High Five: Chris Piazza

What’s the biggest challenge facing the cannabis industry right now, and how are you and/or your company addressing it?

I believe it is everything around 280e. Some may say Federal legalization to open up the state borders but I believe the hyper competition in more mature states will actually lead to stronger companies. I think 280e is an unnecessary strangle on the free market that built this country. We still do not have access to standard capital markets, most companies pay insane interest rates on debt that would be illegal in other industries, and we don’t have access to credit card transactions which is another foundational tool to most industries. This market will not look anything like it does today after these changes happen. I believe sales will go up tremendously and the mix of purchasing inside of the retail stores will expand to include non cannabis products at higher volumes as well, helping blended margins for the operators.

Where do you see the most exciting opportunity for growth and innovation in cannabis?

I may be biased but I believe accessories and other supplemental non-plant products are the sleeping giant of the industry.

What’s one piece of advice you would give to someone looking to break into the cannabis industry?

The plant is a commodity, if you plan to compete in terms of plant touching it will be about brand building more than anything else. 10% better flavor or effect will not drive sales as much as a household brand name. That being said, I think that is also the most congested space, look for areas that have less dependence on consumer demand and offer solutions to the businesses themselves that already exist.

What is the most important thing you have learned from your experiences in the cannabis industry?

This is the only industry I have been a part of for nearly 20 years, nothing happens overnight and this is not a get rich quick arena. You have to truly be patient because we are still only in the 2nd or 3rd inning.

What do you want your legacy to be as it relates to the cannabis industry?

Those accessories are the savior to the diminishing margins that everyone is struggling with.

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