Canadian CANNAINVESTOR Magazine April 2017 - Page 121

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(BDS Analytics, Marijuana Business Daily - https://mjbizdaily.com/factbook/)

Not only is the market for edibles growing at a feverish pace, it is becoming more and more profitable. In the September 30, 2015 Forbes article entitled “Overcapacity Drives Down Marijuana Prices in Colorado”, it was reported that retail dry leaf marijuana prices fell from $400 an ounce to the lower end of $300. On January 31, 2017, the same media outlet reported that some dispensaries are offering prices as low as $65 an ounce, representing a 78% drop over a 16 month period. Wholesale prices declined in 2016 from $2500 to $1000 per pound. A sizable drop in wholesale prices translates into lower supply cost for corporations that focus on the edible market, leading to higher profit margins.

Jeff Maser, CEO of the Tinley Beverage Company (CSE:TNY, OTC:QRSRF), recently shared his thoughts on the market opportunity in this segment. He likens the marijuana industry to the consumer packaged goods (CPG) industry, where products are sold quickly and at a relatively low cost. Non-durable goods such as soft drinks, over-the-counter drugs, processed foods and other consumables are generally categorized into this market.