Flow Kana’s Michael Steinmetz On the Future of California Cannabis
As the state of California prepares to usher in legal cannabis tens of thousands of entrepreneurs are looking to enter the estimated $5.1 billion dollar market. Even with five other states already having legalized recreational cannabis, California is expected to reshape cannabis globally and generate hundreds of millions in tax revenue.
With a laundry list of regulations on how cannabis can be grown, packaged, transported and sold, many legacy farmers are struggling to get compliant. Estimates are that nearly half of all cannabis grown in California makes its way across the border for two or three times the amount it would be sold locally as medical marijuana. Steinmetz said, “What we are going to see is not only a legal shift but a cultural shift.”
With legalization the market will be open to a diverse array of cannabis products that must pass quality testing — in an effort to regulate the kinds of pesticides and other contaminants that are used. Steinmetz said this will give consumers choice, who in the past have had to buy in the black market from whatever the dealer had.