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Trying to describe the current state of the California cannabis industry is like trying to describe an acid trip to someone who’s never done psychedelics. Only those who’ve worked within this industry can possibly know what it feels like, where the last six years of legal adult-use sales have been a real rollercoaster ride for everyone involved.
Yet not everyone has enjoyed the trip. Far from it. As of this writing, another large California cannabis company may be going into receivership which is a court ordered process similar to bankruptcy protection. Many pioneering companies are gone or resemble a shell of what they used to be.
Those few companies that are riding high on the rollercoaster feel optimistic while those that are down feel pessimistic about the industry. Many folks have conflicting feelings about the state of affairs in the California market. The industry resembles a kaleidoscope—just when you think you see the image of it clearly, it changes.
The best that can be done is to dive deep into the heart of cannabis in the Golden State and see if it’s still beating. So I attended the Hall of Flowers trade show and festival in Santa Rosa on September 20-21st to see if I could find a pulse. Hall of Flowers is typically a B2B event but this year they opened it up to the public on day two for a “fan day”.
This innovation appeared to be a big success judging from the crowds of weed enthusiasts enjoying all the activations, games, and rides. Vendors sold their cannabis directly to the consumer without the usual regulatory hassle. Large branded bags of weed could be seen in the hands of consumers. That was a big win for the event organizers and from their perspective, things may be looking up for the state’s cannabis players.
“The industry is going to continue to evolve over the next 20 years, and we look forward to being at the forefront of that change,” said Rama Mayo, Hall of Flowers’ spokesperson. “Our focus is always on creating the most effective show possible in order to provide optimal value. The industry has been asking for a D2F (direct-to-fan) extension of Hall of Flowers, so we created a ‘Festival Day’ for the first time ever in Santa Rosa. This show hosted more brands than ever before, and that speaks volumes.”
While I noticed a ton of brands present, most of the operators I spoke to did not feel very good about the state of the weed union in California. Zee Handoush, owner of 7 Stars Holistic Healing Center in Richmond since 2009. “We have not hit bottom yet. There’s no movement at the state or federal level to make things better,” he said. “Until there is, I don’t see things improving.”
Some people were more blunt in their assessment. “Over taxed shit show,” said Harry (he preferred not to give his last name) from Errl Hill Extracts in Humboldt County. “It’s not designed for little people to succeed, and it’s certainly not designed for the people who made this industry in California to have a seat at the table.”
Errl Hill makes some of the finest hash this writer has enjoyed in a long time. The fact that they’re still standing is a testament to their resilience and a sign that the state’s craft cannabis may still be kicking.
A moving activation sponsored by the Beard Brothers and the Maruijauna Industry Trade Association called on the federal government to free Edwin Rubis from prison. Rubis is currently serving a 40-year sentence in federal prison for a non-violent cannabis crime. He represents one of thousands of cannabis prisoners who were honored by Freedom Grow and their prisoner art exhibit at Hall of Flowers. Whatever the state of the industry may be, the culture has not forgotten about the prisoners and the struggle to free them.
On a similar note, I saw former prisoner Luke Scarmazzo speak at Hall of Flowers. Scarmazzo served 15 years in federal prison for running a legal medical cannabis dispensary in Modesto. He’s out of prison now and has his own cannabis brand called Prophet. He was interviewed by cannabis social equity activist Nina Parks.
Parks and Scarmazzo discussed the power of storytelling in branding. Scarmazzo used his experience as a cannabis prisoner and legacy expert as the foundation for his brand. He wrote his memoir while in solitary confinement in prison.
“Story, quality, and price point are the trifecta of the Prophet brand,” he said. While Scarmazzo acknowledged things “are hard right now,” he also expressed optimism that social equity is finally starting to get traction in the state.
One of the longest running operators in California cannabis is Cody Bass and his Tahoe Wellness dispensary. He had a different take altogether. Bass is also the mayor of South Lake Tahoe so he knows a thing or two about local and state politics.
“The state of the industry is as bad as ever and will not get better without a new initiative on the ballot,” said Bass. “The politicians in Sacramento will never get it fixed. Only the people can fix it.” He reported that discussions on a new ballot initiative are happening “behind the scenes.” Ballot initiatives are heavy lifts so only time will tell how that effort pans out.
Other leaders like Planted with Sara Payan podcast host Sarah Payan were concerned about small farmers. “It’s bad. So many craft cannabis farmers are losing their businesses this year,” said Payan, “2024 has been brutal.”
I also saw plenty of larger companies represented. Big organizations like Stiizy, Cookies, and Jetty Extracts had booths. While their activations were nothing as large as in years passed, their presence was strong and enjoyed by the masses. Even the Fabulous Furry Freak Brothers got in on the action by launching their weed brand at Hall of Flowers in collaboration with Cookies. Their show on Tubi is headed for season two.
Perhaps the most hopeful and fun thing I experienced was with Sonoma Hills Farm and their culinary showcase. Owners Mike and Shauna Harden put together a lineup of world-famous American chefs like Preeti Mistry, Mason Hereford, Chris Cosentino, Kim Alter, The Caviar Co, Donnie Masterton, BJ Smith, Solomon Johnson, and Wendy Zeng—they all brought an impressive spread of stoner gourmet eats.
This event paired exceptional cuisine with the fine California cannabis vendors were sharing throughout Hall of Flowers. Chefs who feel a connection to weed were not afraid to come out, cook, and integrate with the cannabis industry and community. It was an impressive display of culinary and cannabis arts coming together.
California cannabis has always been complicated, even during the best of times. Right now, it’s not the best of times for many operators. For a select few, business is booming. For others, breaking even and staying in the market are most important. Still others are barely hanging on until reforms occur to open up the market, lower taxes, and get regulations reasonable. While exuberance may be absent for operators, there is an abundance of hope.
The state of cannabis here may best be summed up by the Grateful Dead lyric, “Nothin’ shakin’ on shakedown street, used to be the heart of town, don’t tell me this town ain’t got no heart, you just gotta poke around.” After doing my share of poking around at Hall of Flowers, I still see a lot of heart in the California cannabis community.
“}]] The Cannabis Trade Show Hall of Flowers gave insight on the current state of California’s industry. Cannabis brands and consumers bonded together in Santa Rosa, CA Read More