Zinger Key Points
- Each state's market is on its own timeline, and existing regulatory frameworks are difficult to reverse, say panelists.
- Cannabinoids like Delta-8 create confusion, experts say, while healthier ones like CBN, and CBD have potential for market growth.
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On day two of Benzinga's Cannabis Capital Conference in Miami, industry experts gathered to discuss the pressing issue of price compression in the cannabis sector.
The panelists, featuring Matt Hawkins, founder and managing partner at Entourage Effect Capital; Pablo Zuanic from Zuanic & Associates; SNDL Inc SNDL CEO Zach George; and Brandon Mills, president at 4Front Ventures, delved into the challenges facing the industry and the strategies they think can help overcome them.
The Takeaways On Cannabis Pricing: The conversation began with an analysis of price compression in various states, including New York, where George agreed that regulatory missteps have hindered market growth. Also discussed was how operators in Massachusetts have had to adapt to their own unique set of challenges, with the SNDL CEO and Mills saying that each state's market is on its own timeline, and it's difficult to reverse course once regulatory frameworks have been established.
In the Canadian markets, George suggested lobbying local jurisdictions to minimize the number of retail stores within a specific area, an attempt to address the growing oversaturation issue in the retail market where an expansion of licenses led to steep competition.
Read also: Uber Says Delivering Cannabis In Partnership With Leafly Is A Natural Extension Of Its Business
Zuanic touched on the importance of research and regulation in the cannabis industry, highlighting the Veterans Equal Access Act, a bill proposed last year that would allow VA doctors to prescribe medical cannabis and have the VA cover its cost.
If the bill is passed, it could set a precedent for public and private payers to cover medical cannabis, potentially leading to broader market growth, Zuanic said.
Execs Talk Cannabis Alternatives: Another topic of discussion was the impact of alternative cannabinoids like Delta-8 and Delta-10 on the industry. Hawkins agreed that the alternative products create confusion for consumers and pose a threat to the industry, arguing that until regulatory loopholes are closed, it's a “free game,” for companies who market their products with Delta-8 and Delta-10 so they can get them across state lines.
In contrast, panelists said they recognize the potential of healthier cannabinoids like CBN, CBG and CBD to drive market growth.
Read also: Montel Williams Slams Cannabis Industry's B2C, Says 'I'm Talking About Educating,' Not Advertising
Products containing those specific cannabinoids have seen success, particularly when targeting need-based solutions for consumers.
Hawkins and Mills emphasized the importance of educating consumers on the benefits of legalized markets and the dangers of illicit ones.
Photo via Shutterstock.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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