With collaborations spanning from supply agreements to research and developmental projects, collaboration and innovation are the names of the game in the cannabis industry. This week we bring you news on the launch of a collective operation to develop cannabis strains, a joint retail concept between dosist and Hiku, and a partnership between Emblem and Shoppers Drug Mart.
Weekly Roundup 03/25/2018 – 03/31/2018
Emblem to Supply Shoppers Drug Mart
This Thursday Emblem Corp. reported that it is going to supply medical marijuana to Shoppers Drug Mart. Shoppers Drug Mart applied to Health Canada to be a licensed producer. Upon the reception of Health Canada’s approval of the license, Emblem is going to supply Shoppers Drug Mart with their medical cannabis products.
Since it is currently restricted to sell cannabis products in retail pharmacies in Canada, the products are likely to be made available and sold online. Emblem Corp.’s CEO, Nick Dean, stated that they’d been concentrated on being a leader in the medical cannabis world from the start with much attention placed on physician and patient education. Nick Dean believes this recent deal with Shoppers Drug Mart is a landmark development for the company.
Three Companies Collaborate on Breeding New Marijuana Strains
A new operation to develop different cannabis strains is launching in Newfoundland. An entrepreneur from St.Johns is collaborating with several other companies to make this project a reality. In St.Johns, Chris Snellen is going to collaborate with Rahan Meristem and Future Farm Technologies of B.C. on this project. The project’s main focus and intent are to grow new pot strains particularly geared towards distinct commercial and medical purposes.
Rahan Meristem is an Israeli company that has 30 years of plant breeding experience. The company has also partnered with companies like Dole and Chiquita. Chris Snellen is the founder of CEPG systems. CEPG Systems conducts a hydroponic grow project that harvests mushrooms, lettuce, and other plants as well as forms controlled-environment plant growth systems.
Chris Snellen stated that the same system that has been developed for hydroponically grown veggies and fruits is indeed applicable to growing cannabis. Chris Snellen stated that his hope is to collaborate with professionals that are focussing on clearly identifying what cannabinoids achieve which benefits. That way, he says, they will be able to breed plants with a high amount of that particular cannabinoid in order to get the most efficient realization of the wanted benefits. Upon the reception of a dealer license from Health Canada, the project is ready to go and the three companies will begin research and start developing new pot strains.
The collaborative project’s intent is not to sell a huge amount of the cannabis strains they develop but more to sell their discoveries and developments to licensed producers as intellectual property. Chris Snellen stated that he hopes to have developed new strains for industrial, recreational, and medical use and have some ready within a year.
Collaborative Retail Concept Between Hiku Brands and dosist
Hiku Brands has partnered with dosist, a premier wellness brand that was named one of 2018’s 10 most innovative companies in the health sector worldwide by Fast Company. Dosist has also been named in Time Magazine as one of the Best Inventions of 2016. Through this partnership, Hiku will have dosist’s original dose controlled vape pen and other dosist products on offer and will be the exclusive dosist product retailer in select areas. Once legal, dosist’s formulas will be available at Hiku Brands’s cannabis stores. Depending on location and permission, these stores will provide an immersive dosist experience. Both companies are devoted to the responsible use, normalization, and education of cannabis and are thrilled to bring dosist’s innovative products to the Canadian market in the near future.
Cannabis Stats and Forward-looking Adult-use Recreational Market Estimates
As you probably already know, adult-use recreational cannabis legalization in Canada is fast-approaching but the sale and purchase of cannabis will not be as straightforward as suspected. Canadian legislators are still refining the regulations that will dictate how different provinces will cultivate, produce, manufacture, and sell marijuana products.
An undoubtedly certain fact of the matter is that cannabis companies are fully preparing themselves for the boom in the cannabis market and will surely experience huge success due to their preparation. Among these companies are Choom Holdings, Hiku Brands Company, Canopy Growth Corporation, Aurora Cannabis, and ABcann Global. According to Statistic Canada, it is estimated that in the year 2017 almost five-million 15-64-year-old Canadians spent about 5.7 billion dollars on cannabis.
That’s over one-thousand dollars per person. Canada has a projected annual cannabis tax revenue of 450-million dollars with a share of 75% of the revenue going to the provinces. There have been several estimations on how much revenue will come from the recreational pot market. A report from 2016 by the Canadian Parliamentary Budget Officer made an annual retail market estimate of 5.5 – 5.8 billion dollars. Whereas a study conducted by Deloitte anticipates a yearly retail market estimate of 22 billion dollars.
These estimates are dramatically different but no matter what, the upcoming recreational market is very likely going to have massive success. There is absolutely no denying high demand for marijuana.
With the optimistic estimates of the anticipated adult-use recreational legalization and the pursuit to develop different cannabis strains, the collaborative nature of all these developments leaves me excited for what’s to come. Let’s see. See you next week!