Marijuana Business Factbook 2019

215 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. Financial & Operational Data: Cannabis Product Manufacturers | Chapter 4 MJBIZDAILY.COM CHART 4.09: Cannabis Product Manufacturers Based In California, Colorado, Oregon & Washington: Portion That Sells Products In More Than One U.S. State Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Cannabis Product Manufacturers Based In California, Colorado, Oregon & Washington: Portion That Sell Products In More Than One U.S. State 2017 2018 2019 Multiple States 42% Single State Only 58% Multiple States 33% Single State Only 67% Multiple States 19% Single State Only 81% 2017 2018 2019 Single State Only 81% Single State Only 67% Single State Only 58% As legalized cannabis markets develop across the nation, an increasing number of infused product manufacturers are expanding their operations into multiple states. The goal of these companies is to establish a brand identity that is recognizable to consumers across the country, developing the status and positive brand association enjoyed by consumer packaged goods (CPG) companies in the food and beverage industries. Compared to companies in other plant-touching sectors, infused product manufacturers may experience fewer challenges to expansion across state lines. Manufacturers use partnerships and licensing agreements to expand into new states, achieving greater brand awareness and helping to establish the manufacturer and brand as an industry leader. The multistate expansion model is now being employed by nearly half the infused product manufacturers in California, Colorado, Oregon and Washington state. While multistate operations can be lucrative, expansion requires careful consideration and research. Market factors such as population or patient counts, how restrictive the rules are, where the market is located geographically relative to other legalized markets and how saturated the market already is will impact the likelihood of success. Cannabis product manufacturers must also choose their licensing partners carefully, emphasizing experience in food and beverage manufacturing and working to ensure that intellectual property and brand quality are protected.