Lp,s are doomed!
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OCS - Ontario Cannabis Store
STOLEN CANNABIS SALES DATA
CALEB MCMILLANMAY 11, 2022
to Bonno
The Ontario Cannabis Store (OCS) says a breach has stolen cannabis sales data. The Crown monopoly handles the distribution of cannabis in Ontario. It is illegal for licensed producers to send their products straight to retailers. First, they must go through the Ontario Cannabis Store.
A spokesperson for the government monopoly said, “There was no failure of IT security or systems.” But later confirmed there had been a “misappropriation of data.”
The Ontario Provincial Police did not confirm whether an investigation about the stolen cannabis sales data had begun.
Stolen Cannabis Sales Data: What Happened?
The Canadian Press obtained a letter from the Ontario Cannabis Store. The letter, sent to retailers, confirmed that “confidential store sales data” was being “circulated in the industry.”
“This data was not disclosed by the OCS, nor have we provided any permission or consent to distribute or use this data outside of our organization,” reads the letter. “The data misappropriated, disclosed, and distributed unlawfully. As a result, we trust you will refrain from sharing or using this stolen data in any way.”
Bureaucratic Mismanagement
Undermining consumer confidence is par course for the provincial regulator.
Last December, Ontario‘s auditor general’s annual report severely criticized the Ontario Cannabis Store. The Crown monopoly often misreports its inventory levels. They fail to forecast supply and demand, thus creating consistent product shortages. Inaccurate forecasts leave customers and licensed producers frustrated, the report said.
In response, the OCS said it’s updating its point-of-sale technology. They aim to improve sales reporting and inventory management.
Stolen Cannabis Sales Data Deux
stolen cannabis sales data
Finding out about stolen cannabis sales data from the OCS is becoming routine. On November 1st, 2018, a breach saw over 4,000 customers’ private information stolen. The breach included postal codes and product reference numbers. It also had the names of people who signed for cannabis deliveries.
At the time, the Ontario Cannabis Store assured customers that everything was fine. They said the affected breach only made up two percent of customer orders.
Perils of Bureaucracy
Having cannabis sales data stolen is another reason to scrap the OCS altogether. Many provinces are implementing “farmgate” models. This is where producers can sell their products on site.
Others question the need for a central distributor at all. Especially one financed by taxpayers and immune from the competition of the marketplace. This separation from ordinary business calculations may be why the OCS keeps failing. Without profit and loss, the bureaucracy cannot accurately allocate resources.
Morgage your estate. Sell your car, but do something...
Now is the time to pile up before prices come crashing on your ass.
Numbers from the Colorado revenue department show recreational and medical marijuana sales continuing a downward trend compared to this time last year.
In March, Colorado marijuana stores and dispensaries sold $162.5 million worth of cannabis.
That total was slightly up from $145.3 million in sales from the shorter month of February but 22% lower than March 2021’s $207.1 million, according to Denver alt-weekly Westword.
March 2022 is the 10th month in a row that Colorado posted a lower sales total year-over-year.
While sales often dip between the end-of-year holidays and 4/20, the unofficial marijuana holiday, the overall trend suggests that buyers increased their spending on cannabis during the COVID-19 lockdowns when they had more disposable income stemming from federal stimulus checks and not being able to spend on entertainment such as restaurants and travel.
DOOMED!!!
The OCS has had internal issues since the first day of legalization.
Out of the gate, the OCS was delivering overpriced, old cannabis, months late in some cases, and was most complained about provincial agency in Ontario
These are all just facts.
financialpost.com
Ombudsman flooded with over 1,000 complaints about Ontario Cannabis Store
Some are asking: What other industry in a province has suffered the indignity of having data for sales/inventory/sell through rate/license #/ etc for every store in the sector leaked to the public?
I think it's a good question.
For all 1,200 stores (at the time, more now).
Johnny Efthimiopoulos
@JohnnyEfthimio2
·
20h
Replying to
@matt_lamers
Retrieving the data? Good luck!
Robert DeVore
@deviorobert
·
20h
Replying to
@matt_lamers
There should absolutely have been measures in place to safeguard that data both from external and internal threats.
DOOMED!!!
Or why you are in better hands with Legacy farmers.
ONTARIO CANNABIS STORE COUNT APPROACHES 1,900 AMID RETAIL GLUT WORRIES
ALL U.S.
MASSACHUSETTS CANNABIS DELIVERY FIRMS WITH EQUITY PERMITS FACE HURDLES
NEWS BY STATE
CALIFORNIA CANNABIS COMPANIES SELL ASSETS, NARROW FOCUS TO SAVE MONEY
Canada International Recreational Retail
Latest News
Ontario Cannabis Store says police investigating ‘criminal’ data breach
author profile pictureBy Matt Lamers, International Editor
May 11, 2022 -
The government-run Ontario Cannabis Store, the province’s legal wholesaler of adult-use marijuana, said the Ontario Provincial Police (OPP) is investigating what the OCS alleges is the theft of sensitive business data.
The OCS confirmed the breach in an email to the province’s retailers late Tuesday.
“The data was misappropriated, disclosed, and distributed unlawfully,” according to the email, which was viewed by Bonno.
“As a result, we trust you will refrain from sharing or using this stolen data in any way.”
An OCS spokesperson called the situation “a criminal matter.”
MJBizDaily understands that the leaked data displays the sales of every cannabis store in the province for December 2021, as well as store name, license number, sales days, kilograms sold, kilograms sold per day, total units sold, total inventory at the beginning of the month and sell-through rate, among others.
The breached data also shows whether each store is independently owned, is part of a franchise or whether it falls into another category, such as being part of a national corporation.
“The OPP is conducting its own review and investigation into the misuse of this data within the cannabis industry,” according to the email to retailers.
In lieu of answering questions from MJBizDaily, the OCS said the incident is not a failure of the organization’s IT systems or security.
