CANADA CANNABIS SPOT INDEX — June 21, 2019

CANADA CANNABIS SPOT INDEX (CCSI) 

Published June 21, 2019

*The provincial excise taxes vary. Cannabis Benchmarks estimates the population weighted average excise tax for Canada.

**CCSI is inclusive of the estimated Federal & Provincial cannabis excise taxes..

The CCSI was assessed at C$6.96 per gram this week, down 3.9% from last week’s C$7.24 per gram. This week’s price equates to US$2,370 per pound at current exchange rates.

This week we focus on Health Canada’s newly released regulations on cannabis extracts, edibles, and other infused products. The rules will permit the production, distribution, and sale of three new product categories:

  • Edibles – candy, baked goods, beverages

  • Extracts – vapes, oils, resins

  • Topicals – ointments, oils, soaps, makeup

 

The plan sets mid-December as the launch date. The regulations contain very strict packaging and labelling guidelines to diminish appeal to minors and will be thoroughly assessed for flavour, shapes, and branding. Additionally, the proposed products will also be limited to individual packages not exceeding 10mg of THC. As a result, consumers should expect limited selection of products at the outset.

 

With the anticipation of these new products becoming available sometime around the first anniversary of cannabis legalization, there has been a massive build up of finished and unfinished cannabis oil. According to Health Canada’s Cannabis Tracking Program, as of the end of March, 62,188 litres of finished cannabis oil were sitting within facilities owned by the federally licensed producers (LPs) or distribution points. This inventory has been steadily growing, with a big transfer of product from LPs to retailers taking place in the month of March.

 

Source: Health Canada, Cannabis Benchmarks

In addition to that inventory, there was 35,867 litres of unfinished inventory waiting to be processed at the LPs’ sites.

Source: Health Canada, Cannabis Benchmarks

*The provincial excise taxes vary. Cannabis Benchmarks estimates the population weighted average excise tax for Canada.

**CCSI is inclusive of the estimated Federal & Provincial cannabis excise taxes..

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Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

21 June 2019 Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved

CANADA CANNABIS SPOT INDEX — June 14, 2019

CANADA CANNABIS SPOT INDEX (CCSI) 

Published June 14, 2019

*The provincial excise taxes vary. Cannabis Benchmarks estimates the population weighted average excise tax for Canada.

**CCSI is inclusive of the estimated Federal & Provincial cannabis excise taxes..

The CCSI was assessed at C$7.24 per gram this week, up 6.2% from last week’s C$6.81 per gram. This week’s price equates to US$2,466 per pound at current exchange rates.

 

This week we look at sales, tax revenue, and market dynamics in Quebec in the province’s first fiscal year of legal cannabis.

Quebec is the only large Canadian province that has kept a tight grip over cannabis sales, with its primary goal of ensuring safe consumption while minimizing the illicit market. The Quebec government mandated the Société des alcools du Québec (SAQ) to set up the Société québécoise du cannabis (SQDC) to bring legal cannabis to the market. Similar to Oregon and Washington State in the U.S., the province’s regulatory body overseeing alcohol was expanded to provide oversight of cannabis as well. The SQDC was established on June 12, 2018, ahead of legalization. Its first fiscal year of operation ended on March 30, 2019.

 

SQDC launched an online store and 12 brick and mortar locations in Quebec starting in October. With supply challenges looming at the onset of legalization, the SQDC dramatically cut store hours and slowed expansion plans. Since then the supply issues have been overcome and stores are now open seven days a week with a 13th store opened in March. The Crown corporation signed leases for three more locations in Montreal, the Laurentians, and the Montérégie.

 

SQDC reported robust sales figures despite some issues upfront. A total of C$71M in sales were tallied in the first fiscal year that ended at the close of March, with in-store sales making up roughly 81% of the sales and volume sold. The 12 locations also processed approximately 1.3M transactions with an average spend of C$51.07. Online sales were not as robust with 257,000 transactions that generated an average spend of C$61.06.

 

For this past fiscal year, the SQDC reported a balanced year when excluding C$4.9M of non-recurring start-up costs. The Quebec government received C$29.7M in consumption and excise taxes from this new industry. For the 2019-2020 fiscal year, the SQDC is projecting significantly higher earnings of C$20M with the province taking in C$89M in consumption and excise taxes.

*The provincial excise taxes vary. Cannabis Benchmarks estimates the population weighted average excise tax for Canada.

**CCSI is inclusive of the estimated Federal & Provincial cannabis excise taxes..

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Do you support wholesale market transparency?

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Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

14 June 2019 Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved

CANADA CANNABIS SPOT INDEX — June 7, 2019

CANADA CANNABIS SPOT INDEX (CCSI) 

Published June 7, 2019

*The provincial excise taxes vary. Cannabis Benchmarks estimates the population weighted average excise tax for Canada.

**CCSI is inclusive of the estimated Federal & Provincial cannabis excise taxes..

The CCSI came in at C$6.81 per gram this week, from last week’s C$7.96 per gram. This week’s price equates to US$2,301 per pound at current exchange rates.

 

The AGLC, the Government of Alberta’s Crown agency that oversees the gaming, liquor and cannabis industries in Alberta, lifted the province’s retail cannabis license moratorium. The bulletin, which was published on May 30th, indicated that with the “steady increase” in supply the AGLC is once again in a position to issue five licences a week. AGLC currently has contracts with 26 licensed producers (LPs) and 111 licensed retail outlets.


Alberta is the fourth largest province with approximately 553,000 cannabis users according to a survey conducted by Statistics Canada. Statistics Canada also reports on retail sales for each province. With the limited supply of retail outlets, retail sales in Alberta have flatlined through Q1 2019 at approximately C$450,000 per day. The addition of new storefronts should help the development of the legal cannabis market by providing convenient access to customers that currently purchase from the illicit market.

 

Cannabis Benchmarks also analyzed the state of the AGLC-run online store. The online store shows 76% of 249 dried flower products available, 49% of 53 pre-rolled products available, and 85% of the oils available.

 

After taking this step forward to provide additional access to the cannabis industry, AGLS plans to closely monitor supply to ensure that existing and new retailers have access to consistent deliveries of product.

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Do you support wholesale market transparency?

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Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

7 June 2019 Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved