Consultancy for a Cannabis Market Feasibility Study: Grenada’s Cannabis Industry
The Terms of Reference and Guidelines for the Submission of Expressions of Interest for this consultancy are provided below.
General Information
Credit No.:
Assignment Title:
Reference No.
Intervention: Market Feasibility Study for legal cannabis reform and industry.
Work Description: Consultant for the market feasibility study to inform policy and cannabis industry establishment.
Deadline for submission: Wednesday, 3 July 2024.
Background/Project Description
The Government of Grenada (GoG) is committed to exploring a cannabis market feasibility study to guide the responsible development of a cannabis industry in Grenada, balancing economic and social development opportunities with public health and safety considerations.
In 2014, the Heads of Government of Caricom Member States mandated the establishment of a Commission to interrogate the issue of reform to the legal regimes regulating cannabis/marijuana in the Caricom countries.
In 2018, The Caricom Regional Commission on Marijuana produced a report called Waiting to Exhale Safeguarding Our Future Through Responsible Socio-Legal Policy on Marijuana. The report provides recommendations on the legal and administrative conditions that should apply if there is a reclassification.
Currently, cannabis is classified as a controlled narcotic drug in Grenada’s Chapter 84A Drug Abuse (Prevention and Control) Act • Act • Subsidiary Legislation • Act No. 7 of 1992, Amended by SRO 16 of 2011. However, the Government, which assumed office on 24 June 2022, has taken the policy decision to:
- Legalise cannabis and create a legal and regulatory framework for its production and sale
- Develop the cannabis industry for medicinal benefits
- Maximise the potential of hemp and its by-products for export, and
- Promote training and education of farmers interested in the agro-processing of cannabis
To facilitate the implementation of the policy stance, the Government of Grenada established the Grenada Cannabis Working Committee and a Cannabis Secretariat.
The global cannabis market is experiencing significant growth, driven by increasing legalisation and medical applications. The GoG recognises the potential economic and social benefits of a well-regulated cannabis industry but also acknowledges potential risks.
Objectives:
The GoG seeks a qualified consultant or consortium to conduct a comprehensive market feasibility study for the cannabis industry in Grenada. The study should address the following goals:
Market Research and Analysis:
Develop a clear research scope defining target markets, products, and key competitors.
- Conduct desk research on:
- Global and regional cannabis market size, trends, and regulations
- Economic factors affecting the cannabis industry in Grenada
- Name and engage key stakeholders across relevant sectors (criminal justice, legal, social, economic, cultural, food and beverage, industrial, science and technology, education, health/medicine and wellness)
- Conduct primary data collection through surveys, interviews, and focus groups with stakeholders
Market Potential and Demand:
- Analyse data to assess the market potential for cannabis products in Grenada
- Identify key demand drivers and growth opportunities
- Evaluate the competitive landscape and potential market share for Grenada’s cannabis industry
- Develop preliminary market size and growth projections for different market segments (medicinal, recreational, local, and international).
Financial Analysis and Investment Viability:
- Estimate costs associated with production, processing, distribution, retail, and marketing for different cannabis products
- Develop financial models to assess the investment viability and potential return on investment (ROI) for various industry models
- Analyse profit margins for different cannabis product categories
- Prepare a financial feasibility report summarising key findings and recommendations
- Conduct a cost-benefit analysis that considers both the projected returns and the potential costs associated with negative environmental or social impacts
- Investigate the potential for grants and loans from banks and other financial institutions for potential cannabis-related business owners
Market Entry Strategy and Implementation Plan:
- Develop market entry strategies tailored to different industry models (medicinal vs recreational, local vs international markets)
- Craft a detailed market entry plan with timelines, budget, resource allocation, and marketing strategies
- Consider different regulatory frameworks (strict vs hybrid) and their impact on profitability and investment attractiveness
- Name the ideal model for Grenada’s cannabis industry, considering supply chain organisation, cultivation methods, product management, and distribution channels
Final Report and Dissemination:
- Prepare a comprehensive final report presenting all research findings, analysis, and recommendations
- Include clear comparisons and contrasts between different industry models and their potential implications
- Develop realistic and sustainable market options for Grenada’s cannabis industry
- Provide recommendations for administrative structures, implementation plans, and communication strategies for the chosen model(s)
- Disseminate the final report to relevant stakeholders and the public
Duration of work: July through 31 August 2024
Deliverables:
The consultant will deliver the following:
- Inception Report outlining research scope, methodology, and work plan
- Market Research and Analysis Report, including stakeholder engagement findings and market potential assessment
- Financial Analysis Report with investment viability assessments for various industry models
- Market Entry Strategy and Implementation Plan tailored to the selected model(s)
- Final Report summarising all findings, comparisons, recommendations, and dissemination plan
Timeline and expectations:
The consultancy is expected to be completed in 1 month. A detailed work plan with deadlines for deliverables will be developed with the selected consultant.
