DEMAND GREATER THAN SUPPLY
It’s evident of the severity of the supply shortages that have plagued Canadian cannabis retailers since legalization on October 17.
Quebec’s government-controlled retailer has restricted its operating hours to four days a week, while Alberta has tempo- rarily halted the issuance of new retail licenses due to lack of product with Ontario restricting licensed producers and their affiliates to just one store each for the same reason.
Limited supply has retailers and customers waiting on product and there does not seem to be a solution any time soon.
SODA GIANTS TRYING TO PUT THE LID ON TAXES Major beverage companies like Coca-Cola and PepsiCo are spending millions of dollars on commercials that push people to vote to prohibit local governments from applying additional so-called health taxes on their products. Advertisements from groups like Yes! To Affordable Gro- ceries, have spent millions campaigning and lobbying which is largely financed by the big beverage companies in a fight with anti-obesity efforts pushed by state and local governments. The fight is with health advocates who want to see taxes on sugar-packed drinks to reduce consumption of them in the battle against obesity. More than 30 countries have taken on the sweetened tax on sugary beverages, which has municipalities across the U.S. now considering doing the same. It should be no surprise that beverage companies dislike the tax initiatives as they result in lower soda consumption, but are those consumers that are moving away from soda because of the higher taxes and prices choosing healthi- er drink options or getting their sugar fix with others less taxed products.
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NOVEMBER 2018 • SPOTLIGHT ON BUSINESS MAGAZINE
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