Why is Canada's cannabis industry struggling to turn a profit?
Why is Canada's cannabis industry struggling to turn a profit?
Canopy Growth, one of the prominent names in Canada’s legalized cannabis industry, is laying off one-third of its workforce and shutting down its headquarters in Ontario — a sign of the times as the cannabis industry struggles to turn a profit. With an abundant supply of cannabis post-legalization, it’s led to a drop in price which may be good for consumers – but bad for companies. Jay Rosenthal with The Peak Daily podcast joins Global’s Anne Gaviola to talk about what you should know about the current state of the cannabis industry in Canada.
Cinemas in the country, and even outside of Canada, are noticing difficulty when it coms to getting even older viewers back into their seats, with a plethora of streaming services now competing for their attention. In response, the theatres are looking for new ways to attract guests and Gaviola and Rosenthal talk about what theatres could do to bring in more.
And the pair talk about the drop in shares for Alphabet, after the company’s Bard artificial intelligence made a factual error during its demonstration, leaving many questioning its competency.
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Sorry.. but 55 inch TV isn’t massive…
Because Canadas other racketeers like Carbon Tax are making way more Money. The Government is the new Mafia
Their weed is garbage. They don’t know how to grow good weed.
On Instagram
thats cus no one wants pay taxes on weed or 400$ a oz for this government growing senthetic weed. ill stick to growing my own organic weed
Government does NOT belong in the For Profit business…………………..
Another liberal success story lol.
Corporate garbages trash
Well, let’s see. I can either pay 10 to 18 dollars a gram for shwag or I can drive to Tyendinaga and buy 30 percent thc weed for five dollars a gram. Hmmmmmmm………..
Gov’t is trying to take something that was widely considered ‘free trade’ in Canadian society and force it to turn large profits via taxes, fees etc etc. much like the tobacco, or the heavily gov’t controlled liquor & beer markets. Hyper focused on cornering the markets by only allowing sales for years at places like The Beer Store or LCBO’s. I still think the only reason they allowed the Cannabis market to be somewhat privately owned was the uncertainty or foreseeable startup instability. Once most of the market folds but stabilizes they will sweep in and do the same.
Because the government is involved.
I think the main reason is the black market is cheaper
It never ceases to amaze me , how the big giant heads of the cannabis industry fail to realize , how their highly regulated industry is polluting the planet. The plastic waste. The cannabis waste, the waste generated from the plants. Leaf trim stem, is not all utilized, but sent to landfills. The fertilizer waste in these big grow rooms , goes directly into the waste water system. The power usage of these grow operations, something like 1% of all waterelectric power goes to the marijuana industry in the USA. all of the above waste is because of paranoid deluded government over regulation.
Would it not be better to grow weed outdoors? Yes it would . Would it not be better to reuse marijuana waste to make hemp plastic. To make containers for the weed. Which is biodegradable? Right again.
Do not tell me seniors are ready to pay more and more for medicine. Because the higher quality works for pain, better.
Tell me you are coming up with solutions for the real problems in the industry.
Older consumer here… We WILL pay more for a premium product, however thats not available in the legal market. The black market still thrives on 2 things Quality and Price and as long as there are companies putting out legal cannabis thats on a pull system and not grown with love or treated like a premium product, it will flourish. The mail order black market is alive and very well in Canada right now with prices plummeting to compete with the availability of legally sourced cannabis. Premium products are EASILY sourced with reviews and pictures posted on Reddit.
Because of government interference…… illegal grow ops are profitable…….I wonder….hmmmm…its so simple….but yap yap yap….
By all means go to a dispo,but I promise you there is better product in the neighborhood,herb is about the people not the profit
Waste of time drug. Older consumers will buy premium product? You mean older addicts.
Ha I just told my friend how theaters are declining in popularity & why shouldn’t they? Internet kills all & the streaming heavies are already sorted. Drive-ins died for good reason, now theaters too. The way for them to adapt is don’t. Plan for extinction.
Your cannabis ops are US MSOs, the heavies have been sorted there too but the inaccessibility before fed legal is your op. Find a way to access OTC & get in when no one else is because the LP pump on US legalization will be short lived & all that scrilla gonna pour outta the LPs into MSOs when the uplisting starts. 🤑
the garden gnomes are smoking it.
And if you think the products grown are high quality that’s the biggest joke of all If people weren’t so frustrated about getting garbage products they’d be laughing at what a joke this system is
When Vancouver had the grey market era of medical growers and dispensaries such as the green rhino and sea to sky, that’s when bc was in its prime for quality. Since then I don’t know a single friend that buys legal dispensary weed , because they got rid of those dispensaries it’s all turned to grey market now for the best of the best smoke
Anyone and everyone knew what the outcome was going to be. This is not rocket science. Black market weed is just as busy now or more so than it was before. Users want what they had before legalization, a strong unabated supply of the weed of their choice. I am not a user, and even I knew what the outcome was going to be.
Trudeau never should have legalized the industry. All they did was cause a bigger problem for people that are forced to get stoned because ignorant users are smoking while driving and stinking peoples houses because they don’t give a f**k. All the government did was give the stoners the green light to use wherever they want and i, for one are sick of it. Trudeau if you want to use tax payers money to bail out a system that should have never been, then maybe legislate laws to protect those of us that do not want to go through life stoned every day.
I’ll say this once. The legal market sells 30% + thc content flower for approximately $80. + for 7 grams ish. The "illicit" market sells the same thing for $50. On the high end. All one has to do is look at the price structure at anyone of these dispensaries and one can see there’s no comparison.
