The co-owner of a San Francisco marijuana dispensary is finding it increasingly difficult to attract customers in the current market landscape.
Nate Haas, serving as the co-owner and CEO of Moe Greens Dispensary & Lounge in San Francisco, voices his concerns about the challenges they face in competing with the illicit market.
“We’re facing the issue of overcharging our customers. It’s becoming quite a struggle for us to stay competitive against the illegal market,” stated Haas.
Despite California being celebrated by Governor Gavin Newsom as the largest legal cannabis market globally, licensed dispensaries like Moe Greens find themselves struggling to contend with the black market, which includes illegal grow operations, distribution networks, and unlicensed dispensaries.
In response to this disparity, law enforcement agencies have stepped up efforts to crack down on illegal operators. One such initiative is the California Unified Cannabis Enforcement Task Force (UCETF), headed by Commander Kevin McInearny.
“Our primary focus is to tackle the illicit market,” McInearny explained.
Recently, UCETF officers conducted a raid on an unlicensed dispensary in downtown San Rafael, resulting in the arrest of two individuals and the confiscation of all products.
“While we primarily target organized crime associated with the cannabis market, we also address other serious violations such as labor trafficking, tax evasion, and weapons charges,” added McInearney.
The task force’s efforts have yielded substantial results, with over $53 million worth of illegal cannabis seized in the first quarter of the year, along with the closure of numerous indoor operations in the Bay Area.
McInerarney highlighted the prevalence of indoor cultivation, particularly in the East Bay, often linked to organized crime syndicates, including those of Chinese origin.
Despite law enforcement’s actions, legal dispensary owners like Haas remain skeptical about the long-term effectiveness of such measures. They advocate for legislative changes, including tax reductions on cannabis products, to level the playing field.
“If excessive taxation continues to force businesses out of the market, many will struggle to survive,” Haas emphasized.
A 2022 national survey by Whitney Economics revealed that fewer than one in four cannabis businesses were profitable, underscoring the industry’s challenges.
McIneraney reiterated the task force’s commitment to supporting the legal market and protecting the public through their actions.
Despite the hurdles, Haas remains cautiously optimistic about the future, hoping that with concerted efforts, the industry’s prospects won’t go up in smoke anytime soon.
Established in 2022 by Governor Newsom, the Unified Cannabis Enforcement Task Force has been instrumental in seizing over $371 million worth of unlicensed cannabis through 236 search warrants since its inception.
