California tax revenue from cannabis has declined each of the last two years from a peak of 2021. (Source:DCC) Where do we expect 2024 to finish? It sure seems to be a broken system, with very few profitable operators. The state is trying, and AB 2223 will be a pivotal moment for the industry. Many brands have given up, and are finding better margins and consumer access in hemp, that allow them to do basic things like make payroll. I voted in favor of prop 64. At the time, I had faith that the state supported profitable industry to boost the economy and provide jobs. I didn't believe they had altruistic motives to improve access to a beneficial plant. I didn't think the mismanagement would be so bad that the industry would already be in a decline 3 years into it. Question: How much tax revenue would we generate for the state if we had low-dose cannabis beverages accessible everywhere alcohol was? How much would we need to tax cannabis beverages to achieve their goal? Allowing adult beverage producers, distributors and retailers to freely sell low-dose cannabis beverages isn't competing for revenue from the dispensary channel. People buy beverages where they already are. Someone ordering a Coke at McDonalds or a Red Bull at a concert wasn't going to buy the same drinks at a grocery store later that day. Please tell me where I'm wrong, or your ideas to fix this decline -
Didn’t total wine already start selling gummies? You hemp bros’ latest justification via mental gymnastics is already done for.
The analogy is that you can ONLY buy coke at a concert where you pay a high ticket price or you can buy cola flavored water from someone who stole the flavor profile recipe, threw in some dichloromethane and then put it in water and then ask Coke not to care. I would love to buy my cannabis where I buy food or at Target, but that’s not the law.
Seasoned Attorney, Certified Mediator and Founder | Cannabis Law Expert
8moHow much revenue if we could sell cannabis everywhere like alcohol without regard to regulation is the appropriate question. Not how much can hemp bros convert or divert and sell.