LTA1 
Member since Apr 3, 2009


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Re: “When Weed is Legal

The dispensaries in Los Angeles are a model for what the market will look like when it is legal. The first thing to note is that marijuana is not exactly equivalent to tobacco in terms of sales. It is more equivalent to a combination of wine and fresh produce. Buyers have shown that they want variety in their product. They want to sample different flavors, much like the shoppers at Trader Joes shop for wine. They probably aren't going to want to stick to the same old flavor every time, as smokers of tobacco do. They have also shown that they want freshness. Stale marijuana loses value rapidly and soon can't be sold because it loses its aroma and potency. This isn't true with either tobacco or alcohol, which have very long shelf lives by comparison. They also clearly value good-looking products. Consumers will pay twice as much for well-formed buds than they will for shake from the same plant. All of these factors will make it difficult for tobacco companies to compete. The best marijuana will be marijuana that is grown locally to the user, or is shipped in while it is still fresh, is well-formed, and comes in a variety of flavors. These are all factors that are easier for a relatively small local grower to achieve. Therefore, the marijuana market will probably be closer to something like the micro-brewers market for beer.

Posted by LTA on 04/03/2009 at 10:23 AM

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