Licensed Producers Expect to Enter Recreational Market

WHATFG

Well-Known Member
Canada’s current medical cannabis market could easily flip to produce for recreation, if legalization is passed.
The country’s current 26 licensed producers manufacture medicinal cannabis for up to 40,000 patients enrolled in the government’s Health Canada program, with a total worth of $80 – $100 million.
If cannabis is legalized, Dundee Capital Markets analyst Aaron Salz said the market could be worth $5 billion.
“The Canadian marijuana space could be set for another revolution,” Salz said.
Wildeboer Dellelce LLP lawyer Andrea Hill said when Colorado legalized recreational cannabis, the government worked with existing medical marijuana producers.
With the Liberal Party’s victory, and promise to legalize cannabis once in office, licensed cannabis producer stocks jumped higher Tuesday morning.
If legalization takes place, licensed producers like Canopy Growth Corp (formally Tweed) CEO Bruce Linton think it will largely benefit those already providing legal cannabis.
“I have a material production advantage over somebody that is trying to move their facilities around to avoid being busted,” said Bruce Linton.
Current Liberal Party chief financial officer Chuck Rifici co-founded Tweed and served as its CEO until he resigned in 2014.
Even though Justin Trudeau ran on a platform of legalization, Linton said he doesn’t expect complete decriminalization to take place.
“I think what it will do is create a platform which takes the current lawful provision of marijuana on a medical basis and extends that platform to provide it to venues which will be permitted to distribute it,” he said.
Linton said the industry is likely to grow, with legalization opening the market, not into areas of already high cannabis consumption like British Columbia (where independent dispensaries have eaten into the licensed producers’ profits), but among new users.
“I never thought [British Columbia] was a primary market from day one, and if your goal was to convert them, that almost seems like an evangelical mission,” Linton said. “What I wanted to do was aim in the market where you have Baby Boomers, 12 to 13 million people in total, high income, the capacity to pay, fixed address, disproportionately elderly or older generation than other provinces – that seemed like a heck of a corridor to focus on.”
Another possibility is the entry of even bigger players entering the market, from tobacco or pharmaceuticals.
Salz said Big Tobacco, with a similar business but declining smoking rates, would likely enter the market by buying up existing producers in Canada
A 2014 study in the The Milbank Quarterly found that “since at least the 1970s, tobacco companies have been interested in marijuana and marijuana legalization as both a potential and a rival product…as public opinion shifted and governments began relaxing laws pertaining to marijuana criminalization, the tobacco companies modified their corporate planning strategies to prepare for future consumer demand.”
The report stated that, in order to avoid the cannabis market being dominated by companies “seeking to maximize market size and profits,” policy makers should be aware the tobacco industry (along with the food and beverage industries) are prepared to enter the market with “the intention of increasing its already widespread use.”
“The concern will be that they make a hostile takeover bid or pursue [a takeover] very aggressively,” Linton said. “But those are good problems to deal with.”
 

VIANARCHRIS

Well-Known Member
Welcome to the Green Rush...every fuckhead who tried to convince the world of the evils of pot is now wanting a piece of the pie. Fuck 'em all. Act like it's legal now and make the government make the compromises. 90 years of prohibition couldn't stop people from growing a weed, they are not going to have any more luck this time. This is the same situation they had in Colorado...medical producers wanted a monopoly on recreational too. In the end, personal grows are allowed and medical grows are exempted from the 6 plant limit.
 

WHATFG

Well-Known Member
It's when you start answering yourself you have a problem:smile:
Actually, they say that people who talk to themselves are extremely intelligent...lol...but who the fuck are they right? Well, I'm a Gemini so arguments are always going on between the twins...it's exhausting...lol...
 

rnr

Well-Known Member
Welcome to the Green Rush...every fuckhead who tried to convince the world of the evils of pot is now wanting a piece of the pie. Fuck 'em all. Act like it's legal now and make the government make the compromises. 90 years of prohibition couldn't stop people from growing a weed, they are not going to have any more luck this time. This is the same situation they had in Colorado...medical producers wanted a monopoly on recreational too. In the end, personal grows are allowed and medical grows are exempted from the 6 plant limit.
wtf did you think would happen? the usa sells for way over the normal price, and Canada is left fumbling around and you don't think it would be about the $???
did you actually think they would sell it to your sorry ass for 1-3$a g????
omg don't you see that our world is run on greed?
protect the children JT kept saying!!! and you figured because he said he would legalize it you would get to grow and buy for cheap? god some people and the way they think.
a 5 billion $ market, dumb ass, that means $20 a g + and no more cheap medicinal.
but vote for liberals because they said legalize lol ya ok mark emery
move to Uruguay!
 

VIANARCHRIS

Well-Known Member
wtf did you think would happen? the usa sells for way over the normal price, and Canada is left fumbling around and you don't think it would be about the $???
did you actually think they would sell it to your sorry ass for 1-3$a g????
omg don't you see that our world is run on greed?
protect the children JT kept saying!!! and you figured because he said he would legalize it you would get to grow and buy for cheap? god some people and the way they think.
a 5 billion $ market, dumb ass, that means $20 a g + and no more cheap medicinal.
but vote for liberals because they said legalize lol ya ok mark emery
move to Uruguay!
What in the fuck are you going off about? 'dumb ass'. I don't recall hearing any policy banning home grows from legalization. I also didn't say shit about $1 grams. Like the rest of us, you have no idea what JT is going to do, but you are already dismissing it? If you are going to pick a fight at least know what the fuck you are fighting about. Tell me what you think is better than legalization...I'm fucking waiting.
 

WHATFG

Well-Known Member
I think the fact that the haven't said anything about growing is telling...there is too much money involved now and friends of the libs are poised to cash in, as they have already acknowledged...nothing is better than legalization, however without home growing nothing really changes imo...
 

gb123

Well-Known Member
Welcome to the Green Rush...every fuckhead who tried to convince the world of the evils of pot is now wanting a piece of the pie. Fuck 'em all. Act like it's legal now and make the government make the compromises. 90 years of prohibition couldn't stop people from growing a weed, they are not going to have any more luck this time. This is the same situation they had in Colorado...medical producers wanted a monopoly on recreational too. In the end, personal grows are allowed and medical grows are exempted from the 6 plant limit.
was thinkin about that this mornin after a few dabs...

now, if it becomes legal? and they allow things to keep going. If this deal goes like I think it will and everyone is allowed to grow?!?!?!? :)
The money will just go away!!!
..... unless.... they find something they can make or do with it, that no one else can do, in order to clean house.

:)

Wonder what that might be???
 

TheRealDman

Well-Known Member
Hola all!

Longtime Canadian member here @ RUI, I couldn't access my original handle (Dman), so I've just been sitting back watching all the Canadian MMJ events unfold from the beginning.

Just an FYI...JT's stance on MMJ has been on the record for quite some time. Once it's posted to the inter-webs there's no pulling it off. IMHO....JT would be hard-pressed to change his position now that he is become PM. :peace:

 
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