Public consumption is a new frontier

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A growing majority of states have some cannabis regulation and have started the process of normalization.

It seems simple: stop putting people in jail, let people grow and make, and let me buy it in a store.

In reality, even if you buy it "legally" there is no public space licensed to allow you to consume.

Most people think cannabis legalization is a one-and-done. Voters, legislators, or Governors pass a bill and then poof- cannabis is legal!

The reality is way more complicated.  Law is a process not a noun. 

Shifting from criminalization to normalization has many competing interests. 

Supply chain is a relatively straightforward regulatory challenge.  There  has and continues to be a LOT of advocacy and education around supply chain regulation. 

Defining what codified legal consumption looks like is way harder. Variations in "medical", consumption patterns and modalities, transportation and neighborhood issues are a few of the challenges to negotiate.

Social Consumption is mostly no longer criminalized, but is also not codified "legal". 

In states like Oregon, Washington, and Colorado, where space is generally less expensive and many people have yards, this has been less of a problem.

 In places like New York and Chicago, as more consumers enter the market, where they consume is going to be way a more important question for regulators than their in-state supply chain. 

There are handful of cities and states that have passed social consumption ordinances or provided guidance. 

Most are still bringing those programs online, having public consultations and defining the licensing and compliance process. While many rely on alcohol consumption models, patients are pushing back and it is still unclear what those venues will look like.  

Overall, seven states are moving to codify some kind of social consumption venue. 

As with most cannabis businesses there will be parallel development of how the market functions and how regulatory agencies choose to intervene in those operations. 

The reality is that consumption attached to supply chain is always going to be at a disadvantage to consumption not related to supply chain. While some people go to a bar to drink, many more drink at the beach. Determining your business operations and differentiators should be your priority if you want to get into this space.