CANADA CANNABIS SPOT INDEX — January 4, 2019

CANADA CANNABIS SPOT INDEX (CCSI) 

Published January 4, 2019

 

The CCSI declined 0.5% this week to C$6.60 per gram, from C$6.63 per gram last week. The index has dropped 18% over the past four weeks. C$6.60 per gram equates to US$2,204 per pound at current exchange rates.

 

The stability in prices adds some reassurance to the developing industry. Supply shortages are not expected to be resolved quickly, but the Alberta Gaming, Liquor and Cannabis Commission (AGLC) reported that the situation is slowly improving. Even though some producers had stockpiled product ahead of legalization, issues with packaging and logistics prevented product from hitting the marketplace in a timely manner.

 

The halt of new Alberta retail licenses remains in place to ensure current licensees can keep their shelves adequately stocked. Ontario announced it will be accepting entries next week from those looking to enter a lottery to apply for the first 25 retail cannabis licenses in the province. There is a C$75 fee and those selected will have five business days to submit their application, a C$6,000 non-refundable fee and a C$50,000 letter of credit. The short time frame for submittal of applications is to ensure that these operations can be up and running by April 1. The retail licenses will be distributed throughout the province – five to the eastern side of the province, seven to the western side, two in the north, six in the Greater Toronto Area and five in Toronto itself.

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

4 January 2019 Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved

CANADA CANNABIS SPOT INDEX — December 28, 2018

CANADA CANNABIS SPOT INDEX (CCSI) 

Published December 28, 2018

 

The CCSI declined 6% this week to C$6.63 per gram, from C$7.08 per gram last week, and is down 15% over the past two weeks. C$6.63 per gram equates to US$2,212 per pound, which places the CCSI at 188% of the U.S. Cannabis Spot Index, currently at US$1,175 per pound.

Wholesale prices in Canada headed lower with supply shortages; howevever, not as extreme as reported in November when AGLC had only 20% of their product delivered and Quebec closed retail locations due to insufficient supply. 

 

Supply shortages still exist, yet inventory on provincial online sites is not as limited as it was in November. AGLC showing nearly 80% of dried flower products available on the online site. Experienced consumers, frustrated with limited quantity, could be turning back to the black market while supply shortages get resolved. One of the contributing factors to the initial supply shortage was incorrect packaging and labeling. Reports from the field indicate that some LPs have been able to resolve these issues. 

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

21 December Copyright © 2018 New Leaf Data Services, LLC.  All rights reserved

CANADA CANNABIS SPOT INDEX — December 21, 2018

CANADA CANNABIS SPOT INDEX (CCSI) 

Published December 21, 2018
The CCSI declined 9% this week to C$7.08 per gram, from C$7.79 per gram last week, and is down 14% over the past two weeks. These declines may suggest that broad media coverage of shortages across the country, as well as actions by the provincial regulators, are tempering supply expectations from end-use consumers. C$7.08 per gram equates to US$2,387 per pound, which places the CCSI at 208% of the U.S. Spot Index, currently at US$1,147 per pound.
 
Activity across the country was notable as regulators moved to produce a more equitable approach to accessing supplies, while tempering demand, including moving to a lottery system in Alberta for purchase from the Provincial supplier, temporarily shutting government run stores in Quebec to provide time to re-stock shelves, and moving to a lottery system in Ontario for retail dispensary licenses (which is dramatically lower than the up to 1,000 brick and mortar stores expected to just 25 in the spring of 2019).

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

21 December Copyright © 2018 New Leaf Data Services, LLC.  All rights reserved