An Inside Look at Curaleaf, the World’s Biggest Legal Cannabis Empire
This is the World’s Largest Cannabis Company
The legal cannabis market began booming just as the coronavirus pandemic shook the world. While many companies have struggled to figure out how to get through the year’s financial uncertainty, one company that you’ve probably never heard of has been making money moves.
Curaleaf Holdings is a Massachusetts-based company that specializes in a variety of cannabis products and services. The company, whose slogan is “cannabis with confidence,” grows and sells cannabis in 18 states.
If you follow cannabis-related economic news, you’ll be hearing a lot about Curaleaf. That’s because they just bought Chicago-based cultivator and retailer Grassroots for a whopping $830 million. It has expected revenue of around $1 billion, executive chairman Borins Jordan tells CNN Business, making it the top-selling cannabis company in the world.
This has not been Curaleaf’s only big purchase. In the last year, the company has also snagged 15 other companies, most of which are small operators in states like Arizona, Colorado, and Florida.
Spending Millions On The Cannabis Market Is A Huge Risk. Here’s Why.
Curaleaf is building an empire as the U.S. continues to become more cannabis-friendly. Two-thirds of the United States have legalized medicinal cannabis, while several others have legalized recreational cannabis.
READ MORE: Which U.S. States Are The Most Relaxed About Weed?
Curaleaf’s buying spree has caught the attention of many economic analysts. Jordan explains that the company’s growth will help it compete against the massive wave of consumer product giants that will likely enter the cannabis market if the U.S. government were to fully legalize cannabis. Of course, no one knows if this will ever happen, and the uncertainty of cannabis’ legal future makes Curaleaf’s buying spree risky.
“Obviously, it’s a big bet,” Jordan says. “It could go wrong […] but I believe the genie is out of the bottle.”
The genie he’s referring to is federal legalization. Though the upcoming election is too close to call, and legislative priorities are uncertain, many have reason to believe that country-wide cannabis legalization is around the corner.
Other analysts warn that the cannabis industry isn’t ready for a company to expand so quickly. Jesse Pytlak, a Cormack Securities analyst with a knowledge of larger cannabis companies, suggests that the risk may be too big. After all, similar companies have made mistakes – MedMen, for example, had to sell its Arizona facilities and struggled to pay their vendors.
“There are concerns whether Curaleaf has been a bit too aggressive,” Pytlak said, referring to Curaleaf’s massive expansion.
If the buying binge pays off, Curaleaf will likely be a household name, at least for cannabis connoisseurs. With such an unpredictable market in an unpredictable country, there’s no telling what will happen.
