Canadian cannabis producers and extractors are sitting on a massive stash of unfinished inventory that is growing so quickly that some analysts are concerned it could precipitate a price crash in the burgeoning industry.
While it is unclear what percentage of the unfinished inventory consists of dried bud versus cannabis trim or even potentially other plant waste, the rapid growth in the metric has some analysts concerned. Producers have already started lowering prices, a move that is bound to affect the margins of retailers as well. Recently, Hexo Corp. began selling a new product line called Original Stash, priced at just $4.49 per gram, roughly 50 per cent lower than the average per gram price on the legal market.
Finished inventory held by provincial distributors and retailers decreased by 2.3 per cent in August. On average, this inventory was 2.5 times sales for the month, a figure that is typical for the retail business. Complicating the situation for both producers and retailers is that they haven’t quite pinned down what products and brands consumers like. Some of the larger producers, such as Canopy Growth, Aurora, and Organigram, successfully filled the market with product in the early months of legalization, but as more choice became available, demand for those products declined.
So cut the prices, supply = demand
.....I’m pretty sure that is for the edibles market.....but I didn’t read the article because I don’t actually care.
Who knew that could happen. It’s so reasonably priced, it should be flying off the shelves. I wonder what the problem is ?
LMAO. The government thought that all the pot smokers would drop their dealer and run to these cannabis stores. How wrong they were. Here in NB we are losing millions.
Nobody wants your government regulated taxed shit weed. Everyone wanted to keep their local dealer or dispensary, you still criminalize them. Legal weed was a farce to make political insiders and corporations rich, jokes on them.
LP's must focus on getting deals to ship it to where there is medical demand in Europe where they can fetch a nice premium as well. I am looking at you emeraldhealthca beleavecanada Namaste_Tech
A mountain of inventory of what is essentially a non-perishable commodity. Agricultural economics are such a buzzkill.
Hopefully this 'industry' goes Up In Smoke
Lol..burn it
Just make the biggest batch of Oil and share the sales
Sounds like an opportunity for a Black Friday weed sale!
Hope soon is legal in Europe also ..
You can’t sell crappy marijuana and call it superior to grey market marijuana and have return customers. Apple realized that selling computers in the 90’s but the Government of Canada can’t in 2019 selling marijuana.
Put it on sale like any other business would
Need to open international markets. Otherwise the whole sector is fucked.
The plan was ,,, legalize that smokey shite and regulate later ,,, that was plan and just think if that still does not sell if not make money ? We tax payers might be stuck with all them millions lost ,,, You see there is no plan 'B' because it was to be best investment ,,,
Burn it!
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Source: nationalpost - 🏆 10. / 80 Read more »