Three years ago, a purchase in Exeter was expected to bring high-paying jobs and establish the community as a major player in Canada's legal pot industry. However, before any of the anticipated jobs were filled or a single marijuana seed was planted, it became clear that Canada was already producing more marijuana than the market could absorb. After sitting unused for two years, the 1-million-square-foot greenhouse was sold for significantly less than its original purchase price. Exeter's experience with the greenhouse reflects the broader challenges facing Canada's legal pot industry, with analysts citing the tightly regulated distribution system as a key factor in the industry's struggles to meet optimistic expectations. The slow opening of stores in certain provinces, especially Ontario, is contributing to the issue. Additionally, surveys have indicated that a significant number of Canadians are uninterested in trying out a new habit. The mayor, George Finch, expressed disappointment, stating, "We were excited about it. It seemed almost too good to be true, right? It's a shame." When Prime Minister Justin Trudeau's government legalized marijuana in 2018, the primary intention was to create a fairer justice system rather than to stimulate a major new business sector. However, investors had a different perspective, leading to a surge in the Toronto Stock Exchange known as the "green rush" in anticipation of legalization. This led to a significant influx of money into companies geared towards the Canadian market and potential opportunities in the US, where more states were also legalizing marijuana. This resulted in the revival of dormant greenhouses, such as the one in Exeter, being sold at record prices, as well as the emergence of new indoor growing facilities nationwide. Additionally, newspapers that had previously been reducing staff hired journalists to cover the emerging marijuana industry. Similar to the plastics industry depicted in the film "The Graduate," marijuana appeared to be on track to become a major industry in Canada. The excitement surrounding investments in marijuana mirrored the dot-com stock boom of the late 1990s, but ultimately ended in a similar collapse. Despite a slight recovery due to increasing legalization in the United States, with New York recently legalizing marijuana and four states voting for legalization in November, one marijuana stock index is still down about 70% from its peak in 2018. Even 2 1/2 years after legalization, most marijuana producers in Canada are still experiencing significant financial losses. A significant new rival is emerging as Mexico recently passed a law allowing recreational marijuana use. This could potentially make the business environment even more difficult for Canadian growers. Kyle Murray, vice dean at the University of Alberta School of Business, predicts there will likely be a series of industry consolidations due to the oversaturation of the market. Canopy Growth, Canada's biggest producer, reported losses of CA$1.2 billion in the first nine months of its current operating year, similar to the dot-com boom and subsequent bust. There have been widespread layoffs in the industry, leading to large producers merging in order to increase their strength through size. Many greenhouses in various provinces have permanently closed down. Analysts believed that investments in marijuana were based on the expectation that sales in Canada would follow a similar pattern to the sharp increase in liquor sales in the United States post-Prohibition. The CEO of Tilray, a major grower in British Columbia, admitted that the industry in Canada has not progressed as quickly as anticipated. Kennedy is one of the few remaining leaders in Canada's marijuana industry, facing challenges in competing with the illicit market due to strict regulations. Despite losses and stock declines leading to many pioneers being replaced, Kennedy will continue as a director after a planned merger between Tilray and Aphria, creating a potential world's largest cannabis company. In Ontario, initial plans for sales through government-owned liquor stores were canceled by a new Conservative government in 2018, leaving only online sales through a provincial website. The province's plans have changed twice since then, resulting in a somewhat inconsistent introduction of privately owned shops. Despite a recent increase in licensing, Ontario has only approved 575 shops, compared to Alberta's 583 shops even though Alberta has a smaller population. Although initial expectations for marijuana profits were too high, Murray believes a successful business will eventually emerge, as indicated by the increasing number of shops in Ontario. The decrease in prices, bringing them closer to street prices, should also boost legal sales. Murray expressed that despite the slow start, it doesn't indicate a bad market. He mentioned that an abundance of money and companies were initially involved, but he believes that eventually some companies will achieve long-term success and become global leaders. A positive development has been seen in British Columbia, where legal marijuana sales in stores increased by 24% from June to October 2020. In Quebec, the government-owned cannabis store operator, Société Québécoise du Cannabis, initially lost nearly CA$5 million in its first fiscal year but has since become profitable. Despite disappointment in the domestic market, some of Canada's larger cannabis growers are looking to foreign markets, particularly for medical marijuana, as their next opportunity for growth. However, many analysts are doubtful of this strategy. Brent McKnight, a professor at McMaster University, believes that Mexico's recent progress in creating the world's largest legal marijuana market could pose a threat to Canada's cannabis industry. Trade agreements may prevent Canada from restricting imports from Mexico, and Mexico's lower labor costs and warmer climate could give it a competitive edge. He mentioned that this would definitely decrease prices for local growers. Some people are concerned about the impact of large publicly traded companies taking over Canada's marijuana industry as it consolidates. Before legalization, many of the initial shops selling cannabis for medicinal purposes were nonprofit "compassion clubs." Dr. Daniel Werb, a public health researcher, stated that the current system's focus on corporate profits has excluded many individuals from minority communities from the industry. Research by Werb's group has revealed a lack of diversity in the leadership of the new legal suppliers. Vendors in Indigenous communities have also been affected by uncertainty, as they are not typically targeted in police raids but operate outside of the legal system. Ontario has started licensing shops in certain Indigenous communities, but there is still a lack of diversity and creativity in the cannabis industry. There is a missed opportunity to think outside of purely profit-driven motives.