Some of this op-ed is a little off the mark as Eaze have managed to re-fininace and there appears to not quite enough critical analysis as to why High Times & Med Men failed.
Let’s be honest both were guided or should i say misguided by meglomaniacs and their activities were bound to end in disaster.
That said this is a good warning shot from SF gate. Will anybody pay attention. I doubt it.
Here’s the introduction
California’s cannabis industry has grown into a multibillion-dollar sector, creating jobs, generating tax revenue and alleviating some strain on the criminal justice system. However, as the industry matures, its struggles have become increasingly apparent, and the cracks in California’s cannabis market are growing.
Major companies like MedMen, Herbl and High Times are experiencing financial hardships and are either on the brink of failure or have completely failed. MedMen, once a top cannabis brand, has been plagued by debt, management issues and a collapsing stock price. Herbl, once the state’s largest distributor, shut down in 2023 because of overwhelming financial pressures. Meanwhile, High Times, a historic name in cannabis culture, has struggled to stay afloat with failed IPO attempts and operational difficulties.
More troubling is the recent announcement by Eaze, one of California’s largest cannabis delivery services, that it will soon shut down, resulting in the potential loss of nearly 500 jobs represented by my union UFCW. This closure highlights not only the industry’s deep problems but also the human toll of California’s failure to craft a sustainable regulatory framework.
Without immediate reform, the future of California’s cannabis industry will be bleak. The market is poised to consolidate into the hands of private equity-backed corporations that have little interest in fostering a sustainable or inclusive cannabis industry. Smaller companies started by passionate California entrepreneurs will be forced out. What will remain is a ruthless, profit-driven market, far from the innovative and community-oriented vision that legalization once promised.
This consolidation would result in significant harm to workers, with fewer opportunities for union jobs like those that were once offered by Eaze. Communities most affected by the war on drugs will see little benefit as corporate interests dominate, eroding any chance for cannabis to be a tool for economic restoration or equity. Moreover, the state and local economies would suffer from reduced tax revenues and the loss of local investments that could have come from a flourishing, diverse cannabis sector.
Only California’s lawmakers can prevent this dystopian future. To address these pressing issues, California’s legislature must establish select committees on cannabis in both the Assembly and the Senate to investigate the underlying causes of these failures and develop targeted solutions. The challenges facing the industry are clear: burdensome taxes, excessive regulation and the persistent threat of the illicit market, which still accounts for nearly half of cannabis sales in California. But these committees would also focus on crafting legislative solutions to stabilize the market, improve public health and safety and prevent the industry from being overtaken by corporate monopolies. As companies like MedMen, Herbl, and Eaze falter, smaller operators teeter on the edge of failure, and thousands of jobs hang in the balance. California cannot afford to wait.
Read more
https://www.sfgate.com/cannabis/article/cannabis-california-monopolies-19913211.php
