The Economist: Marlboro of marijuana?

[eridani]

http://www.economist.com/news/business/21631041-legal-cannabis-industry-run-minnows-liberalisation-spreads-may-not-last?fsrc=nlw|hig|6-11-2014|NA

What would it take to build a Marlboro of marijuana, then? Most of the obstacles are regulatory. Until recently Colorado’s dispensaries were obliged to grow at least 70% of the cannabis they sold, and cultivators had to retail at least 70% of what they grew. The idea was to make it easier to keep track of the drugs—“from seed to sale”, as the state government puts it—and avoid creating excess supply, which could feed the black market. But one consequence is that firms have been unable to specialise. Some companies are good at farming but not at selling; others have nice storefronts but lower-quality products. No company has grown as fast as it might have, were it able to focus on one thing.

Cannabis businesses have been financially hamstrung, too. Getting a bank account is difficult, since even local banks must obey regulations laid down at the federal level, at which cannabis is still outlawed. About one-third of the industry is completely unbanked, according to Mr Elliott. Last month hundreds of bank machines inside cannabis dispensaries in the legalised states were unplugged, after the South Dakota-based bank that ran them got cold feet about its legal position. Banks are unwilling to offer loans to businesses that could, in theory, be shut down at any moment by the Feds. Equity financing is tricky too, since both Colorado and Washington have imposed residency requirements on the owners of marijuana businesses—including anyone with an equity stake.

[Jesus Malverde]

1. The Marlboro of marijuana exists.

It's called the sinaloa cartel.

They produce, move and market cannabis by the tons, and make billions in profits.

[Nye Bevan]

2. Like Al Capone during Prohibition.

We need to get rid of those stupid laws.