Marijuana Industry Faces Black-Market Knockoffs Costing Some Companies Millions

A stack of marijuana gummy bear candies is seen in this file photo. (Credit: iStock / Getty Images)

A stack of marijuana gummy bear candies is seen in this file photo. (Credit: iStock / Getty Images)

Loudpack Farms had a multimillion-dollar problem.

An award-winning marijuana vape pen that was among the most profitable items sold by the cultivator had begun turning up at unlicensed weed dispensaries across California, its signature black box with the image of a red-eyed, stoned-out-of-his-mind playing-card king beckoning customers.

As it became clear that someone was counterfeiting the Kingpen brand, Loudpack Farms spent $2.5 million on new packaging and hardware last year to distinguish it from the knockoffs.

“The counterfeit market started replicating what we were doing almost as quickly,” said Daniel Corral, head of sales at the Monterey County firm.

Read the full story at LATimes.com.

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