Reflecting and looking ahead

Reflecting on 2024: A Rollercoaster Year?

What a year it’s been! As always, the only constant is the unexpected ?? There’s much to be proud of, however we were also faced some significant challenges. One of the most notable hurdles was the ongoing delays in regulatory reform by Health Canada, which has been caused by various factors, including the turmoil within our government. Additionally, the closure of Hybrid Pharm and its struggles in the medical cannabis sector—driven by the rise of recreational use and other causes —was a tough blow.

Despite these setbacks, I remain positive with where the industry is headed. With Canada's legal cannabis market reaching $5 billion in recreational sales in 2023, plus there was more the 3600 stores across Canada at start of the year, there is lots to be excited for here. Internationally, the cannabis market is slowly but surely evolving, sparking greater interest in events like the International Cannabis Business Conference (ICBC), where global participation continues to grow. While the U.S. is still navigating federal legalization, this creates significant opportunities for the rest of the world.

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Looking Ahead to 2025: What’s Next?

?There are several exciting things I’m looking forward to in 2025:

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?-????????? This year marks what would've been the 10 year anniversary since the first Lift Expo, which started as a premier consumer show before legal cannabis consumers existed. Now, events have become more important than ever, with more specific focuses emerging across various countries. Major shows like MJBiz in Vegas, InternationalCBC in Berlin, and Grow Up Conference, Awards and Expo in Toronto are excellent examples of how events are blending international trade, cultivation, business advice, and technology. These events are invaluable for anyone wanting to understand the global cannabis landscape and connect with industry leaders. Deals can’t just be made over Zoom calls and LinkedIn; face-to-face interactions are still crucial.?

-????????? I’m very excited about the technology that’s taking shape to help support the industry. From AI-powered budtenders and next-gen software to cutting-edge neurotechnology from companies like Zentrela Inc. , technology will play a critical role in improving efficiency, reducing workforce needs, saving costs, and driving revenue growth. For anyone not keeping up with these advancements, there’s a real risk of being left behind.?

-????????? One thing we need more of in 2025 is collaboration. Whether it’s with universities, government groups to influence regulatory changes, or access to programs available to other industries, collaboration is crucial for the growth of our sector. While competition is fierce and some individuals are still out to crush their rivals, I’m seeing a positive shift. Some of the early pioneers are still around, along with newer entrants bringing fresh energy. Let’s embrace "coopertition"—working together to achieve mutual success and push the industry forward.?

-????????? I am also looking forward to the beginning of a significant shift of more brands aiming to expand their presence in international markets. We're moving towards a truly global industry, much like how you can now find alcohol bottles from all over the world at liquor stores. While we may be 10 to 15 years away from that level of global integration, the movement is already underway. In the past, companies focused on selling bulk products, leaving branding to the buyers. However, this is changing as major brands are now crossing borders to establish their own identities in new markets. I'll be playing a role in this exciting shift, so stay tuned for more updates on that.?

-????????? When cannabis was legalized in Canada, I predicted that by the end of 2025, the illicit market would be obsolete. Critics at the time argued that the legal market could never compete with the legacy market, but as we head into 2025, it’s clear that the legal market has come a long way. We now have a wide range of products: good hash, various strains of flower, high-end extracts, pre-rolls, and even creams and capsules. The only real gap remaining is high-THC edibles, which—hopefully—will be available this year, and for which the team at Loosh Brands is well-positioned to support our growing client base of leading LPs plus domestic and international brands. The convenience of legal cannabis, with numerous stores and delivery options at various price points, is another significant draw. As well, many of the best legacy producers have now transitioned to the legal market and are making their mark. While I might be a year or 2 off, I stand by my prediction that the illicit market’s decline is inevitable.

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?Optimism for the Future?

As we enter 2025, there’s a lot to be optimistic about. In Canada, 72% of cannabis users are reportedly purchasing legal cannabis. We’re seeing a continued rise in recreational sales, more stores, and a greater variety of products, including those with different cannabinoid ratios. We’re also witnessing increased international trade, both to new and to existing markets. And finally, with leadership changes on the horizon in Canada, the U.S., and other major cannabis markets, there’s hope that the future will be brighter than the past.

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Here’s to a promising 2025!