Tag Archive: Philip Morris


Oregon’s Mary Jane dispensaries are seemingly ubiquitous … They’re everywhere too.

Almost DailyBrett frequently wonders out loud how even über-liberal Eugene can support its preponderance of yoga studios and tattoo parlors.

Keep in mind that yoga mats and ink tats have nothing on Mary Jane.

What happens when a popular product, which was once Verboten and is now decriminalized (read: legal), loses its naughtiness and more than a tad of its hipness (e.g., demand side)?

And at the same time, what happens with the literal explosion of Mary Jane shops, sometimes two-or-more on the same street (e.g., supply side)?

Oregon is not Colorado.

Realtors will tell you that when the supply of houses goes up, the prices at best will stay flat or more likely, they will plunge (e.g., 2005-2010).

And when the supply diminishes and the number of buyers goes north, the prices most likely will go through the roof … no pun intended (e.g., the present).

Is the Mary Jane market a buyers’ market or a sellers’ market? Without a doubt: A buyers’ market.

Reportedly, the growing of Mary Jane in Oregon is three times the amount that legally can be sold.

According to the Bend Bulletin, there is more than 1 million pounds of Mary Jane in the supply chain.

Which brings us to the obvious supply chain question?

How long will it take for the weakest of all the Mary Jane shops (e.g., Economic Darwinism) to start going under?

Will they survive the calendar year? How many will remain? How many will enter the market?

Another question: How many prepared a business plan – yes, a business plan written by an MBA — before taking the plunge into the seven-point-leaf market?

Economies of Scale?

“No Industrialized Weed in the Neighborhood.” – Flatbed Bumper Sticker

Mary Jane may be the Wunder “medicine,” but the Laws of Economics still have this nasty habit of prevailing.

The average gram sale of Mary Jane ($4) is now less than a glass of wine ($8).

Does this price reduction mean that not only are the plethora of Mary Jane shops competing against each other (obvious result when the barriers-to-market-entry are so low), but will they also start cannibalizing the cannabis trade?

How many and who will prevail in an obviously overly saturated market?

Not that many, and those who can, benefit from economies of scale through sheer volume selling. Who will be the Philip Morris of the Oregon Mary Jane market?

Just as some low-barrier-to-market cigarette companies have still thrived by selling in volume even in the face of 400,000 of their customers dying each year, the same demands are placed on Mary Jane shops.

And when it comes to legal intoxicants, Oregon offers easy alternatives in the form of some of the world’s best microbrews – pales, ambers, IPAs, porters, stouts – from Deschutes, Full Sail, Ninkasi, Portland Brewing, Widmer and others.

Each of these brewers has also branched out into pubs, pairing finger-licking food with their own beers.

Did someone mention wine? Oregon has more than its fair share of wine bars and trendy restaurants.

Oregon’s temperate weather and terroirs are conducive to producing some of the best and yummy Pinot Noirs and Pinot Gris from the likes of, A to Z Wineworks, Adelsheim, Duck Pond, Firesteed, King Estate, Knudsen Erath, Rex Hill, Sokol Blosser, Sweet Cheeks, Sylvan Ridge, Willamette Vineyards, Youngberg Hill, and many, many others.

What is the lesson from this Almost DailyBrett epistle, and others that have been written on this subject?

Coolness is fleeting. Economics matter. Competition is inevitable. The Laws of Supply and Demand prevail.

In Oregon’s case, there are oodles and oodles of Mary Jane shops. Three-of-its-four neighboring states (i.e., Washington, Nevada, California) to the north, east and south have legalized cannabis. There is no Mary Jane Tourism to Oregon. That ship has sailed.

You can’t always get what you want, but if you try some time, you just may find, you get more than you need.

https://www.leafbuyer.com/blog/oregon-cannabis-market-in-trouble

https://www.opb.org/news/article/oregon-recreational-cannabis-supply-demand/

http://www.wweek.com/news/2018/04/18/oregon-grew-more-cannabis-than-customers-can-smoke-now-shops-and-farmers-are-left-with-mountains-of-unwanted-bud/

https://www.businessinsider.com/legal-marijuana-states-2018-1

https://almostdailybrett.wordpress.com/2014/01/20/nasdaq-weed/

“ … There is the theme of the amazing passion, vision, perseverance, and guts of various individuals who were determined to make wine as good as Europe and to turn Washington’s desolate sagebrush into world-class vineyards: Pretty brave and visionary.” – Historian, Department Chair and Wine Enthusiast Marji Morgan

My boss Marji made a mistake in her Sagebrush to Vineyards: Washington’s Route to the World Wine Map Central Washington University College of Arts and Humanities lecture that a few biology students noted.

She marveled out loud how Washington’s early winemakers had the vision thing to see past the desolate sagebrush landscape, infested with rattlesnakes. They cleared out the brush, exiled the rattlers and planted vitis vinifera grapes for a wide variety of varietals, all in the name of progress and good wine.

