifer Gumer!
As a partner at CGL and our Regulatory and Compliance Practice Lead, Jennifer provides strategic counseling, practical advice, and expert advocacy to clients with production needs. As an Adjunct Professor of Law and Bioethics, she is uniquely qualified to handle all interactions with federal, state, and local regulators who oversee product development, manufacturing, and marketing activities, including the FDA and Local Hemp Regulators.
Q: With the federal illegality, cannabis products cannot be shipped across state lines. So how can retailers grow their operations?
Growth is complicated in the cannabis industry. Cannabis manufacturers can’t ship their product between states to increase competition or stimulate growth. Cannabis retailers still aren’t able to access banks, nor can they franchise operations, and trademarking remains complex.
Cannabis companies can grow their operations by acquiring licenses in other states to become what is known as Multi-State Operators. That however is costly from a financial and time perspective, given how arduous the process of getting licenses is, whether through applying a for a license or acquiring a licensed cannabis business.
Another potential way to grow profits for cannabis retailers is through education. An estimated 80% of cannabis sales in California are black market sales. The state is rife with unlicensed cannabis retail shops that ‘trick’ consumers who want legal cannabis into purchasing black market cannabis by posing as legal operations. Educating consumers about the benefits of legal cannabis purchases and how to make legal purchases will likely lead to significant growth in the legal cannabis market – and better profits for legal cannabis retailers.
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