More Bad News For Canada's Cannabis Industry?
More Bad News For Canada's Cannabis Industry?
Despite the new product options, more Canadian cannabis users reported using flower in Q2 2020 than in Q1– especially budget flower. One problem is Canadian licensed producers were counting on Cannabis 2.0 to drive their margins higher, yet Canada’s cultivators are crushing their own margins in an effort to beat back the illicit market to secure loyal customers.
Falling cannabis prices on the recreational market likely attracted these consumers. Looking at the latest financials published, we can already see the new emphasis on low-priced cannabis playing an important role. Canadian consumers are becoming accustomed to lower priced cannabis products and this will impact both top and bottom lines more than anticipated pre-pandemic.
Show Notes:
More Bad News for the Canadian Marijuana Industry
https://www.fool.com/investing/2020/09/29/more-bad-news-for-the-canadian-marijuana-industry/
The Rise of Budget Bud in Canada
https://blog.brightfieldgroup.com/budget-cannabis-in-canada
Guest:
Katrina Glogowski, Seattle Attorney & Angel Investor
https://www.linkedin.com/in/katrina-glogowski-711a985/
Host:
Josh Kincaid, Capital Markets Analyst & host of your cannabis business podcast.
https://www.linkedin.com/in/joshkincaid/
Episode 550 of The Talking Hedge:
Your Cannabis Business Podcast.
Covering cannabis products, reviews business news, interviews, investments, events, and more.
https://www.theTalkingHedgepodcast.com
Music Info:
Song: Dark Trap Beats Hard Rap Instrumental | Gang | 2018Artist: LuxrayBeats
Keywords:
Hemp News, Weed News, Cannabis News, Marijuana News, Cannabis Business, Marijuana Business, Cannabis Industry News, Marijuana Industry News, Weed News 420, Talking Hedge Podcast, Cannabis Podcast, Marijuana Podcast, Business Podcast, CBD podcast, THC podcast, Cannabis Pitch Deck, Marijuana Pitch Deck, Marijuana Investment Deck, Cannabis Investment Deck, Cannabis Compliance, Cannabis Data, Cannabis Banking, Cannabis Investment, Pot Stocks, Cannabis Stocks, Weed Stocks, Marijuana Stocks, Cannabis Data, Marijuana Data, Cannabis Analytics, Marijuana Analytics, Cannabis Sales Data, Marijuana Sales Data
Josh is not an investment adviser. The Talking Hedge is long gold and silver. Listeners should always speak to their personal financial advisers.
The Motley Fool have their place, but they’ve been "churning" cannabis for a few years now. Billion dollar write-offs don’t inspire confidence in anything except the limitations of momentum.
It would be interesting to attempt to trademark "Budd-Light" cannabis. The chance of "confusion" in the market would be nil ( unless Inbev changes its’ corporate direction ).
Is there a way a new micro producer can get costs from cultivators and market value at retailers. Trying to make a cost analysis and ROI for being a middle man mico producer but cant find numbers. Oh "canadian market" "
After hearing about the absurd Medical situation in New York ( on the Talking Hedge ) and the rise of the "$2 pre-roll", I’m reminded of a marketing situation/solution from long ago. Back in the 1960’s the Liggett & Myers tobacco company produced "L&M" cigarettes. Its’ featured advertising attribute was "Filter Blend". The inference was that they contained tobacco specially blended for filter cigarettes. Well, in a way, they were … sorta. Though the vegetative content was all tobacco, it was stalk, stems, stuff that fell on the floor, and other manufacturing "leavings". It was ground up, flattened out, dried, then chopped up again just like the regular leaf. The same thing will happen with the generic "$2 pre-roll". It will be 100% cannabis, but stretched out with ground up leaf, stemms & seeds. ( Imagine the press release: "we only add them for flavor" ) That’s the only way that "corporate" weed makers can raise their margin on schwag.