Ontario Cannabis Store reduces price margins to help pot shops compete with illicit market

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The margin drop was largely triggered by the strength of the illicit pot market, which still made up 43 per cent of Ontario’s cannabis market last March.Article content The average price for cannabis was $11.78 per gram at the start of 2019, shortly after legalization, but fell to $7.50 per gram in 2021, a November report from Deloitte Canada and cannabis research firms Hifyre and BDSA said.

In the last week alone, Canopy Growth Corp., one of Canada’s most prominent pot companies, said it would lay off 800 workers as part of a transformation plan that will also include the closure of a former Hershey chocolate plant in Smiths Falls, Ont. it took over and the consolidation of some of its cultivation operations.Then, licensed producer SNDL Inc. announced a layoff impacting 85 employees at its Olds, Alberta facility that it said would deliver $9 million in savings.

However, the changes won’t come into effect until later in the year. The OCS said the delay is meant to give it and licensed producers time to consider changes to existing products and their release schedules.

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Ontario Cannabis Store reduces price margins to help pot shops compete with illicit marketThe OCS expects the contributions to hit $60 million in the 2024 fiscal year and compound annually in the years thereafter. Imagine. The Province sets up a bureaucracy for weed like they have for LCBO, and the top heavy 3 figure a year bureaucrats can't figure out why for the life of them, ppl would continue to buy from the grey market. You just cant make this shit up. Smfh. The illicit market only survives because the government has implemented high barriers to entry and applies over taxation. Taxation was supposed to offset increased needs in policing and monitoring. Time to reevaluate the system.
Source: TheTorontoSun - 🏆 23. / 68 Read more »