Can Legal Cannabis Succeed?

“It’s Like a Giant Puzzle That’s Sitting on the Table…”

Unfortunately, there is no silver bullet that can effectively remedy the oversupply problem in cannabis. It will instead take a number of systemic adjustments for the industry to thrive.

Kellen and Casali both agree that opening the market across state and international borders could make a huge difference. Interstate commerce is still banned in the U.S., but legislative reform could change that, bringing world-renowned Emerald Triangle cannabis nationwide. Kellen notes that European markets in particular may not be able to meet demand as they come online and that broadening exports could benefit the global industry as a whole.

A cap on licenses may also help, something Casali and Kellen both referenced. While free market capitalism may allow the cream of the crop to rise, over-saturation has only hurt the nascent industry. Even Oklahoma, the Wild West of Weed where seemingly anyone could become an operator, has put a two-year moratorium on new licenses to relieve the pressure.

The pair also agree that knowledge will play a key role. 

Casali says the misconception among consumers that older cannabis is less desirable, needs to be addressed. Back-end storage solutions that help maintain quality and market education could help reduce the stigma.

As more is revealed about the potential of cannabis, including lesser-known cannabinoids, Kellen believes demand will transcend the current market into the mainstream. He thinks cannabinoid-based products in the over-the-counter pharmaceutical space have big potential.

“What will happen from a competitive perspective is as we develop new products, as we have a better understanding of cannabinoids and terpenes, we’ll be able to develop a product that is much more attractive to the consumer,” he said.

Casali, while concerned about his community, is trying to remain optimistic. While much of the damage has already been done, he feels it will take a truly united front to bring about real change for the future.

“It’s like a giant puzzle that’s sitting on the table — we just have to work together to put the pieces together. I believe it’s possible but it has to be something that we do together as one.”