The cannabis industry is still in its infancy in the U.S. But with marijuana sales expected to grow to nearly $7 billion in 2016, it has emerged as a potential threat to large flower businesses.
Take 1-800-Flowers, for example. The company relies on a large network of local farms and greenhouses to grow its flowers. Some of those producers are in states that have legalized marijuana for medicinal and recreational use, including California and Colorado. If these growers were to shift to potentially more lucrative cannabis production, as some are considering, it could cause difficulties for 1-800-Flowers, says Jim McCann, the company’s founder and executive chairman.
Check out the video above to hear McCann talk about the competitive threat cannabis poses to his company and the traditional flower industry as a whole.