Local Cannabis Shops Prepare for Stricter State Regulations

As cannabis retailers get ready for new regulatory requirements, many are selling off existing inventory at deeply discounted prices.

Posted: Jun. 28, 2018 6:33 PM

Starting July 1, cannabis retailers across the state will be required to only sell products that meet strict packaging and quality requirements.

That includes laboratory testing, thc limits on certain products, and child-resistant packaging.

It's part of a six-month transitionary period for pot shops towards regulation as part of legalization.

“So what that means is that this product, even though it's 90 percent compliant still has to be gone by the 30th,” owner of 530 Cannabis Jamie Garzot said. “We'll still carry this product line after July. But it'll just have to be packaged a little bit differently.”

For now, management and staff at 530 Cannabis are working quickly to get all pre-regulation products off shelves, or risk taking a financial hit.

“What that means is that any product that's not sold by the close of business June 30 has to be destroyed per state regulations,” Garzot said. “And so what you're seeing is some empty shelves and a lot of increase in shopping because people are taking advantage of some insane sales that we have.”

So far they're doing a good job as those deep discounts have caused a surge in sales.

“And so that's why customers are stocking up,” Garzot said. “We're seeing increased traffic at a time of the month when we typically wouldn't see it.”

And the rush to get products tested to meet new requirements has caused a backup in the supply chain for some distributors.

Just down the street at Leave it to Nature, the owner says they've already transitioned to meet the new regulations.

But they're having a difficult time meeting the demands of their regular clients.

Garzot says some client favorites may be temporarily out of stock, but that's just part of the growing pains of a budding industry.

“It's part of this challenge, and it's part of challenges still to come,” she said. “I don't think that this is the last time we see something like this happen. There's different phases that the industry is going to go through, and this is just the first of many.”

Garzot says customers, for the most part, are not thrilled with new pre-packaging requirements.

But she hopes they understand.

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