Some California marijuana companies hurting from July 1 transition

The changeover to selling only lab-tested cannabis products and those with proper packaging has created hard times for some California retailers in early July, with a lack of compliant marijuana leaving a good number of shelves empty.

The owner of All About Wellness in Sacramento told TV station KCRA he’s down about 60%-75% “of what we would normally have (on shelves) – but every day, it’s increasing.”

The shop owner, Philip Blurton, said there’s a backlog of products waiting to be tested and approved by licensed labs.

Another Sacramento retailer, Delta Health & Wellness, told KCRA there also was some customer backlash over inventory changes to new and compliant products, while many older, noncompliant product lines had to be phased out last month.

But what that’s led to, observed Blurton, is uniformity among retailers that all now carry the same compliant products.

“One of the things they’ve taken away from us is individuality,” Blurton said. “Now, every dispensary has the same product.”

In other words, there’s less room for individuality because there are so few companies that meet the threshold for legal MJ products to be sold in stores. That has led to a more cookie-cutter version of the cannabis industry – at least for now.

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5 comments on “Some California marijuana companies hurting from July 1 transition
  1. Hal on

    Of the many issues. Compliance: seems to me the California issue is, those charged with the handling of the legalization of Cannabis….They are inept, greedy, and run around in circles attempting to look like they are accomplishing something when all the do is continue to cause chaotic scrambling. Again, inept and greed.

    • BetterThanProfessionalComplianceAttorneys on

      Actually it shows that companies have been cutting corners, and charging 2018 prices on products for reasons that were false. Most product price increases were blamed on the extensive testing, yet thats whats holding everyone up right now. At the same time any products sold after January 1st were already required to have phase one testing completed. Phase one tested products still in inventory can still be sold after July 1st. So where did all the products go? where they should have went on January 1st, to the testing labs or in the trash. The state was pretty lenient for 6 months, and everyone attempting testing and hitting a brick wall is because of a lack of planning and commitment to an industry that will eventually leave those behind.

      • George Bianchini on


        Good simple common sense rules are fine. They should be based on the amount of harm and or danger the product causes society. Products like tobacco, alcohol and sugar should be much harder to freely aquire than roses, lettuce or cannabis. Maybe we are asking for to much, how is law enforcement going to lock up the brown and black kids?
        I think most of us in this industry want to do the right thing. The problem is the right thing keeps changing,
        I do like the union part of the new law. Decent pay and good benefits. sure no bank accounts, but that means no taxes either.
        There are advantages to the alternative market, 90% market share, no time clocks and a lot less waste of packaging. So while it may be illegal, it is becoming the only place left now that the industry is being sold out to companies that can afford a year of excessive cash burn rates. Beware investors, easy come easy go!

  2. Patrick on

    If Blurton’s dispensary is defining its brand based on the products it carries and not its service, culture, design, and customer experience, it should start thinking about closing up shop, because it won’t last.

    Seriously, if every store is “the same” now in CA, one might say the opportunity for creating a new dispensary brand identity is massive. Seriously folks, SMH.

  3. Kenneth on

    So what was wrong with the cannabis before this testing requirement? Did people die from it?
    I hate to say it but it’s going to be business as usual for stores that’s selling products that people demand.

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