RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Big Changes Happening in Canadian Cannabis "Oil Glut" is an imperfect descriptor. There is an oil glut in the same way there is glut of chip companies. Lots of companies rushed into making $80 vape catridges nobody wants. Distributors don't need 20 different "premium vapes" so they pick 5. 2 of those actually sell, the other 3 are returned to the LP's and logged as a writedown. That product is then "destroyed" ***Cough***Weedmaps***Cough***
The trick is to set yourself up with a BRAND that has distribution and name recognition, or a value product that will move volume (Ex. Aurora Daily Special).
This is part of why Canopy is divesting assets so heavily. If your running an growop/extractor you need to balance sales with costs of staff and operations. A Brand that outsources extraction, or even better, is just buying a finished whitelable product and putting all its resources into marketing (yes thats illegal in Canada but theres guerilla ways around it) only needs to cover the cost of the whitelable and marketing. That's a much easier mountain to climb rather than large staffing, operational costs, marketing, real estate costs, property taxes on multiple facilities, utilities, etc.
Basically, the oil glut is all the companies your seeing imploding. Once they consolodate you'll be left with services based on market demands rather than services rendered based on cannabis ceo's wet dream projections of what the market could be.
Rm90090 wrote: This is good information to know thank you. Anyone have a guess for when we may see the oil supply glut start to lessen?