even losses. Now let’s tie this in with this industry …
According to a recent publication by NewDataFrontier with many of the slides appearing in this video, investment in the legal cannabis increased from $3.49B in 2017 to $13.8B in 2018 and that is a $10.31B increase year over year. However, what is key is that $5.8B of that increase (56% of the increase) came from two companies – Constellation Brands (Alcohol) and Altria Group Inc. That is just two companies that have taken investments in this industry. My very first articles appearing in the US in 2016 predicted that big alcohol and tobacco would move into this industry followed by others in those industries (Pyxus International Inc for example) and by food companies as well as health and wellness. In other words, the potential investment dollars pouring into this industry is staggering to say the least.
Coke tested the waters by floating the idea and backed off … temporary? What about its competitors? Rumours that Nestlé is looking continue to circulate. We know the Loblaw group is all in through Shoppers Drugmart. And in all of that I have not even touched on potential medical breakthroughs or using cannabis (hemp) as textiles, building materials, plastics, biofuel, etc. In that same video presentation I provided the link to is the growing acceptance of legalizing cannabis in the USA with a majority of those aged 18 through 64 in favour including some age bands over 70% in favour. Mind you, one in three millennials in America believe the world is flat … scary really, but now one can appreciate how hucksters work their craft to manipulate just enough people to influence those stocks and securities that are the target of their campaigns. Fortunately, this short video demonstrates why the hands of time cannot be turned back as awareness, education, and acceptance continues to grow backed by science in an era where society pursues a lifestyle rooted in health and wellness.
From my first articles a few years ago, I predicted that cannabis (including hemp) may just be what they refer to as a recession proof industry but let’s hope that test is still several years before we have to find out. I also predicted that cannabis beverages could become a dominant force and this recent article certainly supports that hypothesis of mine written back in 2016.
Is investing in the legal cannabis industry ideal for the typica investor – you decide. Until next time, invest long and prosper.
The outlook for this industry is unchanged based on most research and reports and if anything has actually increased … rough waters are part of the voyage. But always remember that our content is provided for information and educational purposes only to raise awareness and to facilitate discussion. Our content is not to be considered in any way as investment advice or deemed a recommendation. You and you alone are solely responsible for your financial decisions including your investment decisions. Any company referenced in this article is solely because they fit the narrative and the companies referenced are unaware of their inclusion. No compensation of any kind was offered or made.
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