Let’s face it - California’s Green Rush is in full swing, but California is severely underprepared for the demand. The California Cannabis Industry is experiencing severe licensing lag, meaning there are not enough Cultivators or Distributors receiving licenses from the state to meet the needs of Retailers and Consumers.
On top of this ordeal, retailers are going through California’s period of transition to a fully regulated market - retail dispensaries have until July 1st, 2018 to sell inventory purchased before 2018 so long as it meets specific packaging requirements. But, as of January 1st, 2018 all products to be sold by retail locations must be sourced from licensed Vendors/Distributors.
CALIFORNIA CODE OF REGULATIONS, TITLE 16 DIVISION 42. BUREAU OF CANNABIS CONTROL § 5406. "Cannabis Goods for Sale,"
"A retailer shall not make any cannabis goods available for sale or delivery to a customer unless: (a) The cannabis goods were received from a licensed distributor;"
The DEA is shutting down unlicensed businesses and businesses that source their products from now-illegal vendors/distributors. As of February 16, 2018 the DEA has shut down 8 retail dispensaries in L.A. County alone.
This leaves retail dispensaries in a peculiar position - the State of California is forcing retailers to make a difficult decision between their Customers or their Compliance. Licensing lag has made it difficult for dispensaries to connect with licensed Distributors to source products and to maintain their compliance overall.
2018 has changed the cannabis business environment as requirements to stay compliant become more stringent.
Cannabis tech companies are trying to alleviate this issue by connecting retail dispensaries with licensed brands and distributors. Cannabis software companies like WebJoint
are acting as a platform for retail dispensaries to connect with some of the best brands and distributors to source product but more importantly maintain their own compliance. With WebJoint’s Marketplace
, retail dispensaries no longer have to decide between sourcing top-tier products their customers want and their business’ own compliance.
Less than 600 of the 68,000 cannabis cultivators here in California have been licensed, leaving the other 99% of unlicensed cultivators in shaky legal territory. Until California can address their unbelievably inadequate licensing process, software companies dedicated to cannabis business’ compliance like WebJoint may be retailer’s best available solution.