Marijuana Business Magazine August 2019

Marijuana Business Magazine | August 2019 8 Craft Cannabis Comes Calling 26% Estimated additional revenue potential per gram of organic-labeled cannabis compared to conventional cannabis. Price per gram a California grower could potentially earn with “comparable to organic” certification, using California’s current estimated price of $2.50 per gram for conventional cannabis and the estimated 26% organic premium. Cannabis bythe Numbers | Maggie Cowee Number of states with cultivation licensing categories that allow for growing area of 5,000 square feet or less. These states are California, Massachusetts, Oregon, Rhode Island and Washington . Range of estimated weighted price per pound of marijuana in those five states, with Oregon on the low end and Massachusetts on the high end. While both states have medical and recreational sales and offer craft-scale cultivation licenses, Oregon’s wholesale prices have been hit by significant overproduction, while Massachusetts continues to benefit from its status as the only East Coast state with recreational marijuana sales. Source: 2019 Marijuana Business Factbook, IRI, Visual Capitalist 73% Estimated price premium per ounce of craft-produced premium microbrew over mass-produced premium beer during summer 2018. 5 $549-$2,854 W hat is “craft cannabis?” In other industries, craft production is based on an operator’s scale of production, the use of specialized production methods, high levels of quality and, often, premium pricing. No set definition of craft cannabis currently exists, but states have shown an increased interest in establishing regulatory frameworks that will support the development of a craft cannabis industry—possibly, in part, to encourage entrepreneurship in the face of consolidation. A handful of states have created licensing programs that allow for craft cultivation, including proposals for New Jersey’s expanded medical marijuana system and Illinois’ upcoming recreational marijuana market. While cannabis cannot currently be certified organic in the United States because of federal prohibition of the plant, the California Department of Food and Agriculture is currently creating a “comparable to organic” cannabis- certification program that would allow growers following organic practices to capitalize on premium pricing. Regulators in Washington state, where cultivators are prohibited from operating retail outlets, have considered creating provisions that would allow cultivators to sell their products directly to consumers. uuu uuu