ACKRELL CAPITAL
Cannabis Investment Report | December 2017
Methodology and Estimates: Industry Comparisons
To evaluate our methodology and results, we compare estimated values from our model with values for the same parameters in markets for certain other stimulants and pharmaceuticals. We believe that this comparison is useful because cannabis is used recreationally in much the same way alcohol, coffee
and tobacco are used, and because cannabis may be an alternative to pharmaceuticals currently used to treat a range of medical conditions. The following table compares the estimated penetration rate,
average monthly consumer spending and U.S. retail market size for a number of common stimulants
and pharmaceutical categories.
Comparison between Cannabis and Common Stimulants and Substances
wa; Anti- Cannabis Alcohol Coffee Tobacco Painkillers the pSSar (Future) Primary Usage Recreational Recreational Recreational Medicinal Medicinal remo Adult 9 9 r 4 ; ; Penetration % 50% 50% 17% 40% 25% 20% Monthly
Consumer $45 to $200 $80 to $100 $40 to $80 $50 to $200 $50 to $100 $50 to $500
Spending
U.S. Retail
Market Size $2008 $358 $100B $300B $60B $100B
Source: Ackrell Capital
This comparison demonstrates that our U.S. legalized cannabis market estimates are in line with
U.S. retail markets for alcohol, coffee, tobacco, and pharmaceutical painkillers and antidepressants.
112
© 2017 Ackrell Capital, LLC | Member FINRA/SIPC
HOUSE_OVERSIGHT_024748