When the fed legalizes weed, what company profits?

Looking at it from an investment standpoint, what company looks to capitalize the most? Current stores are local with relatively low distribution abilities. I would think that the big tobacco companies would be in the best position to handle the demand.

Someone is going to make some bank. Might as well get a piece of it if possible. Altria? Reynolds? Phillip Morris?

Or is big tobacco not the obvious choice? Phone Post

I don't think it will ever be legal to which it has a distribution method like you're speaking of. Anyone with a brain can grow pot, anyone with that plus money can grow a lot of pot. There is no way to police it for it to go down like booze or scripts. Phone Post 3.0

Doritos

the companies that are dominating at the state level will consolidate and expand operations or get bought out to leverage scale efficiency.

The government profits the most because of taxation, whether the growers and dispenseries turn a profit or not (and many will not). Phone Post 3.0

Best thing about it is that it cuts off Mexican cartels at the knees.

No one is gonna buy Mexican brick weed when you can get high grade stuff of $15. Also, the prohibition premium is gone

Mark Phone Post 3.0

forrestfan - Doritos

LMAO Phone Post

Pat Giles - I don't think it will ever be legal to which it has a distribution method like you're speaking of. Anyone with a brain can grow pot, anyone with that plus money can grow a lot of pot. There is no way to police it for it to go down like booze or scripts. Phone Post 3.0

Anyone with a brain can grow carrots and tomatoes, too. Phone Post

Alco Hauler -
Pat Giles - I don't think it will ever be legal to which it has a distribution method like you're speaking of. Anyone with a brain can grow pot, anyone with that plus money can grow a lot of pot. There is no way to police it for it to go down like booze or scripts. Phone Post 3.0

Anyone with a brain can grow carrots and tomatoes, too. Phone Post

Yup, and they all sell them to the farm markets and grocery stores. Is that how you're saying the marijuana industry will be or what? I'm missing the point.

Notice how stuff at the farmers market is always better quality? It's the same in the pot industry. There are people who grow thousands of pounds of "ok pot" as I'll call it. Just like a hothouse tomato it has a use but if I want a fancy tomato I go to the farm
Market, just like the pot smokers get something diff than regular pot. Phone Post 3.0

Pat Giles -
Alco Hauler -
Pat Giles - I don't think it will ever be legal to which it has a distribution method like you're speaking of. Anyone with a brain can grow pot, anyone with that plus money can grow a lot of pot. There is no way to police it for it to go down like booze or scripts. Phone Post 3.0

Anyone with a brain can grow carrots and tomatoes, too. Phone Post

Yup, and they all sell them to the farm markets and grocery stores. Is that how you're saying the marijuana industry will be or what? I'm missing the point.

Notice how stuff at the farmers market is always better quality? It's the same in the pot industry. There are people who grow thousands of pounds of "ok pot" as I'll call it. Just like a hothouse tomato it has a use but if I want a fancy tomato I go to the farm
Market, just like the pot smokers get something diff than regular pot. Phone Post 3.0

I'm just saying that humans, in general, are inherently lazy. Once legalized, there is an entire new group of untapped consumers who aren't as educated on the product as the person you are describing.

To just assume that legalization means everyone will start growing their own pot is pretty short-sighted. There is a ton of money to be made - and a ton of tax dollars to be collected. If legalized, I would think the fed would want it to be on as big of a scale as possible. Phone Post

Growing weed is a pain in the ass.

Just like brewing beer is a pain in the ass.

There is a fine line between hobby and chore and growing tends to become the latter especially if you clone or do sea of green, the ride never ends.

Mark1 - Best thing about it is that it cuts off Mexican cartels at the knees.

No one is gonna buy Mexican brick weed when you can get high grade stuff of $15. Also, the prohibition premium is gone

Mark Phone Post 3.0


Maybe 15 years ago.  Today?  Not a chance.  They moved on when they lost CA to Prop 215.  Methamphetamine production, heroin production, and cocaine trafficking from South America have become their cash cows.  Not to mention, they have diversified far beyond drugs.  Knights Templar make more money on other investments over drugs.



I'll say it again.  Mexican cartels are the most powerful, well-funded, dangerous criminal organizations in the world.  It is asinine to think we are "protecting" America from some human cockroaches in Syrian caves while we allow cartels to operate nearly unchecked for fear of violating political correctness.



http://www.borderlandbeat.com/2010/12/mexican-drug-cartels-diversify.html



http://www.huffingtonpost.com/2014/03/17/drug-cartels-iron-ore_n_4978564.html

Convenience stores. Especially the ones that sell slurpies.

