Business Archives - Green Market Report

StaffStaffSeptember 20, 2018
MJFreeway2.jpg

4min100

MJ Freeway, the company which invented seed-to-sale technology and has the cannabis industry’s first enterprise resource planning product, completed a $10 million oversubscribed Series C financing. The round was led by Batu Capital Investments, a tech-focused multi-family office managed by Emery and Evan HuangCresco Capital Partners, a private equity investment firm dedicated to investing in the cannabis industry, also participated significantly.

“The industry is maturing rapidly and needs software that can handle increasing complexity, with state-of-the-art functionality and data security,” said Jessica Billingsley, Co-Founder & CEO of MJ Freeway. “With adult-use permitted in 9 states and medical in 30 states, MJ Freeway is uniquely enabled to support regulation at every level. Indeed, we are — and have been — the backbone upon which the cannabis industry is built. We thank our new and existing investors for realizing the tremendous importance of our enterprise.”

MJ Freeway has tracked more than $10B in cannabis sales with clients in AustraliaCanadaEuropeSouth AmericaSwitzerland, and the United States in 23 states and the District of Columbia. MJ Freeway’s Leaf Data Systems software solution enables governments to track cannabis plants from seed-to-sale and ensure patient, public, and product safety. The company has had a difficult year as it has been forced to navigate software hacks that it believes has been at the hands of competitors. Still, MJ Freeway has continued to push ahead and defy its critics by signing more customers.

“MJ Freeway’s technology is vastly superior to other offerings in the marketplace. It supports the full range of cannabis business operations – from cultivation to manufacturing to dispensary – with the industry’s first fully-integrated enterprise resource planning (ERP) product, MJ Platform,” said Emery Huang, Senior Partner of Batu Capital. “We believe MJ Freeway is the market innovator and will maintain its market dominance through a clear technological edge over the competition.”

“Cresco Capital Partners has made significant investments in the cannabis space since 2015, and we believe MJ Freeway is the clear leader in the cannabis supply chain management SaaS market, positioned for dominance,” said Matt Hawkins, Managing Principal at Cresco Capital Partners. “The company’s innovative product line and experienced management team led to our decision to invest in MJ Freeway’s unparalleled tech platform.”


Video StaffVideo StaffSeptember 20, 2018

1min510

The Green Market Summit hosted by the Green Market Report on September 14, 2018, featured a panel that looked into the effect of a legalized adult use marijuana market on existing medical marijuana markets. Panelists included Adam Orens of Marijuana Policy Group, Jeannette Horton and Jessica Billingsley from MJ Freeway and Emily Paxhia of Poseidon Asset Management.

The panel resulted in a new report issued at the Summit titled, “The Economics of Adult Use Marijuana on Medical Marijuana Markets.” The findings from the data provided by MJ Freeway noted that instead of adult use legalization cannibalizing medical marijuana markets, the medical markets turn out to be very resilient.


Debra BorchardtDebra BorchardtSeptember 20, 2018
ClosingBell-tilray-Nasdaq-1280x854.jpg

8min340

Tilray Inc. (TLRY) has been somewhat a source of pride in the cannabis community, listing on the NASDAQ (NDAQ) with a successful Initial Public Offering (IPO). It’s a well-run respectable company with strong sales and an enviable portfolio of brands.

Two things have happened this week with Tilray. The stock went on a ridiculously crazy ride that even seasoned stock traders shook their heads at. A stock does not run up a chart like that without some sort of downside response. The second thing that happened was the Drug Enforcement Agency approval for Tilray to bring in medical marijuana for a scientific study.

Stock Moves

Cowen & Co. initiated coverage on Tilray’s stock with an outperform rating on August 13 and a target price of $34. This week the stock hit $300 at one point. Cowen analyst Vivien Azer defended her $34 price target at the time, assuming readers would question how she arrived at that number. No doubt Azer is probably wondering if she has to downgrade purely based on valuation.

Tilray began the week at $117, which was already a fairly rich valuation. It closed at $154 on Tuesday and then all hell broke loose. It opened at $233 on Wednesday, shot up to $300 at one point, dropped to $151 and then the trading was halted during the day. It eventually reopened and the stock closed at $214.

