A growing number of cannabis businesses are failing to pay their federal excise taxes on time, a sign that companies are struggling and deferring their tax bill to meet more pressing needs – such as paying employees.

The six largest U.S. MSOs combined accounted for approximately $5.0B (20%) of cannabis industry revenue in 2021. No single competitor represented as much as 5% of the total.

Approximately 9,900 small companies with average revenues of around $1.6M accounted for over 60% of total industry sales.

In contrast, the 9,100 U.S. craft beer companies in 2021 represented only 27% of beer revenues.

As cannabis approaches legalization, the necessary scale of businesses will increase. The industry is capital-intensive, and tremendous sums will need to be spent to establish national brands, distribution systems, and centralized production facilities.

All of this is foreshadowing a wave of consolidation within the Cannabis Industry, coming soon.

Episode 1064 The #TalkingHedge...

https://youtu.be/tqCj4zCK-sM