Some thoughts on 2019/2020

Happy New Year to all my LinkedIn contacts,

At the start of every new year I take some time to reflect on this past year in the cannabis industry. With an industry still in its infancy at times the days can feel like weeks and the months like years. So, I’m going to share my reflections from 2019 and let you know what excites me for 2020. 

So, first a review of the year that passed:

•  The industry has seen a lot of the original founders of licensed producers either leave on their own or be pushed out (hard to know which is which and a few more amicably than others). It’s unfortunate to see the lack of respect for some of these pioneers but for the industry to evolve, getting some fresh blood is a must and the founders shouldn’t take it personal (unless it was personal). 
•  We saw the end of soooo many fly-by-night companies that had HUGE valuations but not much substance. Some were created simply to raise money and with the hope to sell, while others didn’t even care about that. With a large amount of companies licensed to produce cannabis and financing drying up, this looks like the end of these stories.
•  On the other side are legitimate companies that seemed to be near the top of the industry until a whistle-blower brought them down or they ran out of financing options which forced them to make some hard choices on the path forward. In the case of the whistle-blower it not only brought down that particular company but also much of their staff and many other publicly traded companies with it.
•  The roll-out of legalization was not a complete failure. It was decent in some provinces while utterly embarrassing in others. The good news is it can only get better.
•  We had the launch of “Cannabis 2.0” which was promised by the end of this year and most of us are still waiting while those who were “lucky” enough to purchase some already realized that this isn’t what they thought it would be (due to the regulations). 
•  What has been apparent for some time is the need for data on the industry so that decisions aren’t made in the dark as it has mostly been so far. More companies are realizing that and preparing to gather and analyze this data.
•  This was also the year that Psilocybin for medical purposes has really made some noise with many similarities with cannabis which include a misunderstood substance that has been used “recreationally” for many years but is now clearly showing potential to help with many medical ailments.

Even with some rocky times in 2019 there are still many things to be positive about and to look forward to for 2020, here are 10 of mine:

• As of July the cannabis industry has added $8 billion to the Canadian economy and 9,200 people are currently employed in the industry in some shape or form. This is up from 2,600 in fiscal 2018 and this figure is expected to increase tremendously and contribute even greater to our economy. 
• New products (AKA cannabis 2.0) will give some much-needed energy to the industry and allow for it to compete better with the illicit market. 
• The recent launch of nationwide sales by Shoppers Drug Mart is an important step to having all pharmacies carry medical cannabis and will lead to more convenient access by patients, greater product choices and availability. Also, this help support greater insurance coverage for medical patients
• We will see the expansion of insurance coverage for medical patients through their employee benefits and personal policies which will lead to greater access by people to use cannabis as an alternative to traditional medicines.
• Even with all the challenges around getting a retail store license last year, I expect to see 2-3 times the amount of retail stores open this coming year with the easing of retail licensing.
• Cannabis genetics are coming into the spotlight as consumers are learning more about the differences between varieties. Merely saying that their cannabis is “premium” doesn’t mean much anymore without the producer backing it up with genetics as a key contributing factor.
•  Being a highly regulated industry requires precise operations with little room for error. With automation coming into areas like cultivation and packaging it will eliminate human error and reduce diversion. And to that the bonus of reducing overall costs (once initial investment is paid off).
• There is talk about the use of cannabis in public places or what they call “consumption sites” (but I don’t want to call them that). This will be even more interesting with the introduction of edibles. My hope is we will have a plan for this by the end of the year.
• People fought for the right to grow yet with challenges around acquiring starting material and peoples fears home grow never really did take off. I expect that to change this year with new devices being created to make it easier and nurseries being licensed.
• We will see more of a focus on terpenes and less on THC. I don’t think we will eliminate all the people from walking into a retail store and asking “what is the highest THC you have” but I am already seeing people checking for terpenes they like. Cannabis producers will highlight the terpenes in their products, and we will see new businesses that sell just terpenes to enhance effects of the cannabis.

And now that I’ve provided that industry overview, I want to highlight some things that I am personally excited about for 2020:

• My role at Flowr is going to change...I will be moving away from the “rec side” of the business and will be focusing back on the medical. As fun as it was working with retail stores and educating their staff on our products, I really do miss educating healthcare professionals and helping patients with access to products that can help them. With the recent roll-out of Shoppers Drug Mart selling cannabis nationwide, cannabis will become more accepted and normalized as a medicine all across Canada which is something I have been working towards since 2013.
• I see a lot of potential in a few cannabis innovations that can be major industry disruptors. They include Biosynthesis (extracting cannabinoids from living organisms) to reduce costs greatly and nano technology (allowing for more effective absorption of cannabinoids) which has the potential to have a greater effect from less amount and to work much faster.
• I am going to focus on international opportunities and will again be attending ICBC Berlin - https://internationalcbc.com/berlin where I hope to bring even more people with me. This will be the 4th year and the biggest yet. If you want to join me this year, please do reach out. With a lot of developments worldwide I am excited to assist these emerging markets with what we have learned in Canada so far as they go threw many of the same challenges we had when we started.

Thanks for taking the time to read my thoughts and feel free to leave your comments, whether you agree or disagree and if I missed anything which you may have on your list ??