Colorado marijuana companies take a hit from global supply-chain issues

“On top of a very, very heavy regulatory load, this is just one more thing for this industry,” says Truman Bradley of the Marijuana Industry Group

Colorado’s marijuana companies aren’t immune to the supply chain disruptions testing industries worldwide, with some feeling the squeeze on packaging, nutrients and more.

“Cannabis is no different than any other industry,” said Matt Jacobs, vice president of operations at Veritas Fine Cannabis. “We’ve got the same issues that other people do when it comes to the supply chain right now.”

The coronavirus pandemic thrust the global supply chain into disarray, with overloaded warehouses, backlogged ports and labor shortages intensifying shipping delays. And the U.S. inflation rate continues to rise after hitting a 40-year high in December, the Bureau of Labor Statistics’ Consumer Price Index reports.

All the while, businesses are trying to satiate consumer demand, including those in Colorado’s marijuana industry. The sector saw over $2.22 billion in sales last year, breaking its previous record in 2020 at over $2.19 billion, the state’s Revenue Department reported.

Truman Bradley, executive director of the Marijuana Industry Group, the trade association for the state’s cannabis industry, said those statistics don’t tell the full story. Although the record-setting sales numbers are true, cannabis companies are subject to “extremely harsh federal tax rules,” while also paying state and local taxes, he said. Therefore, supply-chain problems stretch these businesses even thinner, Bradley added. [Read More @ The Denver Post]