Small producers have long been wary of the cannabis industry coming under domination by multistate operators (MSO’s) with the worst practices of corporate America. But the revelations of Russian oligarch money in the coffers of leading MSO Curaleaf appear to vindicate even the most cynical observers. These follow a slew of controversies concerning product safety and labor rights at the company.
Now based in the Boston suburb of Wakefield, adult-use cannabis colossus Curaleaf seems to exemplify the industry’s trajectory — from its origins as a local operation for medicinal users to its current status as a globe-spanning titan generating unsavory headlines and a string of scandals.
The World’s Largest Cannabis Company
Today Curaleaf ranks as the largest cannabis company in the world. Last year, it claimed $1.2 billion in profits. Until recently it had operations in 23 US states with 147 dispensaries, 22 cultivation sites, and 30 processing facilities.
Like other big MSOs, Curaleaf has achieved a dominant position in the cannabis industry by setting up operations primarily in “limited-license states . . . with natural high barriers to entry and limited market participants,” a strategy that helps “to ensure the company’s market share is protected,” according to the company’s annual investor filing in 2020.
But these “high barriers to entry” are hardly “natural.” They are constructed and promoted by policy-makers, regulators, and some opportunistic legalization advocates who favor restricting access to lucrative cannabis business licenses to a small number of well-heeled applicants.