CANNAINVESTOR Magazine U.S. Publicly Traded September 2018 | Page 219

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TGOD: Thank you Louis, happy to be here.

CCIM:Cheers. My article this month focuses on beverages. More than two years ago my first case study was on the potential of this product segment. We know as fact that smoking cannabis is on the decline

(click here for that specific article). There is something welcoming, inviting, satisfying and nourishing about the instinct to consume orally and in particular drinking. Drinking for “effect” has been socially acceptable for thousands of years. For cannabis consumption, it is discreet and if one parallels to alcohol it is socially acceptable.

Recent studies reveal that alcohol consumption and sales have fallen by as much as 15% in those US states where cannabis was legalized.

Do you see that carrying over to Canada – and particularly to those provinces with significantly higher prices and reduced product selection?

TGOD: It is no secret that we view cannabis infused beverages as a tremendous opportunity within the sector. In fact, if you look at our senior executive team, you will see that we encompass over 125-years of combined experience in the beverage and beverage alcohol industries from industry leading companies including Cott Corporation and Andrew Peller Limited, one of Canada’s largest wine producers. Further, we have one of the largest R&D budgets of any LP with over $55M. We announced a beverage specific 287,245 sq. ft. purpose-built facility on our Valleyfield property capable of producing 40,000 kgs of premium organic cannabis. This facility will be dedicated to TGOD’s Beverage Division.

CCIM:ok … using “beer” simply for illustrative purposes … the cost of the ingredients (often just a handful of low cost commodities such as water, hops, barley, and yeast) may be pennies (if that) yet the finished product itself not only sells for significantly higher but also holds that price. Do you see that basic “finished product” principle applying

to this industry?