The wild gyrations had short sellers screaming now was the time to sell. Cannabis stocks were being compared to bitcoins and predictions of a dot-com bust were all over the internet. This is the part that hurts all cannabis stocks. According to S3 Partners, short sellers have lost $626 million since the start of August betting against cannabis stocks.

The company wrote, “Short sellers have been very active in the cannabis sector this year, with short interest climbing to $1.5 billion spread over 33 stocks and ETFs. This is a $458 million increase in short interest, +44%, since the end of the second quarter. Most of this increase was centered on increased short activity in Canopy Growth (CGC) and Tilray, which were up $514 million in just over three months.”

The cannabis industry tends to trade in lockstep. When one stock does well, they all tend to move higher. Similarly, when one struggles, they trade down in sympathy. Tilray’s seesaw moves hurt the industry as all of the companies get lumped into one. Comparing an industry with real product and real revenue to a digital cryptocurrency that doesn’t exist except in a computer is just well, dumb. It is making the comparison purely based on a percentage of increase in value. It makes a good headline for the short seller but is based on one metric alone.

There is no argument that the valuations have gotten ahead of themselves. Market values at 150x revenue? That’s not sustainable. Most of the industry insiders agree with this unless of course, their company stocks have stayed low. Then they stare wistfully at those unrealized gains.

Market stability is something everyone would prefer. Wild rides aren’t good for cannabis stocks.

DEA Just Says Yes
Tilray Inc. announced on Tuesday that the U.S. Drug Enforcement Administration (DEA) granted approval to import a cannabinoid study drug into the U.S. from Canada for a clinical trial at the University of California San Diego Center for Medicinal Cannabis Research. The agreement had been in the works for two years and plans on examining the safety, tolerability, and efficacy for a condition known as Essential Tremor.

According to the statement, “Tilray is providing a cannabinoid formulation for the trial in capsule form, which will allow researchers to test an investigational drug product containing two active ingredients extracted from the cannabis plant, cannabidiol (CBD) and tetrahydrocannabinol (THC).  It is expected to begin in early 2019 with financial support from Tilray and the International Essential Tremor Foundation.”

At first glance, this seems like a huge positive for the cannabis industry. Cross-border cannabis would make life so much easier for the companies that have operations in both countries. However, one wonders how this makes all the medical marijuana companies in the U.S. feel?

Rep. Matt Gaetz tweeted, “Unbelievable… gives approval to import compounds from Canada, while AG Sessions is sitting on 2 dozen+ applications from domestic manufacturers. What happened to “buy American, hire American”? The Florida Republican authored a bill that would require the granting of more cannabis cultivation licenses.  The licenses would be for more cannabis to be grown for research. The bill was approved but not voted on.

Considering the amount of cannabis that is grown in California and that the state has legalized medical marijuana for the last twenty years, UC San Diego couldn’t find a company in its home state to provide product for this study?

The Justice Department is handing out lifetime bans to people in Canada that work in the cannabis industry at the border, but then the DEA (which is housed under the DOJ) approves a cross-border transfer of cannabis? The same DEA that also considers cannabis to have no medicinal benefit?

Stability

The standard line in the investment community is that the market hates uncertainty. Roller coaster moves and short seller attacks hurt all cannabis companies. Even the big moves higher.

Stability in rules and regulations is also a plus. The industry has accepted that it can’t cross state lines, much less country borders. Then the DEA throws a wrench into this machine. It’s a like a kid yelling, “new rule, new rule.” Only, who does the new rule benefit? Will the Canadians similarly offer a U.S. cannabis company a chance to export its product for testing? Would the DEA allow that?

One thing can be certain in the cannabis industry, just when it thinks the rules are set – they change.


William SumnerWilliam SumnerSeptember 20, 2018
photo3-1.jpg

4min190

What is the state of the international cannabis industry, and what will it look like in the future? This was one of the many questions discussed at the Green Market Summit, which brought together some of the cannabis industry’s most prominent thought leaders and experts in the international cannabis trade. The result is a new report issued during the Summit by Green Market Report titled “The Economics of International Cannabis Companies.”

