Search Results for: fastest growing industry

Legal Marijuana Is The Fastest-Growing Industry In The U.S.: Report

DISTRICT OF COLUMBIA:  Legal marijuana is the fastest-growing industry in the United States and if the trend toward legalization spreads to all 50 states, marijuana could become larger than the organic food industry, according to a new report obtained by The Huffington Post.

Researchers from The ArcView Group, a cannabis industry investment and research firm based in Oakland, California, found that the U.S. market for legal cannabis grew 74 percent in 2014 to $2.7 billion, up from $1.5 billion in 2013.

The group surveyed hundreds of medical and recreational marijuana retailers in states where sales are legal, as well as ancillary business operators and independent cultivators of the plant, over the course of seven months during 2013 and 2014. ArcView also compiled data from state agencies, nonprofit organizations and private companies in the marijuana industry for a more complete look at the marketplace.

Obama Ignores America’s Fastest-Growing Industry in State Of The Union Address

DISTRICT OF COLUMBIA: During last night’s State of the Union address, President Obama made the controversial declaration that he would sign an executive order raising the federal minimum wage from $7.25 an hour to $10.10 an hour for federal contract workers. Notably absent from his speech was any mention of the fastest-growing industry in America, an industry that has consistently and voluntarily paid its workers above the minimum wage, even at lower skilled entry level positions. [Read more…]

Aurora Cannabis Finalizes Largest Acquisition In Cannabis Industry History

CANADA: Aurora Cannabis has announced today that with the second take-up under its offer to acquire all of the outstanding shares of CanniMed Therapeutics, the Company now owns approximately 95.9% of CanniMed common shares. The Company intends to acquire the remaining outstanding shares it does not already own through a compulsory share acquisition, pursuant to the Canada Business Corporations Act.

The transaction unites Aurora, one of the world’s largest and fastest growing cannabis companies, with CanniMed, a pioneering cannabis company that has been operating in the industry longer than any other competitor, and whose brand strongly resonates with the medical community. The combined entity, under the Aurora banner, creates a global medical cannabis leader, and will continue to pursue an aggressive strategy of rapid technological and product innovation, and international expansion.

Management Commentary

“We are delighted to have finalized the largest transaction to date in the cannabis industry,” said Terry Booth, CEO. “We are now combining CanniMed, the pioneer of the Canadian cannabis industry, with Aurora’s best practices, innovations, funded production capacity, distribution network, and rapidly growing international footprint. This acquisition and the resulting synergies transform Aurora into a leading company in the global medical cannabis space. We believe that our combined assets, capabilities, and brand strength, as well as our consistent execution, position us very well to gain significant share of the global market. We have commenced integrating the organizations, and look forward to reporting on our progress, innovations and other corporate developments in the coming months as we continue to execute our growth strategy.”

Track Record and Reputation with Medical Community Create Platform for Accelerated Growth

CanniMed (previously Prairie Plant Systems Inc.), was granted a contract in 2000 by Health Canada to produce medical cannabis, making it the longest standing federally regulated producer in Canada.

With an 18-year track-record, 13 of which as the sole supplier to Health Canada, and not a single product recall, CanniMed has built an impressive reputation with the Canadian and international medical community, and has developed, organically, a network of over 5,000 referring physicians. Aurora management believes that CanniMed produces and distributes the most physician-prescribed cannabis oil in the Canadian medical cannabis system.

CanniMed’s standing with the cannabis community will also be rapidly elevated following its successful integration with Aurora, through the company-wide adoption of the Aurora Standard, harnessing Aurora’s industry leading best practices, and an inclusive, compassionate, and enlightened approach to cannabis culture and community.

