of edibles and beverages when most did not and we also predicted that rise would embrace health and wellness aspects such as limited to zero corn syrup etc. I have heard some that founded and run large industry funds and organizations state that because of all of the uses of cannabis and hemp that it will be greatest monetary commodity ever with superior ROI for some time to come. Now who am I to challenge such bold predictions from A listers … predictions that are exactly what I wrote years ago? But in there lies a bear trap that no one wants to step on because cannabis transforming into a crop and commodity may have a downside.
For a few months now, I have made a point of paying close attention to the vitamin shelves at a few pharmacies. What I noticed was that there was always a brand on sale including perhaps the store’s own line (often white labeled). Here is the label for Jamieson Vitamin’s Multivitamin for men. It was on sale for $15.99 for 150 tablets. But as I said, it seemed as though when Jamieson was not on sale then another brand such as Weber’s was. This is obviously an observation only and has no scientific or statistical credibility but because one can purchase a three to five month supply of vitamins at once (or buy a few bottles for an even greater supply) it does stand to reason that the same product or a fair substitute will be on sale before that supply runs out. $15.99 + 13% HST = $18.07 divided by 150 tablets = $0.12 per tablet. That is the total cost to the consumer. Obviously the cost to Metro and Jamieson is not $18.07 nor is it $15.99.
Now look at the list below of vitamins followed by the list of minerals and lastly the list of other “ingredients” … 14 vitamins, 9 minerals, 4 supporting nutrients, and another 9 identified inclusions for a total of 36 listed inclusions. For simplicity and convenience, let’s pretend each of these have an identical all in cost to Jamieson. What we know with certainty is that the $0.12 final all in cost to the customer includes all 36 listed vitamins, minerals, and other inclusions as well as the other costs associated with the product such as packaging, branding, overhead, shipping, etc. I think you get the picture because just using the 36 inclusions alone as the only cost would be $0.003 per line item but of course it is actually lower than that because we know that final cost to the customer is greater than any the supply chain cost. So what happens if CBD and other cannabinoids are inclusions? In other words, those that believe and advocate the cannabis will eventually be an accepted part of normal day to day life also accept the math of it all and it is only because of “volume” and expansion into new aspects of our lives that will generate real wealth. In other words, using the vitamin example, sell millions of tablets per day well into the future ….
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