Following a thought-provoking discussion on the state of cannabis banking was a discussion panel on the international cannabis market, moderated by Sean McNulty, Principal and Co-Founder of XIB Financial Inc.

The panel featured Peter Miller of Slang Worldwide; Daniel Pearlstein, Vice President of Strategy at Canopy Rivers Corporation; Jason Wild, Chairman of the Board of Directors at TerrAscend; and Jonathan Rubin, the CEO of New Leaf Data Services.

The discussion opened by examining the idea of Canada as a beachhead for cannabis companies to launch their products and the need for consistency, quality products, and common-sense regulation. Taking a nuanced position, Rubin stated that in many ways Canada is a beachhead for the industry but that there are also ways in which it is not.

“When you think about a beachhead, yes, federal legalization of the medical market allowed that to happen,” said Rubin, “but there hasn’t been the opportunity yet for it [the cannabis industry] to develop into a commodity or wholesale market.”

Turning towards cannabis pricing, the conversation began to focus on the idea of cannabis as a commodity and how in the future the most expensive part of a cannabis product may not be the cannabis itself. Wild speculated that the industry would start to resemble pharmaceutical industry in at least one particular aspect.

“On the commoditization side, I look at this industry a little more like the generic drug industry, which is not a pure commodity,” said Wild. “In the cannabis industry, you’re going to have maybe two or three different players touch it in between the formulator and the end consumer.”

Looking forward to the global cannabis industry, questions arose as to what this international landscape would look like over the next several years. Admitting that it may not be the most exciting answer, Pearlstein said that it would depend on each individual country.

“The bottom line is that it all comes down to regulation,” said Pearlstein. “We might look at something in Italy that’s different than what’s in Jamaica. Maybe Italy just wants to grow outdoor hemp while Jamaica wants to do something that’s closer to recreational.”

Closing out the discussion, the panel took up the potential issue of cannabis prices bottoming out and how that would affect the industry in Canada. Miller stated that, like in Oregon, cannabis prices would most likely continue to decline as the market matures and those cannabis companies will have to find other ways to distinguish themselves besides pricing or potency.

“You don’t need a crystal ball necessarily to see what’s going to happen in Canada,” said Miller. “That’s why brands are increasingly becoming important.”

Stay tuned to find out more about happened at the Green Market Summit, as the Green Market Report gives you an in-depth look at the event throughout the week.


StaffStaffSeptember 19, 2018

5min470

It’s time for your Daily Hit of cannabis financial news for September 19, 2018.

On The Site

Concentrates

The cannabis market has received a bit of good press recently, as Coca-Cola said it is “eyeing” the cannabis-infused drink market, following Constellation Brands investment in Canopy Growth last month.

But it’s one sub-sector of the market, cannabis concentrates, which may be the true star of the show. Cannabis market intelligence and consumer research firm BDS Analytics has issued a new report showing that cannabis concentrates are expected to hit sales of $2.9 billion in 2018, up 49 percent year over year. That would make the concentrate market the second largest, behind only flower, according to the report.

In Other News

Tilray (TLRY) stock jumped to $300 in trading on Wednesday before the stock was halted and then resumed trading. It still finished the day with an increase of 38% to close at $214. In after hours, the stock was falling modestly. The stock has moved over 40% in two days following the news that the DEA approved Tilray to bring in medical marijuana for a medical study in San Diego. The approval to bring marijuana legally across the border is a pretty big deal, but doesn’t really warrant the crazy move higher. The limited amount of outstanding shares and the johnny-come-lately’s trying to get a piece of the action have caused a frenzy of trading. All the while short sellers are screaming its time to get out.

MPX Bioceutical Corporation

MPX Bioceutical  (MPXEF) is acquiring all of the outstanding shares in the capital of Spartan Wellness Corporation from Ninth Square Capital Corporation and Veteran Grown Corporation both of which are at arm’s length to the Company. Spartan is a Canadian organization whose mission is to help veterans suffering from various ailments, mostly psychological, to reduce or eliminate dependencies on opioids by directing them towards medical cannabis. MPX will acquire all of the Spartan Shares for a total purchase price of up to $6,000,000 comprised of the following consideration and based upon the achievement of certain milestones

Sunniva Inc. 