 

First ‘Seed-to-Sale’ Accounting Case Study On Cannabis Industry

UNITED KINGDOM: Cambridge Judge Business School (CJBS) and cannabis operator and investor White Sheep Corp. announced their collaboration on the first “seed-to-sale” accounting case study on the cannabis industry – “High” Profits From Accounting For Cannabis Plant Inventory – co-authored by Alan Jagolinzer, Michael Miller and Steven Looi. The case study will be taught for the first time today by co-authors Jagolinzer and Miller at CJBS.

This case examines questions raised about financial reporting in one of the world’s fastest growing industries, cannabis, aiming to guide students through the reporting process for an industry that is being legalised by an increasing number of jurisdictions. The case focuses, ultimately, on what key decisions go into deciding the fair value of a cannabis crop and how this is reflected on the financial statements.

Michael Miller, Director of Finance at White Sheep Corp., says: “We are honoured to partner with CJBS on this landmark case study. As the first accounting case to directly address the cannabis industry, this is a strong signal to the academic community that it is time to build cannabis into the curricula. The issues explored in the case will continue to emerge as new jurisdictions and new companies enter the industry. We aim to help investors understand the income statements and make better informed capital allocation choices.”

Alan Jagolinzer, Professor of Financial Accounting at CJBS, says: “CJBS is partnering with global business experts to create and enhance complex, innovative, and pertinent academic curriculum to develop students for business leadership. We are very excited to join White Sheep in creating the world’s first accounting case study on the cannabis industry, which is seeing enormous capital growth despite considerably complex and confusing financial reporting. I can see why investors might want to consider publicly-traded cannabis companies. However, I highly doubt they understand the accounting because of the unique rules for agricultural inventory. This case will certainly liven up our discussions of financial accounting and help the professionals of tomorrow to start building these skills today.”

White Sheep was evaluating the financials of several of the top publicly traded cannabis companies when they identified recurring gross margins in excess of 100% on the income statements. Miller and Looi realized this could not be the norm for any company. To explain the exceptional circumstance, they focused on how cannabis plants are treated under IFRS, the accounting reporting standards which govern Canadian public companies. This inspired an article in February 2017 to serve as a healthy warning to investors looking to pile in based purely on the ‘profitability’ of these companies.

 

Marijuana Industry Entrepreneurs Enjoy Hottest Career Opportunities

By John Levy

The marijuana market is among the fastest growing of all time. It is also becoming more socially acceptable, and as such, many young people are opting for a career in the cannabis industry. According to Forbes, the pot sector will create more employment than manufacturing by 2020. There are many job opportunities in the cannabis industry and thousands are taking advantage of them.

Job listings are available abundantly online. People are flocking to cannabis job fairs in droves. Companies employ many attendees at a time, but more people are just trying to get into the space. Most have little to no experience working with marijuana, but they believe wholeheartedly in the product and because these jobs are typically unique, there is place for anyone willing to learn.

The cannabis industry is not only attractive to the youth. Older folk are also involving themselves, particularly those too old for the traditional workforce, yet with bachelor’s degrees. Store managers are not especially unique, but marijuana industry entrepreneurs can choose from other job positions found nowhere else.

These are currently the top five job opportunities in the cannabis industry:

  1. Store Manager
  2. Grow Master
  3. Bud Trimmer
  4. Extraction Technician
  5. Owner

1. Store Manager

Managers play a crucial role in any retail environment, including recreational outlets and medical dispensaries. Store managers earn a very good salary in the cannabis industry. At the very least, they can make upwards of $75,000 per year, and they can expect a bonus based on gross sales.

Commission can be particularly lucrative when you consider how some Californian dispensaries turn over up to $10 million annually, which adds up to a very healthy bonus. As with traditional jobs, these employees also get health insurance and vacation pay. There is also room for job growth, as many managers become supervisors overseeing several stores.

2. Grow Master

You need a unique skillset to become a cannabis grow master. This person has the responsibility of cultivating the different marijuana strains. Much like a master chef, it is a seller’s market for grow masters. There is a very high demand for people with growing skills, and because of this, they can command their own salaries. Some earn a basic wage of $100,000 per year and a profit percentage.

