Coda Signature, an early entrant in Colorado’s regulated marijuana market, is the latest brand to cut business operations in the state.
The homegrown, award-winning cannabis edibles maker will concentrate efforts in other markets after facing escalating challenges in Colorado since the COVID-19 pandemic, according to Denver alt-weekly Westword.
“Colorado’s cannabis market declines in recent years combined with the significant oversupply has caused the company to make the difficult decision to close operations in Colorado,” Coda Signature told Westword in a statement.
Only five years earlier, Coda Signature laid out an expansion plan to become a national cannabis brand built on its success in the edibles segment with its line of truffles, candy bars, single-serve treats and other products.
But marijuana sales in Colorado have fallen drastically since 2021.
In February, for example, medical and recreational marijuana retailers in the state posted their lowest sales in four years.
Then, in April, Colorado’s regulated cannabis industry suffered its “worst 4/20 in five years,” according to the Marijuana Industry Group.
Lingering challenges have prompted several marijuana companies to reduce or eliminate operations altogether in the nation’s most established adult-use market, which opened on Jan. 1, 2014.
In January, multistate operator Curaleaf Holdings said it was shuttering its operations in Colorado as well as California and Oregon, reducing its payroll by 10%.