With new headlines like MedMen’s $682 million purchase of PharmaCann dominating the cannabis industry’s news cycle everyday, it’s easy to forget that the scarcity of licenses can still very much affect companies of all types and sizes.
For instance, while a giant firm like MedMen may have access to 79 cultivation and retail licenses spread across a dozen states, they’re still not able to even dabble in some of the other major aspects of the cannabis industry yet — such as manufacturing. Considering that each state has its own licensing procedures and varieties (California requires different licenses for cultivation, manufacturing, testing laboratories, retailers, distributors, microbusinesses, and cannabis event organizers), many companies are choosing to focus on specific areas of the market rather than providing an all-encompassing option.
Once again using MedMen as an example, their cultivation and retail licenses allow them to grow and sell their own cannabis, but the lack of a manufacturing license means they won’t be creating their own lines of CBD oils or infused products anytime soon. In some ways, this may keep production costs down for them, but considering that the sales of CBD and other cannabis-related products are growing at a faster rate than that of the flowers themselves, it could also ultimately hinder them in the long run.
At this point in time, it’s obviously unreasonable for a single cannabis company to successfully function in every area of the industry (especially if attempting to operate in multiple states), but the more angles a business can cover, the better off they’ll be. That’s why Gladbrook Holdings is focused on integrating as many of our tools as possible, with the ultimate goal of controlling everything from seed to sale.
Of course, there’s no telling what new regulations and changes will affect licensing in the future, but the scarcity of licenses — particularly for manufacturing — is always something that should be kept in mind by businesses large and small. The cannabis industry’s “one-stop shop” company may not exist yet, but moving in that direction can be nothing but a good move.