Cowen and Company released an extensive report on the cannabis industry today, suggesting the recreational market could grow to $50 billion by 2026. While this isn’t the first time that an investment bank has issued research on the industry (Bank of America Merrill Lynch last December and Ackrell Capital in February), the effort was very broad, with ten different analysts weighing in.
Vivien Azer, the lead analyst on the report “The Cannabis Compendium: Cross-Sector Views on a Budding Industry,” joined the company from Citigroup in 2014 as its analyst for Beverages and Tobacco and has now assumed coverage for Cannabis as well. Separate from the sector report, she initiated coverage on Kush Bottles (OTC: KSHB) with an “Outperform” rating. This is the first time that a leading investment bank has provided coverage on a cannabis stock that trades on the OTC. KSHB is a packaging company based in California with operations in Colorado and the Pacific Northwest as well that generated an estimated approximately $8mm in the year ending 8/31/2016. Read More
In the 2014 paper published in Milbank Quarterly entitled Waiting for the Opportune Moment: The Tobacco Industry and Marijuana Legalization, researchers poured through 80 million pages of tobacco industry documents previously kept secret and found that marijuana has surfaced again and again as a subject of either potential new revenue or as a competing product.
“In many ways, the marijuana market of 2014 resembles the tobacco market before 1880, before cigarettes were mass produced using mechanization and marketed using national brands and modern mass media,” they wrote. “Legalizing marijuana opens the market to major corporations, including tobacco companies, which have the financial resources, product design technology to optimize puff-by-puff delivery of a psychoactive drug (nicotine), marketing muscle, and political clout to transform the marijuana market.”
Graduate students at Berkeley-Haas are conducting a case study on an African American cannabis entrepreneur to explore both the flourishing cannabis market and the industry social justice and public policy issues.
MBA students at UC Berkeley’s Haas School of Business are preparing to publish one of the first business school case studies on the cannabis industry. The case, “Cannabusiness in Washington D.C.,” will profile Corey Barnette, owner of two cannabis businesses — a cultivation center and a dispensary, both in Washington D.C.
The case study, lead authored by associate professor Rui de Figueiredo and co-authored by MBA students Jamaur Bronner, Mohsin Alvi and Deena Malaeb, will explore the business opportunities evolving from the nation’s budding market and the public policy and social justice issues surrounding the industry. The study will be published later this month in the Berkeley-Haas Case Series and the California Management Review.
Inadequate camera coverage or inadequate security for recording devices (18 citations).
Failing to disclose all owners or financial interests (5 citations).
Failing to ensure employees wore badges (5 citations).
Other categories of violations with about 5 citations each include: Not using RFID tags, making product transfers to marijuana businesses that were not commonly owned, improper waste disposal and recording, and not maintaining transport manifests.
As compliance departments try to map out their next steps following the vote by the U.K. to leave the European Union, they can best serve their companies by maintaining a steady hand and advocating the business doesn’t make any hasty decisions until the situation plays itself out further, said one compliance officer. “One of the most important things compliance teams can bring to their company in face of what seems to be earth-shattering information is the calm of staying the course and being prepared for change as it comes,” said Louis A. Sapirman, associate general counsel and chief compliance officer at business information provider Dun & Bradstreet.