“This data was misappropriated,” a spokesperson said via email.
“As this is a criminal matter under investigation by the OPP, we cannot comment further.”
The provincial police did not immediately reply to requests for comment.
According to the OCS’ letter sent to retailers: “This data was not disclosed by the OCS, nor have we provided any permission or consent to distribute or use this data outside of our organization.”
The leaked data is especially sensitive for retailers, many of which are already struggling to stay afloat. They typically do not publicly disclose their sales.
Business sources say the sensitive information could have implications on everything from expansion plans and the possible sale of a store to relationships with licensed producers.
“Anybody who’s seen this now has an unfair competitive advantage, knowing what your neighboring (store) is making,” a store owner who asked to remain anonymous told MJBizDaily.
“If I don’t have that data, and I’m operating blindly as most retailers are, I’m not making business decisions based on information I don’t have. Now that I have this information (the leaked data), you could use that information to help guide where I’ll put another retail store.”
The breach affects high- and low-performing stores in different – but potentially damaging – ways, according to the store owner.
“If you are a high-performing store, you now have a target on your back. It’s also a security issue. Now we’re concerned about robberies,” the store owner said.
“If you are a low-performing store, it’s really embarrassing to have this out there, and there are a lot more underperforming stores than overperforming stores.”
Also at issue, the store owner said, “… is this is a breach of our OCS retailer agreement. If I were to breach my own OCS retailer agreement, I wouldn’t be allowed to sell weed any more.
“What happens when the OCS breaches their own agreement? There’s no recourse here. The victims are retailers who are having their sensitive data revealed.”
This isn’t the first time a government-owned corporation suffered a data breach affecting the regulated cannabis industry.
A security breach at Canada Post in 2018 affected roughly 4,500 legal cannabis customers.
Another reason to purchase your goods from a local legacy farmer.
BREAKING: Ontario Cannabis Store says police investigating ‘criminal’ data breach
This is a big deal. We're told the breach includes a lot of data: store sales, inventory, kgs sold, units sold, etc, for at least 1 month, maybe more
For Bonno
From Legacy farmers unlimited
Ontario Cannabis Store says police investigating 'criminal' data breach
The Ontario Cannabis Store said the Ontario Provincial Police is investigating the alleged theft of sensitive marijuana business data.
7:04 PM · May 10, 2022·Twitter Web App
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Replying to
Bonno
This is also potentially a significant security risk for some cannabis stores, since the data contains inventory and sell through, so you can figure out how much inventory a story carries day-to-day. Not good.
I've followed up with the OPP, and will update after they reply.
Best to buy lots of shares before they hit $0.10...
Difficult to make a buck when you are selling crappy bone dry weed.
You are doomed but you can still sing.
You would,nt be here if you did,nt need cash... lol
Load them tilray,s shares before prices come down more.
Smart!
Duck You Sucker.
Matt Lamers ????
@matt_lamers
Avg. cannabis flower price in US and Canada in past 15 months:
Canada: ??17%
US: ??22%
Chart via
@headset_io
Matt Lamers ????
@matt_lamers
Prices falling this fast exacerbate impacts of any errors or missteps at the executive level. And there have been many, many errors by the managers and boards of the largest businesses.
Matt Lamers ????
@matt_lamers
·
19m
Many, many, many errors.
And i don,t take orders.
I,m not the worried kind...
Price is down because they grow bunk and lose money monthly.
As long as you buy plenty of shares, Simon is Golden and you are not.
Buy more shares today before they go down on you... again.
You went from wet to dry look.
Took the Pepsi challenge.
Went for the ice bucket twice.
Impressive!
But you still don,t know the Cannadian cannabis market.
Too lazy for dd.
Stuck on stock market ponzi cannabis oligopoly.
Going nowhere fast.
That would make you a doomed sucker & bag holder.
Growing bunk is your complete demise.
But you do not know it just yet sucker.
What is your favorite Tilray,s strain loser?
PROVE IT!
TIlRAY IS DooMED!
Best to wait for 0.05$.
DOOMED!Legacy rules!
Bonno May 8.2022
Earlier this month Long-time “legacy” retail cannabis chain Weeds announced its plans to open a Weeds store in southern California.
The store will be located in Palm Desert just outside Coachella and a few hours east of Los Angeles. They expect to be open this summer.
Led by owner and founder Don Briere, the Weeds brand (formerly Weeds Glass and Gifts) has operated in the Canadian cannabis space for nearly two decades in one form or another, operating a chain of several dozen stores in several provinces at its peak in the years leading up to legalization.
At the onset of legalization, Briere and Gwilt began the work of operating within British Columbia’s newly regulated market, getting their first licence in early 2021. They received a second licence in Vancouver last November.
Brier says moving into a market like California is a good way to expand the Weed brand and operate in a more active market than Canada.
“There’s a lot of opportunity to get somewhere where there are less restrictions and competition,” explains Briere. “We’ve always wanted to expand into other locations. BC is tough because we have to compete with the government-run stores. Toronto is difficult because there are so many stores out there. And then California has more people than the entire population of Canada.”
Briere’s son Devon, who is helping lead the project along with southern California partner Cali Care Group, says their plan is to also develop an in-house Weeds product brand for dried flower and pre-rolls that could potentially be sold in other stores across the state.
“We’re looking to expand (beyond the first location), hopefully, we can get our footprint into the other stores as well through our branded products.”
For Don Briere, it’s not just about keeping the legacy of the Weeds brand alive but continuing to provide opportunities for family and friends.
“We’re a family-run business with 4 generations of Cannabis farmers. We had the strength to open the stores, the courage to keep them open and the backbone to tell the truth about Cannabis. Sharing the same values as Joe (Cali Care Group CEO, Joe Reed) and the rest of the rockstars at CCG made this an easy decision”.
A press release from Weeds says they expect the California location to be open by June 1.
