Outside of newly developing economies, there are not many investment options left today that can match the growth opportunities offered by the legal cannabis industry. With an estimated compound annual growth rate of 25% and increased nationwide pressure for decriminalization, the industry’s dollar value may increase by hundreds of billions over the next ten years.
With that much upside potential, it’s no surprise that entrepreneurs and investors are flocking to the industry. New dispensaries are opening at an astonishing rate, and grow operations are now one of the biggest agricultural consumers of California’s water supply.
There is a dark side to this explosive growth that many owners, investors, and directors of these cannabis operations often overlook: criminality. Despite its newfound legal status, the black market for cannabis and its derived products has boomed alongside its legal counterpart.
The rollout of legalization included a complex regulatory framework alongside a high rate of taxation. This combination forced prices upward and opened the door for illegal sellers to come and easily outmaneuver and undercut dispensaries operating above board.

As illegal sellers don’t need to worry about the source of their product, this has caused legal dispensaries to become a favored target of criminals looking for an easy score. While violent crime targeting dispensaries has thankfully tapered off since 2023, property crime has remained sky-high.
This presents a serious financial risk that most owners and investors do not fully understand or appreciate, as Chris Eggers of CCSS explains in Chapter 21 of his book Securing Cannabis: A Comprehensive Guide To Increase Security, Reduce Costs, Reduce Liability, and Avoid Landmines. Those with a financial stake in a legal cannabis operation need to be aware of how essential a well-crafted security plan and system is to the long-term health of the business.
Security systems must meet a long list of requirements from a variety of sources in order to fully protect the business. These include meeting regulatory and insurance requirements to avoid fines and claim rejections while providing enough of a deterrent to reduce the chances of being targeted by the criminal element.
The chapter ends with a comprehensive checklist for helping define and address your security needs and objectives on an integrated basis. To access this checklist and every other piece of information you need to create an effective and compliant security system, we recommend checking out the full book. Securing Cannabis: A Comprehensive Guide To Increase Security, Reduce Costs, Reduce Liability, and Avoid Landmines is now available here!
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