For the rest of 2019, there are nine key things investors need to watch…
As a child, I went to sleepaway camp every summer, and we would all remark how much happened in one day. In fact, it made every day feel like a week. With what happens day-to-day in this emerging sector, it seems like the same holds true for the business of cannabis.
Even though so very much is packed into each business day, when asked what I thought was worth watching until the end of 2019, I reflected on my last three years operating within the industry.
I chose nine key areas that I believe investors should know about as it relates to Canada and the future of cannabis commercialization.
One is that processing and testing companies will receive more attention, and we will begin to see an emergence in this area of the market.
Those types of firms will most definitely help to fill the very necessary gap in product development, testing, and compliance.
Processing and testing companies will also help continue to define standards in both health and safety.
Now that you know the first event I’m watching, these are the other eight you can’t miss…
The Top Cannabis Events to Watch
There’s a lot to keep track of, which is why I wanted to break things down in the list below.
Let’s get started with something you’re going to hear more and more about before the end of the year closes out.
- With the recent announcement from Health Canada regarding the second wave of legalization, regulations for edibles, concentrates, and topicals will have license holders running to reconsider their supply chain strategy as they prepare to get products on the shelf for December 2019.
- Companies will undergo a second hiring wave to scale processes for both medical and recreational channels, creating a more focused approach to product development.
- White-label businesses will emerge, helping to create brands and add value to business partnerships.
- Larger M&A strategies will help facilitate product development across categories such as sports wellness, food and beverage, and beauty. I anticipate a flood of pharmaceutical M&As by 2020.
- Whether it is six months or two years from now, cannabis as a business will continue to be a high-risk industry. Distribution through pharmacies will become widely accepted; I believe it will become the go-to medical cannabis retail channel. This will advance market education and clinical research while also helping to secure a medical market.
- With outdoor cultivation and hemp now part of the legal cannabis industry, new genetics will be developed. This will help position Canada with an advantage as it relates to IP, new product development, and market maturity.
- The advancement in extraction will fundamentally set the tone for the future of cannabis consumer packaged goods. There will be a huge shift from single-method extraction strategies to multi-method extraction strategies. This shift will enable businesses to develop efficacious and cost-efficient solutions that support whole or isolated compound needs.
- As momentum for global adoption continues, standards will continue to be in the top three words we associate with the legal cannabis market. With EU GMP standards now setting the benchmark, Canada’s ability to implement this standard will help the country in developing strong global partners, along with maintaining a valuable export position.
However, cannabis investors should not see that as a deterrent. Rather, it’s a reminder that we are just at the beginning, and it will take time to scale up and stabilize.
Because of prohibition, we are still learning about all of the power and beauty this medicinally robust botanical has to offer.
Founder & President, CBD Strategy Group Inc.
Advisory Board Member, National Institute for Cannabis Investors
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5 responses to “The Biggest Events to Watch in Cannabis Commercialization”
July 26 2019