Cannabis price ‘race to the bottom’ hurts market’s future, OCS CEO says

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Pot companies are taking multimillion-dollar writedowns, laying off staff and rethinking their product mixes as the industry gets a better sense of consumer demand and regulatory hurdles

All the while, the illicit market, where weed is much cheaper and sellers operate outside restrictions imposed on the legal market, has remained mighty. The OCS estimated in Ontario alone the illicit market still made up 43 per cent of the province’s cannabis market last March, down from June 2020, when it held onto 75 per cent.

“In Missouri, we sell the same for $70 U.S. that we sell here for $31 Canadian,” he said, in a session after Lobo’s speech. However, the OCS, which distributes cannabis from producers to stores, will not require pot companies to pass along savings from the margin to drop to consumers by lowering their prices.The Smiths Falls, Ont. cannabis company behind the Tweed, Ace Valley and 7Acres brands is not budging on its pricing because the pot market is already “highly competitive,” chief executive David Klein told The Canadian Press in February.

 

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Cannabis price 'race to the bottom' hurts market's future: OCS CEOThe head of Ontario's cannabis distributor says the 'race to the bottom' happening with pot prices risks hurting the market's future.
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