ARMSTRONG: Cannabis sales blossomed in spring, but questions remain

Michael Armstrong, Associate Professor of Operations Research in Brock’s Goodman School of Business, wrote a piece recently published in the Globe and Mail looking at Health Canada’s most recent report detailing spring cannabis sales.

Armstrong writes:

On Tuesday, Health Canada released its cannabis report for April, which shows overall sales volumes up substantially from March. But apparent drops in finished goods production and increases in raw material inventories raise concerns for future months.

For dry cannabis and oils combined, April sales rose 10 per cent to hit 17,049 kg. That constitutes about 22 per cent of national monthly consumption, given Health Canada’s estimate for annual demand of 926,000 kg.

Other Health Canada data suggest registered medical clients grow enough plants to cover roughly three more percentage points of demand. So, April was likely the first month where legal sources together captured a quarter of national demand. Geographically, the sales growth evidently was concentrated in Ontario. Statistics Canada’s latest figures show recreational sales nationally rose $14 million in April. Of that increase, $12 million came from Ontario, courtesy of the province’s first dozen stores finally opening.

The full article is available here.

Please note: This article is available to Globe and Mail cannabis professional subscribers only.

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