Sunniva Inc. (SNNVF) announced its second quarter financial results, detailing milestones and achievements both for the second quarter and the first half of 2018. Revenue was reported to be up by C$1.2 million in Q2 and by overall C$4 million in the first six months of the year. During this six month period, the company’s total revenue amounted to C$9.6 million, against a net loss of C$11.2 million, compared to an C$11.7 million loss in the same period last year.

“We made great progress in Q2 2018 towards our goal of becoming a vertically integrated cannabis company in the U.S. In California, construction progressed at our phase one 325,000 square foot state-of-the-art Sunniva California Campus with completion targeted by the end of this year and first harvest expected in Q1 2019,” Holler stated in a news release. “Our extraction facility began generating revenue this quarter. We continue to secure new contracts and are excited about the future revenue opportunities in this and other vertical channels that maximize the synergies with our Full-Scale Distributors device business.”

Aurora Cannabis

Aurora Cannabis COO Cam Battley told the Financial Post that it would soon be listing its stock on a major exchange in the U.S., but wouldn’t disclose which one it would be.


Video StaffVideo StaffSeptember 19, 2018

1min4850

At last week’s Green Market Summit in New York City, TheStreet’s founder and CNBC star Jim Cramer interviewed The Green Organic Dutchman’s (TGODF) Chief Executive Officer Brian Athaide in a keynote address. Cramer was specifically interested in Athaide’s background at Procter & Gamble (PG) and how that experience would translate to the cannabis industry.

Cramer and Athaide also discussed cannabis company valuations and whether they were too rich. The Constellation Brands (STZ) investment into Canopy Growth Corp. (CGC) was also discussed. Athaide told Cramer that he didn’t think Constellation overpaid at all. He thinks they actually got a good deal. This is a fascinating interview that is well worth watching.

Video editing was performed by Small Cap Nation.


Jack SmithJack SmithSeptember 19, 2018
bakked2.jpg

4min680

The cannabis market has received a bit of good press recently, as Coca-Cola said it is “eyeing” the cannabis-infused drink market, following Constellation Brands investment in Canopy Growth last month.

But it’s one sub-sector of the market, cannabis concentrates, which may be the true star of the show.

Cannabis market intelligence and consumer research firm BDS Analytics has issued a new report showing that cannabis concentrates are expected to hit sales of $2.9 billion in 2018, up 49 percent year over year. That would make the concentrate market the second largest, behind only flower, according to the report.

“As the cannabis industry matures, we’ll likely see new product categories catch fire with consumers,” said Troy Dayton, CEO of the ArcView Group in a statement. “Concentrates are the first category to do that, but it’s just the beginning of a revolution in how cannabis is consumed now that it’s becoming legal around the world.” Arcview partnered with BDS on the report.

By 2022, concentrate sales are expected to nearly surpass flower sales in terms of size, at $8.4 billion, compared to $8.5 billion for flower sales.

“For consumers, it’s a discreet and healthier choice that will likely make cannabis consumers of people who would never dream of inhaling smoke,” Tom Adams, Editor in Chief of ArcView Market Research wrote in the report. “That will cause the category to represent ever more retail display space, and likely spawn vape-only stores and on-premises consumption venues.”

Adams added that concentrates are able to cut costs at different parts of the supply chain, making them more efficient to extract and distribute.

“But the main savings will be at the agriculture level, where expensive warehouse and greenhouse grows designed to provide pretty buds give way to traditional outdoor growing of a commodity crop. The cost savings—and broader consumer appeal of concentrates—will prove critical as the legal market struggles under the weight of heavy tax and regulatory loads to compete with the illicit market,” he wrote.

The concentrate market, which includes products such as vaping, is expected to grow to 27 percent of all U.S.-related cannabis sales in 2018. That’s a stark contrast from 2014, when it was just 10 percent of cannabis sales, indicating healthy and growing consumer demand for these products, experiencing 70 percent annual growth.

