December 15, 2017
In 2016, I saw major marijuana consolidation on the horizon nationwide in the recreational marijuana industry and definitely in Oregon. Why should four different Oregon cannabis companies have four different delivery drivers, managers, CEOs, CFOs, etc.? Why buy supplies separately when you could pool the buying power of a consolidated powerhouse? Consolidation decreases duplicative inefficiencies and ultimately the consumer wins with lower prices.
Also, why should a cannabis company have to learn from scratch delivery logistics when there is an alcohol distributor in every town that already knows how to sling psychoactive organic chemicals made by plants and is already servicing state liquor licensees.
Liquor Will Consume Cannabis
I predict that after the regional alcohol distributor mergers settle down a bit, they will quickly turn their sites on marijuana. It will likely be non-public, closely hold alcohol beverage distribution corporations rather than publicly traded alcohol companies. They will be more likely to be the first Wall Street acquisition of Weed Street companies. Alcohol will likely do it before Big Tobacco, Big Pharma, or Big Ag. Then in the next twenty years you could ironically see some strange acquisitions of Big Ag and Big Pharma as the new monster companies take over the world. The future could be ETOH-THC post-acquisition powerhouses ruling the corporate world. What do you think? Comment below. (This ended up being prophetic with Constellation Beverage’s Move)
Another possibility is that the big marijuana players of Canada and the US West Coast will quickly consolidate over the next 18 months and WEED WILL ACQUIRE ALCOHOL thereafter, picking off a few distributors here and there and then continuing to merge.
Guess what this could mean: It is possible that Big Weed becomes bigger than anything else as alcohol loses consumer dollars everyday to new cannabis consumers looking for a healthier lifestyle or opiate users switching to THC at a huge loss to Big Pharma. The future is exciting to speculate about and will be even more exciting to live through and be part of. The next Apple or Microsoft or Google or Nike exists out there somewhere in cannabis land. There is someone you’ve never heard of before that will be the first Mark Zuckerman of cannabis. I love this industry!
Forward Looking Statements
While no forward-looking statements were intended and this blog post is just the private, personal musings of Mike Arnold, certain information set forth herein may be construed as “forward-looking information”, including “future oriented financial information” and “financial outlook”, under applicable securities laws (collectively referred to herein as forward-looking statements).
Information contained herein is not intended to constitute forward-looking statements nor does it contain any of the following (i) projected financial performance of the Company; (ii) completion of, and the use of proceeds from, the sale of the shares being offered hereunder; (iii) the expected development of the Company’s business, projects and joint ventures; (iv) execution of the Company’s vision and growth strategy, including with respect to future M&A activity and global growth; (v) sources and availability of third-party financing for the Company’s projects; (vi) completion of the Company’s projects that are currently underway, in development or otherwise under consideration; (vi) renewal of the Company’s current customer, supplier and other material agreements; and (vii) future liquidity, working capital, and capital requirements.
Forward-looking statements are provided to allow potential investors the opportunity to understand management’s beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating an investment. While this is Mike’s personal opinion at this moment, none of this should be taken as fact nor as a permanent opinion.
These statements are not guarantees of future performance and any reliance should not be placed on them. Forward-looking statements are speculative and necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements.
Although forward-looking statements contained in a placement memorandum may be based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements on a blog post will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update this blog at any time if circumstances or Mike’s opinions should change except as required by applicable securities laws. The reader is cautioned not to place any reliance on forward-looking statements in a blog post. That would be crazy and irresponsible. Do your own research and make your own opinions.