DOOMED
Matt Lamers ????
@matt_lamers
to Bonno
The ???? cannabis industry won't "normalize" until Wall and Bay St stop throwing money at producers who immediately lose it, massively warping the industry's competitive landscape for everyone by rewarding decisions leading to capital destruction & driving prices into the floor.
DOOMED
Cannabis producers remain near bottom of Canadian corporate reputation survey
Bonno
May 6, 2022
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Cannabis producers are among the least reputable corporations in the eyes of Canadians – ranking alongside petroleum companies and others – largely because they remain unknown to the general public, according to a new survey measuring the reputations of nearly 300 businesses operating in Canada.
Still, that’s a small improvement over the previous corporate reputation surveys conducted by Leger, a Quebec-based market research and analytics firm.
“If anything, their reputation has been dropping right from the start,” Dave Scholz, executive vice president at Leger, told Bonno in a phone interview.
Leger’s reputation study applies a reputation “score” to determine the most reputable companies in Canada all the way down to those held in the lowest esteem.
The reputation scores of the biggest marijuana producers in Canada reflect the fact they’re far from being household names, although the companies could take some steps to burnish their corporate reputations in the eyes of the general public.
Being unknown brings as much opportunity as it does a risk.
“If something bad happens in the cannabis industry, I don’t want people to automatically assume that applies to everybody,” Scholz said.
“So creating that corporate identity that separates you, and raises you above, allows you to have a safety net.”
The new report – which ranks 288 companies operating in Canada – also sheds light on why cannabis producers have thus far failed to differentiate themselves from one another.
From Dec. 6, 2021, to Jan. 24, 2022, the survey asked more than 38,000 French- and English-speaking Canadians for their perspectives on companies across 30 different sectors.
Shoppers Drug Mart, a national pharmacy chain that currently operates an online medical cannabis marketplace, topped the “most reputable” list, followed by consumer electronics giants Sony of Japan and Samsung of South Korea, respectively.
The top-ranked cannabis companies were Edmonton, Alberta-based Aurora Cannabis, which ranked 180th overall, and Smiths Falls, Ontario-based Canopy Growth Corp., which was 186th.
Those rankings put those two companies in the neighborhood of Canadian online investment management service Wealthsimple and social media giant Facebook.
However, all the other cannabis companies ranked between 230th and 280th among the 288 companies included in the survey.
That put them in the company of Canadian oil and gas producer Irving Oil and Houston-based pipeline operator Kinder Morgan.
Ranked at the bottom of the list were Chinese multinational technology corporation Huawei and scandal-plagued engineering company SNC-Lavalin, based in Montreal.
The margin of sampling error for all respondents in a survey of this size is plus or minus 2.1 percentage points. Each company was evaluated by approximately 2,100 respondents.
‘People just don’t know them and the ones who do do not like the product.’
One of the biggest hurdles for cannabis producers is the general public still doesn’t know who they are, the survey’s data shows.
“The big factor is people just don’t know them,” Scholz said.
“That awareness piece is huge in the reputation world. You look at Aurora, which has the highest rating, only 42% of Canadians say they’re even aware of them.”
For Aurora, the top-ranked cannabis company, 42% of respondents had at least some “awareness” of the company. (In this case, awareness is “good opinion” plus “bad opinion” plus “does not know enough.”)
In particular:
3% had a “good opinion” of Aurora.21% had a “bad opinion.”
59% had a bad opinion
17% answered “does not know enough.”
21% “does not know at all” about the company.
For Tilray, one of the leaders by market share, awareness was only 24%, according to the survey:
1% had a “good opinion.”
76% had a “bad opinion.”
16% answered they “did not know enough.”
7% “did not know at all.”
Hexo Corp., another leader in the industry, had awareness among 27% of respondents, with 73% not knowing enough, or anything, about the company.
Scholz said the data points to a lack of overall awareness of the businesses by the general population.
Without a good corporate reputation, it’s hard to differentiate your organization, he said.
“It isn’t just what Aurora does or Tilray. It’s what everyone does that affects public thinking of the industry,” Scholz said.
“We haven’t differentiated any one of these organizations yet.”
The ranking also included corporate entities that have combined with other cannabis companies or were bought outright, such as The Supreme Cannabis Co. and Newstrike Brands, which ranked 242 and 267, respectively.
Supreme was bought by Canopy in 2021; Newstrike was folded into Hexo in 2019.
Organizational awareness
Scholz said Canadian cannabis companies could be doing more to increase the organizational awareness among the general population.
That could help their bottom lines, he said.
They have to address the quality issue but.
“It’s been four years since we’ve had cannabis legalization, and organizations have not put a lot of effort or work into growing their corporate brands,” Scholz said.
“Regulations are tough, and they can’t run ads in the same way that other organizations can, but there are ways they can grow that name, and they just don’t seem to be doing it.”
He said it’s difficult but not impossible.
“It’s about talking about your corporate brand in ways that the regulations allow as much as possible.
He suggested a lack of overall awareness means cannabis companies could be losing out on what he called the “halo effect” – positive results from a good reputation.
He said if consumers have a positive impression of your organization, “you’re more likely to learn about them and want to read about them, you’re more likely to fixate on that story because you think they’re a good organization. You’re more likely to want to work there, you’re more likely to recommend their product.
DOOMED
California cannabis companies sell assets, narrow focus to save money
Bonno
May 6, 2022
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California cannabis, California cannabis companies sell assets, narrow focus to save money
Vertical integration was the name of the game when California launched its recreational marijuana market in 2018, as companies handled everything from cultivation to retail sales and home delivery.
Four years later, small and large operators across the state are unloading assets, shuttering business lines and letting coveted licenses expire in order to cut costs and narrow their focus in the world’s largest marijuana market.
NorCal Cannabis Co., which is focused on building its flower brand, is among those weighing another divestiture – in its retail operations.
