Dixie Brands pulling out of Arizona medical cannabis market

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.

Company spokesman Joe Hodas confirmed the move in an emailed statement, writing that the business hopes to re-enter Arizona “in the near future.”

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.

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One comment on “Dixie Brands pulling out of Arizona medical cannabis market
  1. Ken Loritz on

    This is not a good thing. When the big guys cannot make money then nobody legally can. Over here at Cooljarz we have tripled our child certified jar output to compete against the Asian imported plastic jars. Looks like we finally have them beat. We now sell a 19 dram pop top for 7.5 cents. Nobody can beat our Cooljarz with prices like this.

    Market forces always work wonders. They will be back before you know it.
    As for the jar competition they can keep their market share if they are willing to ship a penny or two with each jar. Good luck with keeping the necessary margins for an IPO.

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