Could your medical cannabis container company fail?

Specialized medical cannabis containers are clearly indispensable to the cannabis industry. Regulations, rules, customer satisfaction and product marketing mean you can’t have one without the other. Cannabis sales and support is the fastest growing industry in the United States. Ancillary cannabis businesses expect to double their growth this year. The addition of four states legalizing recreational cannabis and three states legalizing medical cannabis will add to the exponential growth of the cannabis industry. Yet ancillary cannabis businesses like cannabis packaging companies can have a fragile hold on the economy. Could your cannabis packaging company fail?

The two main economic issues for ancillary cannabis companies

  1. Why Medical Cannabis Container Companies FailMany entrepreneurs who start support businesses for cannabis don’t know what they’re doing. Attracted by the thought of making a quick profit they rush into the industry with little business experience. They are soon overwhelmed by the red tape needed to start and succeed in the business and flummoxed by regulations that change from season to season, and state to state. A thorough knowledge of the cannabis industry and specific experience in ancillary businesses like packaging, plus experienced executives and staff are necessary for success as an ancillary cannabis company.
  1. Legal issues are a huge concern for those in the cannabis industry for both unique and ordinary reasons. Unique to the industry are the legal consequences of cannabis’s continued federal classification as a Schedule I drug. In recent bankruptcy proceedings in Oregon, Colorado and California, debtors were denied the protection of bankruptcy, or the case was dismissed because cannabis is federally illegal. Two of the cases involved debtors with very indirect connections to cannabis businesses. The legal rationales for not allowing them bankruptcy protection can be applied directly to ancillary businesses.

Another consequence of federal illegality is the use of large amounts of cash in the cannabis industry resulting in heavy audits by the IRS and ongoing legal issues with banks. Cannabis businesses have also begun to experience the same legal problems as more established industries. In Denver, a local packaging firm is suing a former co-owner for violation of a non-compete agreement. In California Bhang chocolate went to court in an arbitration battle. Experts believe that as the industry grows there will be increasing legal battles in court.

Could your cannabis packaging company fail? Not if it has over a hundred years of packaging experience. Not if it has seasoned and professional staff who not only understand the cannabis industry, but most importantly, how to package consumable products for resale. Since MMC Depot is fourth generation family owned, we have a nuanced understanding of all packaging issues related to cannabis sales.

Please visit us online at, and put any worries about packaging to rest.