A growing number of cannabis businesses are failing to pay their federal excise taxes on time, a sign that companies are struggling and deferring their tax bill to meet more pressing needs – such as paying employees.
The six largest U.S. MSOs combined accounted for approximately $5.0B (20%) of cannabis industry revenue in 2021. No single competitor represented as much as 5% of the total.
Approximately 9,900 small companies with average revenues of around $1.6M accounted for over 60% of total industry sales.
In contrast, the 9,100 U.S. craft beer companies in 2021 represented only 27% of beer revenues.
As cannabis approaches legalization, the necessary scale of businesses will increase. The industry is capital-intensive, and tremendous sums will need to be spent to establish national brands, distribution systems, and centralized production facilities.
All of this is foreshadowing a wave of consolidation within the Cannabis Industry, coming soon.
Show Notes:
Consolidation is Inevitable in the Fragmented Cannabis Industry
https://www.viridianca.com/chart1
Canadian cannabis producers’ unpaid tax bills soar as industry seeks reform
https://mjbizdaily.com/canadian-cannabis-producers-unpaid-tax-bills-soar-as-industry-demands-reform/
Viridian Cannabis Deal Tracker – Week Ending October 28th, 2022
https://www.viridianca.com/deal-tracker/cannabis-deal-tracker-week-43-2021
Host:
Josh Kincaid, Capital Markets Analyst & host of your cannabis business podcast.
https://www.linkedin.com/in/joshkincaid/
Episode 1064 The #TalkingHedge…
Your Cannabis Business Podcast.
Covering cannabis products, reviews, business news, interviews, investments, events, and more.
https://www.theTalkingHedgepodcast.com
Music Info:
Song: Beat | Keep On | 2020
Artist: Milochromatic Beats
&
Song: Dark Trap Beats Hard Rap Instrumental | Gang | 2018
Artist: LuxrayBeats
Keywords:
Hemp News, Weed News, Cannabis News, Marijuana News, Cannabis Business, Marijuana Business, Cannabis Industry News, Marijuana Industry News, Weed News 420, Talking Hedge Podcast, Cannabis Podcast, Marijuana Podcast, Business Podcast, CBD podcast, THC podcast, Cannabis Pitch Deck, Marijuana Pitch Deck, Marijuana Investment Deck, Cannabis Investment Deck, Cannabis Compliance, Cannabis Data, Cannabis Banking, Cannabis Investment, Pot Stocks, Cannabis Stocks, Weed Stocks, Marijuana Stocks, Cannabis Data, Marijuana Data, Cannabis Analytics, Marijuana Analytics, Cannabis Sales Data, Marijuana Sales Data
Josh is not an investment adviser. The Talking Hedge is long gold and silver. Listeners should always speak to their personal financial advisers. This is only entertainment.
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