Orchids, veggies and beer: pot producers pivot in tough market

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When Miguel Martin first visited Bevo Agtech Inc.’s Langley, B.C., greenhouse, he saw potential bursting from every corner. Hundreds of trays of tomato...

When Miguel Martin first visited Bevo Agtech Inc.’s Langley, B.C., greenhouse, he saw potential bursting from every corner.

Over the five years since cannabis was legalized in Canada, pot companies have been constrained by the strength of the illicit market, packaging and tax rules they see as too restrictive and U.S. regulators that have been slow to make national changes. That’s certainly true at Tilray Brands Inc., a Leamington, Ont.-based company whose chief executive, Irwin Simon, joked, “I have four children — beer, cannabis, medical cannabis, Manitoba Harvest — and love them all equally.”

“Most of these eight brands were declining somewhat and we are glutton for punishment. We like a challenge,” said Simon. “We felt, 'Hey, we can turn these around.'” Schedule 1 controlled substances are considered to have a high risk of abuse and no accepted medical use. The group includes harder drugs such as heroin and LSD.

When Aurora bought its stake in Bevo, its 800,000 square foot, high-technology greenhouse Aurora Sky was slated for closure. Instead, Bevo moved in, delivering big savings. Charlie Munger is a fraction as wealthy as Warren Buffett. He'd be worth over $10 billion if he kept all of his Berkshire Hathaway stock.

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