Colorado-based Dixie Brands, a major multistate edibles producer, is poised to pull out of Arizona indefinitely after entering the medical marijuana market there roughly a year ago.
“As of September 1, we will officially be out of the Arizona market,” a company executive wrote in an email to Dixie distributors in Arizona. Marijuana Business Daily obtained the email Monday.
Hodas wrote that the pullout is “temporary” and attributed the decision to a miscalculation regarding how much capital investment it would take for Dixie to be successful in the state. He also said the company needs to re-evaluate its market strategy and ongoing partnerships.
“Our goal is to get back into Arizona when we feel we have the proper support and structure to serve both dispensaries and patients alike,” Hodas wrote.
Dixie also has a business presence in California, Colorado and Nevada and is planning to launch in Maryland this fall.