Let’s face it, there aren’t many less exciting things on this planet than another announcement of another cannabis industry trade group, especially as more regulated markets come online and begin to mature across the country. This apathy is due in large part to the lack of tangible success by these often faceless organizations, and that lack of success is due in large part to the disconnect between day-to-day life as a licensed operator and the suits in Sacramento.
Bucking that trend is the recently formed California Cannabis Operators Association, or CaCOA, a streetwise coalition of some of California’s top brands who have set aside their necessarily competitive nature to work directly with their retail rivals to demand real-world reform for the state’s struggling cannabis industry.
The old ways don’t work, and the voices chosen to “represent” the California cannabis industry since the passage of Prop 64 have, for the most part, failed the vast majority of the licensed operators up and down the supply chain – from cultivation to retail and every link in between.
The continuation of senseless regulations, crippling taxes, and a spiraling contraction of the marketplace is the legacy of the fly-by-night advocacy groups and lobbyists who have come and gone in recent years.
This is why CaCOA was formed, and when you see the names behind the organization you’ll quickly realize that these are the battle-hardened warriors we have been waiting for. The current CaCOA roundtable includes: Traditional Co., STIIIZY, Perfect Union, Off the Charts, TRP Co., NUG, March and Ash, Haven, Grupo Flor, Gold Flora, Embarc, Cookies, Catalyst Cannabis Co., Culture Cannabis Club, and Connected Cannabis Co.
These heavy hitters represent over 20 licensed retail dispensary brands with over 200 brick and mortar storefronts in California alone, generating over a BILLION DOLLARS in sales. These companies provide safe, legal access to cannabis in over 80% of the jurisdictions that allow such commercial activity, serving more than half of the state’s total population. Together they employ over 10,000 Californians.
Listen, money talks.
Finally we have it speaking for us and the powers that be will not be able to tune out this unified voice.
Representing the CaCOA in all government correspondence will be the group’s Executive Director Amy O’Gorman Jenkins of Precision Advocacy, along with Justin Fanslau of Fanslau Government Affairs.
Among their first orders of business will be regulatory consulting and tax reform.
The looming hike in the excise tax rate later this year from where it currently stands at 15% up to 19% will absolutely crash out dozens of existing cannabis brands, if not more, and will just further slash the minuscule margins that the rest exist upon.
For reference, California only excise taxes cigarette sales to the tune of 87 cents per pack. WIth the average price per pack of $8.00, you’re looking at a 10-11% excise tax. But ours needs to go UP to 19%? No thank you! The CaCOA will fight this with frontline facts and figures that decision makers cannot deny.
The group also plans to consult and advise state regulators on how to handle hemp-based consumables like edibles, concentrates, tinctures, topicals, and more. Simply put, they believe that hemp-based products must face the same regulatory scrutiny as regulated cannabis products. This will ensure a level playing field for operators, and a trustworthy marketplace for consumers.
With a guiding principle that “a rising tide lifts all ships”, this crowdsourcing of some of the brightest and most influential minds in the industry is a beacon of hope for all licensees looking for light at the end of the tunnel.
“As a former cannabis regulator for the City of Los Angeles, I know through lived experience how vital it is for cannabis operators to advocate in a unified manner,” Alex Freedman, the CEO of cannabis company Traditional, who serves as CaCOA President, stated in a recent press release. “CaCOA is committed to doing just that – providing a critical and timely partnership with legislators and regulators to reshape the regulatory environment to foster a more productive industry moving forward.”
By supporting these brands, and this organization directly, you support that cause.
You can learn more at their website: California Cannabis Operators Association
