Legacy Vs. Legal: The War over the Future of Cannabis
Art Courtesy of Casey Renteria
There is a war happening for the soul of American Cannabis. With newly legal state markets worth billions, Big Cannabis has been systematically working to own the industry many have worked so hard for.
Legacy Cannabis Vs. Newly Legal Cannabis
Multi-State Operators have been dominating the cannabis industry since Covid lockdowns. This has resulted in an all out war in the ranks of the activist organizations working to reform cannabis laws and provide access to consumers.
Many Legacy stake holders openly share the sentiment that multi state operators are “waging a war” to eradicate their small businesses and take over the communities that were built on the backs of those taking the risk. Some are going as far as saying the very “culture of the people” that fought to pass laws allowing these big companies to enter their local markets is being destroyed, and forgotten in this all out war. And still, more people are just confused… “How did this happen?”, “What should we do?”.
This effort is well funded and strategic. This is an attempt to dominate these untapped, confusingly regulated, billion dollar state markets. It’s smart, and it has worked so far. I believe the more we talk about it, and the more we shine the light onto it, the less it will happen.
How did Big Cannabis Take Over the Legacy Market?
There is simply a lack of knowledge of this happening, therefore a lack of organizing against the well funded efforts of MSO. I have thought about the 'why' behind how we activists let the emerging industry get to this point, in so many states, in such a short time, without us raising hell and at least making a ton of noise, you know, going down with a fight? I have concluded and offer my best guess; we (the activists and people that care about legacy) have been hyper focused on our own individual states' very fast paced rollouts of rules, regulations, etc. that the big MSOs’ coordinated efforts have managed to remain mostly undetected.
When you couple that with the pandemic and being banned from most legislative participation for at least the first year of the pandemic, it’s easy to see how this has slipped past.
In each state these big companies gain entry into, they are often using the same tactic, but it still doesn’t make it as easy as it sounds to identify, and call out. The same people that might call it out (�� Me… Im either the bold or very stupid one), are the same people that have always been vocal to people over profits. What has changed now is the multi billion dollar pay checks on the table and the jobs of thousands of Americans.
Example of this MSO Tactic
The same company that is trying to control Colorado, is also at work on the newly formed East Coast markets. The difference is, when conducting business in each state, they hire from the local market they are working in.
This means, instead of having one corporate team and a few professionals that might fly to an individual state to work on behalf of favorable legislation, instead, MSO’s use an unique approach that ensures the odds stack in their favor.
By hiring an already active “consulting firm” or lobbyist that is well versed in that particular states and knows the ins and out’s of it’s political workings… these MSO have found a way to win over the people that would normally be raising hell in defense. While it isn’t necessarily ILLEGAL (from what I can tell anyways, and I am not an attorney), the ethics behind this type of practice IS questionable. The first thing that comes to my mind is federal Anti-Trust laws, put into place to ‘reign in’ big oil during the time of the last great American revolution, these laws.
Coming in through the Backdoor, and Going Unseen
Another effective tactic I have discovered being used by cannabis Multi-State Operators I’m going to call the “Back Door” route. This means they purchase already established, operating, and locally trusted brands or entire companies in some states (Colorado TGS is just one example of this) with offers they have never even dreamed of before!
Remember, these often boutique, small time, family owned dispensaries have paved the way for the now billion dollar market, and they are often operated by founders that have been fighting to survive and stay afloat for years now. When the recreational legalization passes in the state,
they are then being approached by these MSO’s people that are wanting to buy them out but telling them they can keep their brand name, staff, customers, AND still be the boss of the place!! Of course many are more than happy to sign on the dotted line!
I myself am very close, at one time best friends, with the family that won one of the first 8 medical dispensary Licensees ever giving out, in Denver, Colorado. I remember very vividly in 2018/2019 several offers from big out of state companies, they wanted them to keep all staff, and even kept the og owner in his office and employed. This is ideal for them actually, because if you know anything about sales, you’ll understand this is a BRILLIANT way to skip the entire “Know, Like, Trust = Buy” philosophy, while allowing the company a first step “foothold” into that Legacy community, and market.
How Does this Tactic Give MSO a “Leg Up” on Legacy?
By using the previously described “Back Door” tactic to gain entry into new medical cannabis markets, the Multi State Operator gains a DISTINCT and instant advantage on the future entrepreneurs, who are often the “legacy” in the community, that might enter in that market once recreational laws pass.
This allows these out of state big cannabis operators to enter a new market, not as their own big foreign name… but as an already familiar, and trusted, business.
This is why, I personally believe, the people, activists, and general public have not made the connection to what is happening in this new industry. When the news reports a local story, or there is a press releases written and released because the law requires it, no normal everyday citizen is going to put the puzzle pieces together and realize that in ALL THESE NEW MARKETS, IT'S THE SAME HANDFUL OF BILLION DOLLAR COMPANIES.
This has allowed these MSO to take a very strong hold on many markets across the United States, a fact the Legacy Community is just now becoming aware of.
What’s next for Legacy vs. Legal Cannabis?
Get involved and make some noise. Make some “Good trouble” as the saying goes.
Up until now, no one has been really opposing or shutting down these big companies attempts to dominate. If any little guys have tried, they’re been easily shut down. This has allowed a select few with deep pockets to enjoy free reign to do as they please. To change this, the spotlight MUST shine brightly on them, and we must demand MSO pay more attention to social equity responsibility as they enter our state markets. That they are held accountable to the people in the communities they enter. There is no reason why they should not be embracing the culture of their customers anyways. Honestly, as a marketing professional for over 20 years, it’s insane to me that Multi- State cannabis operators are NOT using these connections more often.
What happens if Legacy Cannabis does not find a way to stand up to these few huge companies currently dominating the market?
When the USA does federally legalize cannabis, a handful of companies will come out and announce company wide (aka dispensary wide) sales, events, and whatever messaging towards cannabis THEY decide will be the future of the industry. The time for Legacy to have a seat at the table is now.
Over at the Women's Cannabis Chamber of Commerce we have been talking about this and organizing with action. Addison, the founder, is a powerhouse of organizing and grassroots style activism, but we need the entire Legacy Cannabis industry to be talking about this to really make a difference. Please follow the women’s chamber via linked in and join the monthly “Roundtable” they host. This is a time for sharing ideas, and it’s where someone is taking literal action to make a plan for a difference. I will also continue to discuss this topic and organize an action plan of awareness via my social media. The best thing we can do right now…is talk about it. LOUDLY.
Enough room for us all
There is a place for the big dogs, and we have welcomed them into our states, but now they want to totally shut out the legacy entrepreneurs and small businesses that got them where they are today, and we will not let that happen. Those of us that love this plant, those of us that have fought for years for patients over profits.
We won’t let the people that paid that cost not have a seat at this table, especially when #bridgingthelegacytolegalgap is not unheard or unattainable.
Stay tuned to the feed by subscribing, lots more to come. xoxo, Tara Eveland