The company operates a retail location in Long Beach and Santa Ana, and is building stores in Santa Rosa and downtown San Francisco, near its headquarters.
“Ideally we may keep two of those,” said co-founder and CEO Jigar Patel. “We don’t look at retail as much as an outlet for us.”
NorCal Cannabis, like other big players in the market, cast a wide net after its inception in 2015, implementing a multichannel approach in an effort to capture business and scale operations across segments.
It became one of the largest delivery providers in the state, handling some 3,000 daily orders in a coverage area totaling 18 million residents.
It was also losing dollars on every delivery.
In the first quarter of 2020 when other competitors doubled down efforts amid growing consumer demand at the onset of the pandemic, NorCal Cannabis exited the delivery segment altogether, cutting partnerships and selling off assets.
The company, which has raised $60 million in funding, saw growth capital dry up, according to Patel, spurring NorCal Cannabis to focus on cultivation and brand development.
“We had to make hard decisions,” he said, but the divestitures helped management improve operations and expand the brand, which is now carried in 400 dispensaries.
“For the first time in many years, it’s given us the opportunity to focus strictly on our core business and really strategize on how to build brand in California,” Patel said. “It’s such a competitive market.”
More supply chain constraints
In 2017, Eric Sklar set out to partner with the industry’s top growers, packers, distributors and retailers.
It was a similar recipe he followed at his successful Napa Valley winery, which bought 95% of its grapes from other growers.
Reality quickly set in.
“It was impossible to go into business without being more vertical because the supply chain wasn’t mature,” said the founder of the cannabis business Napa Valley Fumé.
So the company acquired delivery, manufacturing and distribution licenses, and struck a retail partnership with San Francisco-based delivery leader Eaze to complement its outdoor cultivation operation in Lake County.
“We started five businesses at the same time,” Sklar said. “We knew that wouldn’t be forever. It just wasn’t feasible. But we had to do it or we weren’t going to be in business.”
About two years ago, Eaze acquired its retail business. Fumé now outsources all manufacturing, focusing strictly on its grow operation and brand development, much like NorCal Cannabis.
Top line revenue and margins are improving, according to Sklar. The company’s two brands are carried in about 25 California dispensaries, with plans to hit 100 by year’s end.
The strategy is focused, Sklar said.
“We have two brands, we don’t have 20 brands that we don’t own,” he added. “We’re not doing retail or manufacturing. And it’s working out really well.”
Last year’s collapse of California’s wholesale cannabis market pushed Eco Farm Holdings/Thrive Society to zero in on distribution, its digital marketplace and technology development.
The Santa Rosa-based company, which also has three farms, a nursery and manufacturing licenses, won’t plant crops this year or possibly next year, if market conditions don’t improve.
It’s leased two farms and is searching for another partner on the third.
“Whenever the market kind of rolled out, the name of the game was being vertically integrated,” said co-founder Danielle Dao.
“But, you know, being as fragmented as the supply chain is, people need to very much focus on their core competency. What I call pick the lane.”
Sustained unfavorable market conditions made the decision easier for Dao, a farmer by trade.
“If the market hadn’t created such a big dive from oversupply last year, we would have kept our farms,” she said. “I was a farmer for 20 years, and I miss it very much. But the competition out there is really, really high.”
Path to profitability
It took Euphoric Life Inc. four years to get its manufacturing and distribution business operational, finally opening its doors in 2020 in Hollister, near Monterey Bay on the Central Coast.
Like others, it started developing a litany of products and launched its own brand.
Within a few months, sales eclipsed a total of $25,000.
The good run lasted four to six months before the market was flooded with competition, according to Chief Operating Officer Aiden Rafii.
“All of a sudden people started making similar products to us and just cutting the prices,” he said.
As overhead grew, so did losses, reflecting high capital startup costs, local and state taxes, and other regulatory-related expenses.
In one recent example, the fire department asked the company to remove a waste storage cage after the department requested its installation, an unplanned removal cost of about $20,000.
“It’s just nearly impossible to break into the green,” Rafii said.
Last November, when the wholesale market hit rocket bottom, Euphoric Life stopped selling its Exir brand of pre-rolls and infused pre-rolls.
Now it’s concentrating on contract packaging, white label manufacturing and contract extraction.
The company has largely exited distribution as well, outsourcing that to another service provider, saving upwards of $800 per delivery trip to Los Angeles, roughly 300 miles to the south.
Upfront costs have been lowered significantly, as the company no longer needs to purchase packages every month or commission expensive lab tests.
Euphoric Life won’t likely renew its distribution license in June, saving nearly $15,000 in annual licensing fees.
The company still faces major challenges tied to the stagnant wholesale market – it’s currently sitting on 17 kilograms (37 pounds) of extract – but senses a financial turnaround in the works.
Ontario cannabis store count approaches 1,900 amid retail glut.
Bonno
May 5, 2022
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Ontario cannabis retail, Ontario cannabis store count approaches 1,900 amid retail glut worries
New data from Ontario’s cannabis retail regulator show nearly 1,500 cannabis stores operating in Canada’s biggest adult-use marijuana market and hundreds more applications in the pipeline, reinforcing concerns that a glut of retailers could force many operators to shut their doors this year.
Ontario had 1,468 licensed cannabis stores open for business as of May 2, with another 445 active store authorization applications under review, according to data provided by the Alcohol and Gaming Commission of Ontario (AGCO).
If all of those applications succeed, Canada’s largest provincial cannabis market could have as many as 1,913 cannabis stores.
However, not all of the pending store authorizations will actually go through, predicted Krista Raymer, co-founder of Ontario-based cannabis retail and brand consulting firm Vetrina Group.
The number of new store openings may not “increase in the same way that we had seen month-over-month store openings (increase) in the past,” Raymer said.
