To bolster their bottom line and maintain a solid position in the market, stand-alone marijuana cultivators in Nevada, Colorado and Oregon that don’t possess retail licenses are pushing for the right to open stores or even sell cannabis directly to customers.
As recreational marijuana supply increases and wholesale prices slide accordingly, stand-alone cultivators are feeling increasingly squeezed out of the market, particularly in states with license structures that allow for vertical integration.
Unlike stand-alone growers, vertically integrated businesses can process and sell cannabis after they grow it.
Among the states with recreational cannabis laws, Colorado, Oregon, Alaska and Nevada allow for vertical integration while also permitting single license types like stand-alone cultivation.
Washington state doesn’t allow vertical integration, and California’s initial recreational regulations permit only limited vertical integration. However, there is a provision that would allow “large-scale licenses” in the Golden State in 2023.