Currently, the best cultivators originate from states with the longest legalization period, such as California and Colorado. They are already used to earning exceptional wages and working by themselves, and they have had the time to perfect their skills and solidify their reputations. The future will likely have celebrity cultivators, much like the celebrity chefs we have today.

3. Bud Trimmer

Bud trimming is an entry-level position, but it will get you into the cannabis industry. These employees earn the lowest wages. In California, bud trimmers typically make approximately $13 per hour, but there is always work available for them. Some earn according to the pound, which adds up to between $100 and $200 for every pound of bud they trim.

In medical marijuana dispensaries, bud trimmers are valuable. They remove flowers from stems and it is paramount that they waste as little as possible, cut only what is necessary, and ensure buds are in pristine condition. They also separate and weigh leaves, stems, and buds. Although it is certainly a tedious job, bud trimming is one of the easiest ways to work your way into the cannabis industry.

4. Extraction Technician

When people think of marijuana, they picture the flowers. However, cannabis extracts are becoming increasingly popular, accounting for as much as 40 percent of sales at some outlets. Considered “extract artists,” these employees typically have PhDs and unique skills. Salaries are as high as $125,000 in profitable dispensaries.

Some states only allow patients to use medical marijuana extracts. According to the New York State Department of Health, patients in New York may not smoke pot. They may only use it as an extract. Although expensive machines have the actual job of extracting, technicians have the expertise and knowledge to make them work, as well as the experience to provide consistent quality to patients.

5. Owner

Owning a marijuana business is not as fun a job as it sounds. It comes with one headache after another. People think owners make millions, but this is untrue in most cases. There are banking and legal worries, as well as a constantly shifting regulatory environment. Marijuana business owners cannot claim the same deductions other businesses can, making expenses extremely high.

For many cannabis business owners, it takes years for revenues to pay off initial capital investments. They fork out millions of dollars and only see profits years later. Even so, the marijuana industry is in its earliest phase, and with forecasters predicting decades of explosive growth, owning a cannabis business can be both lucrative and far more pleasant than the daily grind of traditional jobs.

Final Thoughts

If you are considering a career in the cannabis industry, then there are plenty of job opportunities already available. If you take the time to hone specialized skills, then you can command the best salary in a market desperately looking for you. Consider taking a cultivation or extraction course if you are serious about joining the ranks of marijuana industry entrepreneurs.


John Levy blogs for Pot Valet, a leading company to provide cannabis delivery service in Los Angeles.

 

New Report: U.S. CBD Sales to Reach $2.1B by 2020 With $450M From Hemp Industry

COLORADO: The Hemp Business Journal (HBJ), the hemp industry’s authority on big data and market intelligence, has released The CBD Reportshowing cannabidiol as one of the fastest growing market categories in the U.S. hemp and legal marijuana industries with a compound annual growth rate of 59%.

Partnering with market leading consumer data experts SPINS and BDS Analytics, market modeling experts and hemp insiders with years of experience and sales data, Hemp Business Journal estimates the total U.S. CBD market will grow to a $2.1 Billion market in consumer sales by 2020 with $450 million of those sales coming from hemp based sources. Projections to date for 2016 indicate the hemp-derived CBD market is poised to grow to $115 million by the end of the year.

The hemp-derived CBD market grew from a market that was barely noticeable a few years ago to $90 million in 2015 for consumer sales of CBD products. Hemp Business Journal shows another $112 million of marijuana-derived CBD products were sold through dispensaries in 2015, for a total CBD market size of $202 million in 2015 across all hemp and legal marijuana markets.

The CBD Report is the first comprehensive market overview to define and analyze the acceleration of the emerging CBD market category. The report features the first ever analysis across consumer sales in seven consumer channels including Dispensaries, Natural and Specialty Retail, Mass Market, Practitioner, Internet, Smoke/Head Shops and Pharmaceuticals. Until now, no other market report has combined analysis of hemp and legal marijuana consumer sales to show a cumulative view of where the broader cannabis industry is trending.

