Retailers, processors score deals; grower makes five-figure donation to schools
Retailers, processors score deals; grower makes five-figure donation to schoolsEditor’s Note:
In late 2014, the idea of a legal marijuana auction really felt new and revolutionary. After all, livestock auctions are common in agriculture. Why not cannabis, now that it’s legal?
I remember taking the long drive on a cold morning from the Seattle area to Prosser, located about three hours to the southeast, talking with my passenger about how we hoped to see a millionaire made right in front of our very eyes. Although the total sales were somewhat disappointing (around $400,000), it was fascinating to see history made and to watch the business of legal cannabis unfold in ways that many people never envisioned. I think Marijuana Venture publisher Greg James wrote about it being “the future of cannabis” at the time. While auctions never materialized as a viable business model, it was a fun story to work on in the early days.
The following story is from the December 2014 issue of Marijuana Venture.
Dozens of media outlets, prospective buyers, state officials and curious onlookers showed up at Fireweed Farms on November 15 to be a part of marijuana history in the making.
Fireweed owner Randy Williams put more than 300 pounds of cannabis up for sale in what was believed to be the first legal marijuana auction.
It was a news story that resonated across the world, drawing the attention of USA Today, the Today Show and the Daily Mail of London.
Aaron Nelson of 2020 Solutions in Bellingham made the long trek from the far north side of the state to the far south, and made the first purchase of the auction — two pounds of Dirty Girl for $5 a gram.
Nelson said he expected more buyers to be there, but that contributed to prices that were 20-30% lower than what 2020 has been paying other vendors.
“As far as the pricing we got, I was quite happy with that,” Nelson said. “We’ll be able to pass along those savings to our customers, as well.”
Three enforcement officers from the Washington State Liquor Control Board attended the auction. They were there just to make sure everything was handled correctly, and that no “backroom deals” were made, enforcement officer Bobbi Martinez said.
Potential buyers were allowed to smell and visually inspect the product, but they weren’t allowed to touch it or sample it. Williams initially set a minimum bid of $3 per gram, but the first seven lots available to processors went unsold. After lowering the starting bid to $2.25 per gram, the sales began to pick up the pace.
In the end, Williams said he didn’t make as much money as he expected, but he was happy with the outcome and happy that he was able to move a lot of product in one day.
“It can get rid of a lot of pot fast,” Williams said. “If you could get the traceability stuff to work correctly, that would be a plus.”
In the end, average sale prices ranged from $1,200 to $1,300 per pound, Williams said. The auction sheet listed 325 pounds for sale, which would have equated to about $400,000.
Williams said the highlight of the auction, for him, was the three high-CBD lots that were sold. He sold more than 11 pounds of White Widow and White Dawg that all tested above 8% CBD for about $14,000 and donated all that money to the Prosser School District.