NEW YORK: Marijuana may still be an illegal drug at the Federal level, but that isn’t stopping some companies from building a national presence. “I think people are already positioning themselves for a national cannabis industry,” said David Bienenstock, a marijuana consultant. “The people who make a smart move now will be rewarded later.”
The opportunity for investors seems obvious. First, there is an established customer base. Granted, most of these consumers have been buying their product in the black market, but many probably prefer to do a legitimate transaction, assuming the price is right. Next, there are no entrenched players. The field is wide open to the budding entrepreneurs to be the first to market.
However, it isn’t that simple. The industry is subject to many regulations and restrictions. For instance, the product can’t be transported across state lines. This has caused many of these companies with national aspirations to become creative with their corporate structures. Also, the promotional efforts are challenging. It’s difficult to build a national brand when your advertising is limited.