THE OTHER GREEN IN THE MARIJUANA INDUSTRY
THE OTHER GREEN IN
THE MARIJUANA INDUSTRY
BY: ALEX MANESS
AS THE political landscape shifts
closer and closer to full legalization of
marijuana, one aspect of the industry that
is becoming more and more significant
is the financial side of marijuana. This is
an amazing time to watch the IPOs and
financial windfalls for many. Only on rare
occasions does a new industry pop into
existence seemingly out of nothing and
grow as large as the cannabis industry has
overnight. Right along with that growth
comes some unique challenges and a
future that looks surprisingly similar to
that of the tech industry years go.
In what has traditionally been, at least
since Prohibition, a grassroots industry (no
pun intended), things are quickly turning
more and more into a legitimate industry,
turning more and more corporate. The
small companies which have seen success
are quickly becoming larger and looking to
the next stages of market development.
Financing is coming in from outside
sources, IPOs are being announced by
the day, and mergers and acquisitions are
coming from seemingly every direction.
And this is just the beginning!
A BOOM IN THE GREEN SPACE
Perhaps one of the most telling signs
that things are changing in the marijuana
world is the fact that huge companies,
pharmaceutical and otherwise, are
pouring money into the industry. They see
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the trends and they know where things are
heading, so they are (rightfully so) trying
to get ahead of the curve.
The maker of Corona beer, for instance,
Constellation Brands (also owner of
SVEDKA vodka and Casa Noble tequila)
has dropped $4 billion into the industry
to increase its stake in Canopy Growth.
Constellation sees the growth of the
industry as a potential opening to market
cannabis-based alcoholic beverages.
As more and more countries and states
begin to legalize cannabis, that market
is growing exponentially. Though the
drinks and demand are not there yet, the
potential upside should it become legal is
undoubtable.