As mainstream businesses cope with surging inflation and the threat of a recession, many adult-use marijuana companies – growers, retailers and ancillary businesses alike – are struggling with their own host of problems.
Falling prices and a product glut in more established state marijuana markets are forcing companies out of business, triggering layoffs and setting off an industrywide scramble to stay afloat.
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Colorado, Oregon and Washington state are among the more mature markets where wholesale cannabis prices have tumbled, because growers produced far more flower than retailers could absorb.
The falling prices have put added strain on cannabis growers and retailers.
Ancillary businesses also are struggling, with tech companies Akerna of Colorado and Dutchie of Oregon as well as California-based delivery operator Eaze recently shedding employees.
Compounding the problems of cannabis companies: Marijuana products are often taxed at a far higher rate than mainstream goods such as corn,
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