The Globe and Mail reports in its Monday, Nov. 15, edition that sales of THC-infused beverages have lagged expectations. The Globe's Irene Galea writes that Canadian consumers have been deterred by high prices and legislated limits on the potency of the products. Analysts and cannabis companies, meanwhile, remain optimistic about the segment's future, saying product development and regulation are slowing its expansion. The Globe says Canada's cannabis beverage market has seen underwhelming results since legalization. ATB Capital analyst Frederico Gomes estimates the total Canadian wholesale market for cannabis beverages in 2021 could amount to $60-million, or close to $100-million at retail. He notes, however, that the totals could be larger than his estimate, given the rapid expansion of the market. He says: "Obviously, the market did not grow as expected. You had these large companies investing in the space, and they invested because they saw some potential. But you're talking about manufacturing technology -- you need volume to make that profitable, and that's not there yet." Weed research firm Headset expects growth of cannabis beverage sales in Canada to outpace the growth of the total cannabis market.
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