New cannabis delivery licenses for SE and EE applicants are the golden goose license, read this https://cannabis.net/blog/opinion/the-end-is-near-new-cannabis-delivery-licenses-will-cause-massive-disruption-in-the-marijuana-i

1. 9/26/2020 The End is Near - New Cannabis Delivery Licenses Will Cause Massive Disruption in the Marijuana Industry
https://cannabis.net/blog/opinion/the-end-is-near-new-cannabis-delivery-licenses-will-cause-massive-disruption-in-the-marijuana-i 2/13
AMAZON OF WEED DELIVERIES
h d i bi li

2. 9/26/2020 The End is Near - New Cannabis Delivery Licenses Will Cause Massive Disruption in the Marijuana Industry
https://cannabis.net/blog/opinion/the-end-is-near-new-cannabis-delivery-licenses-will-cause-massive-disruption-in-the-marijuana-i 3/13
The End is Near - New Cannabis Delivery
Licenses Will Cause Massive Disruption in
the Marijuana Industry
Massachusetts just created the Golden Goose of all marijuana licenses
Posted by:
Thom Baccus, today at 12:00am
The End is Near - New Cannabis Delivery Licenses Will
Cause Massive Disruption in the Marijuana Industry
New licenses being issued in states like Massachusetts will upend the current marijuana industry

3. 9/26/2020 The End is Near - New Cannabis Delivery Licenses Will Cause Massive Disruption in the Marijuana Industry
https://cannabis.net/blog/opinion/the-end-is-near-new-cannabis-delivery-licenses-will-cause-massive-disruption-in-the-marijuana-i 4/13
While many articles and streaming hours have been devoted to such ideas as whether we will see cannabis legalization
in 2021 with a new president, or whether marijuana will help or hurt Democrats at the polls this November, there is a
much larger and stealth threat to the current cannabis industry as we know it.
Delivery licenses with large “moats”, as Warren Bu et would describe them.
Wait, I thought we already had delivery licenses in legal states and brick-and-mortar dispensaries are doing just ne?
Meet the social equity or economic empowerment delivery license as issued by the state of Massachusetts. Now, I am
not saying the groups getting access to these licenses rst are not deserving in a historical sense or economic sense, I
am only looking at how the license will change the operational structures of current cannabis dispensaries and
cultivators.
The new Massachusetts delivery licenses are for SE or EE applicants only (social equity or economic empowerment) and
the winning applicants are being given a 3-year exclusive window for deliveries in Massachusetts. The original drafting
of the license was not that threatening to current dispensaries and groups because it made the new delivery licenses
essential have to buy product at retail prices, mark up the price, and then try to sell cannabis at retail plus mark up.
With current Massachusetts prices some of the highest in the country when you factor in the taxes, that did not seem
like a viable threat to the industry or much of a bargain to consumers.
Then the world changed. The CCC of Massachusetts changed the rules and will now allow these exclusive licenses to be
able to buy at wholesale and sell at retail.
Game changer.
Game. Set. Match.
The Cannabis Control Commission of Massachusetts just created a legal, mobile dispensary that costs 1/100th of the
cost of a brick-and-mortar dispensary and will have 1000% higher margins. They will also have a clear customer service
advantage by delivery alone, one-click and weed comes to your door a few hours later.
What is a Moat?

4. 9/26/2020 The End is Near - New Cannabis Delivery Licenses Will Cause Massive Disruption in the Marijuana Industry
https://cannabis.net/blog/opinion/the-end-is-near-new-cannabis-delivery-licenses-will-cause-massive-disruption-in-the-marijuana-i 5/13
Warren Bu et loves industries that have natural or government-created moats. Moats, in this sense are any unusual
hurdle a business would have in creating competition with another business. Essentially, a business is not copiable just
by writing a big check, whether through regulations, laws, or having a long history, one could not just copy or create a
competitor overnight.
The moats enjoyed by these new licensee holders revolve around time and price. A 3-year exclusive window is a
massive head start in winning market share and customer loyalty without any legal competition. If a license is awarded
in late 2020, and the new company does a delivery on April 1, 2021, you are looking at non-exclusive rights ending on
April 1, 2024! That is coming up on the next presidential election, not this one in a few months.
The second moat is pricing and margin exibility. Brick-and-mortal dispensaries have spent millions of dollars to get
locations open in Massachusetts when you factor in the real estate, lawyers, landlords, licensing, grow facilities and the
list goes on, not to mention the current IRS tax codes that greatly hamper a cannabis company from being super-
pro table right out of the gate.
The new delivery licensee will not be spending a dime on store fronts, landlords, employees, rent, and cultivation. While
there will be a few employees and the inventory will need to be stored somewhere, the cost savings from opening with
just a few delivery vans and drivers is massive.
The margins will destroy brick-and-mortal dispensaries. The cost of buying wholesale and delivering at retail prices will
be pennies on the dollar compared to how current brick-and-mortar dispensaries are doing it now. Those extra
margins and pro tability early in the business cycle will allow for massive reinvestment into customer acquisition and
loyalty over the 36-month exclusive window.
Massachusetts just created the rst few “Amazon’s of Weed”, at least in their embryotic stages. Now the battle will
become who can get the orders the fastest and cheapest. Internet tra c will be one of the key pegs in the building of a
delivery empire. Ordering will all be done on mobile sites and apps with these new licensees within 6 months of
opening. Just like those Amazon-branded vans delivering your paper towels and Insta Pots (no pun intended), new SE
and EE delivery license vans will be dropping o your Blue Dream 8th and pack of Wanda gummies.

5. 9/26/2020 The End is Near - New Cannabis Delivery Licenses Will Cause Massive Disruption in the Marijuana Industry
https://cannabis.net/blog/opinion/the-end-is-near-new-cannabis-delivery-licenses-will-cause-massive-disruption-in-the-marijuana-i 6/13
The current establishment of the marijuana industry has been warned, your margins are their opportunity as Je Bezos
once said.
WEED IN MASSACHUSETTS, READ THESE...
(https://cannabis.net/blog/news/marijuana-in-massachusetts-when-
social-equity-intersects-with-host-community-agreements)
HOW CANNABIS LICENSING WORKS IN MASSACHUSETTS, CLICK HERE. (https://cannabis.net/blog/news/marijuana-in-
massachusetts-when-social-equity-intersects-with-host-community-agreements)
OR..
(https://cannabis.net/blog/opinion/sizing-the-massachusetts-marijuana-
market-how-big-will-the-market-get)

6. 9/26/2020 The End is Near - New Cannabis Delivery Licenses Will Cause Massive Disruption in the Marijuana Industry
https://cannabis.net/blog/opinion/the-end-is-near-new-cannabis-delivery-licenses-will-cause-massive-disruption-in-the-marijuana-i 7/13
HOW BIG IS THE MASSACHUSETTS MARIJUANA MARKET ACTUALLY? (https://cannabis.net/blog/opinion/sizing-the-
massachusetts-marijuana-market-how-big-will-the-market-get)
What did you think?
Keep reading... click here
(https://cannabis.net/blog)
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7. 9/26/2020 The End is Near - New Cannabis Delivery Licenses Will Cause Massive Disruption in the Marijuana Industry
https://cannabis.net/blog/opinion/the-end-is-near-new-cannabis-delivery-licenses-will-cause-massive-disruption-in-the-marijuana-i 8/13
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8. 9/26/2020 The End is Near - New Cannabis Delivery Licenses Will Cause Massive Disruption in the Marijuana Industry
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