EY, a global leader in assurance, tax, transaction and advisory services, issued a 12-page report assessing the Canadian cannabis outlook, “How do you define your future in an
undefined market?”. The firm suggests that “only a handful of LPs are expected to thrive post-legalization”, pointing to the need of the LPs to accelerate their operations. Some of the areas of focus should be hiring, achieving differentiation, establishing risk-management procedures, creating brand awareness and developing a sustainable cost structure.
The report, which cites an unclear regulatory environment and a potential near-term capacity shortage, includes survey results from various market participants regarding the focus of strategy, defining innovation, area of heaviest investment, industry consolidation and competition, customer interest in the future and the potential areas of biggest success post-legalization. It also includes an interview with Bruce Linton, CEO of Canopy Growth (TSX: WEED) (OTC: TWMJF), who describes most LPs as not interested in building long-term sustainable businesses.
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