California cannabis market transition period about to end; price spikes, shortages may occur
The end of the beginning is coming. The formal end of the six-month transition period for California’s newly regulated marijuana market, that is – and it could be a bumpy ride for some MJ business owners.
Come July 1, retailers will no longer be able to sell product that hasn’t passed testing lab standards mandated by regulators, which will be a serious shift for many companies and could be a major disruptor for retailers, growers and other businesses, such as edibles manufacturers.
Some retailers in particular could face supply shortages if:
- They didn’t line up reliable supply chains with distributors that can guarantee product that will pass lab testing standards.
- They failed to stock up on lab-tested product in advance of July 1.
That, in turn, could lead to some supply shortages and even price spikes.