Meanwhile, dozens of Ontario stores are listed for sale, with some apparently languishing on the market for months, lending credence to warnings that the cannabis retail sector in parts of Canada could be due for a reckoning.
Sundial Growers CEO Zachary George recently warned shareholders that “we are starting to observe a trickle of closures on a weekly basis.”
“I expect to see massive store closures in Canada, with the toll likely closer to 1,000 than 100,” George wrote in a letter to shareholders.
32 stores closed since June
Thirty-two cannabis retailers in Ontario have closed and had their store authorizations canceled since June 2021, according to the AGCO, suggesting that some retailers are bailing out of the business.
Store authorization cancellations have occurred in Greater Toronto, as well as Hamilton, Windsor, St. Thomas and Ottawa, the regulator said.
No requests to cancel those authorizations occurred in 2020 or “the first part of 2021,” wrote an AGCO spokesman.
Cannabis retail consultant Raymer anticipates some closures in certain Ontario cities, citing “too many stores for population density.”
However, stores may close for other reasons, she suggested.
Cannabis “is a regulated space with a lot of unanticipated requirements to running a retail store,” Raymer explained.
“And there were a lot of people who got involved in the industry early, not fully expecting what it looks like to run a retail store,” she continued.
“So part of this would be a density problem, and part of it would be people making a choice that the business isn’t what they expected, or not what they were looking for.”
Ontario stores for sale
Commercial real estate listings and classified advertisements show at least four dozen cannabis retail businesses for sale in Ontario, particularly in Toronto.
Not all of those stores are authorized to open.
One operational downtown retailer, listed for 149,000 Canadian dollars ($116,000), has been on the market for more than a month.
What appears to be an unopened Toronto store, listed for CA$99,000, has been up for sale for nearly 80 days.
Many Toronto cannabis retail businesses are listed for considerably more, like two CA$599,000 stores on trendy Queen Street West.
In Hamilton, southwest of Toronto, a licensed cannabis store with a list price of CA$49,900 has spent nearly 50 days on the market.
“The value of a cannabis store has decreased significantly from the first year,” said Raymer.
Prices tend to be four to five times earnings before interest, taxes, depreciation, and amortization (EBITDA), she added, although businesses with certain intellectual property or large customer bases may be worth more.
Some cannabis store operators are looking to get out of their leases, according to Raymer.
“That is something that we’ll probably see in the next six months, is an effort to get those stores sold to be able to offload their responsibility from commitments around leases.”
Warnings of retail slowdown
Ontario cannabis store operators predicted a retail shakeout last year, and more warnings have been issued since.
A recent report from the provincial Ontario Cannabis Store wholesaler observed that the pace of new cannabis store openings in Ontario slowed at the end of 2021.
Ontario’s cannabis retail store count only surpassed that of less populous Alberta in April 2021, following a sluggish start that saw only 100 store authorizations issued by June 2020, more than a year-and-a-half after adult-use legalization in October 2018.
The province surpassed 1,000 licensed cannabis stores in August 2021, after the government increased the pace of licensing.
Later that year, BMO Capital Markets cannabis analyst Tamy Chen wrote that “we are increasingly worried about the looming possibility of retail closures in (Ontario)” in light of the saturation of cannabis stores in pockets of the province.
“Such a scenario presents downside to all of our (licensed cannabis producer) estimates,” wrote Chen in the November 2021 research note.
Canadian cannabis store counts are closely correlated with consumer spending on legal, government-regulated marijuana.
Consumers turn to online legacy stores for quality, choices, bulk & prices.
Ontarians spent CA$142.6 million on cannabis in February.
The province has an estimated population of 14,951,825 as of the first quarter of 2022, or 38.8% of Canada’s total population.
Matt Lamers ????
@matt_lamers
to Bonno
: Sundial CEO predicts ‘massive’ cannabis store closures
“Trickle” of closures could grow into flood “with toll likely closer to 1,000 than 100”
There were 3,138 cannabis stores open across Canada last month, per
@CannaBenchmark
· May 3
POLL: There were 1,468 regulated cannabis stores open in Ontario as of May 2.
Will Ontario end 2022 with more OR less than that number:
Show this poll
11:33 AM · May 4, 2022·Twitter Web App
Canada's cannabis industry as a whole appears to be leaning too heavily on Ontario to sustain growth.
Ontario alone has almost half of Canada's 3,138-plus legal cannabis stores.
??
Ontario store count as of May: 1,468
Across Canada as of last month: 3,138
Matt Lamers ????
@matt_lamers
·
2h
Sundial Growers CEO Zachary George called the phenomenon a “slow motion train wreck”
“Most retailers are struggling to be profitable, and we are starting to observe a trickle of closures on a weekly basis”
Matt Lamers ????
@matt_lamers
·
2h
Another lesson for other countries considering Canada's cannabis model:
Some central coordination needed for retail store rollout, or you could end up like Canada -- almost half the stores in 1 province, which isn't sustainable and puts all producers at risk
2h
Replying to
@matt_lamers
Pretty normal business behavior in emerging markets trying to establish a balance in supply and demand. Everyone wants to try and cash in but there's only so much cash to be had. This is a good thing imo. Quality of weed will have to increase. Will regulate prices down more.
Matt Lamers ????
@matt_lamers
·
2h
We're talking about almost 1/3 of all retailers in Canada potentially going bust, and that's on top of 7,000 lost jobs in the industry already. Capitalism always needs bumpers, and none were provided in this case, hence the financial chaos.
2h
Replying to
@matt_lamers
This prediction doesn’t surprise me. I’ve been watching stores get bought out by bigger players.
Also, starting to see some closures out here and I’m quietly waiting to see what happens when lease agreements begin to expire.
Matt Lamers ????
