Competition Fierce In California's Cannabis Industry, But This Company Reports Helping Smaller Players

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Much has changed in the cannabis industry since Eddie Manolos opened the first medical marijuana dispensary in Los Angeles County in 2014.

But some hasn’t. 

When Manolos opened California Medical Caregivers Association in Hacienda Heights, California, in 2007, community pushback was so strong he landed in court — and ultimately had to move his business to a nearby city.

“We weren’t even able to go through the first 30 days before we had to go to court to defend ourselves,” Manolos said. “This is a state law, even though it’s not implemented in L.A. County.”

California became the first state to establish a legal medical program after voters approved Proposition 215, also known as the Compassionate Use Act, in 1996. The law allows California residents to obtain and use cannabis for any illness with a doctor’s recommendation.

While illegal dispensaries are rampant in L.A. County, licensed operators are still nearly nonexistent because the county’s ordinance governing marijuana dispensaries makes it so difficult to operate, Manolos said.

“The ordinance was written in such a harsh way that no one can get in,” he said. “You can’t possibly find a location.”

Manolos, a board member of Marijuana Company of America MCOA, founded several successful companies, including Everest Biosynthesis Group and Natural Plant Extracts USA, a cannabis manufacturer, distributor and retail delivery company that holds multiple licenses in the cannabis industry.

He also operates Buddha Co., a retail cannabis shop with two locations in the city of Los Angeles.

Competing Against The Big Guys?

California voters approved Proposition 64 in 2016 to legalize recreational cannabis use statewide for people age 21 or older. Since then, the industry has grown to about $3 billion, making California’s legal cannabis market the largest in the world, according to NES Inc., an environmental, health and safety training and consulting firm that serves regulated businesses.

It’s that kind of volume that’s attracted large multistate operators (MSOs) like New York-based Acreage Holdings Inc. ACRHF, which entered the market through acquisitions, and Chicago-based Cresco Labs Inc. CRLBF, which owns 80% of a California cultivation operation that it says produces more than 182,000 pounds of cannabis per year.

Los Angeles-based Marijuana Company of America says it helps small cannabis companies compete in a rapidly consolidating industry where competition is fierce. The company operates, invests in and acquires cannabis businesses. It acts as an incubator for smaller companies trying to compete against MSOs like Massachusetts-based Curaleaf Holdings Inc. CURLF and Chicago-based Green Thumb Industries Inc. GTBIF.

To learn more about Marijuana Company of America, visit marijuanacompanyofamerica.com.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Photo by David Gabrić on Unsplash