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

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

CANADA CANNABIS SPOT INDEX — May 31, 2019

CANADA CANNABIS SPOT INDEX (CCSI) 

Published May 31, 2019

The CCSI came in at C$6.96 per gram this week, from last week’s C$7.33 per gram. This week’s price equates to US$2,341 per pound at current exchange rates.

 

Health Canada released the latest Canadian sales data on May 24th through the Cannabis Tracking System program. Non-medical sales continue to grow across Canada with average daily sales reaching 191 kg/day, while medical sales slid further to 54 kg/day. Although these are preliminary estimates, the revisions in sales have been minimal for the past few months. In the recent report, February non-medical sales figures were lowered by 2.3%.

 

Our expectation is that non-medical sales will pick up significantly in next month’s report with the release of April data, as a result of the opening of Ontario retail stores on April 1st. Ten retail stores were opened on day one, with another 15 added by the end of the month, providing Ontario cannabis consumers with greater access to the legal, regulated market.

From the data we see that non-medical sales are on the rise versus medical sales. As of March, sales to non-medical consumers were 350% of medical sales.

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

31 May 2019 Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved

CANADA CANNABIS SPOT INDEX — May 24, 2019

CANADA CANNABIS SPOT INDEX (CCSI) 

Published May 24, 2019

The CCSI moved higher to C$7.33 per gram this week, from last week’s C$6.96 per gram. This week’s price equates to US$2,346 per pound at current exchange rates.

 

This week we take a closer look at the cannabis excise duty rates charged by each province.

 

The Government of Canada’s Department of Finance lays out the Federal and Provincial excise duty rates payable by licensed cannabis producers. These duties are paid when the cannabis products they produce and package are delivered to a provincially-authorized distributor/retailer or final consumer.

 

The Cannabis Benchmarks’ CCSI monitors wholesale transactions between the provincial regulatory bodies and market distribution centers, such as the online provincial stores and private or public brick and mortar stores; hence the CCSI is inclusive of the average Canadian cannabis excise duties.

 

Based on Cannabis Benchmarks’ calculation for this week’s price assessment of C$7.33, the duties vary widely from on province to the next. Manitoba has the lowest cannabis excise duties at C$0.25 per gram, while Alberta’s inclusion of a sales tax adjustment takes the duties to a whopping C$1.75 per gram.

Source: Govt of Canada Department of Finance, Cannabis Benchmarks

This week, the average Canadian excise duty (population weighted average) is calculated to be C$1.14 per gram. Therefore, without the duty, this week’s average LP selling price is C$6.19 per gram, or US$2,086 per pound at current exchange rates.

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

24 May 2019 Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved