The coming market for cannabis-based products looks to be an explosive one – and Liberty Leaf’s Just Kush is poised to play a role in it
It’s an appetizing forecast for investors as well as consumers: A new report pegs the value of the imminent cannabis-based products market, including edibles, topicals, etc., at an annual $2.7 billion. But before you start counting your profits – or setting out your plate and napkin for, say, chocolate-flavoured edibles – be aware that government officials expect only limited products to be available, and even then not until mid-December, despite their legalization in mid-October under amended Cannabis Regulations.
Buying cannabis edibles, concentrates and topicals (products made from oils and other extracts of the cannabis plant) will become legal once Canada’s second round of cannabis legislation passes on October 17. On that date, Health Canada will begin accepting new product applications. However, cannabis producers must let Health Canada know 60 days ahead of when they intend to sell the new products. Thus, the delay in their availability until mid-December.
Further, The Financial Post quotes officials as pointing out, “Provincially or territorially authorized distributors and retailers will also need time to purchase and obtain the new products and make them available for sale.”
The good news is that the prospects for this new market, even though delayed, are bright. The above-cited report, from Deloitte, predicts significantly higher retail profits. According to Global News, “The report estimates that more than $1.6 billion will be spent annually on edibles and $529 million on cannabis-infused drinks, while topicals, concentrates, tinctures and capsules would combine for more than $400 million in sales.” This spending “will be on top of current cannabis product spending,” and could well siphon profits away from the alcohol industry.
Just Kush is setting itself up to participate in the new market
All signs are promising for Liberty Leaf’s subsidiary, Just Kush, to be a part of this new market. That’s because Just Kush has not only submitted a Standard Cultivation license application to Health Canada – but also, importantly, a Standard Processing license application.
Why a separate license for Standard Processing? As Grow Legally explains, “Processing is not the same as cultivation – the growing and harvesting of cannabis plants. Rather, processing focuses on the labeling, packaging and manufacturing of cannabis products that include not only dried bud and oils that are currently allowed, but also concentrates, extracts, edibles and topicals. These products must be sold through authorized or licensed retailers, although sale direct to consumer can also be made by licensed producers who also hold a sale for medical purposes license.”
Once in receipt of its Standard Processing license, Just Kush will be in position to contribute to the upcoming boom market. Its participation won’t just involve creating an excellent quality and variety of products. In keeping with Liberty Leaf’s commitment to responsibility and community, Just Kush plans to be at the forefront of education and consumer practices, whether in the production or marketing of its products.
- The Financial Post on the coming boom market – and initial delays
- Global News on Deloitte’s predictions of a $2.7 billion market
- Health Canada press release on regulations for the production and sale of cannabis products
- Grow Legally on the what and why of a Standard Processing license
- The Vancouver Sun on the low-key marketing for cannabis products
Whether you are an investor seeking to include the cannabis industry in your portfolio, or an entrepreneur with a start-up or a strong business idea for the legal cannabis space, Liberty Leaf has the expertise and financial resources to build your portfolio or take your enterprise to the next level.