An MJBiz analysis found Canadian producers have sold less than 20% of their production since REC sales launched in fall 2018. That astonishing figure highlights a host of struggles suffered by the fully-legal industry to the north.
- “Good stuff sells,” one consultant said, pointing to a potential root cause of the industry’s crises.
More unfortunate news from the Canadian market:
- Tilray missed on revenue and reported a net loss of $336M for FY 2021. (The stock still got a bounce.)
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- Canopy Growth‘s relationship with Seth Rogen‘s Houseplant brand ended.
There are plenty of reasons to think Canadian operators will continue to struggle:
- While some of them express optimism about the U.S. market, it’s largely unclear when they’ll be able to enter it, or why they’ll have more success here.
- Those operators aiming for overseas markets will have to compete with lower cost exports from Colombia.
- Big U.S. brands like Cookies are beginning to arrive in Canada. (It sounds like Houseplant could be planning something similar.)
For much more detail, the essential follow is former Bacardi executive Rob McPherson, scourge of cannabis LinkedIn, who is spending his retirement mocking the business practices and money hemorrhaging ways of Canada’s largest PotCos.