🇩🇪 VS 🇺🇸
Who’ll be first to legalize adult-use? Germany or the US?
Governments around the world are contemplating their path forward for legalization due to the perception that public health and safety can be better served by public-private regulatory partnerships based on product safety and scientific research, reports Forbes.
Europe is of particular interest on this front, as countries across the continent have adopted medical-use policies, with Germany seeking adult-use legalisation in the near future.
Why take the time to compare trajectories for federal legalization between, say, the U.S. and Germany? For starters, it’s fun, but also because Europe is a large market that lacks a large market presence for cannabis. According to one report from Prohibition Partners, the European market is set to grow from €230.7 million in 2020 to more than €3 billion in 2025, with Germany itself set to compose more than half of that market until 2024.
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THROWING IN THE TOWEL
Canopy Growth gives up on Canadian retail
MJ Biz Daily reports that Canadian cannabis company Canopy Growth Corp. has thrown in the towel on its bricks-and-mortar cannabis retail operations in Canada, selling off 28 corporate-owned stores under its Tweed and Tokyo Smoke retail brands, closing five more and ending franchising and licensing agreements.
The divestitures announced late Tuesday include:
● 23 Canopy-owned retail stores in Saskatchewan, Manitoba and Newfoundland and Labrador, which will be purchased by Canopy retail partner OEG Retail Cannabis (OEGRC), which already owns and operates franchised Tokyo Smoke stores in Ontario.
● Five Canopy-owned stores in Alberta, which will be purchased by Calgary-based cannabis retail company Four20 and rebranded.
● A Canopy spokesperson confirmed to MJBizDaily that the company owns 10 retail stores in Alberta — but Four20 is only buying five, and the remaining five will be closed.
A spokesperson told MJ Biz Daily that Canopy will have no Canadian retail stores remaining.
TAKING IT SLOW
Canada’s legal cannabis market growth is slowing
Canada released its monthly data this week for July, indicating that cannabis sales in the country were at an all-time high of C$394.8 million, up 4.5% sequentially and up 17.8% from a year ago. While sales are growing, this is the lowest annual growth ever, reports New Cannabis Ventures.
While the stock prices are down a lot, most Canadian licensed producers don’t seem like they are the best stocks to buy now. The valuations are generally higher in Canada, while the revenue, profits and cash flow are weaker than the American peers.
ONLY WAY IS UP
‘Vertical Integration has to be the way forward for the European Cannabis industry’
Carl Haffner, Co-Founder of Avida Global, discusses vertical integration as the way forward for Europe’s cannabis industry with BusinessCann.
The way cannabis develops will vary from country to country, location to location, strain to strain and whether it’s grown indoors, outdoors in the ground, or hydroponically, stated Haffner. So cannabis companies should not be looking to the likes of Gap for inspiration – the business model the industry should focus on is seed-to-sale control – vertical integration.
