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How Cannabis Company Caliva Survived A Business-ending Regulation

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Cannabis How Cannabis Company Caliva Survived a Business-Ending Regulation

When a new law limited how companies can deliver cannabis, Caliva just invested more in their delivery service.

Image credit: Courtesy of Caliva

Peter Page

Magazine Contributor

Senior Editor for Green Entrepreneur

August 21, 2019 4 min read

This story appears in the September 2019 issue of Entrepreneur. Subscribe »

In January, delivering cannabis in California became a lot more complicated. That’s when a series of state regulations passed, including a mandate that cannabis companies employ drivers and pay them at least minimum wage -- plus benefits. Unlike most other companies, such as pizza parlors or laundry services, contractors would no longer be allowed.

The law quickly killed off a lot of delivery businesses. Many dispensaries couldn’t afford to pay drivers more. But at the California company Caliva, a different conversation happened. Caliva grows its own cannabis, makes its own products, wholesales them, and operates its own store -- but it defines its mission more simply: “ubiquitous access.” That is the brand’s North Star, says CEO and president Dennis O’Malley. Everything it does must be aimed at expanding access to cannabis.


So, what about the regulations? Caliva treated them as a business opportunity. If competitors were going to simply meet the regulations, Caliva would exceed them.

Source: https://www.greenentrepreneur.com/article/337606

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