Canada's LPs might never achieve profitability and eventually lose ground to American firms because of oversupply and onerous marketing restrictions
lol no shit smarty pants
Many Canadian licensed producers might never achieve profitability and eventually lose ground to their American counterparts because of oversupply and onerous marketing restrictions — the combination of which will lead to commoditization, according to some investors in the cannabis space.
“Industry commoditization will arrive before profits ever do. We forecast that Canadian LPs will not earn a profit in the next three years, nor will they be profitable thereafter,” Hass boldly predicted.
“If you look at Colorado, user rates increased just two per cent in four years after legalization, and that was accompanied by a price drop,” he said.
Gimelshtein’s view of many licensed producers is that they have “sunk millions” into infrastructure, but are not achieving the kinds of sales figures that they thought they would at this point in the legalization cycle.
“So they’ll ask — how do I get people to buy my product? Well I’ll lower the price, where I make just a bit of money versus nothing at all. And that’s going to cause compression for everybody except those who have really built brands.”
hahahahahahahhhahahaa
lol no shit smarty pants
Many Canadian licensed producers might never achieve profitability and eventually lose ground to their American counterparts because of oversupply and onerous marketing restrictions — the combination of which will lead to commoditization, according to some investors in the cannabis space.
“Industry commoditization will arrive before profits ever do. We forecast that Canadian LPs will not earn a profit in the next three years, nor will they be profitable thereafter,” Hass boldly predicted.
“If you look at Colorado, user rates increased just two per cent in four years after legalization, and that was accompanied by a price drop,” he said.
Gimelshtein’s view of many licensed producers is that they have “sunk millions” into infrastructure, but are not achieving the kinds of sales figures that they thought they would at this point in the legalization cycle.
“So they’ll ask — how do I get people to buy my product? Well I’ll lower the price, where I make just a bit of money versus nothing at all. And that’s going to cause compression for everybody except those who have really built brands.”
hahahahahahahhhahahaa
