It’s no secret that Amazon went from an online bookstore to becoming one of the biggest marketplaces online, and the prospect of selling cannabis on this platform is making investors sweat.
With Canada legalizing recreational marijuana, a very big market has opened up not only for potential retail customers but also one for investing.
Canadian producers have been rapidly expanding the production capacity over the course of the last two years, as legalization of recreational cannabis became more and more apparent.
The news started to spread and investors could smell the money piling up in the pockets of these producers, so they started throwing money at them.
Last year, the average funding round amounted to around 10 million USD and this year that average has doubled.
Will Amazon join in?
We’ve already seen some major investment from the Big Alcohol and Big Tobacco and institutional investors are yet to touch these companies.
Constellation Brands, a US-based alcohol company, has bought a 10% share in Canopy Growth, and UK-based tobacco giant Imperial Brands (which owns the brand Winston) has joined the investment firm Casa Verde and Snoop Dogg, which invest in British medical marijuana research firm Oxford Cannabinoid Technologies.
The brunt of these licensed producers and companies that plan on competing in the Canadian recreational cannabis space will be dependent on the location in which they are operating.
Several provinces have decided to allow only government-installed shops and privately-owned businesses will not open doors to users in such states.
Online sales will also be allowed in several provinces, but maneuvering the legal requirements and acquiring the necessary paperwork has turned out to be much harder than previously thought.
In my opinion, this is exactly the reason why we haven’t yet seen or heard anything from Amazon, a company that has already set up everything in such a manner that they could probably start with sales tomorrow.
Additionally, we still don’t know if Amazon is even interested in making money from cannabis sales.
Jeff Bezos isn’t known for being very outspoken about cannabis, in fact, we don’t know his position on weed at all, but he does stand close to the libertarians in most cases so it’s easy to see him supporting this cause.
With Amazons drones flying around and delivering everything from books and vegetables to shirts and rolling papers, a future in which these drones drop an eight on your doorstep is not so hard to imagine.
Seeing how Amazon can be compared to maybe one or two other online marketplaces it wouldn’t be too far reaching to say that Amazon could quite quickly become the biggest cannabis distributor in North America and possibly the world.