Global Ganja Report

In the surest sign yet of synergy between the cannabis and booze industries, one of North America's top brewers just dropped $4 billion into the continent's top legal cannabis cultivator. The move sent the cultirvator's stocks soaring—although not the brewer's.

The main alcohol industry trade association has just signaled its support for cannabis legalization—despite a seeming history of intriguing against it. With a shift in public consciousness and potential for synergy in cannabis-infused wine, beer and cocktails, the booze biz may be adopting an attitude of "If you can't beat 'em, join 'em."

In a fast and furious exchange of retaliatory tariffs, Donald Trump and Xi Jinping appear to have initiated a trade war this week. If Trump isn't careful, he could risk undermining the very domestic economic buoyancy that has helped sustain his popularity among his base. And the cannabis sector is particularly vulnerable, according to industry insiders.

With Canada now joining Uruguay as the second country to legalize cannabis at the national level, industry eyes are scanning the world map for which could be the likely third. Latin America may provide the candidate, as even UN experts now urge the region's governments to consider legalization as a way out of the endemic narco-violence. But pressure for legal cannabis is fast mounting in several European countries as well. Legalization may soon be on the legislative agenda in Australia, while New Zealand has promised to put the questions before the voters. 

Canada is about to make history, with passage of its cannabis legalization bill imminent. Prime Minister Justin Trudeau  is the man of the hour, shepherding the first Western industrialized country along a course that was nearly unthinkable a generation ago. But it was activist efforts that really brought Canada to this point—and advocates are still fighting to keep a place for small growers and vendors in the new system.

Amid the controversies over how Canada's federal government and provinces will divide regulatory oversight as well as the tax revenues from legal cannabis, a largely overlooked question is the role of the country's First Nations. With passage of the Canadian Cannabis Act now imminent, indigenous groups agree they want more involvement in the process. But First Nations are divided between those hoping for a windfall from legal sales and those actually calling for passage of the Cannabis Act to be put off because native peoples were not properly consulted.

With Canada on a final one-month countdown to legal cannabis, the country's provinces are adopting widely varying regulation regimes, creating a "crazy quilt" policy patchwork. While Ontario and Quebec are opting for provincial government monopolies on retail sales, Alberta and Saskatchewan have embraced a private model, sparking a flood of canna-capital into these western provinces.

With US stock exchanges still almost entirely closed to cannabis businesses, the stateside industry is increasingly seeking access to the Canadian exchanges in order to secure investment. Taking over publicly traded Canadian firms through reverse mergers has emerged as the critical tactic in this endeavor.