The Cannabis Complex - Episode Three


*Re-uploaded to fix audio issue

With the legal market now open, how does the future look for the legal industry, and why are some companies still frustrated?

With storefront dispensaries across the country shutting down, it would seem that the era of the black market is over, but there’s a factor that few people know about and it could be the downfall of companies on the legal side.

Illegal online dispensaries selling edibles and other products you can’t yet buy on the legal market are said to account for more than 50% of black market sales, and Deloitte expects they'll take in up to $1 billion during the first year of legalization.

The Canadian government and RCMP have zero resources dedicated to policing it, but it’s not that they don't have the resources to do so.

They're just choosing to use hundreds of millions of dollars to police cannabis consumers through motor vehicle and border crossing enforcement rather than spending it to curb the flow of money into the illegal online dispensaries.

While the legal businesses have to abide by strict regulations, especially on marketing and advertising, they're angry that the government effectively turns a blind eye towards the online black market where businesses can market however they want, where anyone can buy weed, and where there's zero accountability on product quality.

While larger companies like Tweed and Aurora have enough investment funding to weather any competition from the black market, smaller companies and micro growers on the legal side could really struggle and it could be the downfall of many of them.


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