A new study by Deloitte focusing on the “cannabis 2.0” stage of legalization in Canada projects that the upcoming edibles market will be worth over C$2.7 billion per year.

The report, published on Monday (June 3), is the research firm’s third annual study of the Canadian cannabis market.


Deloitte projects the heavily anticipated edibles and infused marijuana products market will offer C$2.7 billion annually, with edibles alone representing C$1.6 billion per year in Canada.

 

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In a survey of consumers, gummies took the top spot for preferred edible items with a 26 percent market share, while cookies, brownies and chocolates rounded out list.

The research shows that another cannabis item that has caused a splash of interest will also offer some substantial value.

Cannabis-infused beverages represent C$529 million per year of the total edibles projection.

These drinks have gained notoriety among investors thanks to partnerships between cannabis firms and alcohol producers looking for an entry point into this market.

Some Canadian cannabis producers with beverage deals include: Canopy Growth (NYSE:CGC,TSX:WEED), Tilray (NASDAQ:TLRY) and HEXO (NYSEAMERICAN:HEXO,TSX:HEXO).

As the effects from adult-use legalization are still being seen across the country, industry players expect the opening of sales for edibles and infused items to be a shot in the arm to the overall space.

However, one Canadian firm recently expressed concerns about the expectations for beverages.

In a conference call with investors and analysts in May, Cam Battley, chief corporate officer with Aurora Cannabis (NYSE:ACB,TSX:ACB), said the firm has focused on products with strong demand using a model that is based on what the legal US state markets have experienced.

According to Battley, cannabis beverages secure a “low market share” in the total marketplace.

Jennifer Lee, partner at Deloitte and the firm’s cannabis leader for Canada, said cannabis-infused edibles will “clearly threaten” the established alcohol space in Canada.

 

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“According to our research and stakeholder interviews, much of this economic boost will be on top of current cannabis product spending,” Lee said in a press release.

As part of its study, Deloitte interviewed a variety of industry players on the state of the market.

Edibles market offers Canadian players edge over US

As the Canadian market has seen the growing pains from its legalization path, the US space has seen exponential growth in investment and interest thanks to the emergence of multi-state operators, companies that manage assets in legal cannabis states.

Deloitte is bullish on the potential for the Canadian market to gain a spark from the entry of edibles and beverages.

The study indicates that the market will need to be patient as the regulations for edibles come into place.

“There will be missteps, delays, and frustration,” Deloitte says about the legal framework for cannabis and derivatives in Canada.

As mentioned, Deloitte refers to this new stage of legalization as “cannabis 2.0,” noting that, while it will take some time for the market to really establish itself, in time the momentum will be great enough to match the interest for the US market.

“Cannabis 2.0 will position Canadian companies and talent for global growth — even as the US market gains momentum,” the report states.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

 

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Gage Growth (CSE:GAGE) CEO Fabian Monaco talks about the company’s latest merger and acquisition partnership with TerrAscend (CSE:TER,OTCQX:TRSSF) and how its different streams of revenue are driving Gage’s exponential growth within the cannabis landscape. 

“In 2021, we really hit the ground running, just like we’re going to hit 2022 running even faster. We had phenomenal growth, quarter-over-quarter growth, and we’re looking to expand quite exponentially as we approach the year 2022 in Michigan,” Monaco said.

Gage entered into a US$545 million definitive arrangement agreement with TerrAscend wherein shareholders of Gage will receive 0.3001 of a common share of TerrAscend for each Gage Share.

This CEO Interview is brought to you by:

Gage Growth (CSE GAGE) is a premier cannabis cultivator, retailer and brand in Michigan that operates on the idea that “good is just not good enough.” Its core values of providing premium cannabis to market, positively shaping cannabis culture and nurturing the community primes the company for success and rapid economic growth.Send me an Investor Kit

The combined business will have operations in five states and in Canada, including seven cultivation and processing facilities and 23 operating dispensaries serving both medical and adult-use cannabis markets in the US and Canada.

Part of the company’s plan for expansion is to bring the phenomenal Cookies brand to Canada. It will be available exclusively in Ontario via the Ontario Cannabis Store, the largest purchaser of cannabis in the world.

“We’re going to bring the Cookies brand to Canada very, very soon. We plan on opening a retail store in Canada and be the first ever Cookies-branded retail store,” said Monaco. 

Watch the full interview with Gage Growth CEO Fabian Monaco above. 

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Specialist Investment Company, MMJ Group Holdings Limited (ASX: MMJ) (“MMJ”), wishes to advise that BevCanna Enterprises Inc.(CSE:BEV) (“BEV” or “BevCanna”) has announced an offer (the Offer) to acquire 100% of Embark Health Inc. (“Embark”). MMJ’s investment in Embark consists of shares and warrants with a current book value of CAD2.4m.

