How Supplier Concentration Can Affect Cannabis Players

In the earlier part of this series, we briefly discussed how the number of cannabis-licensed producers has grown over the years, which has led to the threat of oversupply. Big companies such as Canopy Growth (CGC) (WEED) and Aurora Cannabis (ACB) (ACBFF) have access to capital and can thus push out smaller players. For example, Quebec will limit its supplier base to only six suppliers. If provinces choose fewer suppliers, it likely means they will choose big players (HMMJ) with the ability to meet a large demand, which pressures smaller players (HMJR).