A few tax dollars aren’t going to help, their overhead is just too high. To put it bluntly they would have to have their highest price on 7 grams of 30% + thc flower @ $30. / shatter $10. Per gram. Vape cartridge @ $10. Per gram. (At the rez shatter is $15/ gram, vape cartridge also $15 today). So if one invests in the green market your flushing your $ down the drain. Divest and run, the illicit market has gotten costs so low there’s no way to compete. Soon the industry will call for crack downs on anything that seems illicit (witch hunt ). This will be applied to the licensed medical growers of Ontario (10 plants each their allowed) remember them? It looks like a dark path coming knowing our government. Edibles require more intense scrutiny because it’s food , but there’s bootleg candy and everything one can imagine…
Also cheap and powerful. So call me when the price gets to where I described, until then……Hey Bruh!. Gotta bag?…..
Come on man!! Enjoy those drugs. I know… they should get the grocery stores to sell it!! Loblaws and Metro would sell their grandmother’s to be able to offer it to their loyal customers. They can place it at kid’s height in the breakfast cereal isle and put cute cartoon animals along the shelves leading to it’s location! Everyone loves weed. Of course, the packaging would remain "non-descript" and "bland", just like the experts in Government ordered!
About high pricetags never forget it’s from UN endo¢trination where non-elected individuals outside our respective People’s House decided high prices would prevent "kids" (aged up to 21…) to get their hands on it…
I like the esurance that some ex cop who used to bust people for it isnt getting my money through a pension plan ..true story(the board that handle alot goverment pensions including the rcmp bought a ton of cannabis stock before legalization)
There is actually no particular sectors I focus on. I have been copying trades from MARTHA ALONSO HARA since the pandemic year. that was a smart move since my portfolio has grown at a tremendous pace. unlike I can say for my IRA which has just been trudging along. I even had to roll most of it over to Linda’s strategies. my portfolio just mirrors what she trades and not just on some particular industries of my choosing
we want clones
The truth is government weed sucks you just cant grow.
Ironically enough a new report came out today stating 4.5 Billion in sales in 2022, and a YoY increase of almost 18%. So that’s 4.5 Billion away from the Black Market. And 4.5 Billion of sales on “low quality” weed as many here suggest. Imagine the sales figures if it was High Quality weed.
Government lol
Dr_mycowilli
Hahahahahahahahiahahahahahahhahahahahahshahahahahahahah jay rosenthal gets paid by all those producers to interview them. Conflict of interest?lol
The reason is that the product is terrible. The irradiation step degrades the quality.
Big number big motivation 🧸
Over priced, low quality, chemicals still in the flower, never know what you’re buying.
4 years of legalization, 0 ozies bought at the store.
My dealers are cheaper, are open 24/7, give me a testor to see if I like it, much better quality, deliver to me, aren’t trying to upsell me, the big one is – cheebs isn’t thier personality.
you guys are funny. Older consumer, which I am, will never pay for over price garbage that the government owns. I will pay a dealer for better weed and better pricing. I support the illegal market. GREED is what is killing legal
This is what happens when you are a nation of debtors, living off of debt. You’ll do anything for tax revenue. Gee… you’ll even sell weed. LOL!!
Adds zero value to economy cause they ain’t working when smoking.
They need to let the grey market growers run their own grow and shop just like the pre legalization era in Vancouver when it was all medical/ grey market growers who grew and sold their own product. That’s when all my friends were going to the dispensary especially for that death bubba by sea to sky , now no one goes to the dispensary it’s frowned upon. The dispensaries now all have trash. They need to change it back to how Vancouver was doing it before legalization, that’s when everyone was making money and picky customers were satisfied by very high quality cup winning flower
The government eats too much of our profits too quickly. Small to mid sized cannabis companies cant compete with bigger fish and as a result are closing down.
This pressure to succeed is also lessening the quality of work being done in the industry. I worry that workers in positions of leadership are making decisions out of fear of closure rather than 10 year + longevity. As a result, working in the industry becomes extremely chaotic.
I believe a lot of this behaviour is due to the infancy of the industry as well as the approach folks in power decide to take with their workforce.
LOL! Drug addicts don’t have "loyalty". They’ll buy from any dealer with cheaper smoke. No doubt the industry will lobby for "advertising" so they can get Canadian toddlers smoking via Saturday cartoons.
legal weed is garbage and too expensive due to greed and tax. Illegal all the way, way better pot
I don’t know what the issue is like in other provinces. Here in AB in my city prices are great. I pay around a hundreds dollars for a full ounce, less than 30 for 1 gram vape carts…
Weed used to be 240 an ounce minimum off the street and sometimes I couldn’t even use it BC I have allergies to terpens I only found out BC of legal cannabis stores listing them.
cannabis and big business just never went together. its like wine…each producer has their own take on it and you cant teach that to people who only see money and dont have passion for the flower or the culture/community
I LOVE THIS NEWS. LEGACY GROWERS ARE STARTING TO SEE THEIR PRODUCT WIN OUT OVER CORPORATE CANNABIS. WHILE THESE GIANTS SLEPT, LEGACY GROWERS DEFINED THEMSELVES. FROM ALLOWING RECREATIONAL GROWERS TO HAVE ACCESS TO FANTASTIC SEED BANKS TO CRAFT CANNABIS OFFERING ON MANY WEB/DELIVERY SERVICES. FEDERAL CANNABIS IS TRASH… FULL STOP.
Because it is run and regulated by an incompetent government .
Because their products are garbage quality loaded with synthetic PGRs hardeners and pesticides 🤮