Heineken has officially jumped into the California cannabis market
The legal cannabis industry is budding before our eyes, and in just over two months, it’ll really take shape in our neighbor to the north.
Following the passage of the Cannabis Act by the House of Commons and the Senate in June, recreational marijuana is set to officially go on sale on Oct. 17. This legalization should result in billions of dollars flowing into the legal Canadian cannabis industry, and perhaps even validate investors’ belief that pot stocks are the next greatest thing since sliced bread.
But what’s often overlooked is that the marijuana industry is evolving. It’s about far more than just dried cannabis these days. In fact, recreational marijuana legalization examples in Colorado, Washington, and Oregon, have all shown that oversupply and commoditization wreak havoc on dried flower pricing. This means growers are having to look at cannabis alternatives in order to ensure that their margins won’t erode over time.
One of the more popular alternatives is cannabis oil. Though this is a niche product that’ll primarily be targeted at medical marijuana patients, cannabis oil has far fewer pricing pressures attached to it when compared to dried cannabis. Growers such as CannTrust Holdings are expected to devote a significant portion of their production to oils as they expand.
Other cannabis alternative examples include concentrates, vaporized cartridges, edibles, and infused-beverages. It’s worth pointing out that edibles and cannabis-infused beverages aren’t going to be legal when the proverbial green flag waves on Oct. 17 in Canada. However, amendments written into the Cannabis Act allow Parliament to address the introduction of edibles and cannabis-infused beverages in the future. The expectation is that it’ll be addressed, and legalized, in 2019.
It’s this last cannabis alternative — infused beverages — that really has the alcohol industry intrigued.
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