Post by
geodcan on Nov 20, 2021 6:09pm
Most Canadian LPs
if not all, have launched and promoted marijuana and hemp businesses in Canada because Canada was amongst the first G7 countries to legalize adult rec use.
Then it became a comedy of errors by law and policy makers who strangled this initiative with a plethora of stupid laws and guidelines, like only government can do.
Canada's rec business was built on the older legal medical use legislation and from there on almost everystep of the way raised issues with potpreneurs.
Growing licenses were hard to get and they allowed homegrown which was a backward move to safety. It would seem that medical grade pot and hemp would continue on with safety, quality and inspections because medical is synonamus with quality.
Then they restricted pot skus to smokeable forms only because that is what was in the marketplace. They restricted skus in edible/drinkable forms until the think tanks had studied on it and wrote more restrictive policy to limit sales by some strange formula that nobody understands until you are trying to buy a 6 pack at the government sanctioned store and you can't.
Anybody and everybody attempting to provide cannabis in all its forms needed to be licensed, scrutinized and subject to inspections, all the while they were lobbying for a level playing field with beverage alcohol. Lawmakers realized that they choked rec use out by limiting retailers and dispensaries and then went into overdrive and allowed almost anybody to hang a shingle, to the point that now they are shuttering the doors because there is too much competition. They also allowed the same with growers who have been trashing their product that they couldn't sell.
Oversupply has taken its toll and even some of the large licensed producers are struggling to make profit and take marketshare. Serious hardcore adjustments are being made by trashing sku lines that aren't moneymakers and joining forces to buy marketshare while grinding out small potpreneurs and their investors.
I'm betting on big LPs controlling the market and I also believe that THC infused beverages are going to cannibalize other forms of consumption and do serious damage to Beverage Alcohol's calorie laden, lighter options.
All we need is a level playing field with Alcohol to be able to thrive with a much nicer form of consumption than smoking your pot.
I daresay that most Canadian Licensed Producers are anxiously waiting for a triggering event to happen in the US to put down roots and continue with our cannabinoid expertise and leadership.\
In the meantime, we have no choice but to continue to lean and mean out our operations in an attempt to kill off competition and take their marketshare.
I do feel strongly that the new management is slopping hard at the trough considering where we are at and it would be easier to swallow $40 million worth of renumeration until after the bleeding stops for regular shareholders. Maybe that's what it takes to be the guy that comes in and slashes employment and cleans up the rough edges.
I also feel stongly that the US midterms might swing in favour of whichever party activates decriminalization of pot in the US and hopefully goes one step further and make the right moves by listening to active companies that are lobbying for the same tools to ply our trade as all of the other US companies are privy to, like banking and brokering and having cannabinoid infused options in bars and lounges.
Most pro-pot and hemp MSOs have done work arounds and built viable companies ahead of the latecomers, although companies like Canopy have done their own workaround to have deals to buy companies outright by inking deals like Canopy and Acreage have, that will be activated when the Fed decriminalizes marijuana in the US.
Lots of Canadian LPs and International entrepreneurs are doing the same as Canopy, waiting to come enforce to the US market when the threats are no longer an issue.
glta and dyodd