Multi-state cannabis operator Green Thumb has been one of the biggest growth stories in the U.S. cannabis industry, doing well in spite of the challenges presented by continued federal prohibition. And CEO Ben Kovler doesn’t have much faith in current efforts to reschedule cannabis as a less dangerous drug.
During the company’s fourth-quarter earnings call, Kovler shared data on the growing number of Americans consuming THC and said it illustrates how the DEA is out of touch.
“The DEA is clearly asleep at the wheel. But the Green Thumb team is wide awake, focused on the factors we can control to grow our business over the long-term and tuning out the noise,” he said, according to a Seeking Alpha transcript.
The DEA was scheduled to begin a hearing in January to determine whether cannabis should be moved from Schedule I, alongside heroin, LSD and ecstasy, to Schedule III, where it would be redefined as having a “moderate to low potential for physical and psychological dependence.” But that hearing is currently postponed.
Kovler said his company’s not optimistic about changes in cannabis regulation coming from Washington D.C., at least not in the near-term. He said it could take the country “several more years, if not a decade” to pass real cannabis legalization reform.
“We think the DEA is corrupt and misguided and out to lunch,” he said, adding that it’s not a popular opinion, but “it guides how we allocate dollars, it helps us understand who the consumer is and allows us to win.”
Like several other cannabis MSOs, Green Thumb has invested in hemp-derived THC products. The company partnered with Magnolia Bakery, which makes Farm Bill-compliant THC-infused chocolate, and it has poured funding into Agrify, which recently acquired the Senorita brand of hemp-derived THC beverages.
It’s a part of a strategy that’s helped Green Thumb continue to grow. The company reported record high revenue for the fourth quarter, which rose 6% and helped full-year 2024 sales to push past $1.1 billion. Full-year net income grew to $73.1 million, compared to $36.3 million in 2023.