Of that exceptional growth, 58 percent of spending will come from prefilled vaporizers, deemed to be a “market dominance likely to grow over the next five years.”

“Technology is revolutionizing a product category that began as hand-rubbed hash in the Middle East centuries ago,” said Adams in the statement.

Adams continued: “We believe the growth of the concentrate market will continue as the cannabis industry evolves and consumers look toward new and innovative delivery methods that fit their lifestyles.”


William SumnerWilliam SumnerSeptember 19, 2018
photo2-3.jpg

4min660

Will the world of banking ever catch up with the marijuana industry? That was one of the many questions asked and answered at the Green Market Summit, which took place on September 14, 2018. The culmination of these experts has led to the publication of The Economics of Cannabis Banking by the Green Market Report.

Starting off the summit was a discussion panel on the state of banking in the marijuana industry, moderated by Tahira Rehmatullah, Chief Financial Officer of MTech Acquisition Corp. The panel featured a distinguished collection of marijuana and financial experts, including Matt Karnes, Founder and Managing Partner of GreenWave Advisors, LLC; Tyler Beuerlein, Executive Vice President of Business Development at Hypur Inc.; and Andre Herrera Vice President of Banking & Compliance at Hypur Inc.

The discussion began with Herrera laying out how marijuana businesses are defined under the FinCen document BSA Expectations Regarding Marijuana-Related Businesses, explaining that there are three different tiers. The first tier involves operators that directly touch the cannabis plant, such as cultivators. The second tier is understood as businesses that provide ancillary services to the industry. The third tier provides professional services to the industry, such as real estate agents or software providers.

Quickly the panel turned its focus towards the landscape that many marijuana-related businesses face, and why many financial institutions are hesitant to work with the industry.

“This is a highly regulated, cash-intensive industry,” explained Beuerlein. “Not only is the financial institution’s charter on the line, but also the officers of a financial institution have personal liability when banking these industries.”

Beuerlein went on to emphasize the importance of transparency when it comes to marijuana-related businesses banking with financial institutions and how his company, Hypur Inc., helps increase that transparency through its technology platform.

The conversation then started to turn towards the future of marijuana-related banking and the future of companies like Hypur that help facilitate relationships between financial institutions and the marijuana industry. Karnes was positive about the future, stating that marijuana would be treated like any other business once prohibition is over; although he did note that there would still be a need for companies like Hypur, albeit to a lesser extent.

When asked about the idea of creating a financial institution solely for the purpose of banking with the marijuana industry, however, Karnes was less than optimistic.

“I don’t think it’s practical,” Karnes said. “If a new bank were to open up, by the time the costs were incurred, and everything was up and running, prohibition will probably be over. So, what’s the point?”

Bookending the discussion, Herrera presented a positive outlook for the future of marijuana-related banking regardless of whether prohibition is quickly ending, noting that conditions are drastically different from where they were several years ago.

“I see attitudes changing. About three years ago I was at a bank association conference and anytime I would mention marijuana it would be like crickets. You couldn’t get anyone to talk about it,” said Herrera. “About a year later, they asked me to speak at their event.”

Stay tuned to find out more about happened at the Green Market Summit, as the Green Market Report gives you an in-depth look at the event throughout the week. For a general recap of the event, please click here.


StaffStaffSeptember 18, 2018
daily_hit004-1280x533.png

7min930

It’s time for your Daily Hit of cannabis financial news for September 18, 2018.

On The Site

KushCo Holdings, Inc. (KSHB) formerly known as Kush Bottles said that it is expecting to report a 171% increase in annual revenue to over $51 million for the fiscal year ended August 31st, 2018. The stock popped over 8% to lately trade at $5.23 on the news.

The news wasn’t all good. KushCo gave the market a heads up on a balance sheet hit. The company said that it expects to take a $1.8 million inventory adjustment charge resulting largely from opening multiple new distribution centers and its lack of a global warehouse management system. KushCo said that the situation would be addressed with software solutions being evaluated for implementation in the first half of the 2019 fiscal year.

