Not Your Mother's Marijuana Dispensary

Ten years in operation, more or less, the longest existing marijuana dispensary in Long Beach is changing hands. It was first an illegal operation, then among the first legally licensed to sell medical marijuana before voters approved the sale of recreational marijuana. One Love, owned by members of the Abrams family continues on at 2767 E Broadway in Long Beach.

Family progenitor Jeffrey Abrams recalled the early days of One Love, having to deal with both the police and the IRS. The IRS has a penalty that makes a business engaging in the trafficking of cannabis barred from taking tax deductions or credits. “That allowed them to treat us like criminals. We paid our taxes when we were illegal. The IRS told us, ‘you owe us very large penalties.’ They stood outside with a clicker, kept track of everyone who entered,” making assumptions about how much money was taken in. “Tax evasion is how they screw everyone in the industry,” said Abrams.

Under acquisition by MedMen, a cannabis retailer with operations across the U.S. and flagship stores in Los Angeles, Las Vegas and New York, One Love currently brings in about $6 million in yearly gross revenue. MedMen agreed to pay $13 million, $10 million of which will be shares in the company, $1 million in cash at closing and $2 million to be paid off by the end of the year. “One Love powered by MedMen” will open in late July.

In a field of 17 operating dispensaries within city limits and a total of 32 dispensaries allowed, this acquisition will give MedMen its first outlet in Long Beach, which already has dispensaries in Santa Ana, LAX, Venice Beach and Beverly Hills.

In a multi-year series of police raids of local dispensaries, One Love was the final dispensary targeted for unlicensed operation in February 2016, less than a day after the city council killed an ordinance that would have regulated medical marijuana dispensaries.

Later that year, voters approved adult-use cannabis statewide as well as Long Beach voters approving local sales. After the city worked out a way to license dispensaries, One Love was the first to open legally in August 2018.

Sons Jeremy, 31 and Matt, 35 were there from the start as well as store manager, Zack, 27. However, the close family splintered. The business “drove my family apart,” said Abrams. Son “Matt opened up Leaf and Lions” dispensary in north Long Beach on Stanley Avenue. Even though Abrams has a non-compete provision for a year, Matt’s enterprise is exempt as it began before the transaction.

“I didn’t want to run the daily shop for years,” said Abrams. “It was just me and Zack. Jeremy and Judy,” Abrams’ spouse. He anticipated a need for additional management, such as a human resources officer, an accounts receivable and accounts payable manager and an outreach manager. “Only well-heeled entities will win the day.”

“The corporatization of marijuana is obvious. MedMen grows their own and puts out products that cost very little. In-house cultivation, processing and retailing keeps costs down. With the new King’s Crew dispensary in town, anybody getting into the business better be vertical.”

Based out of Culver City, Med Men has a national footprint. “You do it to compete. They are very sophisticated players, They are buying small retailers like ourselves.” Asked if he thinks they might further expand in Long Beach, he said, “I believe another purchase is imminent.”

Abrams is also confident that Med Men is the right company to carry on his values.

“I have a friend in Calabasas who had a gene that meant a double mastectomy. She was handled well by MedMen. They showed her products for chemotherapy; she was a huge fan.”

The cannabis market is also changing. “The biggest percentage of growth is older people, now coming back and taking a look. We tell them this is not your mother’s marijuana. We impress on older people that potency is much higher.” Abrams would like to see an outreach into Leisure World and assisted living facilities, as cannabis is effective with symptoms of MS, PTSD and opioid addiction. So far, assisted living facilities have been less than receptive to this idea.

Now that the business model is falling into shape, Abrams sees his opportunities elsewhere, at least for the time-being. He plans on a speaking tour based on his “45-years plus knowledge that it’s a safe, reliable medicine.”

As Abrams knows the ins and outs, the what to do or what not to do, who to deal with, how to complete the necessary paperwork; he expects to turn this background into a cannabis consultancy. “I’m not going to leave the marijuana space. I’ve been talking to folks in other states. We’re bringing our expertise elsewhere, we are a one-click, one-stop operation.”

steve@beachcomber.news