Friends, an interesting report published in Marijuana Moment a few days ago (yes, I’m behind) about NY State liquor stores advocating for direct sales of cannabis. Reading their website, they’re worried about cannabis cannibalizing (alliteration!) their sales. It’s related to the same point that I’ve been hammering for a while, that the wine and spirits industries need to be finding ways to play along, not bury their collective heads in the sand. The idea of selling at liquor stores makes sense to me, particularly once you’ve got companies with nationwide distribution.
It also raises what to me more is the interesting question, which is: how does alcohol’s three-tier system fit into all of this? We’re already seeing Southern Glazer and Breakthru Beverage working in the Canadian markets. When Federal legalization occurs, are they able to persuade legislators to replicate the three-tier system for cannabis? I imagine they’ll try. On the other hand, I can think of a few companies that wouldn’t like that. It’ll be an interesting fight to watch when it arrives.
Also, a sort-of correction. In my last email, the one about SPACs, I noted that I couldn’t find any other cannabis-focused SPACs. Well, it’s true that I couldn’t find them, but there are plenty of others out there. I need to hone my Google skills.
Written by: Marc Hauser