The company experienced significant growth and blamed the problems on “growing pains.” KushCo opened several new distribution centers including Worcester, Massachusetts and Las Vegas, Nevada.

Coca-Cola

The news that soda giant Coca-Cola (KO) could be considering an investment or partnership with Aurora Cannabis (ACBFF) rocked the cannabis industry. First, because Coke is the king of beverages and secondly because cannabis is been so taboo in the consumer products industry.

“Consumer research shows Coca-Cola’s interest in marijuana is well-founded,” said Jeff Stein, Vice President at Consumer Research Around Cannabis (CRAC), a U.S. consumer company that specializes in researching the general consumer market and more recently, targeting cannabis consumers. “Soft drink users are more inclined to cannabis use than the general market according to our ongoing studies,” he said. CRAC said that the more a person drinks soda, the more likely they are to purchase cannabis.

In Other News

Tilray Inc. 

Tilray Inc. (TLRY) announced that the U.S. Drug Enforcement Administration (DEA) has granted the company approval to import a cannabinoid study drug into the United States from Canada for a clinical trial at the University of California San Diego Center for Medicinal Cannabis Research examining its safety, tolerability, and efficacy for Essential Tremor.

Tilray is providing a cannabinoid formulation for the trial in capsule form, which will allow researchers to test an investigational drug product containing two active ingredients extracted from the cannabis plant, cannabidiol (CBD) and tetrahydrocannabinol (THC).

Sunniva Inc. 

Sunniva Inc (SNNVF)  entered into an agreement with Beacon Securities Limited and Canaccord Genuity Corp. to purchase, on a bought deal basis, 1,900,000 units in the capital of the Company at a price of $5.27 per Unit for aggregate gross proceeds to the Company of $10,013,000. (All figures are in Canadian dollars unless otherwise stated). Each Unit shall consist of one common share in the capital of the Company and one-half (1/2) of one common share purchase warrant of the Company. Each whole Warrant shall entitle the holder thereof to acquire one Common Share at an exercise price per Common Share of $6.85 for a period of 24 months from the Closing Date on or about October 10, 2018.

Elixinol Global Limited

Elixinol Global Limited, known as EXL, (ELLXF) commenced trading on the “OTCQX Best Market” in the United States under the symbol “ELLXF,” as of September 18, 2018.  The OTCQX listing will operate in parallel to the Company’s ASX listing where Elixinol Global trades under ticker code EXL.

EXL’s half-yearly report issued in August 2018, the company posted strong revenue growth and a maiden profit for the group, driven considerably by Colorado-based industrial hemp division, Elixinol. Elixinol’s increased sales were lead by cannabidiol (CBD) private label sales with e-commerce, mid-market and bulk sales also showing a strong performance. EXL was the only ASX-listed company in this sector to post a profit.

Emblem Corp.

Emblem Corp. (EMMBF) along with Canntab Therapeutics Limited announced that they have achieved a milestone with regards to the development of a patent-pending oral extended release formulation for cannabinoids. Dissolution testing conducted by Emblem and Canntab’s research and development teams indicated that the Extended Release Tablets released cannabinoids consistently over a 12-hour period. Given these positive test results, Canntab will now begin manufacturing pivotal batches of the Product at Emblem’s Paris, Ontario facility, and tablets from these batches will proceed to clinical testing.

NUGL Inc.

NUGL Inc. (NUGL) announced its joint venture marketing agreement with Nichols Publishing Company, the publishers of Garden & Greenhouse and Professional Marijuana Grower magazines that will expand the reach of NUGL’s user-friendly cannabis and indoor gardening search app as it becomes the industry’s go-to-app for unbiased client reviews, retail shop and dispensary listings, locations of favorite cannabis brands and in-depth company profiles.

Green Hygienics Holdings Inc.

Green Hygienics Holdings Inc. (GRYN) announced its strategic acquisition of the Canna Brands Portfolio. Cannagram, which will be rebranded Cannagram Services, is a flagship platform that establishes the company as a trusted partner while extending brand awareness and cross-portfolio resources. Myijuana is a destination portal comprised of news, reviews, e-commerce and dynamic content curation. The CoursePro Academy was originally created to enable a variety of subject matter experts to create, publish, manage and sell their courses on one system.


