Just because California legalized recreational cannabis doesn’t mean a lot of the new businesses are out of the woods yet. A lot of them are actually learning that it’s quite the opposite, as Marijuana Business Daily points out just how many of those companies are struggling right now — and it’s not pretty.
For those who believed that after legalization they would just be able to waltz right into the cannabis industry, the amount of hurdles still facing new business owners might’ve come as a bit of a surprise. Not only are a lot of prospective startups being thrown off by how difficult and complicated the licensing process can be, but there have also been some supply and demand issues going on recently that are making things even tougher for a lot of the unprepared entrepreneurs.
There’s actually a pretty significant shortage of recreational cannabis available right now, and a lot of the new brands flooding the market have no idea how to deal with it. Between many areas of Southern California still banning dispensaries and an already-low inventory in many of the locations that do exist, many recreational and medical users are turning to the black market once again as their most reliable means to get the products that they want and need. It’s certainly not an ideal situation for the growing industry, and it’s one that needs to be corrected sooner than later.
That’s where Gladbrook Holdings can come in, as our processing facilities are going to be able to produce a significant amount of cannabis-infused products that will help even out the market. While many companies were concerned that the influx of new names into the cannabis industry would oversaturate the market and lead to product sitting and going stale in back rooms of dispensaries, that’s not the case right now. As these other businesses still learn the ropes and work their way through the licensing and development processes, we’ll be ready to distribute our products to all of the patients in our area.
In short, what seems to be a pretty unappealing time for California’s cannabis industry as a whole is actually providing a perfect scenario for Gladbrook Holdings’ public unveiling. At least until some other distribution companies get themselves together, it’s a seller’s market — and we’re more than ready to sell.