Consolidation is coming
Expect the flurry of mergers and acquisitions that defined the cannabis space last year to continue — if not accelerate — in 2022, especially at the individual dispensary level.
Pair a little pot with these activities to see the city through new (if bloodshot) eyes.
“I really think that the small [retail] operators have just been kind of holding on for dear life,” said Rama Mayo, the co-founder of a downtown L.A. cannabis-business hub called Green Street and the Hall of Flowers trade show. “Their retail valuation is low, there are the costs associated with a bricks-and-mortar space, and I think we’re going to see M&A among the big guys, which will lead to smaller operators doing the same thing. Cultivation will merge with distribution, which will merge with a brand house, or three single dispensaries will band together under one banner.”
Mayo said he sees a future where cannabis retail looks very different.
“Maybe not this year, but in a couple of years,” he said, “there will be three options to buy weed: a BevMo! kind of