![This is Jesse Pujji and today we are breaking down the emerging industry of cannabis. We cover the size of the Cannabis industry today, the structural inefficiencies present in the market, and the anticipated path of regulatory changes.<br /><br />Our guest is Jeff Hoffman, co-portfolio manager at Marathon Partners Equity Management<br /> <br />For the full show notes, transcript, and links to the best content to learn more, check out the episode page here: https://www.joincolossus.com/episodes/24966562/hoffman-cannabis-legalizing-the-leaf<br /> <br />-----<br /> <br />Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.<br /> <br />Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.<br /> <br />Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss<br /><br />Show Notes<br />[00:00:00] - Introduction <br />[00:03:40] - [First question] - What is cannabis and the current size of the industry today<br />[00:05:44] - Differentiating between THC and CBD <br />[00:06:46] - Whether or not the whole market is growing writ large<br />[00:08:08] - The history of cannabis, the changing legal landscape, and key players today<br />[00:10:51] - What the argument was for making cannabis a schedule 1 narcotic<br />[00:11:48] - Is cannabis addictive, objectively speaking?<br />[00:13:27] - The differing levels of when cannabis is or isn’t legal <br />[00:14:05] - Overview of the value chain involved in getting cannabis to a dispensary<br />[00:15:18] - What an MSO is, how their operations work, and the marketplace today<br />[00:20:31] - Regulatory catalysts that would allow this market to thrive<br />[00:23:19] - The income statement of an MSO, their expenses, and how they differ from traditional businesses<br />[00:26:44] - Different business models for MSOs depending on their geography <br />[00:29:31] - How the economics of MSOs compare to mom and pop shops <br />[00:31:30] - Normalizing margins and incentives to compete on price or participate in discount wars<br />[00:33:48] - D2C, mobile-first, and delivery trends influencing distribution<br />[00:35:53] - Whether or not cannabis is considered perishable <br />[00:36:43] - How the finance industry is evolving around cannabis <br />[00:38:44] - The role COVID played in helping the cannabis industry grow<br />[00:41:03] - Will cannabis see a pullback in public interest as the world returns to normal<br />[00:42:25] - Form factors to consider as the industry shifts from medical to mature markets<br />[00:44:20] - What will have to happen for the cannabis market to excel in the coming decade<br />[00:47:07] - How M&A might play out as the market continues to evolve<br />[00:49:06] - Lessons for builders when it comes to the cannabis industry<br />[00:51:54] - Learn more about the cannabis industry; marijuanamoment.net<br /><br />#businessbreakdowns #cannabis #podcast](https://media.thebusinessprofessor.com/wp-content/plugins/youtube-feed-pro/img/placeholder.png)
This is Jesse Pujji and today we are breaking down the emerging industry of cannabis. We cover the size of the Cannabis industry today, the structural inefficiencies present in the market, and the anticipated path of regulatory changes.
Our guest is Jeff Hoffman, co-portfolio manager at Marathon Partners Equity Management
Show Notes
[00:00:00] – Introduction
[00:03:40] – [First question] – What is cannabis and the current size of the industry today
[00:05:44] – Differentiating between THC and CBD
[00:06:46] – Whether or not the whole market is growing writ large
[00:08:08] – The history of cannabis, the changing legal landscape, and key players today
[00:10:51] – What the argument was for making cannabis a schedule 1 narcotic
[00:11:48] – Is cannabis addictive, objectively speaking?
[00:13:27] – The differing levels of when cannabis is or isn’t legal
[00:14:05] – Overview of the value chain involved in getting cannabis to a dispensary
[00:15:18] – What an MSO is, how their operations work, and the marketplace today
[00:20:31] – Regulatory catalysts that would allow this market to thrive
[00:23:19] – The income statement of an MSO, their expenses, and how they differ from traditional businesses
[00:26:44] – Different business models for MSOs depending on their geography
[00:29:31] – How the economics of MSOs compare to mom and pop shops
[00:31:30] – Normalizing margins and incentives to compete on price or participate in discount wars
[00:33:48] – D2C, mobile-first, and delivery trends influencing distribution
[00:35:53] – Whether or not cannabis is considered perishable
[00:36:43] – How the finance industry is evolving around cannabis
[00:38:44] – The role COVID played in helping the cannabis industry grow
[00:41:03] – Will cannabis see a pullback in public interest as the world returns to normal
[00:42:25] – Form factors to consider as the industry shifts from medical to mature markets
[00:44:20] – What will have to happen for the cannabis market to excel in the coming decade
[00:47:07] – How M&A might play out as the market continues to evolve
[00:49:06] – Lessons for builders when it comes to the cannabis industry
[00:51:54] – Learn more about the cannabis industry; marijuanamoment.net