Canada’s cannabis sales top $43 million in two weeks

Cannabis is an increasingly lucrative business venture and the recent legalization in Canada is a case in point. Sales data indicates that sales of cannabis in Canada in the two weeks after legalization has totaled $43 million.

Cannabis in Canada is legal for both recreational and medicinal purposes, with medical use having been legalized via the Marihuana for Medical Purposes Regulations bill, which concerns the production, distribution and use of medical cannabis. Portions of the law become effective on October 1, 2013, March 31, 2014 and March 31, 2015.

With recreational use, Prime Minister Justin Trudeau stated that recreational use of cannabis would no longer violate criminal law as of 17 October 2018. Under this law, growers that currently produce marijuana are licensed by Health Canada under the Access to Cannabis for Medical Purposes Regulations (ACMPR) or by the Federal government, for non-medical use.

According to Statistics Canada, sales at cannabis stores in the two weeks after legalization were rapid and have totaled $43 million. The government agency began collecting data for in-store and online sales from cannabis retailers from October, with the first set of data being released in December 2018.

The figures could well have been higher. Recreational pot supply shortages have been a persistent problem since legalization, according to The Star. In terms of a fuller assessment of week-by-week sales a larger body of data will be required in order to assess purchasing trends. Prior to legislation, Statistics Canada estimated that 4.9 million Canadians used cannabis in 2017, spending $5.7 billion Canadian dollars on cannabis products, 90 percent of that on the illegal market. This suggests the legal market could become very big indeed.

The cannabis supply market consists of smaller companies and some bigger players. Canopy Growth Corporation of Smiths Falls, Ontario, is currently the largest supplier in the country. Canopy is also the world’s largest cannabis company, based on the value of all shares, or market capitalization. Just prior to the passing of the October legislation, Constellation Brands (who make Corona beer) announced that it would invest an additional $4 billion in the Canopy Growth Corporation.
Read more from the source: 420Intel.com