How much did you spend on that Mother’s Day bouquet? The cost could increase as florists in certain states are making plans to abandon the business in favor of growing cannabis, the CEO of 1-800-Flowers said in a recent interview.
“There are a few states now, I haven’t seen it impact us yet, but we are concerned because some growers with enormous greenhouse facilities in California or Colorado or perhaps in Oregon are saying, ‘Is this the best crop I can grow, these flowers for all these florists around the country? Maybe I can switch to cannabis and get 10 times on the revenue line,’” the company’s CEO, Jim McCann, told Fox Business’ Maria Bartiromo.
“That’s a big concern of ours.” Yet while the issue is a concern, McCann stated that it remains to be seen whether the company’s growers will ultimately seek more profit elsewhere.
“We haven’t seen it manifest itself yet, but a lot of people are on the precipice of making a decision,” he continued.
Among the states in which it is currently legal to grow cannabis are Washington, Oregon, and Colorado. California appears ready to place a cannabis-legalization initiative on its November ballot, which, if approved, would substantially broaden both the geographic and financial reach of cannabis growers and consumers.
According to McCann, the departure of growers in these states could prove particularly detrimental to the company, as these states also happen to be most favorable to plant cultivation.
“The only places that we know of are legal states, so that’s where we’re seeing it but they also happen to be our best flower producing states,” he said. Despite the potential setbacks, however, McCann remains sanguine on whether any move by growers could affect his company’s supply.
“That’s a concern we have, so we’re working with them all the time to make sure we do the right analysis. We’re more for rose production than we are for cannabis production.”
