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Category: Cannabis Market

"Natural Medicine Extractors"

Doing the math

2019 Q1 – Health Canada reports: “An estimated 47% of cannabis users or 2.5 million Canadians obtained cannabis from legal sources in the first three months of 2019” 2019 Q1 Sales Figures reported by Health Canada can be found here. (pricing and equivalency assumptions below are made by the writer) Flower – 6700kg = 14,740lbs X 16 = 235,840oz…
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Is there a future for craft cannabis?

In the beer market, retail dollar sales of craft increased 8%, up to $26.0 billion, and now account for more than 23% of the $111.4 billion U.S. beer market. (source: Brewers Association) Look in any large alcohol outlet and you’ll find a LOT of craft brands. And in different geographies you’ll find different craft brands.…
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Ontario chalks one up for Craft Growers

Apparently the Ontario government is a supporter of craft cannabis. The Ontario proposal is that each licensed grower can only have one storefront – no matter how large (the big guys won’t like that at all). On top of that, there will be an unlimited number of stores that can sell recreational cannabis in Ontario…
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Survival of the Trimmest.

You may have heard that extraction companies are making a fortune (and they are). At the same time, Growers are reporting that the extraction companies pay very little for lower-quality flowers and trim whereafter they extract it into high-value oils for vape pens and edibles – making said fortune in the process. Apparently there is…
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Who can a Canadian “micro” sell to?

  There is a rumor floating around that the new micro-processors and micro-cultivators can sell their products ONLY through “standard” LPs. I believe this to be false and here’s why: Excerpts from the Regulations: Authorized activities — licence for micro-processing (2) Subject to the other provisions of these Regulations, a holder of a licence for…
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Micro Cultivation and Processing Rules – Update 1

I was on the Health Canada conference call regarding the new Cannabis Regulations. I focused on the “Micro” licence aspects and related questions/answers. Here is a condensed takeaway:   1. 200 metres of canopy and/or 600kg of processing; 2. an individual can hold multiple licences allowing incremental growth; 3. former cannabis convictions do not necessarily…
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Man the gates!

October 17 says Trudeau. If cannabis packaging has to be “blah”, watch for non-blah “swag” as a main branding/marketing tool. Medical prescriptions will decrease as many prescription holders will opt for the simplicity of the recreational market – no more going to the doctor every 3 months to have your prescription renewed. This said, medical…
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Thank the Heavy Lifters

  “Aphria says the deal with Southern Glazer’s, one of North America’s largest wine and spirits distributors, will give it coverage of all cannabis retailers across Canada on the first day of legal adult-use sales.” “Edmonton-based Aurora Cannabis Inc. announced in February it would buy a 20 per cent stake in retailer Liquor Stores N.A.…
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Cannabis Market Sectors – Show me the money!

Very generally, the cannabis market can be divided into: a) Licensing, Real Estate, Construction, Growing – collectively referred to as “Growers” – there are small and large growers; and b) Regulatory Consultants, Construction, nutrient/light/HVAC suppliers, extractors/processing equipment, testing, wholesalers, packagers, retailers – collectively referred to as “Service Providers”. Some Growers stick to growing (remaining “horizontal”)…
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