Alco Hauler - 
Pat Giles -
Alco Hauler -
Pat Giles - I don't think it will ever be legal to which it has a distribution method like you're speaking of. Anyone with a brain can grow pot, anyone with that plus money can grow a lot of pot. There is no way to police it for it to go down like booze or scripts. Phone Post 3.0

Anyone with a brain can grow carrots and tomatoes, too. Phone Post

Yup, and they all sell them to the farm markets and grocery stores. Is that how you're saying the marijuana industry will be or what? I'm missing the point.

Notice how stuff at the farmers market is always better quality? It's the same in the pot industry. There are people who grow thousands of pounds of "ok pot" as I'll call it. Just like a hothouse tomato it has a use but if I want a fancy tomato I go to the farm
Market, just like the pot smokers get something diff than regular pot. Phone Post 3.0

I'm just saying that humans, in general, are inherently lazy. Once legalized, there is an entire new group of untapped consumers who aren't as educated on the product as the person you are describing.

To just assume that legalization means everyone will start growing their own pot is pretty short-sighted. There is a ton of money to be made - and a ton of tax dollars to be collected. If legalized, I would think the fed would want it to be on as big of a scale as possible. Phone Post


+1

Nobody will be growing their own. It will be too expensive and not worth it when 12 week sativas with 30%+ THC Level are selling for $50 an ounce. It won't be worth the electric bill when you can't get $15/gram for it.

There will be "Bud Light" type commercial schwag strains, low THC levels, high yield, easy trimming, grown on 8 week schedules for mass production, etc.

There will be hard liquor equivalents (higher potency buds, hashes, oils, etc)

Then there will be the equivalent of "craft beers" i.e. "micro grows" that will focus on high THC% 12 week strains, rare strains and whatnot.

Economies of scale will guarantee that neither option will be terribly expensive compared to what is currently available, especially when you have a company like Monsanto able to engineer crazy potent shit that we can't even imagine.

There will still be ridiculously priced super strains better than anything we currently have, and they will probably be sold as premium/custom/boutique type products at ridiculous prices like vintages of wine, e.g a particularly potent/rare F1 phen from a certain year, etc. especially if it's outdoor and there are way more variables.

The CO laws just changed so that pot shops don't have to grow 70% of their product, opening the door to people who do NOTHING but grow and improve strains of reefer. That is when the doors will be blown open and shit will get real.

TLDR: Once the barriers to entry are removed, potency and quality will go up and the price will plummet, outside of rare/special/premium boutique strains.

The Feds? Isn't it all taxed to shit that the dispensaries can barely turn a profit? Phone Post 3.0

Monsanto is located in Missouri.
Missouri just filed a ballot petition for legalization in 2016.
If that happens then Monsanto should see an amazing opportunity present itself.

I don't give a fuck about GMO or organic, if Monsanto can produce a super GMO pot strain that can be produced for $1/gram if grown with chemical fertilizers then I'll smoke it every day and die happy.

Alco Hauler -
Pat Giles - I don't think it will ever be legal to which it has a distribution method like you're speaking of. Anyone with a brain can grow pot, anyone with that plus money can grow a lot of pot. There is no way to police it for it to go down like booze or scripts. Phone Post 3.0

Anyone with a brain can grow carrots and tomatoes, too. Phone Post

This. Fruit and vegetables can be grown, yet people still buy from the store. Bread can be made cheaply, yet people still pay $4 a loaf. Wine can be made from fermented juice, but people still buy wine. Lack of equipment, time, and plain old laziness means that there will always be buyers at a retail level. Phone Post 3.0

Z NEDCMK1 - 


Big topbacco will buy up all the smaller companies. IMO the playis to own the current pot companies, and when we move very close to legalization they will be taken out for premiums.



This is what I was originally thinking too, but the more I thought about it the less I liked that idea. What would they be buying?  The only thing they might be interested in would be the knowledge and processes.  They wouldn't need the building or the company as I would assume the size wouldn't work for their needs, and the name brand would only have local significance so it wouldn't be worth a large dollar buyout. I'd envision them trying to hire away a few key people for quality control and market a new product from there.



If I sound way off base on anything let me know - I don't smoke and know very little about the product.  I'm purely looking at the possibility of positioning myself to make a few bucks on a new sector that is likely to explode in the next 5-10 years.

Marijuana profits up in smoke under IRS rules

 

^^Link

"Under this tax code the federal government stands to make more money from the sale of marijuana than those legally selling it. And that could be enough to shut down many shops."

Did phillip morris ever buy more property up in Humboldt/mendo counties