Can Independent Stores Compete with MSOs in Adult-Use Markets?
According to a 2021 Gallup poll, 68 percent of Americans support cannabis legalization, representing a seismic shift toward normalization in the collective mind of American society. This growing sentiment, combined with new adult-use markets coming online, is fueling new opportunities for both established, well-funded multistate operators (MSOs) and independent dispensaries alike. As medical markets expand into adult use, first-entrant companies are well-positioned to activate adult-use sales quickly. Most states allow medical operators to begin sales in new recreational markets as they navigate the permit and approval process, so many medical retailers can begin operations months before the influx of competitors are ready to open their doors. Additionally, medical operators generally have well-established infrastructure, a good understanding of the regulatory environment and local market dynamics, and a head start on consumer engagement with medical patients, providing a compet...