Sixteen of Canada’s approved marijuana manufacturers have enlisted the assistance of Advertising Standards Canada to define guidelines on how the medication should be promoted and branded before its recreational application becomes legal next year. These 16 firms are top marijuana firms including Canopy Growth Corp (TSE:WEED).
The marijuana division has been lobbying Ottawa for the privilege to brand their offerings, arguing that not being able to encourage in stores or on packaging will stop them from being able to efficiently contest with the black market. In 2016, a federal task force released a report suggesting that cannabis offerings need plain packaging that would permit only specific kinds of information to be recorded, such as firm name, price and strain. It stated that advertising limitations should be comparable to those put on the tobacco industry.
Health supporters have reasoned that such restrictions are required to ensure that users are alert of health risks related with the substance. They also assert that allowing marijuana firms to market their offerings could lead to prevalent use of the medication, similar to what occurred with tobacco and alcohol in the past.
However, Cameron Bishop of Privateer Holdings reported that it isn’t the industry’s purpose. They have to be able to discern themselves from individual illicit marketers who are there right now, that are registered to the hilt in these unlawful dispensaries and aren’t going to stand by federal rules. Bishop stated that he anticipates the guidelines laid by the Advertising Standards Canada in conjunction with the market could serve as a starting point for the government’s consultations.
Late in 2016, as discussions of legalizing marijuana for recreational application started to gain traction, stocks like Canopy Growth came in focus. At that time, the stock of Canopy made new highs and was supported by acquisition deals. However, the stock halted its gains later, which was questionably inflated.