Corvus Research & Communication

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Lift Business Conference

The Lift & Co. Cannabis Business Conference is indicative of a vibrant community and growing industry presence in Canada.  Speakers and delegates from government, financial services and of course, Canada’s largest growing operations were all represented. Each speaker was fantastic and brought something unique to the table through perspective, commentary, and action.  Here are the…

The Lift & Co. Cannabis Business Conference is indicative of a vibrant community and growing industry presence in Canada.  Speakers and delegates from government, financial services and of course, Canada’s largest growing operations were all represented.

Each speaker was fantastic and brought something unique to the table through perspective, commentary, and action.  Here are the speakers and panelists who I found really stood out:

1. Chris Friel

Mayor, Brantford, ON

Speaking to how municipalities have been consulted or, perhaps not consulted, by the federal and provincial governments about the pending legalization of adult-use recreational cannabis and associated storefronts, policing, and education, Brantford Mayor Chris Friel held nothing back.

Mayor Friel spoke to how municipalities will not be receiving funding for public cannabis education, an issue he and other advocates see as a problem.  With the introduction of a new industry that has been historically plagued with misinformation education around responsible use is going to be vital to ensure Canada’s latest frontier is able to best serve the needs of Canadians.  A lack of attention by larger government systems to education really speaks to a lack of preparation and investment in the health outcomes and knowledge of Canadians when new users will start engaging with cannabis.

A lack of funding for municipal level education on cannabis provides a huge opportunity for industry leaders to continue their important advocacy work and make an effort to educate Canadians on cannabis use and safety in a non-partisan way.

Mayor Friel also spoke to retail environments.  The city of Brantford attempted to bar the Ontario Cannabis Stores (OCS) from setting up shop in Brantford, instead opting to wait for educational funding and initiatives to come through, or waiting for a model where local businesses could thrive instead of provincially-owned outlets.  Unfortunately, Brantford was unable to do this and will have an OCS store or stores within the municipality.  Mayor Friel’s perspective on retail speaks to an important moment in the Canadian cannabis space, but also to the shifting ethos of Canadians that represents a desire for localized engagement and intervention.

Despite Mayor Friel’s issues with the federal and Ontario provincial governments, and the OCS, there is a province that has been a trailblazer in the cannabis retail space, the next panelist, Brian Harriman, represents the best of the province’s retail outlets.

2.  Brian Harriman

President & CEO, Alcool NB Liquor

Similarly to Mayor Friel, Harriman has focused on the importance of social responsibility when building the New Brunswick cannabis stores.  Harriman cited the length of interactions at cannabis outlets in Colorado, seventeen minutes on average, compared to beer outlets which average just two minutes.  The length of time spent in the retail outlets speaks to the value of education and relationship building between retailers and consumers.

cannabisnb-store

New Brunswick’s cannabis outlets are equipped with iPads, knowledgeable staff, and ID required at the door. The design seeks to provide customers with product education and accessibility and the province intends to provide home delivery services to consumers as well.

Harriman did mention how New Brunswick’s preparation could, however, prove harmful for the province’s bottom line should legalization not come into effect on July 1, 2018, which by all accounts it will not.  The province has prepared its storefronts, hired and trained staff, which would mean that each month of delay is costing the province a considerable amount of money in unused staff time and unopened retail space.   With such an uncertain time it seems as though whether prepared, like New Brunswick, or more unprepared in Ontario the provinces are not poised win this summer with regards to the opportunities cannabis retail could represent.

Anyone would be hard pressed to have a discussion about cannabis in Canada without mentioning financials, and of course, the same went for Lift & Co.

3. Financial Services for the Cannabis Industry

This panel had a number of interesting speakers contributing to a more round-table discussion.

Panelists were: Jim Carmack, Head of Capital Markets, MedMen, Matt Karnes, Founder & Managing Partner, Greenwave Advisors, Aaron Salz, Founder, Stoic Advisory, and Martin Landry, Managing Director Equity research – Special Situations and Consumer Products, GMP Securities L.P.

Consistently in the cannabis space companies enter public listings with extremely high market caps and high stock valuations.  To this point, analysts have been valuing companies based on potential value, the potential of legalization, potential growing capacity, potential market base.

Landry suggests that the fundamentals to support the valuations of the largest cannabis companies will not be a factor until 2020.  The market base is one of the largest factors that will be revealed after legalization and contribute to valuation adjustment.

Landry suggests that after legalization what analysts are really going to be looking for during the valuation process is significant differentiation.  The age of square-footage being king is largely passed and differentiation will depend more on significant product angles and technology innovations than on growing capacity alone.

Analysts are also projecting that medical sales will decline during the summer after recreational legalization.  After this point, it is projected that the core product offerings and branding are what are really going to differentiate recreational and medical brands.

4. Indigenous Strategies

Chief Sinclair, Board of National Access Cannabis

Similar to the necessary inclusion of municipalities in the landscape of recreational cannabis it is going to be vital for the future of Canada to include Canada’s First Nations, Inuit, and Metis in the recreational cannabis discussion.

Chief Sinclair’s talk was part of Lift & Co.’s five big ideas in Cannabis which included topics such as genetics, and advanced growing and technology.

Cheif Sinclair is a member of the Opaskwyak Cree Nation and a key member of National Access Cannabis, an advocacy group focused on medical cannabis accessibility and education.

With pending recreational legalization the Opaskwyak Cree Nation found and capitalized on an opportunity for retail in Manitoba and was able to gain one of four retail licenses in the province.   Being a First Nations group in Manitoba means that the Opaskwyak Cree Nation has an opportunity they intend to make the most of with urban First Nations consumers.  the Opaskwyak Cree Nation was able to make a significant invenstment into these retail outlets which will be made through their strategic partnerships with urban reserves.

Chief Sinclair’s vision for First Nations involvement in cannabis in Canada is going to be vital to establishing a strong First Nations presence in cannabis retail, advocacy, and education in Canada.  A province-wide retail opportunity could open doors for similar models to be replicated in other provinces.  First Nations owned retail outlets could also provide opportunities for these outlets to emphasize the available First Nations cannabis brands in Canada.

The Lift & Co. Business Conference was an excellent opportunity to learn from leading experts in the cannabis industry about everthing from branding, to finances, to the importance of advocacy and corporate stewardship.

 

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