The CBD Report also includes an investment guide and coverage of market leading companies including GW Pharmaceuticals (NASDAQ: GWPH), Insys Therapeutics, CV Sciences (OTCQB: CVSI), Bluebird Botanicals, Atalo Holdings, CW Hemp, O.pen Vape, Dixie Elixirs and more.

“The CBD Report is the culmination of more than a year of focused market research. We’ve been to Israel, Europe, Canada and to farms, labs and retailers across the U.S. to cover the hemp industry. By analyzing consumer sales in the hemp and marijuana industries, we’ve provided the first view to investors, executives and regulators on what’s really happening with CBD, the hottest category in the broader multi-billion dollar cannabis industry,” said Hemp Business Journal Founder and Publisher, Sean Murphy.

Five Things To Know Before Joining The Cannabis Industry

By Sue Vorenberg
Cannabis Daily Record

WASHINGTON: Legal cannabis may be the fastest growing industry in the country right now, but how do you know if it’s the right fit for you?

Working in the industry comes down to a lot more than just a love of pot. Whether you’re looking for a career as a bud trimmer, budtender, grower or anything else, it’s important to keep in mind that the rules in this young industry aren’t well established – and joining it isn’t for the faint of heart.

Still think you’re ready to go? Here are five things to consider before jumping in:

1. Every business is a startup business.

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Why does it matter if a business is old or new? It comes down to money and structure.

Established industries offer jobs with benefits, stability and often a well-thought-out chain of command.

Don’t expect that in the cannabis industry.

The oldest marijuana businesses – at least legal recreational ones – have only been around for about a year and a half. Most don’t offer health or retirement benefits, and with markets in legal states still in flux, there’s no assurance that your job will still be there in six months.

Management and human resources aspects of these businesses may also not be as well thought out as you’d find in other industries. If you want to work for a good company, do some research first, ask questions about how employees are treated, and don’t just jump at the first offer that comes along.

 

The Social And Political Responsibility Of The Legal Cannabis Industry

By David Rheins

This week nearly 100 women gathered at a restaurant in downtown Seattle to listen to local politicians and activists discuss their role in shaping Washington’s emerging legal marijuana industry.  The “Power of Politics” was organized by the Marijuana Business Association’s Women’s Alliance for its many women-run cannabis businesses, including sponsors Eden Labs, Washington Bud Company and Cannabis Basics.

Laughter, tears, passion, and personal herstories – there is something undeniably powerful about a gathering of women who turn out to talk about politics. The energy and determined strength that emerges when the community focuses on an issue of concern is palpable, and when those 100 women represent nearly as many legal cannabis businesses – the energy they create can transform the political and cultural landscape.

For while ostensibly the vote and the voice of every woman – and every man – are equal in importance to our representatives in government, those in the know will attest that the opinions of business owners speak loudest of all to politicians. For small and entrepreneurial businesses represent jobs, and jobs represent votes and tax revenues, and those are the things that elect and re-elect politicians.

The Marijuana Business Association (MJBA) believes that as the first generation of cannabis business owners and operators we have a unique opportunity and responsibility to positively shape the emerging marketplace and our local communities.  The new industry that we are building already represents millions of dollars of tax revenues and thousands of jobs and will only get bigger. As the first crop of business operators in the country’s fastest growing industry, we speak with loud voices.

After 75 years of prohibition and propaganda have demonized cannabis and its consumers, industry participants must be involved in the political process – as individuals through our political donations, votes and vocalizations, and as business leaders in the manner in which we conduct our trade.

The MJBA does not endorse any individual political party or politician, we see it our role to host the forums for cannabis businesses to gather, parse, discuss, distill and build consensus around relevant policy issues.  We facilitate discussion and of dissemination of relevant business intelligence and market data through our media properties like MJNewsNetwork and Marijuana Channel One, and professional education events like the MJBA Women’s Alliance “Power of Politics.”