The biology students accused Marji of not respecting rattlesnakes.sweetwater1

These budding scientists may be environmentally correct in standing up for desert ecosystems and slithery reptiles, but very few are going to join them in jumping to the defense of rattlesnakes. Most would jump away from these lethal vipers.

Almost DailyBrett identifies a core presentation problem that comes with fangs, scales, pissed-off personalities and poison. All of these characteristics may work for American politics, but rattlesnakes will never be considered warm and fuzzy.

The National Wildlife Federation (NWF) has even suggested on its website that donors “symbolically adopt” rattlers. They’re serious.

Scientists have identified 36 separate species of these vipers, ranging from Alberta to Argentina, 13 of which reside in Arizona. Doesn’t sound like rattlesnakes are going extinct anytime soon. Reportedly they take out their aggressions on rats (another species with bad PR), birds and other small critters, which provides rattlers with their raison d’être.

Sea otters, deer, horses, seals, dolphins, puppies and kittens – mostly furry and/or cute — have much better public relations. Schlanges have issues that go back to the Book of Genesis. Back then, the serpent served as the first consultant in the Garden of Eden, and it has been downhill for business consultants ever since.

Swallows in Capistrano; Rattlers in Sweetwater

“The sound of rattling at these roundups is in fact a thousand snakes screaming.” — Melissa Amarello, cofounder of the Tucson-based Advocates for Snake Preservation.

Looking for something to do right around St. Patrick’s Day?

Well, you could check out the annual return of the swallows to San Juan Capistrano along the Southern California coast or you could head to West Texas for the annual Sweetwater Rattlesnake Roundup.sweetwater

Every second weekend in March, the Sweetwater Jaycees hold the world’s largest rattlesnake roundup (not sure many towns want to beat them for this distinction) including a carnival, guided tours, a dance (tango with a rattler?) and the Miss Snake Charmer contest.

About 25,000 folks descend of Sweetwater to observe the netting of 3,780 pounds of snakes. Miss Texas even took her turn standing in the middle of what appears to be an above-ground swimming pool filled with rattlers, instead of water. Want to dive right in?

Almost DailyBrett usually comes down on the side of critters, not engaging in hunting (let’s give the Elk guns too, just to make it fair). Heading to Spain this summer with its bull fighting culture, which to this author seems like a waste of bovine testosterone. Sea World has its issues with killer whales. And Almost DailyBrett vividly remembers the “Coyote People” descending en masse on the Glendale, California City Council after an offending coyote killed a little girl.

Guess which side the “Coyote People” took?

If one was searching for an international public relations firm to take on rattlesnakes as a client, Burson-Marsteller may be a solid choice. Burson has represented Philip Morris (now Altria) for decades and made no apologies. According to the CDC, cigarettes kill 400,000 Americans each year. Only six Americans succumb to rattler bites each year.

Sounds like an easy client for Burson-Marsteller with favorable third-parties (e.g., The National Wildlife Federation) to call upon. You can just imagine the PowerPoint presentation. Maybe, Burson-Marsteller can convince WME/IMG to hold the Miss Universe contest next year in Sweetwater, Texas to coincide with the rattlesnake roundup … or maybe not?marji

Back to Marji Morgan, all she was doing was delivering an overall well-received address about the history and future of wonderful Washington wines. Simple until the ecologically correct spoke up.

Instead of sipping varietals, she figuratively stepped on a rattlesnake hiding in desolate sagebrush.

https://en.wikipedia.org/wiki/Rattlesnake

http://www.desertusa.com/reptiles/rattlesnakes.html

https://www.nwf.org/Wildlife/Wildlife-Library/Amphibians-Reptiles-and-Fish/Rattlesnakes.aspx

https://www.azgfd.com/wildlife/livingwith/rattlesnakes

http://www.rattlesnakeroundup.net/

http://www.rattlesnakeroundup.net/roundup.html

https://www.washingtonpost.com/news/animalia/wp/2016/03/12/how-to-kill-thousands-of-rattlesnakes-in-just-four-days/

 

 

 

 

Quick question: To benefit society is it better to donate $1,000 to the United Way or buy about five shares in Tesla (NASDAQ: TSLA) for the same amount of money?

Earns Tesla MotorsUnitedWay

Before you answer, please be reminded this question is not about pure, unmitigated, unadulterated altruism of the giver or investor.

Those who contribute to non-profits (e.g., United Way is one of literally thousands) in many cases are doing so to generate a personal tax deduction, which not inconsequentially adds to the federal deficit approaching $18 trillion.

Conversely, those who invest in corporate shares are doing so in hopes that the stock increases in value, something along the lines of buy low, sell high. This action does not sound charitable in the least … but in some cases it may be just that.

To top it off, a successful buy-low, sell high-action triggers a profit and with it tax liability (either capital gains or personal income tax depending on the timing of the transaction). These transactions lead to greater tax revenues for the feds, states, counties and municipalities.

Back to the basic question: Is it for the betterment of society to donate to a non-profit rather than to invest in visionary companies?

The answer may be surprising.

