On the most recent episode of Cannabis Insider, Kyle Kazan, CEO of Glass House Brands, shared his candid thoughts on the cannabis industry. His interview spotlighted the company’s latest project, Greenhouse 5, and its impact on production capabilities, along with his views on the potential DEA rescheduling of cannabis and his firm stance on the importance of decriminalization and legalization.
Greenhouse 5: Expanding Production And Lowering Costs
Kazan spoke about Greenhouse 5, which is set to add 250,000 pounds to their annual production. This move is aimed at reducing costs and making quality cannabis more accessible. Kazan emphasized that cannabis is fundamentally an agriculture business, and production efficiency is crucial for the company’s success and the consumer’s benefit.
By increasing production, the company aims to reduce the cost of goods sold (COGS), a move that Kazan believes is critical for the long-term viability and competitiveness of their products in the market. “Since day one, we’ve been focusing on COGS, COGS, COGS,” he stated, underscoring the relentless pursuit of cost reduction as a core company strategy.
The DEA’s Rescheduling And Its Impacts
The conversation took a deeper dive when Kazan addressed the DEA’s consideration of rescheduling cannabis. He made it clear that while his ultimate goal is the complete removal of cannabis from the scheduling system, he sees value in any movement towards less restrictive policies.
“My biggest concern, the reason why I’m not thrilled by schedule three in so far as people still go to prison for cannabis. And that’s unacceptable to me,” Kazan expressed.
He elaborated on the tangible benefits that rescheduling could bring to the industry, particularly regarding taxation. Under the current classification, cannabis companies face hefty tax burdens due to IRS Section 280E, which prohibits deductions related to the trafficking of Schedule I or II substances.
A move to Schedule III would alleviate some of these financial strains, potentially saving companies millions and fostering a more vibrant, competitive market.
A Strong Voice For Social Justice
Kazan’s commitment to social justice was unmistakable as he discussed the broader implications of cannabis legalization and decriminalization. He…
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