The first legal cannabis businesses and the people who operate them are inherently political.  Each day we open our doors for business – planting, processing and selling the plant, or otherwise supporting the cannabis economy – we effect social change.  Every participant in the new legal cannabis economy is a revolutionary, changing public perceptions at every consumer touchpoint.  Each new brand identity that we create makes a political and cultural statement.

Post-prohibition culture is beginning to emerge one legal state at a time. The tone and ethos of that culture is being set by the first crop of legal cannabis brands. It is being shaped by the company cultures that we create, and in how we compensate and treat our employees. We are establishing our social values in the quality and purity of the products that we build and market, and in the manner in which we treat our customers.  Our success and sustainability as an industry will be dependent upon how we conduct ourselves as ethical businesses respectfully serving the needs of our local communities.

Move Over Coca Cola, CVS, Berkshire Hathaway – Here Are The 10 Most Important Companies In The Cannabis Industry

COLORADO:  Anytime a new industry emerges, regulators and speculators become very active. In the case of the Cannabis Industry, state governments have been charged with the task of playing the regulator role with each state having successes and failures in overseeing cannabis-related commercial activities, but in all cases, establishing the rules of engagement for business anxious to jump on the green wave.

From a consumer investment perspective, it’s incredibly challenging to find real time revenue and expense data that determine which casino (or Cannabusiness) you want to place your bets in since the majority of the businesses are privately capitalized or listed on the less-than-credible small cap exchange.

And frankly, it’s not much easier for the media in light of the scant details available from the core businesses that are driving an industry that The ArcView Group projects will grow from $2.7 billion legal retail & wholesale sales in 2014 to $3.5 billion in 2015 — which clearly makes it the fastest growing industry in the U.S. In short, many companies are skittish about providing revenue details or seeking press coverage due to the lasting stigma associated with cannabis,

With that in mind, CBE Press decided to take on the task of identifying what we feel are the 10 Most Important Companies in the Cannabis Industry, based on criteria that is directional at best but good enough for us to feel confident that these companies are the best bets to have success and are clearly establishing best practices in driving their businesses to the top of their respective competitive areas.

Industrial Sector Gets High On $2.7B Marijuana Industry

COLORADO:  The country’s legal marijuana industry more than doubled in size in 2014, to $2.7 billion, and the commercial real estate world is starting to take notice. Reports on the industrial sector attribute extra-strong demand in places such as Denver to the growing, storage and distribution of the plants.

Investment banking firm Chardan Capital Markets recently rated annual marijuana consumption at up to $60 billion, with growth of about 8 percent annually, based on national drug data. Colorado became the new epicenter of the marijuana industry last year, recording about $805 million in combined retail and wholesale sales, according to a new report by the ArcView Group, which provides data on the legal cannabis industry. The company, a proponent of the industry, creates data on the sector for new investors. Troy Dayton, CEO of ArcView, says investors nationwide have turned their attention to marijuana as a future explosive growth market.

“It doesn’t take a rocket scientist to see the industry is going to yield a lot of economic benefits,” Dayton says. “One of the top business sectors to take notice has been the real estate sector.”

Industrial brokers have also taken notice. Commercial real estate services firm Newmark Grubb Knight Frank, for example, said in a 2014 report that marijuana growers have absorbed more than four million sq. ft. of industrial space in Denver since the plants were legalized, lowering the vacancy rate in the region to 4.3 percent.  According to a 2014 report by Denver-based Bitzer Real Estate Partners, the marijuana industry single-handedly boosted industrial property prices in the region to levels never seen before. Investment sales transactions in the city of Denver and surrounding county reached the average price of $100 per sq. ft. last year for buildings between 10,000 sq. ft. and 30,000 sq. ft., about four times as high as prices paid before medical marijuana sales began in 2009.