Non-Profit vs. For-Profit

Certainly, the United Way is not the only non-profit doing good on Planet Earth.

And just as certain, Elon Musk’s battery-powered automobile innovator/manufacturer, Tesla, is not the only global company with a spiffy idea or two.

The Alexandria, VA-based United Way with 1,200 local offices with a reported $103.2 million in assets and $94.2 million in net income provides essential support services to the less fortunate nationwide…and that is as Martha would say, “A good thing.”

Keep in mind when these big numbers are being thrown around, some in power may try to dip into the till. That is exactly what happened in the 1990s when United Way CEO William Aramory defrauded the charity according to a 53-count federal indictment to the tune of $1.2 million. He spent six years in the slam.

The United Way appears to have fully recovered from the PR debacle, and has partnered with the National Football League and others to assist those who need help the most.

Many multi-national corporations have earned near universal disdain for excessive CEO compensation, selling sinful products (e.g., NYSE: MO or Philip Morris), practicing “Green-Washing,” “Pink Washing” or “Astroturfing.” No wonder there were protests/reactions from “Occupy Wall Street,” to Senator Elizabeth Warren (D-Massachusetts) and many, many others.

And yet, there are companies that are sincere about maintaining both their fiduciary responsibility for shareholders and employees, and corporate social responsibility for workers, communities, regions and yes, the planet.

Companies on a Mission

“If you give a man a fish he is hungry again in an hour. If you teach him to catch a fish you do him a good turn.” — Anne Isabella Thackeray Ritchie in her novel, Mrs. Dymond (1885)

University of Oregon business professor Michael V. Russo wrote Companies on a Mission about more than a handful of enlightened corporations that have demonstrated they can be good citizens, while pursuing a profit as mandated by fiduciary responsibility.

lohas

In writing his book, he said these companies doing good for communities and the planet were drawing interest from at least a portion of the LOHAS (lifestyles of health and sustainability) consumer market segment, estimated at 43 million Americans in the economic downturn year of 2009. Conceivably that number has grown as the economy continues its stubbornly slow recovery.

Are we daring to think differently in suggesting that investing in shares and/or buying the products of these forward-looking companies is the equivalent of teaching a man how to catch a fish?

And are we merely giving a man a fish, if we donate in a well-meaning non-profit. That’s exactly what Almost DailyBrett is pondering in writing this epistle.

Please send the slings and arrows my way.

NUMMI Comes Back to Life

In a recent 60 Minutes piece on Musk’s battery car builder, Tesla, and privately held rocket-ship innovator, SpaceX, CBS included footage of the once-shuddered/2010 reopened NUMMI plant in industrial Fremont, California. There are now than 1,000 workers building non-polluting Tesla battery-operated cars at NUMMI.

teslanummi1

 

Palo Alto-based Tesla employs nearly 6,000 (and this figure does not include in-direct jobs in the form of suppliers, partners, distributors, resellers, butchers, bakers and candle stick makers).

The $2 billion top-line and $456 million bottom-line company has attracted more than $26.7 billion in market capitalization or market value (based on the present stock price).

The key to building more of these vehicles, which do NOT contribute to climate change, are the availability of ion-batteries with acceptable ranges and reasonable price points. Tesla will soon announce the location(s) for its ion-battery “Gigafactory.” We can rest assured the Gigafactory or Gigafactories will directly employ hundreds and indirectly employ thousands more, using the tried-true indirect-to-direct employee ratios.

Bill O’Reilly once called Tesla a “game-changer” as the way we think of automobiles is changing. And naturally, Tesla is attracting competitors into this space (z.B. Bayerische Motoren Werke oder BMW).

Back to the basic premise of this exercise: Are there instances in which the purchase of stock shares in (gasp) a corporation do more for the economy and the planet than making the traditional charitable contribution?

That seems to be the case in at least one instance, if we dare think out of the proverbial box.

Almost DailyBrett Note: The author of this blog owns slightly more than 100 shares of Tesla. Readers considering investing in Tesla would be well advised to review Tesla’s financials, stock performance, analyst reports and maybe even consult a financial advisor. My knowledge of Tesla is based upon published reports, publicly available information/data and of course, the 60 Minutes piece.

http://www.unitedway.org/

http://en.wikipedia.org/wiki/United_Way_of_America

https://almostdailybrett.wordpress.com/2011/12/13/fiduciary-responsibility-vs-corporate-social-responsibility/

https://almostdailybrett.wordpress.com/2014/04/02/only-in-america/

http://www.teslamotors.com/

http://en.wikipedia.org/wiki/Tesla_Factory

http://www.cbsnews.com/news/tesla-and-spacex-elon-musks-industrial-empire/

http://en.wiktionary.org/wiki/give_a_man_a_fish_and_you_feed_him_for_a_day;_teach_a_man_to_fish_and_you_feed_him_for_a_lifetime

http://en.wikipedia.org/wiki/NUMMI

http://www.fool.com/investing/general/2014/07/17/tesla-motors-inc-california-is-back-in-the-race-fo.aspx

 

 

 

 

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