Major Canadian Coffee Shop Chain Moving Into Cannabis
With Constellation Brands, owner of Corona beer and Robert Mondavi wine, making huge financial news by purchasing 38% of Canopy Growth, we shouldn’t be surprised that caffeine dealers are moving into the cannabis industry as well. Second Cup Coffee, a major coffee shop chain headquartered in Ontario, Canada, with over 300 retail establishments around the world, has announced its intentions to join the marijuana market as reported by Fortune:
Instead of tea pots, you may be able to buy pot tea at Second Cup’s Ontario locations starting in April 2019. The Canadian coffee chain said it’s considering converting some of its 130 locations from caffeinated beverages to retail marijuana outlets, according to The Globe and Mail. The company’s stock was up 30% in intraday trading, and closed Thursday up 10% for the week, but below some recent highs.
Second Cup signed an agreement with National Access Cannabis, which already operates medical marijuana clinics, to develop recreational pot stores. Second Pot will convert some of its existing locations, while National Access Cannabis has plans to open 50 to 70 stores under the Meta brand across British Columbia, Alberta, and Manitoba in 2018.
Both firms have to secure licenses from provincial governments, and gain approval from landlords. Second Cup relies on franchisees, which also have to agree to certain changes.
Second Cup Coffee not only follows on the heels of major alcohol companies like Constellation Brands and Molson Coors, but also Loblaw, Canada’s largest grocery chain. These companies have already make a lot of money and have proven themselves profitable, yet they still are seeking out more revenue in the burgeoning cannabis industry. This signals to me that these companies, with high-paid officials tasked with following market trends, understand the profit potential of the cannabis industry. While there will be ups and downs, as the cannabis industry is ultracompetitive and overregulated, it appears that some educated financial suit-types see that money does indeed grow on trees and investors big and small may want to follow the suits.
Don’t miss your opportunity to learn the latest and network with top investors and entrepreneurs at the International Cannabis Business Conference in Portland, Oregon, this September 27th-28th. Get your early bird tickets by September 12th to save $200!