Ontario Cannabis Store Report Records 25% Drop in Marijuana Prices

The report found that Ontario consumers purchased a staggering $385.1 million of cannabis from the OCS during its first full year of fiscal operations.

Key findings concerning the cannabis buying preferences of the Canadian population has been uncovered in newly published data from the Ontario Cannabis Store (OCS).

The report charts the sales figures for the Ontario Cannabis Store's first full year of fiscal operations and included many significant insights into the purchasing habits of Canadian marijuana consumers.

The numbers from our first full year of commercial operations show steady growth despite constrained supply that the limited the ability of the Ontario marketplace to rapidly expand the number of access points as quickly as desired. Ontario Cannabis Store President and CEO, Cal Bricker

The OCS data shows that the median price of dried cannabis flower dropped by a considerable 25% during its first year of operations—in part as an attempt to pull market share from illegal cultivators—which saw the retail price drop to $10.84 per gram.

Cannabis consumers in Ontario spent a combined $385.1 million during 2019 on more than 35.1 million grams of marijuana, despite supply constraints during the store's first six months of operations.

Dried flower constituted approximately 79% of sales and generated nearly $275 million, while pre-rolled products and oils were responsible for $42.6 million and $26.3 million, respectively.

Cannabis vapes and capsules all enjoyed growing popularity with consumers—pulling in $14.8 million and $11.3 million each—who spent an average of $90.12 per order.

The number of retail locations available also steadily increased throughout the year, growing from just nine in April to 53 during the fourth quarter of 2019. There are currently 87 different OCS stores operating in the province, while each retail location was identified as generating more than $25,000 in sales—or 3,100 grams of cannabis sold—per day.

The cannabis retailer has also confirmed that in the coming year it expects the price difference between its online and retail sales points will eventually, "come into further alignment with more competition among retail stores (with the open allocation of licensing) and new value-driven retailers that enter the marketplace."

The OCS report also identified the top-selling cannabis brands, with Aurora Cannabis (NYSE:ACB) emerging as the decisive winner. The company's Aurora Cannabis' San Rafael '71—and its Aurora brands products—lead sales at the OCS's retail and online stores, with each brand comprising 8% of sales for both channels.

This was followed in popularity by sales of dried flower from Redecan—which generated 7% of sales—while Pure Sunfarms and Canopy Growth (NYSE:CGC) accounted for 6% and 5%, respectively.

This pot stock could reach new heights in 2020 due to Coronavirus

The COVID-19 pandemic is showing no signs of slowing down, and as global markets enter meltdown many cannabis companies are feeling the effects of capital crunch.

While the market crash will continue for some time, it represents a golden opportunity for investors who are capable of riding out the volatility until share prices rally.

Luckily, one pot stock has developed antimicrobial drug that can already treat two superbugs while limiting their ability to develop antibiotic resistance.

Investors can also start picking up shares at rock bottom prices, as global investor sentiment continues to dampen thanks to COVID-19.

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Hugo Gray
Hugo Gray

Hugo Gray is a Melbourne-based journalist with a body of work that covers a diverse range of topics, including immigration law, sex technology, and now the rapidly expanding cannabis industry.

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