Understanding Large Cannabis Firms: Qualitative study exploring for-profit and nonprofit perspectives

• In Event: 2151 - Section on Alcohol, Drugs, and Tobacco Roundtable
  In Refereed Roundtable 60min: 4. Preventing, Using, Abstaining, and Selling Drugs

Abstract

Background
Large for-profit firms supply a substantial fraction of cannabis products sold in state-legal stores. Some of them are active in trying to shape cannabis-related policies. There is a need to understand the motivations of such firms, given their possible link to cannabis use patterns.
Method
The data were collected through 320 hours of ethnographic observations at a large cannabis firm, and 34 semi-structured interviews with key decision makers in the US cannabis space, both for-profit and nonprofit organizations. Within the for-profit space (26 participants), most (11) were from cannabis private equity firms, followed by consulting firms (5), growers/retailers (4) and others (6). All (11) nonprofits were advocacy groups.
Findings
Key decision makers at large cannabis firms and nonprofits characterized cannabis as a medicine and/or as a means to mitigate social inequity. Motivations indicated by large cannabis firms for participating in the cannabis space appear largely profit-oriented. Some large cannabis firms wanted leadership in the industry to represent more profit oriented interests rather than socially conscious motives. Although many firms appeared to be driven by socially conscious motives, firm engagement with these causes were generally motivated by self-interest. Some nonprofits were aware that large cannabis firms saw them as means to increase the size of the legal market, and engaged with firms, in exchange for funding.
Conclusions
For-profit representatives’ motivations seemed to indicate that the cannabis space is a business, one with social benefits and stigmas, and limited growth potential, that working with a non-profit might help to ease.

Author

• Navin Kumar, Queensland University of Technology