Chip Tuttle, CEO of Sea Grass Retail, was the speaker this week, and spoke to us about the cannabis industry.
Chip is a Salem native. He went to St. John's Prep, was a reporter for the Salem News, and was a bartender at the Grapevine. He was also the COO of Suffolk Downs, and worked at CTT advertising firm. He has a wife and 3 children.
On the 2012 ballot, 63% of the vote favored legalizing medical marijuana. It is currently legal in 33 states. When Chip was at CTT, he worked on the "no" side of legalizing marijuana for recreational use. The City of Salem voted 60% for/40% against. In 2016, question 4 passed in Massachusetts.
Sea Grass Retail will be located at 3 Dodge Street in Salem, and they will have another location on Rantoul Street in Beverly.
Sea Grass is trying to make the industry as green as possible. Products will come in pre-packaged units, ready for sale. Sea Grass will contribute $50,000 a year to Salem Sound Coastwatch to promote and help them.
The products are taxed at 17% by the state, with a municipal tax of 3% totaling 20% in tax revenues. There is the 3% contribution to the city, plus a 1% contribution to the city transportation fund, along with a $100,000 annual charitable contribution to the CDC, the health center on Congress Street, and Salem Sound Coastwatch. MA has targeted a $1.5-2.8 billion dollar a year revenue.
Clients must be 21 years of age to purchase cannabis products. The locations are designed to resemble premier retail shops, with plenty of help, working to create a shopping experience for the 21+ customer. Currently, usage is 60% flower and 40% vapes, beverages, edibles, etc. Other states are moving closer to a 50/50 margin on sales.
Chip said that Salem and Lynn have the opportunity to be a hub of the cannabis sales in the state.