The reason Brady named his new venture “Sunburn”:
So, on [naming it] Sunburn, the DEA task force, the joint DEA/DOJ task force that was commissioned in 1981 to take my father down the year I was born—he was ultimately indicted in 1983—was dubbed “Operation Sunburn.”
Why Florida?
Studying those markets and what was moving in those markets—especially Arizona, because that’s the most recent state to go from medical to adult-use—I wanted to see what makes [these changes ] successful in a flip. So, we went out there, we studied, [and] we started running SWATs on those markets
We’ve been running a SWAT on the Florida market since 2018. We saw the opportunity in that if the stores that do really well in those markets that flip are well-located stores with high-quality products that have ample parking, the tertiary locations and shopping centers don’t do as well.
What causes more disruption in the cannabis industry: interstate commerce or federal legalization?
I think it’s federal legalization. I don’t think interstate commerce is going to be that disruptive to operators and brands.
This notion that everything’s going to go to California and be shipped across the country, by the way, flowers degrades quickly. As you’re shipping it and moving it, it degrades even more quicker.
The state regulatory systems that are already in place are going to allow for those operators in those states and those products in those states to be protected. The states are going to have their own rule[s]. You’ll never convince me that this will not be rolled out the same way as alcohol and federal legalization.
Brady Cobb, Founder of Sunburn Cannabis
I believe, always have—I’m a huge advocate—[that] safe banking will be the first domino to fall. And then, you will see a three-tier alcohol system. The alcohol distributors? Not in a million years. Are they going to let someone else distribute the product? So, at that point, they’re distributing products, interstate commerce, and then alcohol. If you look,there [are] dry counties. There [are] dry cities.
It’s going to be the same framework there; [they] already have it. I’m not saying this on conjecture. I’m in DC. We’re meeting with the alcohol lobby. I, you know, raised a lot of my capital for Sunburn from the alcohol industry. The reason they’re investing in [it] is because they see the potential for brands. Retail’s going to get hurt in the long run.
I think the biggest disruption’s going to be federal legalization and what it does to retail—cannabis-specific retail—because the minute it’ll be the c-stores first followed by the big boxes, the minute that they can have high margin items like cannabis, total wine will get rid of half the cigars, and it’ll be pre-rolls and gummies.
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