3 ms·

I feel this is the same problem most businesses face in Canada. A small/capped, distributed population with higher cost of business driven by labour rates. Most

I feel this is the same problem most businesses face in Canada. A small/capped, distributed population with higher cost of business driven by labour rates. Most other businesses (b2b or b2c) get around this by scaling/selling to the much larger, wealthier population down south which is not possible in this case. This is part of the reason we have a market of conglomerates (e.g., 3 telcos, a handful of grocery chains, 5 banks, etc...). The gov't (re: JT) pushed this through to some fanfare but has resulted in oversupply and fairly botched execution as some other posters have mentioned already. I'd expect to see contraction in the suppliers / M&A as some of the growers and distributors start to go belly up.

cmrdporcupine 3y ago
Not the govt's fault that all these businesses jumped in on what they thought was a get rich quick scheme. In Ontario the Wynne gov't had what I thought was a better proposed approach in keeping the retailing under the same jurisdiction as wine/beer/liquor in the gov't run LCBO. When used-car-salesman-Doug got into power that idea got axed, and it seems like every strip-mall has a cannabis store now. Finally, to your dig about "JT" -- the feds only provided the legalization framework. It's the provinces that administered it in their varying ways. I'm not a Liberal voter, but I see this very often these days, blaming the feds for things (COVID policies, real estate regulation, etc.) outside their jurisdiction. It's a bit annoying.
llm_nerd 3y ago
Conglomeration happens in all markets. A given American in a given geographical area (say lower Michigan) has exactly the same limits in options of grocery stores, for instance. Almost all Americans choose from three telcos. There is nothing unique in that. Most markets trend towards a few winners that dominate. Overall the legalization and commercialization has been a spectacular success, and ultimately it is markets and capitalism at its healthiest. Loads of firms tried to capitalize to find the market saturated, so there are a few winners and lots of losers. Everyone adjusts. That's exactly how it should be.
kashunstva 3y ago
> The gov't (re: JT) pushed this through to some fanfare but has resulted in oversupply I’m not sure what the PM should have done here then. Protecting capitalists from misreading the level of demand, or maintaining cannabis as an illegal product?

cmrdporcupine 3y ago

Not the govt's fault that all these businesses jumped in on what they thought was a get rich quick scheme. In Ontario the Wynne gov't had what I thought was a better proposed approach in keeping the retailing under the same jurisdiction as wine/beer/liquor in the gov't run LCBO. When used-car-salesman-Doug got into power that idea got axed, and it seems like every strip-mall has a cannabis store now. Finally, to your dig about "JT" -- the feds only provided the legalization framework. It's the provinces that administered it in their varying ways. I'm not a Liberal voter, but I see this very often these days, blaming the feds for things (COVID policies, real estate regulation, etc.) outside their jurisdiction. It's a bit annoying.

llm_nerd 3y ago

Conglomeration happens in all markets. A given American in a given geographical area (say lower Michigan) has exactly the same limits in options of grocery stores, for instance. Almost all Americans choose from three telcos. There is nothing unique in that. Most markets trend towards a few winners that dominate. Overall the legalization and commercialization has been a spectacular success, and ultimately it is markets and capitalism at its healthiest. Loads of firms tried to capitalize to find the market saturated, so there are a few winners and lots of losers. Everyone adjusts. That's exactly how it should be.

kashunstva 3y ago

> The gov't (re: JT) pushed this through to some fanfare but has resulted in oversupply I’m not sure what the PM should have done here then. Protecting capitalists from misreading the level of demand, or maintaining cannabis as an illegal product?