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The legal cannabis industry is the fastest growing industry in the US.
According to the Huffington Post, the legal marijuana market was worth about $2.7 billion in 2014. If it was to become legal in all states it is predicted that the industry would be so huge that it would overtake the organic food industry. Due to the success in states who have legalized cannabis at least 10 states are seriously considering a vote on adult use in the next two years. The industry has already grown enormously and only four states have legalized marijuana.
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Colorado’s cannabis sales are so high that taxes may have to be given back.
After a year of legal marijuana sales, Colorado residents are shocked to learn that their estimates on the expected revenue from cannabis were way too low. When the marijuana tax was proposed to voters, lawmakers decided on a hefty 30% (or more) tax rate for marijuana sales. They misjudged the estimated revenue and fell short by nearly $60 million dollars. Colorado’s Taxpayer’s Bill of Rights requires that the state refund all of this extra money back to the voters. Unless lawmakers are able to convince voters to allow them to keep the money every citizen in the state will receive a refund amounting to about $11. This may seem like a small amount of money for the individual but overall it is very telling as to how successful the industry has become in only one year.
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The cannabis industry wants its own bank.
Traditional banks have often closed cannabis business accounts and declined loans fearing federal persecution. Due to this, a group of entrepreneurs are attempting to establish a bank specifically meant to serve the cannabis industry. The problem is the Federal Reserve refuses to allow them to make the necessary deposits into an account to start a bank. By allowing the cannabis industry to have its own bank the Federal Reserve would have to face serious legal and political issues between the federal and state governments. As a result many businesses in the marijuana industry use cash and don’t have bank accounts.
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Attitudes have changed.
Recent research points to the evolution of attitudes towards marijuana and the nation’s overall drug policy. In 1969, only about 12% of the population thought marijuana should be legalized. In 2014, however, that figure rose to a majority of 52%. The Millennial generation has supported much of this shift in opinion and most of the change has occurred over the past ten years. This shift had a lot to do with scientific research into marijuana and other drugs. Recent studies have made it clear that alcohol, a legal drug, is much more harmful than marijuana which is illegal according to the federal government. In 2014 69% of Americans agreed with the statement that alcohol negatively impacts health more than smoking marijuana. The shifting opinions have reached the state level and currently Colorado, Washington, Oregon, and Alaska all consider adult use legal. Additionally, 14 states have decriminalized possession.
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Branding is increasing in the industry.
We talked with the Cannabis World Congress & Business Expo about their thoughts, and they put a focus on branding. They said, “With marijuana being illegal the cannabis industry has relied on word-of-mouth as advertisement for their stores and products. Once marijuana started becoming less stigmatized many dispensaries and retail stores began putting ads in the newspaper and even making online listing. With the huge developments lately the industry is now beginning to brand their products. Even medical marijuana companies are extending their products across state lines.” Branding is expected to explode with over 90% of the industry’s companies having a projected growth this coming year.