As I mentioned last night, former Microsoft employee Jamen Shively’s press conference with former Mexican President Vicente Fox went down today:
Shively described grand visions for his pot brand — hundreds of millions of dollars in investments, tens of millions of customers, more than 1,000 jobs just at Diego Pellicer’s Seattle headquarters.
“Yes, we are Big Marijuana,” he announced.
In a filing with the Securities and Exchange Commission last March, the company wrote that it had raised $125,000 of an anticipated $625,000. Shively suggested those were outdated, but did not provide different figures.
I’m far from someone who has concerns about a commercial marijuana industry. I find it natural that once marijuana is legal and regulated, there will be companies that will grow to resemble the large brewers and distillers in this country. They will even pander to heavy smokers and largely not care about people who develop dependency issues with their product. As far as I’m concerned, this is still far better than settling turf wars with gun battles and not having any government oversight into their production processes.
But I’m somewhat annoyed by what Shively is doing here (even beyond what I mentioned last night about the risks he’s taking with respect to provoking the feds). What annoys me is that there’s a sense that he can become “big marijuana” just through marketing and good corporate gamesmanship alone. As we develop this new market, I have hopes that the Liquor Control Board errs on the side if giving out more licenses to more folks to foster an atmosphere of competition. If someone is going to become “big marijuana”, I want them to get there by having a superior product, and by working their ass off to grow a good company. Not because they have connections and a lot of capital.
I want them to get there by having a superior product, and by working their ass off to grow a good company. Not because they have connections and a lot of capital.
Just as Starfleet’s greatest engineer could not change the laws of physics, legalizing something does not change the laws of economics. “Connections and a lot of capital” have been ruling us since — all together now — CAPITALism became our dominant economic system.
That said, other economic realities may stop Big Pot. Criminalization meant a highly diffuse set of growers, and Washington state is still an agricultural powerhouse. Just as craft wineries, craft breweries, now followed by craft distilleries, re-made public attitudes toward mass-produced products, that same idea may give us craft, um, groweries?
Do people want a superior product from a “good” company. Given the reach of WalMart, I’d have to say no. What people apparently want is “cheap” with abysmal service. I think I’ll stick with my hometown growers.
Lee, Lee, Lee…you’re joking, right? Capital and marketing (and market positioning) trump quality products every time. As a former employee of Microsoft – and, in all likelihood, a former employee of at least one company with far better software that got run out of business by MS, because what IT person hasn’t worked for one of those? – I’d think you’d be pretty familiar with that concept. :-)
This is a sticky problem for me.
On the one hand, I would like the home growers who have been facing rip-offs and prison for years to have a chance in this market. On the other hand, I would like to see the market even out with demand being met by supply in a consistent way.
It is clear that Shively wants a virtual monopoly or at least a commanding position in the marketplace. That is the goal of capital, without regard to the product or the customer.
We already have a lot of small highly experienced pot growers in this state. It won’t be long before they join forces with local farmers. A Mexican import may be able to dominate for a short time. But it won’t last. I mean, what would you grow? Potatoes worth $200/ton or pot worth in excess of $200/pound?
#4, What Shively wants and what he gets are two different things. He may have been big at MS but he knows jack about ag. Our ag industry will eat him alive.
Why wouldn’t Big Tobacco gobble up this trade?
I think there will be both large and small growers and marketers for marijuana some day. Just like there are big brewers like Budweiser and Miller, there are smaller brewers like Mac and Jack’s and Pyramid.
It’s all unchartered territory at this point, but I believe, if we can have a vast military empire overseas, we can figure out a way to have legal marijuana nationwide.
7. Roger Rabbit spews:
Why wouldn’t Big Tobacco gobble up this trade?
What is their leverage? Their growers in the tobacco states can’t grow pot until it is legal there. And I don’t think the farmers here are going to be excited to sell cheap to the Big Tobacco companies like farmers do in the South.
8. Ten Years After… :
It’s all uncharted territory at this point, but I believe, if we can have a vast military empire overseas, we can figure out a way to have legal marijuana nationwide.
That “vast military empire overseas” is going to come to a grinding halt in the not so distant future since it runs on middle class taxes and the middle class is both shrinking and growing poorer.
From 10,
I certainly hope it does come to a grinding halt soon! We can’t afford this empire any longer.
I see a stock sales engine cranking up, product…not so much..;-D GBSEGWW Check out CBIS closely for an example on a smaller scale…