A Dime A Dozen: Dime Launches Edible Line In New Mexico

I recently received a sample of some Dime branded gummies that are being marketed for New Mexico’s regulated market, yet the packaging clearly identifies them as a hemp product.

That got me thinking: as more states roll back their hemp markets, where is all that packaging, inventory, ingredients, and oil going to go?

Cheap Cuts

Several brands have built recognizable names in regulated states while also toying with the idea of competing in the hemp market. Even Bloom was looking at releasing a hemp line at one point.

For those that took the chance, it meant more SKUs, more packaging, more labels, more inventory. And if they wanted competitive pricing, they had to order a lot of it.

“The Hempaning”

Now, as more states ban or severely restrict hemp products, manufacturers are left with warehouses full of packaging, raw materials, finished goods, and production capacity built for product lines they may soon no longer be able to sell.

That’s years’ worth of capital tied up in inventory that could quickly become obsolete. In theory, the gummy market could be headed for a collapse. For many of these companies, only two viable paths remain: transition into the medical, or adult-use markets.

Nickle and Dime

The bigger question is what this means for gummy brands that are already established. If a wave of manufacturers enters with value priced products simply because the inputs are payed for years in advance.