Colorado Cannabis CEO: Marijuana will eventually be traded like any other commodity

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By Ryan Fox, CEO, Kindman | Photos Courtesy: Jamie Kraus PhotographyBy Ryan Fox, CEO, Kindman | Photos Courtesy: Jamie Kraus Photography

By Ryan Fox, CEO, Kindman | Photos Courtesy: Jamie Kraus Photography

Ryan Fox, founder and chief executive of Denver-based cannabis producer Kindman, says the legal marijuana industry is still evolving and that current cannabis shortages reflect the sector’s growing pains.

Here in Colorado we recently completed the second annual “420” celebrations since the legalization of recreational marijuana in early 2014. And for second straight year, cannabis dispensaries in Denver and elsewhere were crowded with happy consumers during the 420 weekend; people from all over the country and around the world, ready and willing to take part in the festivities.

But now a lot of retailers in the state are finding themselves facing cannabis shortages, and that lack of pot on the shelves shows some of the challenges the legal marijuana sector faces as it matures and grows.

Someday, and in the not-too-distant future, cannabis will be traded just like every other commodity—just like cotton or oranges. And just as orange crops and frozen orange juice prices can be influenced by factors like freezing weather, cannabis prices are susceptible to many variables as well.

I’ve been preparing for recreational demand since well before its legalization in Colorado, and am happy to say my preparations have paid off. But I also overestimated the number of cannabis growers who would follow our lead.

One major issue this industry struggles with is the over-emphasis by dispensary owners on expanding their retail operations, while not thinking about sustainable, long-term production and supply chain issues.

Ahead of Colorado’s legalization of recreational cannabis early last year, my colleagues and I sat down to rework our business model and rethink our overall production strategies, as we anticipated the upcoming changes. And it didn’t take long for us to identify which end of the supply chain we wanted to be on.

Colorado has been fortunate in many ways. The state established regulations early on for medical and recreational marijuana. Those regulations have helped to weed out questionable outfits, while creating a set of concrete rules that everyone in the cannabis sector must comply with. It has also led to the best transition of any state so far, when it comes to the introduction of legal recreational cannabis for adults.

And even states like California, where medical marijuana is legal and the cannabis culture is very strong, should pay close attention to the challenges and successes here in Colorado. There’s growing talk about California voting on legalizing recreational cannabis next year–but I think they’re going to have one of the hardest adjustments if and when that legalization comes to pass.

California’s lawmakers are only now considering major statewide controls for the sale and cultivation of cannabis, in an effort to impose regulation on what one state assemblyman calls a “Wild West” marijuana business culture.

Most of California’s thousands of dispensaries will probably be out of compliance the moment any regulatory guidelines for recreational cannabis are established. And that game of legal catch-up will create massive economic issues as those problems wait to be resolved—not just for the grows and dispensaries, but also for the ancillary companies that depend on the legal cannabis industry for their income.

Legal cannabis is still in its infancy, and its once-outlaw culture and practices haven’t yet fully evolved and adapted to the current business norms.  But it’s time for people in the industry to start thinking long-term, and to view themselves as part of a business sector that’s here for the long-term.


Ryan Fox is founder and CEO of Denver-based Kindman, one of the oldest and largest cannabis producers in Colorado. Last year, Kindman produced nearly 20 percent of the legal marijuana purchased in the state.

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