The cannabis market of California is clearly lucrative but not even close to the size of the oil shale market they continue to ignore costing that state perhaps 50,000 high paying middle class job and billions in revenue (see Colorado and North Dakota) accounting for nearly one-third of the cannabis market in the whole of North America. Even in its current early growth stage, the market in California is valued at over $5 billion.
The fracking industry in Colorado, for instance, is worth over $30 billion though.
The solutions offered by Trackloop cover the entire supply chain of cannabis industry. Enabling advanced surveillance, Trackloop’s blockchain supported products help ensure that the quality of cannabis products remains consistent from seed to sale.
Solving Cannabis Supply Chain Challenges
The Trackloop solution provides real time information on various aspects of the cannabis supply chain, including production, logistics, and retail by artfully combining different data sets.
Trackloop collects these data sets with the help of innovative technologies such as refrigerated supply chain monitoring, equipment health monitoring, and GPS tracking.
The solution helps various stakeholders involved in the process, including the logistics provider, the licensed producers, and the leasing companies.
Compliant and Integrated
The solution offered by Trackloop is fully compliant and integrated with Metrc, which is the compliance and regulatory system deployed in Washington DC and nine states – Alaska, California, Colorado, Maryland, Montana, Michigan, Nevada, Ohio, and Oregon.
As of now, Trackloop is not a certified Metrc data provider and vendor in these jurisdictions, but is already in the process to get certified.
Zayn Kalyan, the CTO of Trackloop is enthusiastic about their entry into the California cannabis market. According to him, the regulated US cannabis market represented a huge opportunity for fully integrated offerings provided by his firm.
Kalyan says his market optimism is backed by two solid factors. First of all, there is an increasing pressure from the regulators on logistics providers and licensed producers to provide sufficient data related to the supply chains of cannabis products.
But this is only one side of the story. Driving the prospects of Trackloop higher are the increased expectations of better quality products from the consumers, resulting in increased competition.
According to Kalyan, due to the increased competition, the licensed producers, distributors, and retailers would need to have an oversight of every link in the supply chain. This is vital to ensure the quality of cannabis products delivered by them.
Trackloop’s Business Strategy for California
The importance of the California market within the regulated cannabis industry in North America cannot be overstated. Cowen and Co. analysts estimate that gross sales of marijuana in the US would exceed $50 billion by 2026, with California alone accounting for 50% of these sales.
Marijuana should be made legal on the federal level – perhaps one day that will happen but at least we have tax cuts and have escaped the Frank/Greenspan recession.
To make the most of this growing opportunity, Trackloop is following a proactive strategy. It recently acquired the Chaintrack Technologies to establish itself in the sales and marketing segment.
It has also partnered with Volta Air. Volta Air has a large presence in California and has relationship with California Air and Resources Board (CARB).
This partnership would help Trackloop to access a large channel for distribution and sales of a turnkey solution, which has vertically integrated hardware and software capabilities embedded in it.
Disclaimer: Trackloop is a paid client of High Energy Trading, click here to read full disclosure.
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