Canopy 2016 A_R_Pages_web

CGC Annual Review : 2016 | 11
02.
Path to
Legalization
In 1923, without a great deal of debate
or fanfare, marijuana was prohibited in
Canada. For almost eighty years, public
opinion generally supported a crime and
punishment approach to cannabis laws.
However, over the past ten years we have seen a change in
attitude towards marijuana, both in Canada and around
the world. In fact, more Canadians now prefer softer
marijuana laws. Many, 68% according to a recent Globe
and Mail poll, now consider recreational legalization to be
a sensible approach.
Prior to Justin Trudeau’s election as Prime Minister last
October, the Supreme Court of Canada ostensibly drove all
MMPR policy reform. Patients around the country earned
concessions like non-inhaled delivery options by challenging
the framework of the day in the courts but rarely, if ever, saw
improvements to the medical marijuana system.
In addition to the change in approach to medical laws,
Justin Trudeau and the federal government are moving to
legalize, restrict and regulate marijuana for recreational use.
This decision is driven by a desire to remove revenue sources
flowing into criminal organizations, reduce access for young
Canadians, and to reduce the amount of taxpayer money
spent on enforcing marijuana laws. These policy objectives
will help define Canada’s emerging cannabis industry, which
will be regulated at the federal level aside from distribution
channels, which will likely differ from province to province,
similar to liquor distribution across the country today.
With medical marijuana already legal in Canada and
producers like Tweed and Bedrocan Canada having
production and distribution experience in the medical
sphere, there has never been a greater opportunity for
growth in the cannabis space.
Some of Canada’s most recognizable businesses and entrepreneurs
have taken note of Canada’s shifting political
climate and public opinion. Shopper’s Drug Mart, London
Drugs, and the Pharmacist’s Association of Canada have
openly indicated their interest in medical cannabis. And
Ontario premier Kathleen Wynne has openly indicated that
the provincially-run LCBO would be the ideal place to sell
recreational cannabis products. In short, the stigma that has
surrounded cannabis for many years is quickly eroding.
Canopy Growth is in an ideal position to capitalize on the
opportunities at hand. Through our existing brands we can
simultaneously strengthen our position in the Canadian
medical marijuana market and transition seamlessly into a
recreational market.