When Virginia lawmakers convened at the Capitol last week to hear testimony on how to roll out a retail cannabis market, the room was filled with charts, tax models, and plenty of projections about how much money legalization might generate. Depending on the structure, Virginia could see anywhere from tens of millions to hundreds of millions in new revenue once stores open.
But if you listened closely, and especially if you listened to the small business owners and advocates who showed up, the conversation wasn’t really about weed. It was about who gets to win in a market that doesn’t exist yet.
The Players With Power
Medical Marijuana Operators
Virginia’s medical cannabis program is already dominated by a handful of well-capitalized companies. These operators argue they’ve proven compliance and responsibility, but their business model thrives on exclusivity. The high costs of licensing and infrastructure create a natural barrier that keeps smaller players out and many of these companies want to keep it that way.
The Alcohol Lobby
The alcohol industry isn’t trying to block cannabis entirely, their real concern is THC beverages. Cannabis drinks compete head-to-head with beer, cider, and spirits, industries that already hold major political sway and funnel revenue straight into Virginia ABC. For alcohol, it’s about protecting market share and it’s a fight the state itself has a vested interest in backing.
Behind the scenes, that interest may be even deeper. One advocate told me, “People don’t know this but ABC is working to regulate all of cannabis. They’re losing money so badly because sales are down they won’t keep their jobs if this keeps up. So we are fighting hard to make sure the cannabis commission keeps regulatory power.”
According to the same source, negotiations are already underway for ABC to retain an enforcement role, essentially serving as the “badges” who would police cannabis stores. If true, it means Virginia’s alcohol authority is not just defending its turf on THC drinks, but actively positioning itself as the future cop of cannabis.
Altria and the Vape Wars
Richmond-based tobacco giant Altria has already shown how corporate clout works in Virginia. In 2024, Governor Glenn Youngkin signed legislation requiring all nicotine vapes sold in the state to be listed in a new state registry, tied to FDA’s costly Premarket Tobacco Product Application (PMTA) process.
The registry system launched in July 2025, with full enforcement by December 31. Products not listed must be pulled from shelves within 60 days. On paper, it’s framed as a consumer safety measure. In practice, critics warn it will wipe out independent vape shops and smaller manufacturers, leaving only FDA-approved products from giants like Altria, which secured FDA authorization for its Juul products last month.
It’s a playbook to raise the regulatory bar so high that only corporations with deep pockets can clear it, while everyone else gets pushed out.
The Ones Getting Squeezed
On the other side are the people who built Virginia’s cannabis and hemp economy from the ground up:
- Hemp producers and retailers, who saw their businesses gutted when hemp-derived THC was lumped under cannabis law.
- Small shops who want a stake in legalization but can’t meet the astronomical costs of compliance.
- Equity advocates, like Chelsea Higgs Wise of Marijuana Justice, who argue that tax revenue should fund loans, reparations, and priority licensing for people harmed by the War on Drugs.
Their point is simple: if Virginia legalizes cannabis but locks out the very people who carried the risk and bore the punishment under prohibition, then legalization is just another transfer of wealth to the already wealthy.
Money Talks
For now, the battlefield is tilted. The GA session was a start, but it also made clear how high the hill is to climb. The groups with the most influence are the ones with the deepest wallets and in Virginia, money in politics has a way of writing the rules before anyone else even gets to play.
That doesn’t mean the fight is over. Small operators and justice advocates are organizing, speaking up, and pushing lawmakers to think beyond raw revenue projections. But unless legislators intentionally carve out space for equity and small business participation, Virginia’s cannabis future looks set to belong to a familiar cast of corporate characters.
What’s at Stake
This isn’t just about who gets to sell weed. It’s about whether Virginia builds a cannabis economy that reflects local values, supports small businesses, and repairs past harms, or one that replicates the same old corporate monopolies we already know from alcohol and tobacco.
The battlefield is set. And unless something changes, the smaller players, the ones who have carried the weight of prohibition and powered the hemp economy, are likely to lose.
Main photo by Esteban Lopez
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