Ontario Cannabis 2.0 Sales Top $4.3 Million in January
Vaping Gets Lionâs Share of Ontario Cannabis 2.0 Sales; More to Come â LPC
Ontario Cannabis 2.0 sales topped approximately $4.3 million in sales in January, according to the government-run retailer. Vape sales were by far the highest at about $3.77 million. Edibles made up the rest, about $569,000 for the month.
Cheri Mara, OCS chief commercial officer, said that every move like this undermines black market cannabis.
âEvery new product we introduce, every price drop we make and every authorized retail store that opens strengthens the legal marketplace,â she said.
Ontario Cannabis 2.0 sales are skewed downwards considering that first wave of Cannabis 2.0 products didnât hit the shelves in Ontario until January 6. Even then, it was a limited supply and product offering. OCS Cannabis 2.0 products sold out in hours in most places. Today, the OCS carries over 75 different Cannabis 2.0 products including 54 vape products.
The vaping part of Ontario Cannabis 2.0 sales may be surprising given the vaping illness scare of 2019 linked to cannabis use. Before that, many expected vaping to be the largest growth are in Cannabis 2.0 â and that seems to be the case.
â$3.7 million in vape sales is pretty good,â said Michael Armstrong, a professor at Brock University. âWeâre getting a good 10 per cent bump from just vape products.â
OCS Stores Hit 43 Giving More Cause for Celebration â LPC
All indications are that Ontario Cannabis 2.0 sales will continue to grow. The Financial Post article reported there are now 43 cannabis retailers in Ontario, according to the Alcohol and Gaming Corporation of Ontario (AGCO). (Please see link below.) Thatâs almost twice what it was three months ago. Although itâs a far cry from Albertaâs 300+ stores and counting, Ontarioâs new wave of cannabis stores is encouraging.
Ontario Cannabis 2.0 sales will get another boost soon. The OCS also announced it would start selling cannabis beverages and topicals this week. These include Tilrayâs High Park brand and Valensâ Basecamp brand. 48Northâs Apothecanna will be the provinceâs first topical cream to be sold legally.
Ontario Cannabis 2.0 sales accounted for approximately 10 per cent of overall cannabis sales. That is substantial, but will it be enough to help licensed producersâ bottom lines? For many, it will depend on their business model. Canopy Growth has invested a lot in its cannabis beverage gamble, though its launch is still delayed.
But for most LPs, what will really boost their Ontario Cannabis 2.0 sales is more stores. Thankfully, weâre starting to see that across the province.
This editorial content from the LPC News Team provides analysis, insight, and perspective on current news articles. To read the source article this commentary is based upon, please click on the link below.
Click here to view full story at business.financialpost.com
Read the full article
