The last few years have witnessed a boom in new cannabis user associations in Spain. Although there are no reliable figures for them, most are known to have been created for the collective cultivation of marihuana crops, and are now several hundred-strong. They are mainly found in Catalonia, which is also home to the largest of them: some have existed for only a short time but already have several thousand members.
British Columbia’s multibillion-dollar marijuana industry could take a “significant” blow now that two U.S. states – including its closest neighbour to the south – have voted to legalize marijuana. “The outcome of these votes in Washington State and Colorado is going to be a significant factor for this industry here in British Columbia,” Werner Antweiler, a professor at the University of B.C.’s Sauder School of Business, said in an interview Wednesday.
Votes in Washington and Colorado last month to legalize pot for recreational use turbocharged marijuana as a legitimate business opportunity. Business people packed a marijuana-industry conference in Denver the day after the election, and shares of publicly-traded companies spiked — one that sells marijuana vending machines jumped 3,000 percent.
Vigorous regulation of a thriving medical-marijuana industry in Colorado offers the best glimpse of what is coming to Washington when it launches its voter-approved social-use market. With continuous surveillance, bar-coded plants and strict financial background checks, Colorado's rules allowed capitalism to be unleased, creating an instant $200 million industry. With retail prices — averagingabout $7.50 a gram — among the cheapest in the country.
The Washington state Liquor Control Board (LCB), charged with launching the world's first regulated marijuana market for social use, expects to begin accepting applications for grower licenses April 17, with the first licenses to be issued in May 2013. State-licensed marijuana stores won't open until at least December, after marijuana-processor and retail licenses are issued. But several groups already have hired veteran lobbyists to influence the LCB, with business interests keenly aware of the potential.
A handful of legislators recently drew up a letter raising questions and concerns about the law, including whether it can be implemented by December as required under voter-approved Initiative 502. Alison Holcomb, drug-policy director for the ACLU of Washington and one of the law’s sponsors, defended it in a point-by-point response to the letter. Holcomb also implied that some of Hurst’s concerns could lead to a “Big Marijuana” industry whose advertising targets young people.
The cannabis industry is an easy target for legislatures to saddle with heavy taxes. In Washington State for instance, there is a 25% tax at three different stages of cannabis production: from the grower to the processor, from the processor to the retailer, and the retailer to the customer. These taxes are in addition to any other state or local sales taxes that might apply. Oregon Representative Earl Blumenauer, for instance, has introduced marijuana reform legislation that would enact a 50% excise tax on production.
Washington state’s chief pot consultant remains a bit mysterious, but Mark Kleiman's views on legalizing pot are no mystery. He lays them out in “Marijuana Legalization,” a 2012 book he wrote with three of his team members. Alison Holcomb, the law’s author, said Kleiman’s credentials could ease federal concerns about Washington’s system evolving into an industry that tries to create addictions and market to young people. “I’m glad Kleiman and his colleagues are heading up the consulting group,” she said. (See also: Washington touts credentials of new pot consultant)
A number of businesses in the burgeoning U.S. cannabis industry are trying to enlist Wall Street's help. Some entrepreneurs see marijuana heading down the same path as Prohibition, which banned the manufacture, transportation and sale of alcohol from 1920 until it was repealed in 1933. "More and more people see the inevitability," said Brendan Kennedy, chief executive of the Seattle private equity firm Privateer Holdings, which targets cannabis-focused start-ups. "They see that the Berlin Wall of cannabis prohibition is going to come down."
The exponential proliferation of the number of associations, clubs and other groups that distribute cannabis among their members and create new spaces for socialising, has surprised even the most optimistic advocates of more reasonable drug policies. In a short time, and in spite of those in government, civil society has provided a response to a problem that realpolitik has been unable to tackle.
Many Washington residents are looking to cash in on the newly legal and potentially lucrative marijuana market, which they hope will give them a new start, create jobs, and boost Washington's slumping economy. A diverse bunch, prospective marijuana entrepreneurs range from cannabis novices to experienced sellers crawling out of the black market. State officials are unsure how much revenue marijuana will bring because the market has never been regulated. But experts predict the industry could fetch up to $2bn over a five-year period.
The growing societal acceptance of cannabis in the U.S. has sparked what some call a "green rush" of people trying to cash in on what is already a multi-billion-dollar business. And as the marijuana industry comes out of the shadows, its producers, consumers and advocates are pushing for more transparency – both about cannabis' alleged medical benefits and its environmental impacts.
Barcelona has a new tourist attraction that some locals wish would disappear: a burgeoning number of "cannabis clubs," where people can legally buy and smoke pot. Although selling marijuana is against the law in Spain, some regions allow local residents to set up nonprofit clubs whose members grow and share it for personal use. As recently as 2011, only a few dozen such groups were in the Catalonia region, which includes Barcelona. But since then, the number has risen to about 400.
Only six months old, Colorado's recreational marijuana industry starts a transformation that could add hundreds of new pot businesses to the state and reconfigure the market's architecture. Previously, only owners of existing medical marijuana shops could apply to open recreational stores, and all businesses had to be generalists, growing the pot that they sold. Now, newcomers to the industry can apply for recreational marijuana business licenses. When these new businesses begin opening in October, all recreational marijuana companies will be allowed to specialize — for instance as stand-alone stores that don't grow their supply.
A report from Greenwave Advisors, a "comprehensive research and financial analysis for the emerging legalized marijuana industry," projects that legal cannabis could be an industry with revenues of $35 billion by 2020 if marijuana is legalized at the federal level. To put that figure in perspective, $35 billion represents more annual revenue than the NFL (currently $10 billion), and is roughly on par with current revenues for the newspaper publishing industry ($38 billion) and the confectionary industry ($34 billion).
The pot business is exploding. The devotees toiling away since states started legalizing medical marijuana nearly 20 years ago now must compete in a radically different business culture. The rapid spread of laws permitting recreational pot is enticing hedge fund managers, venture capitalists, software developers and many others to get in on what inevitably is being touted as a green rush. Pot critics say the thirst for high returns has the marijuana industry starting to resemble Big Tobacco, with profit-hungry companies using the kind of marketing imagery and sales tactics that entice children and glamorize drug use. (See also: Cannabis legalization doesn’t have to mean commercialization)
Three marijuana legalization initiatives were on the ballot this week, and all three won. That’s a better outcome than I was expecting. I was surprised when voters in Colorado and Washington approved legalization two years ago, and I was surprised again when voters in Alaska, Oregon, and Washington, D.C., followed suit. Partly that’s because, after 25 years of advocating drug legalization (along with various other unpopular positions), I am accustomed to losing. But it’s also because I had looked at the polling data.
It looks like the use of recreational marijuana is heading down the path of legalization across the country. Voters in Alaska, Oregon and the District of Columbia approved legalizing measures on Nov. 4, but with key differences. Some say a profit-driven model for legalization runs the risk of increasing marijuana use, while others argue that a regulated market is the best way to keep use safe for consumers. What’s the right approach to legalizing recreational marijuana?