Wednesday, May 22, 2024

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Who’s Gonna benefit from Schumer’s Weed Legalization Bill?

With most of the details released from Schumer’s bill, some analyses are beginning to trickle out that focus on the winners and losers of the proposed legislation.

MJBizDaily has an in-depth breakdown of the main winners, which would, unfortunately, would be the brands with built-in national awareness and large Canadian companies who are looking to expand into the US.

This would be companies like Curaleaf in Massachusetts, Cookies in California, and all the big Canadian ones (Tilray, Cronos Group, Canopy Growth). And of course, any alcohol brands once they decide to flip the switch and start producing marijuana.

That being said, social equity is a large part of the bill, so it will certainly work to create opportunities for smaller companies who need a boost. Still, the jumpstart that most larger business will have in interstate commerce will be huge.

Back in May, Florida-based Trulieve acquired Harvest Health & Recreation for $2.1 billion. At the time it was thought to be the beginning of mega-mergers within the marijuana industry. This could prove especially correct once federal legalization occurs and any smaller company is seen to find success. Companies like Curaleaf or Canadian brands with expansion on the mind would happily gobble them up.

MJBizDaily points out that California-based, smaller companies would be at a disadvantage once marijuana is federally legal, due to the expensive costs to maintain a business in the state. The prospect of interstate commerce will be very difficult and costly for this group.

The distribution of beer across the US seems to be the best projection of where marijuana could end up, with national, very large companies taking control, and local, more craft-minded brands focusing their attention on a much smaller market with limited profits.

Read the original story at MJBizDaily.

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