#CannabisJournalism Friday Twitter roundup
“Scotts Miracle-Gro charges ahead in hydroponics, takes control of Boulder’s AeroGrow” by Alicia Wallace for The Cannabist discusses how Scotts Miracle-Gro has bought a majority stake in Boulder hydroponics company AeroGrow.
Executives have said this move is an attempt to strengthen Scotts investment in the ancillary cannabis market. AeroGrow CEO Michael Wolfe said “The capital generated by the warrant exercise allows us to be instantly debt-free and… we’ll use that capital to accelerate the development of several exciting new products, further expand existing distribution channels, open significant new markets in North America and in other international markets…”
The recent cannabis boom has created economic growth in many sectors that are related to the growth and distribution of the drug. The boom has been so successful economically for some companies, it has been dubbed “The Green Rush”. Many entrepreneurs and established businesses have been attracted to the sectors relatively open market, and lack of established competition. In addition the ability to become established in a state that was early to legalize could lead to strong future economic benefits if legalization continues to spread.
“Is legal weed flattening beer sales?” by Alicia Wallace for The Cannabist discusses a recent report published by Cowen & Company that claims the beer markets in Colorado, Washington, and Oregon are all under-performing the U.S. average by 2.6 percentage points.
However point of sale and retail scanner data may not accurately reflect the overall market trends. Neither of these data collection methods account for sales inside breweries and taprooms. Colorado contains the 3rd highest number of breweries in the country, at 284, while Washington and Oregon come in at 2nd and 4th respectively.
This discrepancy may be enough not only to make up for the gap in consumption sales, but to surpass the national average. However, Chief Economist of the Boulder Brewers Association Bart Watson had this to say,
“I would agree that marijuana has the potential in the long run to factor into overall beverage alcohol sales, but I think it’s too early to draw comparisons.”
In addition many traditional beer companies like Annheuser Busch have seen a downfall in revenue in the face of a growing craft beer market, leading to aggressive expansion deals. One such move threatening the craft beer industry is the push to allow full strength beer in grocery stores, over which Annheuser Busch has the ability to pursue exclusive distribution rights.
While cannabis may not currently be affecting the craft beer industry, there is potential for the market to be affected in the future. If more initiatives similar to 300 (a ban on public alcohol and cannabis consumption) pass, it could lead to negative effects on revenue for independent brewers.
