The Journal. How the 'Napa Valley of Cannabis' Dried Up
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Apr 18, 2025 
WSJ reporter Julie Wernau shares her insights from Pueblo, Colorado, once hailed as the 'Napa Valley of Cannabis.' She explores the town's ambitious rise in the cannabis industry, which quickly turned into a bust due to oversaturation and high taxes. Wernau highlights the struggles of local dispensaries facing fierce competition and the harsh realities of increased crime and homelessness linked to legalization. Through Pueblo's journey, she paints a cautionary tale about the unpredictable nature of the cannabis market.
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Pueblo's Cannabis Boom Start
- Pueblo aimed to become the 'Napa Valley of Cannabis' following legalization in 2014.
- This vision attracted many hopeful business owners and visitors, sparking a cannabis boom.
Overcrowded Market and High Taxes
- Too many cannabis businesses flooded Pueblo, far exceeding actual demand.
- High local taxes further squeezed these businesses, harming their profitability.
Black Market Persistence
- Legalization did not eliminate the black market in marijuana as anticipated.
- Illegal sellers undercut prices by avoiding heavy taxes, continuing to thrive.