<< Back to All NewslettersComparative "Canna"nomics
The biggest cannabis business story of the last few weeks has been the pending merger between Tilray and Aphria, two of the largest cannabis companies in Canada, to create the “largest global cannabis company.” “Largest,” in this case, meaning that the combined company would have the most revenue over the last 12 months - about $673m USD vs. #2 Curaleaf’s $648m.
It’s incredible how far the industry has come in such a relatively short time, but Tilray/Aphria’s reign will almost certainly be very short-lived - Curaleaf’s last quarter revenue already exceeded Tilray/Aphria’s, with GTI neck and neck.
The noise of stock markets sometimes obscures simple, important underlying patterns. By plotting the bigger picture on a simple graph, the rapid growth of U.S.-based cannabis companies jumped out as a critical pattern to watch in the years ahead and was a simple visual reminder of why we are focused on U.S.-based opportunities at Bengal Capital.
Cannabis Awareness
Cannabis is more accessible than ever with 1 in 3 Americans living in states where recreational adult-use is legal, and cannabis is popping up more often in everyday American life. Cannabis operators are rushing to capture the opportunity presented by this newly budding "cannabis awareness." A Harris Poll commissioned by MSO Curaleaf finds not only a general increase in cannabis consumption, but a marked increase in people replacing alcohol with cannabis. In particular, parents have been putting down alcohol and picking up cannabis. The survey found that more than half (57%) of parents with children under 18 who have ever consumed cannabis have reduced or replaced their alcohol consumption with cannabis since the start of the pandemic.