Canada Illicit Market Decline
Back in Q3 2020, Canada's regulated market finally took over its illicit adult-use cannabis market. Two quarters later, the regulated market continues to take market share from the illicit market. This trend is due to the fact that the cost of flower has consistently decreased and can now better compete with the illicit markets in price. Consumers would rather buy from a regulated retailer Vs. an illicit dealer if the price is similar. Something else that stood out is Canada's total market growth. In Q3 2018, when adult-use sales began, Canada had total expenditures of about $1.475 Billion (Illicit and Legal Market). In Q4 2020, this number has grown to $1.8 Billion. This demonstrates Canada's consistent linear growth since sales began.
CT Getting Closer
CT's legislative leaders will meet with Governor Ned Lamont (D) on Tuesday to continue negotiating a plan to legalize marijuana in the state. A new poll shows majority support (64%) amongst voters in CT. Since the legislative session ends on June 9th, there is an urgency to pass some reform. In the current negotiations, they are working out who would qualify as a social equity applicant. If that designation is received, there will be benefits in the cannabis licensing process. House speaker Matt Ritter (D) mentioned earlier this month; he would be open to taking up the issue in a special session to resolve the differences between legalization bills that lawmakers have put forward and Gov. Lamont. The governor mentioned if a legalization bill is not passed this year, he anticipates the issue could go before voters. CT will likely pass some reform shortly.
LA Not Getting Closer
Louisiana Adult-Use legalization efforts have fizzled. Rep. Richard Nelson’s bill to tax the sale of marijuana died on a 47-48 vote Tuesday, well short of the 70 votes needed for a 2/3 majority. After that bill failed, he tabled the vote on a bill to legalize the drug for recreational use for now. The LA Sheriff association helped kill the bill as they have significant clout in the state. The association did say; however, they would study the idea ahead of next year's legislative session. Virginia became the first southern state to legalize recreational marijuana. It seems like it will be the only one for the near future.
