How the unsteady rise of the pot industry has made dime bags a billion-dollar business

Tilray Inc. Chief Executive Brendan Kennedy quipped last year, when his company reached Wall Street, that Ziploc was the biggest brand in cannabis.

KushCo Holdings Inc. KSHB, -1.16% is one of the companies collecting those dimes, and it saw revenue more than double in 2018, from less than $20 million to more than $50 million. KushCo Chief Executive Nick Kovacevich says his company has benefited from a range of packaging laws in the nine U.S. states that have legalized recreational cannabis and more than 30 that have some form of medical marijuana law.Not all is rosy in the world of packaging, though.

KushCo doesn’t make the packages it sells, but rather sources various containers from China and then consults for clients who display products at retailers like California’s Harborside. Earlier in California’s journey to legal marijuana, municipalities controlled packaging laws, so his stores in Oakland and San Jose faced different rules. Now, packaging is regulated by the state — which changed the laws twice in 2018. And cities can make the laws more restrictive if they choose, Harris Bricken attorney Griffen Thorne said.

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