@matt_lamers
Why ???? cannabis prices are plunging—unlike just about everything else |
@bonno
@IreneHGalea
@mattlundy33
@globeandmail
Cannabis inventory (in units) is still 5-18 times more than demand:
Edibles—8X
Extracts—7.5X
Topicals—18X
Dried cannabis—5X
theglobeandmail.com
Why cannabis prices are plunging – unlike just about everything else
Inflation may be at multi-decade highs, but marijuana producers are slashing prices to fight for market share
May 2
Replying to
@matt_lamers
@IreneHGalea
and 2 others
Yep, nobody wants insanely priced legal stuff. It is a leaf. Easily grown. Should be cheaper than tobacco. How costly to produce, transport, sell + profit= price. Get the government out of it completely.
franco
@Xtenchen
·
2h
Replying to
@matt_lamers
@IreneHGalea
and 2 others
Prices are still the same bro, idk what ur smoking.
Ever since legalisation it made it way more expensive for medical use
Altho everyone thot it would be cheaper
Why would dispensaries lower prices when they know they can still sell at this price and still make billions?
TrollPower???? FREE ISN’T FREEDOM
@atpower111
POLL: There were 1,468 regulated cannabis stores open in Ontario as of May 2.
Will Ontario end 2022 with more OR less than that number:
33 votes
·
1 day left
Matt Lamers
@matt_lamers
UPDATE: Canadian cannabis producers supply/demand production
In the past 24 months of available data, regulated stores & wholesalers combined inventory (units) rose 19%
?? Inventory (units) at federal licence holders rose 164% ??
Completely unsustainable
And that doesn't even include *unpackaged* production/inventory, which in the latest month of available data was 1,147,704,000 grams.
That's 1.1 billion grams of new inventory.
And this is from September, so pre-croptober!
Matt Lamers
@matt_lamers
May 2
Ironically, this supply/demand mismatch is mostly being fueled and funded by the financial institutions which cover these stocks, reporting at a granular level and bemoaning their billions in losses over the years
¯\_(?)_/¯
May 2
Replying to
@matt_lamers
1000 stores opened in ontario alone from oct to jan
·
4h
Replying to
@matt_lamers
Only fools bought into the legal system enjoy your loss
The big cannabis playbook
- Issue/sell shares
- Stock falls under $1, prompting NYSE warning
- Consolidate shares, regain compliance
- Jump to Nasdaq
- Issue/sell shares
- Stock falls <$1, prompting Nasdaq warning
- Issue/sell shares
- Consolidate shares, regain compliance
...
Matt Lamers ????
@matt_lamers
·
2h
If cannabis doesn't work out, some of these businesses are well positioned to corner the wallpaper industry.
This play (sell shares then consolidate shares, on two major stock markets back-to-back) is called "the hexo"
"The company hexoed their stock on the NYSE and then the Nasdaq"
1:13 PM · May 3, 2022
·
28m
Replying to
@matt_lamers
This is beginning to sound more like white collar theft ring then a cannabis business.
·
27m
Nothing illegal is happening.
Tilray,s bunk weed is garbage!
And folks know it!!!
That 300 million won,t last long.
They will burn it crappy growth style.
And you will be holding a bag.
??
Happy, do not miss on those great souvenirs. Buy!
Why is Crappy Growth fucked?
Happy...Read and learn why canna naive investers are bag holders!!
WHY ARE CANNABIS PRICES FALLING?
CALEB to Bonno 2, 2022
please share the knowledge
Why are cannabis prices falling when inflation is at record highs? The simple answer is there’s more supply than demand.
Producers have excess inventory, and to sell it, they have to cut prices.
According to Statistics Canada, prices for dried cannabis flower have dropped between 8.3 and 10.2 percent over the last year. Flower prices have dropped nearly 25 percent since legalization began in late 2018.
Why are cannabis prices falling when inflation is at record highs? The simple answer is there’s more supply than demand.
According to Statistics Canada, prices for dried cannabis flower have dropped between 8.3 and 10.2 percent over the last year. Flower prices have dropped nearly 25 percent since legalization began in late 2018.
And this controls for factors such as product size and THC levels. Other items like vape pens, edibles and beverages have also gotten cheaper.
But why? Why are cannabis prices falling in this industry but not elsewhere? Is it simply supply and demand? Instead of consolidating their market share, large licensed producers have had to compete with smaller, premium producers.
In places like Quebec and British Columbia, the legacy market is king. Grey market has also grown on First Nations reserves where the government has been reluctant to act (and that’s putting it mildly).
But what about other parts of Canada? How is it that cannabis prices can fall when the cost of everything else is going up?
One method of investigation is by looking at the numbers.
Every major licensed producer, like Tilray, Canopy or Aurora, is bleeding money. They are selling cannabis at a loss. They anticipated the legal Canadian cannabis market to be larger than it is. While retail sales continue to grow, it is not at a rate that producers can recover their losses.
What the Stats Say
According to the Ontario Cannabis Store‘s quarterly report, 61 percent of dried flower sales were between $3 and $6.50.
But cheap, mass-produced flower isn’t everything. Canada’s largest licensed producers (Tilray, Canopy, Aurora, and Hexo) have seen their market shares crash from 54 percent of retail sales to 28 percent.
While consumers love to see cannabis prices falling, majority are interested in premium flower for a higher price.
Consumers would be wise to take advantage of falling cannabis prices.
Canada’s cannabis production is falling in line with consumer demand. Health Canada reports that indoor growing space is down 22% compared to 2020.
And producers are closing facilities. Canopy recently laid-off workers (again), while Hexo closed down their Belleville, Ontario facility. Laying off 230 people in the process.
Investors piled into Canada’s cannabis industry expecting significant returns. The sobering truth is that Canada is a big country with a small population.
Our cannabis market is simply too small to support the grand delusions many of these investors had. And therefore, producers are clearing out their inventory to keep their heads above water until they drown.
Why is Tilray fucked?
Read and learn why canna naive investers are bag holders!!
WHY ARE CANNABIS PRICES FALLING?
