Glass House and Vireo Combine California Retail Ops to Form New JV

LONG BEACH – Glass House Brands Inc. and Vireo Growth Inc. announced that they will combine their California dispensary operations into a 50/50 joint venture aimed at creating one of the state’s largest Cannabis retail networks.

The new entity will draw together 11 retail locations operated by Glass House, which include stores under the Farmacy, Natural Healing Center and Pottery banners, with 12 dispensaries and associated home delivery services that Vireo acquired from Eaze Inc. earlier this year. A preferential supply agreement with Glass House’s large-scale cultivation business will back the combined platform.

Subject to regulatory review and standard closing conditions, the venture is structured so each company receives equal ownership. After five years, Vireo will hold an option to purchase Glass House’s stake, while Glass House retains a reciprocal right to sell its interest. Cory Azzalino, Vireo’s president for California and former CEO of Eaze, has been named chief executive of the joint venture and will direct operations along with any future acquisitions or expansions.

Kyle Kazan, co-founder, chairman and CEO of Glass House, said the arrangement lets the partners address pricing pressures in California’s market while keeping Glass House’s core focus on efficient production and biomass sales to other legal jurisdictions outside the state. “California remains the world’s largest legal Cannabis market, and this joint venture allows us to unlock its potential in a way neither company could achieve alone,” he stated in the joint release.

John Mazarakis, chief executive of Vireo, called Glass House the right collaborator. “Their production scale and brand strength, combined with Vireo’s retail depth and access to one of the industry’s leading technology-based delivery platforms, creates a joint venture greater than the sum of its parts,” he said. The companies added that delivery services through the Eaze platform will reach areas with limited storefront access and help support competitive pricing for the regulated market.

Azzalino said he welcomed the chance to lead the platform. “Our combined retail and delivery network gives us the reach and resources to bring high-quality, affordable Cannabis to consumers across California, including underserved communities, while pursuing disciplined growth that strengthens the legal market for the long term,” he noted.

This deal stands out for its measured approach to scale in a high-volume but margin-challenged state. By aligning retail footprints with reliable low-cost supply, the partners gain operational efficiencies that individual operators have struggled to secure on their own. The five-year buy-sell provision builds in clear exit paths, giving both companies room to reassess as broader industry consolidation plays out. In the end, the transaction underscores how targeted partnerships can sharpen competitive positioning without forcing full integration or diverting capital from other priorities.