Planet 13 opens Orange County SuperStore

Bob Groesbeck, Planet 13 Co-CEO, joined Yahoo Finance Live to discuss the opening of the company's SuperStore in Orange County and his outlook for the cannabis sector.

Video transcript

SEANA SMITH: Jefferies out with a bullish note on the US marijuana industry this week, now analyst Owen Bennett saying in a note to clients that he expects the annual retail sales in the industry in the US to reach $36 billion by 2025 $64 billion by 2030. So we want to talk to one company that's looking to capitalize on some of this growth. And for that, we want to bring in Bob Groesbeck. He is the co-CEO of Planet 13, which has been described as weed wonderland.

And Bob, I was looking at videos, I was looking at pictures of your store. I would describe it, I guess, as a megastore type concept, but it also has this experiential, theme park, entertainment complex type vibe. But I'm curious just in your words how you would explain the angle, I guess, that you're going for and also the potential growth that you're seeing in this industry.

Oh, great. Thanks for having me. I think you said it best. We're trying to create an experience. This is much more than a traditional retail play. This is all about really bringing cannabis into the mainstream with a little kicker and that being entertainment. And you know, Las Vegas, of course, being one of the largest tourist destinations in the world, we thought it was a natural fit to tie in that experiential component to cannabis sales and to really kind of take marijuana out of the back alley and really bring it mainstream at a high level. And that's what Planet 13 is all about.

JARED BLIKRE: Well, you're opening at a time when Disneyland itself is just kind of reopening. We have cruises setting sail, disembarking from US ports.

BEN GROESBECK: Right.

JARED BLIKRE: How is the reopening affecting your business specifically right now?

BEN GROESBECK: Well, we just opened the Orange County store January-- I'm sorry, July 6, rather-- or July 1. It's a new venture for us. It's a new market. We're terribly excited about the opportunities there. And you know, it's new. And this is the largest dispensary in the state of California, and it is over the top, as you can see from the images on the screen.

And it's-- again, like Las Vegas, it's designed to really create an experience for the customer, to get to engaged in the facility. Our philosophy is if you want to be-- you know, you want to get through the store in 10 minutes, we want to accommodate you. But if you want to spend an hour or two, we want to make sure that that can happen for you as well.

SEANA SMITH: And Bob, I want to bring up some of the recent headlines that we've gotten, I guess specifically just starting with Amazon because we saw Amazon kind of reverse its stance when it comes to marijuana, saying they will no longer test new employees for ' when they're looking for hiring. I'm curious, when a large company like Amazon takes the type of stance like that, how significant is that for a company like yours?

BEN GROESBECK: Well, I think it's important for the entire industry. You know, obviously, that demonstrates that that stigmatization is starting to wane. You know, obviously, if you're operating heavy equipment or you're-- you know, you're driving vehicles on a road for a company, there should be some balance. There should be some testing. But for the vast majority of the workforce, you know, an arbitrary THC-positive result, you know, leading to termination, for instance, is just-- it's absurd, frankly, and we need to evolve. And I see that as a positive sign.

JARED BLIKRE: Well, speaking of that evolution, we've seen that at the state level but not quite at the federal level just yet, just some incremental progress from time to time. How would a federal legalization of cannabis affect your business?

BEN GROESBECK: Well, I think, in many respects, it's huge. It's a giant boot to our neck as an industry. And for instance, banking, it's created monumental challenges. You know, the tax issues associated with 280E are extremely problematic. So it's imperative, I think, that Congress, you know, take this issue on at some point. I know there have been some significant pushes to get bills through. They seem to all die once they get to the committee chairs. We need, you know, federal involvement, and we need federal movement, you know, to open these bottlenecks.

It's-- you know, this industry is here to stay. I mean, whether-- you know, whether you don't like it personally, that's your prerogative as an individual member of Congress. But you know, as a business-- you mentioned the numbers earlier, the projections-- this is a massive industry. And you know, we're really in our infancy, but it's going to continue to grow as more and more states legalize.

SEANA SMITH: Certainly it does seem like it is in its infancy. But Bob, when we get news, I guess, also out from Sha'Carri Richardson who no longer is going to participate in the Olympics, she was suspended after testing positive for marijuana-- I guess when we get conflicting headlines like that, how do you navigate a relatively challenging industry at this point that's changing so rapidly?

BEN GROESBECK: Well, that-- you hit it just on the head. It's navigating the ever-changing environment, and that's unfortunate. We need to bring some-- you know, some commonality in the industry. You know, perhaps through federal legislation, we're going to see some uniformity. It's arbitrary now. And you know, you see, for instance, your reference to a recent ban. And now you read in the paper the next day, the UFC is lifting testing requirements for its fighters.

We just need some uniformity. And you know, it's unfortunate that we're still stuck in the 1970s, in some respects. You know, this is an emergent industry, and it's a product that consumers overwhelmingly support and want. And you know, it's time that everybody get on board, notwithstanding their personal feeling.

SEANA SMITH: Bob, it was great to speak with you. Bob Groesbeck, co-CEO of Planet 13, thanks for taking the time, and we wish you all the best.