Ron Strider
Well-Known Member
Fox News reported that Nevada's Governor had declared a state of emergency over marijuana shortages, except that it wasn't quite right. The Governor actually issued a "statement of emergency" regarding the regulations on distributors for the program. Here's what's really happening:
Nevada's legal adult use marijuana sales got off to a really strong start on July 1, even though the state threw the dispensary owners some last-minute curveballs on packaging and distribution. The Nevada Dispensary Association reported that at least 3 million to 5 million in sales were recorded for the first weekend and that the state is on track to achieve $30 million in sales over the next six months.
The demand has been so strong it has even caught the optimistic dispensary owners by surprise. Brayden Sutton, CEO of Friday Night Inc, which owns and controls both hemp and cannabis based operations in Nevada, said, "I don't think anyone anticipated this strong of an initial demand, and by all accounts it's a very real possibility that the state could literally be out of sellable products in August. Current production in Clark County was set-up for a snoozy medical market, not the 10x increase in sales that retailers experience once they can sell to anyone 21 and up."
One of the problems that has affected the program was the late decision by the state to force the dispensaries to use distributors from the liquor industry for the first 18 months. The distributors complained that they didn't get enough communication in advance to apply for the licenses and so there aren't enough distributors and the retailers could run out of inventory. There are reports that no licenses have been approved yet and the Department of Taxation didn't return a request for comment.
The dispensaries were allowed to open with their initial on-hand product because regulators assumed they would have at least a couple of months to process the distributor applicants. Instead, the retailers may run out of product in a few weeks due to the high demand. This caused the state to consider adopting an emergency regulation endorsed by the governor that would allow for the Department of Taxation to expand the pool of distribution applicants.
"I am very encouraged by the Governor's swift move to address this distribution issue for cannabis grown in Nevada. As a legal cannabis business owner, I am very interested in obtaining a distribution license and do plan on applying when I am able," Premium Produce CEO Priscilla Vilchis said. "I believe I should have the right to handle the distribution (aka transportation) of my own product. While my business is not currently affected by issues with the current distribution system, I believe that expanding access to those types of licenses is necessary to ensure the success and viability of Nevada's new program."
A state of emergency and a statement of emergency are two very different things. However, if you are a cannabis consumer, it could very well be the exact same thing.
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: No, Nevada Didn't Declare A State Of Emergency Over Pot Shortages
Author: Debra Borchardt
Contact: Contact Information
Photo Credit: Melina Mara
Website: {{meta.title}}
Nevada's legal adult use marijuana sales got off to a really strong start on July 1, even though the state threw the dispensary owners some last-minute curveballs on packaging and distribution. The Nevada Dispensary Association reported that at least 3 million to 5 million in sales were recorded for the first weekend and that the state is on track to achieve $30 million in sales over the next six months.
The demand has been so strong it has even caught the optimistic dispensary owners by surprise. Brayden Sutton, CEO of Friday Night Inc, which owns and controls both hemp and cannabis based operations in Nevada, said, "I don't think anyone anticipated this strong of an initial demand, and by all accounts it's a very real possibility that the state could literally be out of sellable products in August. Current production in Clark County was set-up for a snoozy medical market, not the 10x increase in sales that retailers experience once they can sell to anyone 21 and up."
One of the problems that has affected the program was the late decision by the state to force the dispensaries to use distributors from the liquor industry for the first 18 months. The distributors complained that they didn't get enough communication in advance to apply for the licenses and so there aren't enough distributors and the retailers could run out of inventory. There are reports that no licenses have been approved yet and the Department of Taxation didn't return a request for comment.
The dispensaries were allowed to open with their initial on-hand product because regulators assumed they would have at least a couple of months to process the distributor applicants. Instead, the retailers may run out of product in a few weeks due to the high demand. This caused the state to consider adopting an emergency regulation endorsed by the governor that would allow for the Department of Taxation to expand the pool of distribution applicants.
"I am very encouraged by the Governor's swift move to address this distribution issue for cannabis grown in Nevada. As a legal cannabis business owner, I am very interested in obtaining a distribution license and do plan on applying when I am able," Premium Produce CEO Priscilla Vilchis said. "I believe I should have the right to handle the distribution (aka transportation) of my own product. While my business is not currently affected by issues with the current distribution system, I believe that expanding access to those types of licenses is necessary to ensure the success and viability of Nevada's new program."
A state of emergency and a statement of emergency are two very different things. However, if you are a cannabis consumer, it could very well be the exact same thing.
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: No, Nevada Didn't Declare A State Of Emergency Over Pot Shortages
Author: Debra Borchardt
Contact: Contact Information
Photo Credit: Melina Mara
Website: {{meta.title}}