Subject to a review of the Offer documentation, MMJ expects that its share of the Initial Consideration (refer below) would approximate the current book value of MMJ’s investment1.

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Spyder Cannabis Inc. (TSXV:SPDR) (“Spyder” or the “Company“), an established Canadian cannabis and vape retailer, is pleased to announce that its specialty vape retail brand, 180 Smoke, has entered into a strategic supplier agreement with Yi Hao Ji (Canada) Ltd. (“Yi Hao Ji“) to offer RELX closed-pod vaping products across its corporate and franchise stores, e-commerce and wholesale channels.

The closed-pod system is one of the fastest-growing sectors in the vaping vertical. More specifically, in Canada closed vaping systems have a compounded annual growth rate of 25% between 2019 and 2024 and currently account for 44% of all vape-related sales in Canada as compared to 4% prior to 2019[1].

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New High-Tech Hardware System to Launch in 16 States by Year End

– Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading U.S. provider of consumer products in cannabis, today announced the release of Cliq by Select, a breakthrough hardware system from its Select brand designed to significantly upgrade the consumer’s vaping experience. Cliq is the culmination of years of research and development to create the perfect marriage of Select’s award-winning cannabis oil with a new, intelligently designed delivery system. This new hardware will debut at Hall of Flowers today and launch in Oregon California and Arizona next week. The hardware will then continue to roll-out nationwide in states such as Massachusetts Colorado Florida Maryland Michigan Nevada New York Connecticut Maine Utah Ohio and Pennsylvania .

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RELX closed-pod products to be offered across 180 Smoke’s retail, e-commerce and wholesale channels

Spyder Cannabis Inc. (TSXV: SPDR) (“Spyder” or the “Company”), an established Canadian cannabis and vape retailer, is pleased to announce that its specialty vape retail brand, 180 Smoke, has entered into a strategic supplier agreement with Yi Hao Ji (Canada) Ltd. (“Yi Hao Ji”) to offer RELX closed-pod vaping products across its corporate and franchise stores, e-commerce and wholesale channels.

The closed-pod system is one of the fastest-growing sectors in the vaping vertical. More specifically, in Canada closed vaping systems have a compounded annual growth rate of 25% between 2019 and 2024 and currently account for 44% of all vape-related sales in Canada as compared to 4% prior to 2019[1].

“The high-level of interest in closed-pod systems is largely due to their portable nature, the concentration of nicotine salts and available popular flavours,” says Christina Pan, COO of Spyder Cannabis. “This makes RELX a perfect fit for 180 Smoke. Fundamentally as a retailer, we believe in providing consumers with high-quality, curated options, carrying both local and international brands so we can educate and guide our adult consumers safely on their vaping journey and permanently quit combustible cigarettes.”

“180 Smoke is a high-touch, experiential centre for vaping and like-minded products, where customers can learn more about RELX and its points of difference. This agreement not only provides access to one of Canada’s largest online and in-store vaping customer bases but also its marketing services and knowledgeable sales associates that will give RELX – China’s largest e-cigarette brand – an edge in the Canadian market,” Ryan Yin from Yi Hao Ji says.

“This agreement represents Spyder’s ongoing interest to continue serving both vape and cannabis consumers,” adds Cameron Wickham, CEO of Spyder Cannabis.

About Yi Hao Ji

Yi Hao Ji Technology Co., Ltd. (hereinafter referred to as “YHJ“) is one of the largest distributors for e-cigarettes, 3C products, and FMCG in China. Starting with the strategy of RELX e-cigarette globalization, YHJ has built a global sales and service network across Asia, Europe, and the Americas. Yi Hao Ji is the authorized strategic partner of RELX in Canada.

About Spyder Cannabis Inc.

Spyder is an established cannabis and vape retailer that owns and operates two licensed dispensaries under the brand SPDR Cannabis in Ontario and 28 vape retail locations across Ontario under the retail brands 180 Smoke and Spyder Vapes. 180 Smoke is a leading omni-channel Canadian vape retailer with a strong e-commerce presence and over 230,000 registered customers across its B2C channel.

Cautionary Statements

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance of the Company. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “may”, “projected”, “estimated” and similar expressions, and negatives thereto, and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the parties. Forward-looking information necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. The forward-looking information contained in this release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

Neither the TSX Venture Exchange (“TSXV“) nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Spyder Cannabis Inc.
Cameron Wickham
Executive Vice-Chair and Chief Executive Officer
T: (905) 330-1602
E: corporate@spydercannabis.com

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