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

TORONTO –

The head of Ontario’s hashish distributor says the “race to the bottom” occurring with pot costs dangers hurting the market’s future.

Ontario Cannabis Store chief govt David Lobo says when customers get used to paying decrease costs, it may take a era to vary their notion and persuade individuals to pay extra once more.

In an economic system the place inflation is stubbornly excessive and elevating the prices of most shopper items, he says the trade cannot preserve pushing decrease.

Lobo says the OCS is doing its half in preventing the race to the underside with a forthcoming plan to decrease its margins, which he estimates might hand $60 million to licensed pot producers subsequent 12 months.

Since leisure hashish was legalized in 2018, pot producers have been dropping costs to combat the illicit market, the place weed is less expensive and sellers function outdoors restrictions imposed on the authorized market.

Statistics Canada mentioned a gram of authorized hashish price $10.29 on common in 2019, whereas the OCS had some dried flower merchandise promoting for underneath $4 this week.

This report by The Canadian Press was first revealed June 1, 2023