Debra BorchardtDebra BorchardtSeptember 18, 2018
shutterstock_1072018091.jpg

11min2180

The news that soda giant Coca-Cola (KO) could be considering an investment or partnership with Aurora Cannabis (ACBFF) rocked the cannabis industry. First, because Coke is the king of beverages and secondly because cannabis is been so taboo in the consumer products industry.

“Consumer research shows Coca-Cola’s interest in marijuana is well-founded,” said Jeff Stein, Vice President at Consumer Research Around Cannabis (CRAC), a U.S. consumer company that specializes in researching the general consumer market and more recently, targeting cannabis consumers. “Soft drink users are more inclined to cannabis use than the general market according to our ongoing studies,” he said. The online study covered 36,199 adults of all age groups regarding purchasing behavior.

CRAC said that the more a person drinks soda, the more likely they are to purchase cannabis. Stein said that about 15% of the general market says they would buy adult use cannabis over the next year, but people who drink soda at least five times a week or more, that number pops to 18%. A whopping one out of five people who drink ten or more sodas a week plan on buying adult use cannabis in the next year.

 

% General % Of Adults Who Are Extremely
Consumer In Past 7 Days Market Adults /Very Likely To Buy Marijuana Index*
MONSTER 1.1% 2.1% 201
MOUNTAIN DEW 8.3% 13.0% 157
FANTA 1.8% 2.6% 142
SPRITE 8.5% 10.7% 126
DR PEPPER 9.3% 11.5% 124
PEPSI COLA 19.9% 23.7% 119
COCA COLA 27.7% 31.8% 114
CANADA DRY 1.6% 1.5% 97
DIET MOUNTAIN DEW 1.2% 1.1% 89
7-UP 2.2% 1.9% 88
A&W ROOTBEER 1.7% 1.3% 79
DIET DR PEPPER 1.5% 1.1% 72
DIET PEPSI 3.8% 2.5% 66
COKE ZERO 2.2% 1.5% 65
DIET COKE 6.6% 3.7% 56

Chart provided by Consumer Research Around Cannabis

* 2.1% of adults are extremely or very likely to buy marijuana this is 2 times the general market that drinks. Monster thus an index of 201. If it was the same as the general market the index would be 100.

31% of those surveyed that drank Coke in the past seven days were very likely to buy adult use cannabis, 23% of Pepsi (PEP) drinkers were extremely likely to make a purchase and Mountain Dew was in third place at 13%. Mountain Dew is owned by Pepsi and mostly associated with young, male consumers due to its sponsorship of many action sports. The caffeine in Mountain Dew is significantly higher than Coke.

The soda drinkers that are least likely to purchase adult use cannabis are diet soda drinkers. Only 1.1% of diet Mountain Dew drinkers and 1.1% of Diet Dr. Pepper drinkers plan on making a cannabis purchase. The only other soda drinkers that weren’t diet soda drinkers that had a low likelihood of buying adult use cannabis were people that drank A&W Root Beer, 7-Up and Canada Dry.

Soda’s Pharmaceutical History

The two products also have a somewhat shared history. Cannabis was originally a medicinal drug in the late 1800’s that was sold by pharmacists and carried by the major drug manufacturers of the time like Eli Lilly and Pfizer. Soda was initially sold as artificial mineral water and was also used for medicinal purposes.  This is why the soda fountains were first found in drug stores. Cocaine and caffeine were sometimes added to the drinks for medicinal purposes.

So, both of these products began life in the drug store and now both could find themselves on a shelf at a dispensary together. Coming full circle.

 

 

 



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 4 hours

$CGC ⁦@CanopyRiversInc⁩ great panel last week at the

@GreenMarketRpt – 4 hours

The good and bad on $TLRY this week.

@GreenMarketRpt – 22 hours

Ready to talk $TLRY ⁦@WallandBroad⁩ on ⁦@cheddar⁩

Back to Top

You have Successfully Subscribed!