EXCLUSIVE: 'Undo The Harms Of The War On Drugs,' Says Glass House CEO

On the most recent episode of Cannabis Insider, Kyle Kazan, CEO of Glass House Brands, shared his candid thoughts on the cannabis industry. His interview spotlighted the company’s latest project, Greenhouse 5, and its impact on production capabilities, along with his views on the potential DEA rescheduling of cannabis and his firm stance on the importance of decriminalization and legalization.

Greenhouse 5: Expanding Production And Lowering Costs

Kazan spoke about Greenhouse 5, which is set to add 250,000 pounds to their annual production. This move is aimed at reducing costs and making quality cannabis more accessible. Kazan emphasized that cannabis is fundamentally an agriculture business, and production efficiency is crucial for the company’s success and the consumer’s benefit.

By increasing production, the company aims to reduce the cost of goods sold (COGS), a move that Kazan believes is critical for the long-term viability and competitiveness of their products in the market. “Since day one, we’ve been focusing on COGS, COGS, COGS,” he stated, underscoring the relentless pursuit of cost reduction as a core company strategy.

The DEA’s Rescheduling And Its Impacts

The conversation took a deeper dive when Kazan addressed the DEA’s consideration of rescheduling cannabis. He made it clear that while his ultimate goal is the complete removal of cannabis from the scheduling system, he sees value in any movement towards less restrictive policies.

“My biggest concern, the reason why I’m not thrilled by schedule three in so far as people still go to prison for cannabis. And that’s unacceptable to me,” Kazan expressed.

He elaborated on the tangible benefits that rescheduling could bring to the industry, particularly regarding taxation. Under the current classification, cannabis companies face hefty tax burdens due to IRS Section 280E, which prohibits deductions related to the trafficking of Schedule I or II substances.

A move to Schedule III would alleviate some of these financial strains, potentially saving companies millions and fostering a more vibrant, competitive market.

A Strong Voice For Social Justice

Kazan’s commitment to social justice was unmistakable as he discussed the broader implications of cannabis legalization and decriminalization. He criticized the stark contrast between those incarcerated for cannabis-related offenses and the entrepreneurs thriving in the legal cannabis space.

“It’s absolutely insane in the United States of America where we see ourselves as fair and just people, where justice is blind, where I am sitting here talking to you about an industry that’s burgeoning, and we have people serving quasi-life sentences or life sentences for this same plant,” he said.

Kazan also shared how Glass House Brands actively contributes to rectifying these injustices by hiring individuals adversely affected by outdated drug laws. This approach supports those individuals and strengthens the company’s mission and values.

Kazan’s call to action was clear: the cannabis industry and its stakeholders must play an active role in advocating for and implementing policies that undo the harms of the war on drugs and pave the way for a more equitable future.

Looking Ahead: Benzinga Cannabis Market Spotlight

As Kazan prepares to speak at the Benzinga Cannabis Market Spotlight: California, his perspectives on decriminalization, legalization, and the future of the cannabis industry are highly anticipated. His leadership at Glass House Brands and his advocacy for social justice make him a compelling figure in the cannabis community.

Benzinga Cannabis Conferences are coming to Los Angeles. Join the Benzinga Cannabis Market Spotlight: California and unlock the future of cannabis at the premier networking event in Culver City on February 22. Connect with top industry leaders like Alegrete, gain insider insights into the investment landscape, and shape the evolving markets in California and beyond. Don’t miss this chance to be at the forefront of the cannabis industry’s growth and innovation! Join now.

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Photo: Kyle Kazan