Cannabis MSO Slang Worldwide gives up on California for the second time

155 0

The cannabis company is unhappy with the direction the state’s cannabis industry is taking

While it would seem obvious that setting up a cannabis business in California is a great idea, there are a few businesses that have decided to leave lately. One of the latest multi-state marijuana brands to effectively abandon California holdings was Slang Worldwide. The news was shared by the company’s CEO John Moynan during an interview with Green Market Report yesterday.

The company had taken a similar action in 2019, but a while later decided to re-enter the Golden State market, making quite a bit of noise in the industry. Now, a couple of years later, the firm decided to pull out again, in a move that seems to be a bit dubious to many. Slang’s history with the California marijuana industry goes back more than a decade.

The CEO emphasized that the company will be analyzing the state’s market. “We will always keep an eye on it because, as a brand, you have to,” Moynan said.

The decision comes after the company also pulled out of Oklahoma and Oregon last year, a time when Slang was undergoing a major restructuring. Moynan made it clear that market conditions in both California and New York are equally troubling. He says both markets have high levels of uncertainty and underground market competition that make it difficult in both states to forecast solid profit margins.

“Right now, we are not actively supporting California as a market,” Moynan said. “We’re basically selling (existing inventory)….. The plan is to wait and see if California corrects itself and if it makes sense to reintroduce. It’s not a sustainable market.” That means a third-party reentry could be a possibility in the future.