Edibles company The Growing Kitchen already was focusing on low-dosage edibles, so its preparation for the Feb. 1 deadline was mostly on the packaging end, according to Cody Mayasich, a sales lead at the company.
“We started preparing for the child-resistant packaging in August, so we’re already sending out compliant packaging this week,” said Susan Armitage, an executive assistant at The Growing Kitchen. “We’re very excited for the change. We think it’s good for the industry and for safety reasons and corporate responsibility.”
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Other companies are phasing out infused edibles that couldn’t work under the new recreational regulations. Dixie’s high-dosage recreational 100-milligram Colorado Bar will become extinct as of Feb. 1 — and that leaves Dixie needing to unload some of its soon-to-be-noncompliant inventory.
“Because of these changes in packaging and serving size and potency, a lot of our products are going to change,” Hodas said. “The dispensaries are hesitant to take new product because they won’t be able to sell high-dose products like our Colorado Bar, which is a single serving item that has 100 milligrams, after the end of the month.”
That’s why Dixie is partnering with marijuana chains Euflora and LivWell to offload its old product. Dixie’s wholesale price to Euflora was recently cut by 50 percent with the understanding that the store would keep costs low for its customers, according to Euflora owner Jamie Perino.
“I’m running a bunch of ads in magazines and newspapers advertising blowout sales, trying to get stuff moving,” said Perino, who owns shops in Denver and Aurora. “I’d rather run out and have shelves empty than have a bunch of product on the shelves that needs to be destroyed.”
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Euflora’s normal price on a Dixie Elixir infused drink with 70 milligrams of activated THC: $22.50. Her current price on the almost noncompliant Dixie drinks until she closes shop on Jan. 31: $7.
And she’s not alone.
“We are doing 40 percent off all recreational edibles at all of our recreational stores until Feb. 1 so we can offload all the product,” said Brian Keegan, director of retail operations for LivWell.
The temporary price cuts are substantial, especially when you consider that the cost of a recreational eighth of marijuana at 12 prominent Colorado pot shops dropped only by 9 percent from January 2014 to December 2014, according to Denver Post data.
Some stores are pushing 30 percent to 40 percent discounts through the end of January, while others are offering deals in which customers can buy one and get another for a penny.
These regulations are only the beginning. The work group that helped create them in 2014 never reached a place of full agreement.
At one point, Colorado health officials proposed a ban on most forms of edible marijuana, and the industry fought back immediately.
“Even though I would have shaped it a little bit differently,” said Dixie’s Hodas, “this is a necessary step in the growth process for the industry. We all agreed: ‘We have an issue here. Let’s head it off at the pass and make some changes.’ And most would agree that most of the changes we’re making are positive for here and the rest of the country.”
Ricardo Baca: 303-954-1394, firstname.lastname@example.org or twitter.com/bruvs
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