(This is a contributed guest column. To be considered as an MJBizDaily guest columnist, please submit your request here.)
Our industry is undergoing significant transformation, driven largely by the rise of cannabis multistate operators.
I know plenty of independent marijuana business owners and legacy OGs who are already struggling with things such as out-of-touch regulators, price gouging, compliance demands and product recalls.
The fear that MSOs might overtake their home markets only adds to the difficulties cannabis OGs face.
These operators worry they’ll be pushed aside by corporate interests with more influence, power and money.
But by really understanding the role of MSOs, cannabis legacy operators can rest easier.
Many MSOs have made significant investments, taken substantial risks and worked with state and local legislatures to expand marijuana access and develop infrastructure.
And cannabis OGs can use the work of MSOs to their advantage.
Cannabis OGs’ perception of MSOs
Legacy cannabis players and smaller, independent operations tend to view MSOs with a degree of suspicion.
And I get that – I’ve lived it.
There’s a deep-seated loyalty to historic relationships and the bonds built within the community long “before it was legal.”
As part of the underground cannabis economy that created a tight community with a lot of traditions, we also had a lot of mistrust toward outsiders.
Everyone worked hard to earn and maintain their status.
It’s understandable that in the current industry, MSOs are perceived as “suits” that lack an understanding of cannabis culture and its long, storied past.
The contrasting approaches to doing business are stark.
OGs are deeply embedded in their communities and continue to keep the grassroots vibe real.
They’re driven by a passion for the plant and a commitment to their culture.
Meanwhile, MSOs adopt a corporate approach that focuses on scalability, efficiency and broad market reach.
It’s this divergence in philosophy that can fuel mistrust between the two groups.
MSOs boost marijuana access
Despite their suspect reputation among legacy players, it’s important to recognize the crucial role MSOs have played in expanding access to cannabis across the country.
They’ve helped open legal markets in states and parts of the country that might not have been possible – or even expected – without the structured, business-oriented example set by MSOs.
And this is important to me: The more people who can get high-quality cannabis, the better.
If California’s market – a grassroots endeavor – were the only model, it would be easy to understand the reluctance of some states to even consider legalization, given the challenges we’ve witnessed (and continue to face) in my home state.
The legislative efforts of multistate operators in places such as Florida and Missouri have been successful because, unlike legacy operators, MSOs have the time and resources to meet and work with lawmakers and decision-makers.
The ability of MSOs to “speak the language” of policymakers is key for getting licenses, opening new facilities and establishing compliant businesses within an infrastructure designed for success.
By leveraging the infrastructure and legislative groundwork laid by MSOs, legacy operators have a better opportunity to find new opportunities for growth and expansion.
Instead of fighting to grab the biggest slice of the pie, we should focus more on baking a bigger pie altogether.
Why increased cannabis access matters
The growing accessibility of cannabis access offers numerous benefits to the industry.
Increased competition propels innovation, and that innovation leads to higher-quality products and more choices for consumers.
A more competitive environment also can pave the way for collaborations that allow smaller OG brands to expand product availability by partnering with larger MSOs that have extensive infrastructure.
The trend toward national marijuana legalization is part of a broader acceptance of the plant, and MSOs have played an important role in this shift.
Their work is essential in educating the public and combating disinformation.
They also push back against historically negative narratives that surround marijuana.
Through educational initiatives and regulatory engagement, MSOs advocate for cannabis as a healthier recreational alternative to alcohol, working to dismantle long-standing stigmas – a cause that resonates deeply with me.
MSOs and cannabis R&D
The investments MSOs have made in research and development have been crucial to the industry’s progress.
Well-funded MSOs can conduct extensive cannabis research, close knowledge gaps and develop products that minimize negative effects and maximize benefits.
The research will help more people understand cannabinoids and other plant compounds and address consumer-focused issues such as cannabinoid hyperemesis syndrome and the efficacy of edibles.
By advancing scientific knowledge and product development, MSOs help elevate the entire industry and benefit all of us, including the OGs. A rising tide lifts all boats.
The insights gained from MSO-led research can be shared across the industry, fostering a collaborative environment that drives overall growth and innovation.
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Cooperate and elevate
The relationships between cannabis OGs and MSOs don’t have to be adversarial.
At the end of the day, the aligned motivations and shared goals of a healthier and more accessible cannabis industry can drive progress and consumer advocacy.
By working together with a unified approach to advance the industry, we can not only ensure its growth but also preserve the rich cultural heritage and grassroots values that we all hold dear.
Caleb Counts is CEO and co-founder of Connected Cannabis Co., a Sacramento, California-based commercial cultivator and pioneer in marijuana product development. He can be reached at cs@connectedca.com.
Caleb will speak at MJBizCon on Dec. 5 on a panel titled, “How to Effectively Manage Cultivation Data and Increase Your Yield.” Tickets to attend the panel discussion are available here.