I’ve posted previously about Canada’s excess production capacity but I now want to look at the over-capacity problem in some more depth, specifically attempting to answer the question “how bad is the situation, really?” One way to think about this is to figure out how long the current capacity glut will last if the industry […]
Author: Geordie McRuer
Canadian LPs Destroyed or Lost $2.1 Billion of Weed Since Legalization
Health Canada recently updated their cannabis market data, adding new data that allow you to calculate the amount of cannabis that was lost, stolen, or destroyed by Canadian Licenced Producers (LPs). It’s a doozy. During the last year 318,000 kg of cannabis was lost, stolen, destroyed, or otherwise disappeared. In my last post, I talked […]
Don’t Worry About Excess Weed Supply. Freak Out About Excess Capacity.
For anyone who’s followed the coverage of Canada’s weed market, over the past months, you probably know that there’s currently way more weed in inventory than we have the collective lung capacity for bong hits. But that excess supply isn’t the disease; it’s a symptom. The disease is excess capacity, and we’ve got a stage-four […]
Canopy Growth’s Dwindling Market Share
Major Take-Away: Canopy’s epic stand against a rapidly rising tide In the four quarters since recreational cannabis was legalized in October 2018, the amount of cannabis sold in Canada (in kilograms, including both recreational and medical) has increased by 81%. Meanwhile, sales by the industry’s largest player have increased by only 8%. Why It Matters: […]