- Cannabis industry expected to generate over $20 billion in nationwide revenue by 2020
- About 14 percent of California cities permit cannabis stores; secure distribution could extend accessibility
- TransCanna establishing distribution hub, connecting growers to manufacturers and clients
The legalization of recreational marijuana use in California has blown open the market potential of a drug industry that continues to enjoy a love-hate tentativeness nationwide, but being at the forefront of an industry’s acceptance also puts the state in a position of having to solve many of the infrastructure problems that the market needs to overcome if it is going to thrive. TransCanna is focused on helping marijuana producers surmount the difficulties of getting their product to consumers in the developing marketplace through a strategic distribution network that draws on the company’s decades of sales leadership experience.
“Branding, transportation and distribution in the cannabis industry is currently in a state of disarray. An industry that’s expected to generate over $20 billion in revenue nationwide by 2020 is currently operated similar to the traveling salesman selling his elixirs in the 1800s. Like many aspects of the cannabis business it is in need of professionalization,” the company’s website states.
TransCanna offers marketing and is in the process of building a distribution and transportation network to enable every aspect of the cannabis-related ecosystem, including branding, distribution and sales advising. The British Columbia, Canada-based company has received a local transportation and distribution permit in California, the largest potential recreational marijuana market in the United States, and is creating a distribution network throughout the state that will establish operating facilities so that any potential client will be no more than a three-hour drive away. As TransCanna buys or leases the properly permitted warehouse locations, it will also be building a fleet of secured vehicles for transportation.
Months after California legalized marijuana’s recreational use and years after medicinal use of the cannabis plant became accepted in the state, only one out of every seven cities statewide allow recreational cannabis stores, and less than one in three cities (144 out of 482) allow any other type of cannabis business, according to an analysis by The Mercury News (http://nnw.fm/2AFiB). Less than one in five California cities even allow medical marijuana dispensaries, even though medical marijuana has been legal in California since 1996, the report states.
A statewide-authorized distribution network could help potential clients hoping to avoid black market concerns push through the challenges posed by municipalities reluctant to license businesses locally. Although large sectors of the state where legislation bars the sale of marijuana, known as ‘pot deserts’, currently exist, a senator introduced a bill in February that would allow licensed companies to deliver marijuana anywhere in the state, even if local facilities don’t exist there, according to the Sacramento Bee (http://nnw.fm/Vni5I). The legislation was receiving time for discussion in early May.
In the meantime, transporting cannabis products in California remains extremely challenging because of the patchwork of local and state regulations, and companies regulated by the U.S. Department of Transportation are barred from playing a role because cannabis sales remain illegal under federal law. TransCanna’s distribution permit issued by the city of Adelanto gives it a leg up, and the company has entered into an Intellectual Property Rights and Royalty Agreement for the Track & Trace software platform required by the state. The company has also completed a land agreement to build a 10,000-square-foot hub for transportation and distribution in Adelanto.
TransCanna facilitates introductions between growers and corporate manufacturers, vetting clients for quality and scalability and then marketing them to outlets accessible to California consumers, and the company plans to build its own reliable product brand for the cannabis and hemp industries. These efforts, as well as its early work toward developing the transportation infrastructure arena, demonstrate TransCanna’s commitment to the California cannabis consumer.
For more information on TransCanna, visit the company’s website at www.TransCanna.com
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