The Cost of Living

THE HARSH GROWING PAINS OF THE MARIJUANA BUSINESS

Alfredo Panceron 301112827 | Business Communication 732-008 | 17.02.2020

INTRODUCTION

The next presentation summarizes the listened radio program named “The Cost of Living” in their
chapter named “The Harsh Growing Pains of the Marijuana Business.”

This program made a review about recreational pot that has been legal in Canada for one year
now. It's been 365 days of ups and downs, in the market.

Has been performed by the producer Tracy Johnson who takes a closer look at three winners and
three losers during this first year of legalized weed.

AN OVERVIEW OF RECREATIONAL POT MARKET

In the fall of 2018, everyone in Canada was expecting about the legalization of recreational
marijuana.

Today a year after is the moment of making a retrospective look of which really happened. In this
context, we will do a summary to review who has been the winners and, who has been the losers
in this interesting new business in Canada.

The Winners

In the first place, we are doing a review of the three most winners in this new multibillionaire
business.

Which according to Tracey Johnson are the following:

1. Canada, the pot business has caused an unusual economic boom. According to Remax
one of the biggest property brokers of the country, this has had derivated in the increase
of property prices. Overall in the Ontario Region, where the increment has reached more
than 25 percent, only in the last year. This economic development has sprinkles to the
rest of the nation, which has been a good thing.

2. Canada’s Economy, For this year, is expected that pot business has grown until it reaches
1,2 billion dollars in sales. This is over the expected more than 300 million than the same
period of the past year, mainly for the addition of new customers.

3. The Black Market, this was the biggest winner despite that should have been according
to the expectations one of the biggest losers. Since it that was one of the main reason for
the government to legalize the pot, that was shot down the black market, this not happen
and not been even close to happening.

PÁGINA 1
The Market

For that one wins others has to lose and this is the case of someone who loses in the pot business
in the last year.

Canadians expend annually more than 5 billion dollars in weed and, how we saw previously, the
legal sales expected for 2020 are around 1,2 billion dollars, that’s mean that still, 80 percent of
the market is in the black market. This happens mainly for two reasons:

1. The price of legal pot is higher than the illegal, due to that should add the overhead in
taxes.
2. Availability, broad Canada just exists around 300 stores, which is reducing significantly in
Ontario where only exist 24 stores to supply around 15 million people.

The Losers

1. Medical Users, with the legalization, came taxes and for the people that use as a
medication, rises prices for people that have a prescription for pot.

2. Various municipals, prevention and the federal government due to this not have seen the
tax revenue that they are expecting because of the dominance of the Black Market.

3. Investors in pot companies, the largest growers that have to take the bidding of the
market in many cases had lost half or more of their values.

In sum, have been a disappointing beginning for most of the stakeholder's causes for this brand
new business yet in development, the last advice if you are a Cannabis Investors, be very careful…

Thank you.

Alfredo

PÁGINA 2