There was always one thing that Americans and Canadians had in common, they love drinking beer. We can now add one more thing that both groups have in common, many Americans and Canadians are giving up beer drinking for weed smoking.
The average Canadian drinks 63 liters or almost 17 gallons of beer per year. 80% of Canadians drink booze, and over half drink beer.
While only 76% of Americans drink beer, when they do, they drink just as much as their Canadian neighbors.
But the cannabis industry is threatening to be even bigger than beer in Canada and the United States.
The way legal cannabis is going, Canadians could be buying $10 billion in marijuana-related products a year.
Retail sales of cannabis products could be much bigger. “This is a 10-year, bull-market run. You’re creating a new legitimate legal business for what is going to be a $10-billion to $20-billion a year market,” according to Michael McLellan, a consultant to the medical marijuana industry.
That estimate has a catch though…
Pot shops have to be able to operate on the same rules that typical businesses do.
If they can — and I think they will — they can compete with almost any business out there. Just look at the average revenue per square foot of a traditional business versus a cannabis company…
Consider this: the most productive retail space in Canada is an Apple Store, with average annual sales of $7,200 a square foot. This compares with $2,961 a square foot at a Lululemon retail store and $1,490 a square foot at Costco.
At the other end of the spectrum, the comparable figure for Sears, Dollarama, and Canadian Tire is less than $250 a sq. ft. In the U.S. states where selling marijuana is legal, sales average $975 a square foot.
These are impressive numbers for any business. Once full-scale legalization kicks in.