In November 2020, Arizona voters approved Proposition 207, also known as the Smart and Safe Arizona Act, by a margin of 60% to legalize recreational cannabis. The state achieved one of the fastest adult-use rollouts out of any U.S. cannabis market. By the end of January 2021, adult consumers were making dispensary purchases, and there were 73 dispensaries approved for dual licenses out of more than 100 on the first day of recreational sales. In contrast, Maine took nearly four years to answer voter wishes.
The outcome was an influx of out-of-state brands and investors who were confident in the market due to its successful rollout. Arizona’s strong consumer demand and opening of off-site manufacturing and cultivation sites also boosted out-of-state interest. These facilities require a much smaller capital investment than acquiring a vertically integrated license and make brand expansion more accessible for smaller players in the market.
– Read the entire article at Forbes.