There’s a way to define a person who’s very well connected and willing to share valuable contacts within their network. This person is referred to as “the plug.” And Kenneth Delio Loo is certainly one of these individuals.
In the short term,Chapter 2 is focusing on California for growth. I anticipate that, as we move towards federalization, the cannabis growing market will almost entirely shift back to the West Coast. The perception within the U.S market is that the best of the best cannabis is coming from this region. I think that when consumers are presented with more options, they will naturally gravitate to products from California, Oregon and Washington state.
From that consolidation, things will begin to shift. It’s kind of like the wine market: Most of the best wines come from the same region in California. There's a reason for that and there’s a reason that the industry broadened there to include hospitality and travel. The “Grown in California” brand can be leveraged in much the same way that the Champagne region of France dominates the market for sparkling wine. We have also seen this in industries like fashion and technology.
The need for higher quality is another big dynamic I see unfolding through federalization. The incredible amount of value-driven and sub-par brands in the market is going to make the quality of cannabis products play a very important role moving forward. Again, we should take cues from the wine industry, holding ourselves accountable for cannabis product quality and consistency.
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