As historic wildfires continue to rage across the Los Angeles region, the cannabis industry is stepping in to ensure the safety of their employees while also supporting local relief efforts. To date, the fires have claimed at least 24 lives and displaced thousands. Over 9,000 structures have been destroyed in the flames, making it one of the largest natural disasters in the city’s history.
Cannabis retailers are bracing for potential impacts in areas close to evacuation zones in Malibu and Altadena. Maps published by the California Department of Forestry and Fire Protection cross-referenced with store locations, reveal that a few retailers are at risk, though damage assessments remain unclear.
Among many businesses that are affected, the Rise outlet in Pasadena, operated by Green Thumb Industries, has been temporarily closed, as revealed by an automated message. The multistate operator, headquartered in Chicago, has yet to comment on this update.
Cannabis Retailers Largely Spared Direct Impact
Despite the widespread destruction, most Los Angeles cannabis retailers have been spared from the immediate path of the fires. This outcome is partially attributed to local opt-out regulations limiting cannabis retail presence in affluent coastal areas like Malibu and Pacific Palisades.
According to the California Department of Cannabis Control (DCC), only two licensed cannabis retailers operate in Malibu. No licensed retailers are located in Pacific Palisades or Altadena, also a wildfire hotspot.
Elliot Lewis, CEO of Long Beach-based Catalyst Cannabis Co., expressed relief that his company’s 29 stores, including many in the Los Angeles area, have remained unaffected. “We’ve been lucky on fires, no issues,” Lewis said.
Similarly, Mammoth Distribution, headquartered in North Hollywood, reported no damage or closures. Wesley Hein, the company’s head of global brand expansion, acknowledged the emotional toll of the disaster. “Most importantly, none of our employees have lost their homes,” Hein shared. “But I believe everyone in the city, our team included, have friends or family who have lost their homes, so it’s an incredibly emotional time for all.”
Community Support and Relief Efforts
Cannabis businesses are actively participating in relief efforts in Los Angeles. Gelato Canna Co., based in San Diego County, has begun delivering pallets of its newly released canned spring water to first responders and evacuees. Locations receiving aid include the Pasadena Civic Center, the Dream Center in Los Angeles, and the command post for the Eaton Fire response teams at the Rose Bowl in Pasadena.
“Even though we are based in San Diego, there was no way I could just stand by and watch these fires sweep through L.A. and do nothing,” said George Sadler, CEO and co-founder of Gelato Canna Co. and Gelato Water. “Community is first and foremost to Gelato.”
The Artist Tree, another local cannabis retailer, has set up donation boxes at its Koreatown, central Los Angeles, West Hollywood, and Hawthorne locations. Items such as canned food, water, toiletries, and blankets are being collected and delivered to shelters and distribution points citywide.
Regulatory Support for Cannabis Operators
The DCC is offering disaster relief to cannabis licensees impacted by the wildfires. Under the department’s disaster relief authority, businesses can apply for temporary waivers from certain regulations.
“We are working with different partners to see what assistance will be possible for those affected,” said Jen Marroquin, a spokesperson for the Los Angeles Department of Cannabis Regulation (DCR). DCR has encouraged affected cannabis entrepreneurs to reach out for support.
David Hafner, a spokesperson for the DCC, added, “We will be posting information on our website for licensees who have been affected by the fires, and they can learn more about disaster relief.”
A Long Road to Recovery
As of January 9, Southern California Edison reported over 367,000 customers were without power. This situation added to the challenges faced by businesses and residents in wildfire hotspots. As high winds exceeding 65 mph have caused further flare-ups and destruction, red-flag warnings remain in effect.
The Palisades Fire and Eaton Fire have collectively burned over 33,000 acres, with containment efforts still in their early stages. Officials warn that the economic toll could exceed $50 billion, signaling a protracted recovery process.
“It’s staggering. We’re in day 3 of this, and there’s zero containment in a populated area,” Hein remarked. “We’re going to think of ways we can help the greatest number of people.”