CALEB to Bonno 2, 2022
please share the knowledge
Why are cannabis prices falling when inflation is at record highs? The simple answer is there’s more supply than demand.
Producers have excess inventory, and to sell it, they have to cut prices.
According to Statistics Canada, prices for dried cannabis flower have dropped between 8.3 and 10.2 percent over the last year. Flower prices have dropped nearly 25 percent since legalization began in late 2018.
Why are cannabis prices falling when inflation is at record highs? The simple answer is there’s more supply than demand.
According to Statistics Canada, prices for dried cannabis flower have dropped between 8.3 and 10.2 percent over the last year. Flower prices have dropped nearly 25 percent since legalization began in late 2018.
And this controls for factors such as product size and THC levels. Other items like vape pens, edibles and beverages have also gotten cheaper.
But why? Why are cannabis prices falling in this industry but not elsewhere? Is it simply supply and demand? Instead of consolidating their market share, large licensed producers have had to compete with smaller, premium producers.
In places like Quebec and British Columbia, the legacy market is king. Grey market has also grown on First Nations reserves where the government has been reluctant to act (and that’s putting it mildly).
But what about other parts of Canada? How is it that cannabis prices can fall when the cost of everything else is going up?
One method of investigation is by looking at the numbers.
Every major licensed producer, like Tilray, Canopy or Aurora, is bleeding money. They are selling cannabis at a loss. They anticipated the legal Canadian cannabis market to be larger than it is. While retail sales continue to grow, it is not at a rate that producers can recover their losses.
What the Stats Say
According to the Ontario Cannabis Store‘s quarterly report, 61 percent of dried flower sales were between $3 and $6.50.
But cheap, mass-produced flower isn’t everything. Canada’s largest licensed producers (Tilray, Canopy, Aurora, and Hexo) have seen their market shares crash from 54 percent of retail sales to 28 percent.
While consumers love to see cannabis prices falling, majority are interested in premium flower for a higher price.
Consumers would be wise to take advantage of falling cannabis prices.
Canada’s cannabis production is falling in line with consumer demand. Health Canada reports that indoor growing space is down 22% compared to 2020.
And producers are closing facilities. Canopy recently laid-off workers (again), while Hexo closed down their Belleville, Ontario facility. Laying off 230 people in the process.
Investors piled into Canada’s cannabis industry expecting significant returns. The sobering truth is that Canada is a big country with a small population.
Our cannabis market is simply too small to support the grand delusions many of these investors had. And therefore, producers are clearing out their inventory to keep their heads above water until they drown.
Great pumping Pow!
Time to buy. Prices are going down. Stack them shares.
Your plain ignorance of the Canadian canna market is not an excuse...
You are fucked but you don,t know it just yet.
Too lazy for dd and cannabis naive... like Klein and Simon...
Canna prices come down weekly and you are stuck in the red.
Nowhere to go but down.
Time to support bunk weed and buy more shares.
That will keep stock market bunk weed in the news until $$ all gone.
It,s easy to make a killing with cannabis ...
You have to know what you are doing but.
Bunk stays on shelves.
Lots of bag holders...
Sad.
author profile pictureBy Matt Lamers, International Editor
May 2, 2022
to bonno
Image of Canadian cannabis
Cannabis producers are among the least reputable corporations in the eyes of Canadians – ranking alongside petroleum companies and others – largely because they remain unknown to the general public, according to a new survey measuring the reputations of nearly 300 businesses operating in Canada.
Still, that’s a small improvement over the previous corporate reputation surveys conducted by Leger, a Quebec-based market research and analytics firm.
ADVERTISEMENT
“If anything, their reputation has been dropping slightly over the last little while,” Dave Scholz, executive vice president at Leger, told MJBizDaily in a phone interview.
“This is the first year we actually see an increase – it went up collectively by one point on our reputation scale.”
Leger’s reputation study applies a reputation “score” to determine the most reputable companies in Canada all the way down to those held in the lowest esteem.
The reputation scores of the biggest marijuana producers in Canada reflect the fact they’re far from being household names, although the companies could take some steps to burnish their corporate reputations in the eyes of the general public.
Being unknown brings as much opportunity as it does a risk.
“If something bad happens in the cannabis industry, I don’t want people to automatically assume that applies to everybody,” Scholz said.
“So creating that corporate identity that separates you, and raises you above, allows you to have a safety net.”
The new report – which ranks 288 companies operating in Canada – also sheds light on why cannabis producers have thus far failed to differentiate themselves from one another.
From Dec. 6, 2021, to Jan. 24, 2022, the survey asked more than 38,000 French- and English-speaking Canadians for their perspectives on companies across 30 different sectors.
Shoppers Drug Mart, a national pharmacy chain that currently operates an online medical cannabis marketplace, topped the “most reputable” list, followed by consumer electronics giants Sony of Japan and Samsung of South Korea, respectively.
The top-ranked cannabis companies were Edmonton, Alberta-based Aurora Cannabis, which ranked 180th overall, and Smiths Falls, Ontario-based Canopy Growth Corp., which was 186th.
Those rankings put those two companies in the neighborhood of Canadian online investment management service Wealthsimple and social media giant Facebook.
However, all the other cannabis companies ranked between 230th and 280th among the 288 companies included in the survey.
That put them in the company of Canadian oil and gas producer Irving Oil and Houston-based pipeline operator Kinder Morgan.
Ranked at the bottom of the list were Chinese multinational technology corporation Huawei and scandal-plagued engineering company SNC-Lavalin, based in Montreal.
The margin of sampling error for all respondents in a survey of this size is plus or minus 2.1 percentage points. Each company was evaluated by approximately 2,100 respondents.
‘People just don’t know them’
One of the biggest hurdles for cannabis producers is the general public still doesn’t know who they are, the survey’s data shows.
“The big factor is people just don’t know them,” Scholz said.
