3 reasons “cannabis 2.0” is ridiculously overrated
This past October, “Cannabis 2.0” was all the rage, as speculation circulated about how the legalization of edibles and concentrates would affect cannabis producers. The new laws impact a number of product categories that were previously illegal to sell — even with the federal legalization of cannabis last year. When cannabis was initially legalized, marijuana producers’ revenue exploded on the addition of a totally new revenue stream (adult-use). Now, some are saying that the legalization of edibles and concentrates will do the same. But will they? First, let’s look at one possible reason why they may not. New products may just cannibalize older ones It’s extremely common for new products in an existing market to “cannibalize” (i.e., take sales from) older ones. The most famous example of this was when Apple’s iPhone led to a massive decrease in iPod sales, but there are examples in almost any industry. There’s also evidence of it having happened to cannabis vendors in Colorado. Earlier this year, the state released Q1 cannabis sales figures, which showed that medical sales declined as customers had more access to adult-use cannabis. In fact, recreational sales rose by precisely the same amount as medical sales dropped: 11%. The two markets were not…
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