Scope of the work: to assess the market feasibility of a cannabis industry in Grenada, considering various models, regulations, and potential across diverse sectors.
Proposed methodology
The consultant will employ a multi-phased approach encompassing:
- Market Research & Stakeholder Engagement: Desk research on market size, trends, regulations, and economic factors. Stakeholder identification across criminal justice, legal, social, economic, and industry sectors (cultural, food & beverage, industrial, science and technology, education, health/medicine and wellness). Conduct primary data collection through surveys, interviews, and stakeholder focus groups
- Market Potential & Demand Analysis: Analyse data to assess market potential for cannabis products in Grenada, identify key demand drivers, evaluate the competitive landscape, and develop preliminary market size and growth projections for various segments (medicinal, recreational, local, and international)
- Financial Modelling & Investment Viability: Estimate production, processing, distribution, retail, and marketing costs for different cannabis products. Develop financial models to assess investment viability and ROI for various models, analyse profit margins, and prepare a financial feasibility report with key findings and recommendations
Also
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- Investigate Investment Opportunities: Conduct a comprehensive analysis to identify potential sources of investment for the cannabis industry. This will provide stakeholders with a clear understanding of available financing options
- Facilitate Funding Access: Explore and assess the feasibility of establishing partnerships with financial institutions such as credit unions to support local farmers’ entry into the cannabis market
- Develop Funding Strategies: Based on the identified investment landscape and financial institution partnerships, recommend, and develop targeted funding strategies that enhance access to capital for aspiring cannabis businesses
- Market Entry Strategy & Implementation Plan: Develop market entry strategies for medicinal vs recreational, local vs international markets. Craft a detailed implementation plan with timelines, budget, resource allocation, and marketing strategies considering strict vs hybrid regulatory frameworks and their impact. Name the ideal model for Grenada, including supply chain organisation, cultivation methods, product management, and distribution channels
- Final Report & Dissemination: Prepare a final report presenting all research findings, comparisons between industry models, realistic and sustainable market options, recommendations for administrative structures, implementation plans, and communication strategies for the chosen model(s), and a plan for disseminating the report to stakeholders and the public
Reporting relationships: The consultant will report directly to the Cannabis Secretariat, providing all deliverables and updates. The Cannabis Secretariat will then present the consultant’s work, including reports and recommendations, to the Working Committee Chair for further discussion and consideration.
Consultant Qualifications:
The GoG seeks a qualified consultant or consortium with proven experience in the following areas:
- Market research and analysis in the cannabis industry
- Financial modelling and investment analysis
- Business strategy development for regulated industries
- Stakeholder engagement and consultation
- Understanding of different cannabis industry models and regulatory frameworks
Selection Process:
The GoG will shortlist and evaluate proposals based on the following criteria:
- Demonstrated experience and ability of the consultant team
- Quality of the proposed methodology and work plan
- Understanding of the Grenadian context
- Value for money
Property Rights: Any intellectual property created as a direct result of this contract shall be the exclusive property of the Cannabis Secretariat, including copyright, patents, and registered trademarks.
Guidelines for Submission of Expressions
Consultancy to Conduct a Market Feasibility Study for Establishing a Cannabis Industry in Grenada.
Individual Consultants wishing to signify their interest in undertaking the prescribed services are to send an Expression of Interest (EOI) to include:
- Information on the Consultant’s qualifications and technical competence relevant to the assignment, experience in undertaking similar assignments, including Curriculum Vitae of the Individual Consultant proposed for the assignment; and
- A Concept Note on the planned framework for undertaking the assignment and a breakdown of the number of days needed for each task
Submission of Proposals:
Consultants shall bear all costs associated with the preparation and submission of their Expressions of Interest.
The Cannabis Secretariat is not bound to accept any Expression of Interest and reserves the right to annul the selection process at any time prior to contract award, without thereby incurring any liability to the Consultants.
Interested consultants are invited to submit an electronic copy of their Expressions of Interest and proposal that outlines their qualifications, methodology, work plan, and cost estimate for completing the project. Expressions of Interest and proposals should be submitted electronically submitted by Wednesday, 3 July 2024, and addressed to the 2 following parties:
- Permanent Secretary
Ministry of Agriculture, Third Floor
Ministerial Complex
Sir Eric Matthew Gairy Botanical Gardens
St George
Grenada
Email: [email protected] - The Cannabis Secretariat
Ministry of Agriculture, Third Floor
Ministerial Complex
Sir Eric Matthew Gairy Botanical Gardens
St George
Grenada
Email: [email protected]
For more information, please contact:
The Chief Executive Officer
Cannabis Secretariat
Ministry of Agriculture, Third Floor
Ministerial Complex
Sir Eric Matthew Gairy Botanical Gardens
St George
Grenada
Email: [email protected]