view transcript

Tony Owusu: The cannabis industry is experiencing the growing pains one might expect from an industry that's estimated to be worth more than $66 billion by 2025. With us to discuss some of the marijuana industries ad tech issues. We have Jeremy Jacobs, Co-founder and Chairman at cannabis ad-tech and media company Enlighten and Katherine Ross, Video Correspondent for TheStreet. Katherine, we'll start with you. You've interviewed executives from numerous upstarts, CBD companies. What are some of the issues that you've seen in your travels?

Katherine Ross: Now, this is something that I don't think that they really want to talk about a lot, especially on camera, but one thing that I think that they're running into is brand recognition. It's new CBDs, brand new in this space. You're getting a lot of pills, you're getting a lot of oils, but they're not that different. What really matters is the dosage and that is not what consumers really understand just yet.

Tony Owusu: That seems like a big issue. And Jeremy, Enlighten works with numerous cannabis companies. What are some of the biggest issues that you've seen?

Jeremy Jacobs: Oh, fragmentation, you know, primarily. And there's fragmentation in a lot of different ways. You've got two thirds of the States that have legalized cannabis, but each one of those States have their own regulations. In addition to the fragmentation of regulation itself, you also see fragmentation in the market space. You know, none of these operators have more than 80 dispensaries under their belt when most industries, you'll see people with retail operations in hundreds or thousands. So fragmentation and being able to roll that fragmentation up is the biggest challenge.

Tony Owusu: No matter which way you slice it, the cannabis industry has a long way to go, but the reward may be just worth the growing pains that industry is currently going through. Thanks to our guests, Jeremy Jacobs and Katherine Ross. For all the latest head over to TheStreet.com.

Cannabis is big business already, but it is on its way to becoming an even bigger business as legality issues wash away and the long-maligned plant enters the public mainstream. 

But as it grows, the industry, which is estimated to be worth $66 billion by 2025, has had its share of hiccups.

Jeremy Jacobs, co-founder and chairman at Enlighten, joined Katherine Ross is identifying some of the issues that industry watchers have already identified in the fledgling industry. 

Differentiation was one issue identified by TheStreet's panel and another was fragmentation. 

Tune in to the video above to hear our panel expand on these issues. 

Amazon, Apple and MasterCard are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells those? Learn more now.

Catch Up: Today's Top News Videos Below