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Tuesday, Jan 14, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.

Cannabis

California weed lovers kick off 2025 with excitement over newly-permitted cannabis cafes

Gov. Gavin Newsom signed a bill authorizing them at the end of September

California weed lovers kick off 2025 by visiting newly-permitted cannabis cafes
Crystal Nugs is a Sacramento dispensary that plans on creating a lounge space now that the new law is in effect. Photo credit: CEO Maisha Bahati

There are a number of cannabis consumption lounges in California, but as of Jan. 1, patrons are now permitted to order food and non-alcoholic drinks alongside their blunts and dabs. So if you’re in Cali and feel like burning one down while enjoying an espresso or other beverage like you would in an Amsterdam-style coffee shop, you can now do that.

Assembly Bill 1775, signed into law by Governor Gavin Newsom at the end of September, is now in full force in the west coast state. It will permit having live entertainment for cannabis consumers too. Lord knows weed smokers love music and comedy.

A celebrity-founded dispensary in West Hollywood is pleased with the new legislation. The Woods, owned by actor Woody Harrelson, is one of the first dispensaries to start mixing things up by offering food and drink with marijuana. One of its founders expressed his excitement in an interview this week.

“It’s a win-win-win deal for everybody!” co-founder Jay Handal told Fox 11 Los Angeles.

Another state dispensary manager thinks it will benefit everyone too.

“I honestly think that it can help bolster not only our industry but the food industry as well,” a Vibe By California chain representative said in an interview with KRCR News Channel 7.

Selling alcohol or tobacco in the cafes will be strictly prohibited. Patrons will need to be 21 years of age or older.

Read more: New Jersey goes up in smoke this year with over US$1B worth of cannabis sold

Read more: Weedmaps parent company stock spikes after proposition to go private

California market poised for steady growth

San Francisco’s analytics firm Grand View Research expects that the Golden State’s legal marijuana industry will expand with a compound annual growth rate of 9.4 per cent until 2030.

“The growth is attributed to the rising awareness regarding the use of cannabis products for pain management therapies,” the market researcher says.

Despite this growth, the state is still plagued with a thriving illicit market and a questionably high tax rate for operators.

Tariffs on regulated cannabis in the state can be higher than 35 per cent when all is said and done. There’s a 15 per cent excise tax, a 7.25 per cent general sales tax, and other local taxes of up to 13.75 per cent.

 

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