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Canadian cannabis companies @tilray and @aphriainc have announced a merger - creating the biggest canna-corp in the world - worth $3.9billion - surpassing Canopy in Canada, & Curaleaf in the US
1/ https://www.forbes.com/sites/chrisroberts/2020/12/17/after-blockbuster-merger-worlds-largest-cannabis-company-eyes-us-market/?sh=5c31b027d652
Canadian cannabis companies @tilray and @aphriainc have announced a merger - creating the biggest canna-corp in the world - worth $3.9billion - surpassing Canopy in Canada, & Curaleaf in the US
1/ https://www.forbes.com/sites/chrisroberts/2020/12/17/after-blockbuster-merger-worlds-largest-cannabis-company-eyes-us-market/?sh=5c31b027d652
some background (compiled with help from @HarveySlade1)
In 2018, Aphria reached a deal with Southern Glazer’s Wine and Spirits (largest wine and spirits distributor in the US) for it to distribute Aphria’s recreational cannabis products in Canada.
https://en.wikipedia.org/wiki/Aphria_(company)
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In 2018, Aphria reached a deal with Southern Glazer’s Wine and Spirits (largest wine and spirits distributor in the US) for it to distribute Aphria’s recreational cannabis products in Canada.
https://en.wikipedia.org/wiki/Aphria_(company)
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Also in 2018, Aphria bought a collection of companies (in Colombia, Argentina and Jamaica) for $200 million
https://financialpost.com/cannabis/aphria-announces-proposed-acquisitions-in-latin-america-jamaica-worth-roughly-200-million
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https://financialpost.com/cannabis/aphria-announces-proposed-acquisitions-in-latin-america-jamaica-worth-roughly-200-million
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In May 2018 Aphria formed a joint venture with Verve Dynamics, which has a growing site in Lesotho, a deal worth $3 million
https://qz.com/africa/1744366/lesotho-is-perfect-growing-cannabis-but-not-regulation/
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https://qz.com/africa/1744366/lesotho-is-perfect-growing-cannabis-but-not-regulation/
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Tilray has already looked to diversify into Europe; in 2018 announced a deal with Swiss pharmaceutical company to boost presence in the medical marijuana market.
https://www.bloomberg.com/news/articles/2018-12-18/tilray-goes-global-with-novartis-marijuana-sales-partnership
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https://www.bloomberg.com/news/articles/2018-12-18/tilray-goes-global-with-novartis-marijuana-sales-partnership
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Tilray had a $50m investment from @abinbev, the world’s biggest alcohol company.
According to their annual report, this was ‘focused on non-alcohol THC and CBD beverages’
https://www.theverge.com/2019/7/30/18639829/weed-beer-drinkable-marijuana-cannabis-drinks-alcohol
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According to their annual report, this was ‘focused on non-alcohol THC and CBD beverages’
https://www.theverge.com/2019/7/30/18639829/weed-beer-drinkable-marijuana-cannabis-drinks-alcohol
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Tilray's international advisory board is full of high-up former politicians, from the US, Europe, NZ and Canada.
https://www.tilray.com/home/#locations
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https://www.tilray.com/home/#locations
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Many of the elements that have made global corporate monopolisation of the alcohol and tobacco industry so problematic appear to be coalescing here, a concern not assuaged by direct merging of corporate alcohol, tobacco, & cannabis interests & investments.
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The problem is not with entrepreneurship per se
The risk - as we've seen with alc/tobac industries - is when too much power is concentrated in too few hands, creating opportunities to distort policy development in the interests of private profit, not public good
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The risk - as we've seen with alc/tobac industries - is when too much power is concentrated in too few hands, creating opportunities to distort policy development in the interests of private profit, not public good
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This is the process of 'corporate capture' (or 'regulatory capture') that Transform and colleagues explored in a recent @HealthPoverty webinar - exploring regulation through a development lens
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Just to be clear - cannabis prohibition is almost certainly the worst of all worlds, even compared to a sub-optimal over-commercialised legal mkt.
@Drug_Science actually did a detailed study to try and provide some empirical basis for this
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https://twitter.com/SteveTransform/status/968162115503775744
@Drug_Science actually did a detailed study to try and provide some empirical basis for this
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https://twitter.com/SteveTransform/status/968162115503775744
It's also the case that the public health impacts of an over-commercialised megacorp-controlled cannabis mkt, whilst a significant concern, are nowhere near as serious as the carnage we've seen with alcohol and tobacco historically.
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But this isn't just about health - its also about equity, social justice & sustainable development issues.
Public relations flim-flam aside - none of these are concerns of global corporations, whose interests are unambiguously focused on profit maximisation
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Public relations flim-flam aside - none of these are concerns of global corporations, whose interests are unambiguously focused on profit maximisation
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We have an opportunity with emerging cannabis markets to establish domestic & international regulatory frameworks that support our shared health, human rights, social justice, & sustainable development goals
Check out this @IDPCnet report:
https://idpc.net/publications/2020/09/principles-for-the-responsible-legal-regulation-of-cannabis
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Check out this @IDPCnet report:
https://idpc.net/publications/2020/09/principles-for-the-responsible-legal-regulation-of-cannabis
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We have an opportunity - & a responsibility - to learn from the past, and do better.
Not just better than the iniquities and injustices of prohibition, but also better than simply repeating the failings of monopolised corporate alcohol and tobacco markets
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Not just better than the iniquities and injustices of prohibition, but also better than simply repeating the failings of monopolised corporate alcohol and tobacco markets
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Crucially, the processes of corporate capture in emerging cannabis markets are already in play - this latest mega-merger is just the latest red flag
The window of opportunity to guide the future for legal cannabis mkts in a more positive direction is narrowing rapidly
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The window of opportunity to guide the future for legal cannabis mkts in a more positive direction is narrowing rapidly
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