“That awareness piece is huge in the reputation world. You look at Aurora, which has the highest rating, only 42% of Canadians say they’re even aware of them.”
For Aurora, the top-ranked cannabis company, 42% of respondents had at least some “awareness” of the company. (In this case, awareness is “good opinion” plus “bad opinion” plus “does not know enough.”)
In particular:
17% had a “good opinion” of Aurora.
3% had a “bad opinion.”
21% answered “does not know enough.”
58% “does not know at all” about the company.
For Tilray, one of the leaders by market share, awareness was only 24%, according to the survey:
7% had a “good opinion.”
1% had a “bad opinion.”
16% answered they “did not know enough.”
76% “did not know at all.”
Hexo Corp., another leader in the industry, had awareness among 27% of respondents, with 73% not knowing enough, or anything, about the company.
Expert advice for a stronger shelf life
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Learn best practices for designing a cannabis dispensary.
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Scholz said the data points to a lack of overall awareness of the businesses by the general population.
Without a good corporate reputation, it’s hard to differentiate your organization, he said.
“It isn’t just what Aurora does or Tilray. It’s what everyone does that affects public thinking of the industry,” Scholz said.
“We haven’t differentiated any one of these organizations yet.”
The ranking also included corporate entities that have combined with other cannabis companies or were bought outright, such as The Supreme Cannabis Co. and Newstrike Brands, which ranked 242 and 267, respectively.
Supreme was bought by Canopy in 2021; Newstrike was folded into Hexo in 2019.
Organizational awareness
Scholz said Canadian cannabis companies could be doing more to increase the organizational awareness among the general population.
That could help their bottom lines, he said.
“It’s been four years since we’ve had cannabis legalization, and organizations have not put a lot of effort or work into growing their corporate brands,” Scholz said.
“Regulations are tough, and they can’t run ads in the same way that other organizations can, but there are ways they can grow that name, and they just don’t seem to be doing it.”
He said it’s difficult but not impossible.
“It’s about talking about your corporate brand in ways that the regulations allow as much as possible.
He suggested a lack of overall awareness means cannabis companies could be losing out on what he called the “halo effect” – positive results from a good reputation.
He said if consumers have a positive impression of your organization, “you’re more likely to learn about them and want to read about them, you’re more likely to fixate on that story because you think they’re a good organization. You’re more likely to want to work there, you’re more likely to recommend their product.
“All of that translates into a positive bottom line.”
Matt Lamers can be reached at matt.lamers@mjbizdaily.com.
Best to wait for 0.05$ !
It pays to be patient.
Lots of cannabis stores opened. Now lots are going out business:
Thirty-two cannabis retailers have closed in St. Thomas, Windsor, Ottawa, Hamilton and the Toronto region.
• 1 days ago • 2 minute read •
High Times : Bonno
High Tea Cannabis, formerly located at 60 Ross St. in St. Thomas, is one of 32 marijuana retail stores in Ontario to close, according to the Alcohol and Gaming Commission of Ontario.
Dozens of the businesses already have closed, including at least two in Southwestern Ontario, says the province’s marijuana regulator.
There are 1,457 cannabis retail stores operating in Ontario, with applications for 471 others under review, according to the Alcohol and Gaming Commission of Ontario (AGCO). As the store tally keeps rising – London has 35 of the outlets and at least a dozen more coming – industry insiders have predicted some of these businesses will shutter.
Thirty-two cannabis retailers have closed in St. Thomas, Windsor, Ottawa, Hamilton and the Toronto region, the AGCO said.
No reasons were given for the closings, and the tally didn’t include proposed stores that didn’t make it through the application process.
In St. Thomas, High Tea at 60 Ross St. closed, while Windsor’s Uptown Hempire at 1326 Ottawa St. has shuttered.
There’s a rigorous process for closing a cannabis retail store that includes notifying the AGCO, commission spokesperson Raymond Kahnert said.
“There is a process to ensure that the operator has taken the necessary steps to close their store, including dealing with any remaining inventory, which must be sold prior to closing, returning inventory . . . or destroying inventory . . . ,” he said by email.
“As part of the final steps to ensure compliance, the AGCO confirms that all outstanding and final reports have been received and are in order, including the Ontario Cannabis Store confirming there are no active orders for cannabis or deliveries scheduled.”
But despite the closings and predictions of more to come, some cannabis store operators are looking to expand their footprint into the already-over-saturated market.
Marie and Bob Ross, who run Bob’s Bud Emporium in St. Thomas, are opening a second location in the Elgin Centre mall, a first for an independent operator in Ontario, where larger cannabis chains recently have expanded into shopping centres.
“There’s lots of residential development out there. There’s the bus that stops right there by the mall. There’s the movie theatre, the gym . . . and the mall owners are doing a great job trying to bring the Elgin Centre back to life,” Marie Ross said.
The couple’s downtown shop was the first to open in Elgin County and the only store to offer delivery, Ross said.
“Throughout this whole time, we’ve been able to develop a good customer base,” Ross said, adding there are lots of misconceptions about opening a cannabis retail store.
“Yes, it’s a great business to be in, but this is not a get-rich scheme,” she said. “We’re content with the two stores right now.”
The pace of pot shop openings is beginning to slow in Ontario, where the number of stores increased by 20 per cent between Oct. 1 and Dec. 31, down from a 34 per cent increase during the previous three months, according to a recent report from the Ontario Cannabis Store, the government-run marijuana wholesaler and delivery service.
And then what?
You have a doomed moribond company in the red.
Buying shares is not enough.
In the canna biz, quality matters, price matters.
But you would,nt know that.
Cannabis will be legalized when no one goes to jail for weed.
Get your weed shares today.
Don,t be a looser!
CANOPY GROWTH ANNOUNCES LAYOFFS
BonnoAPRIL 30, 2022
BUSINESSCANNABIS CANADACANNABIS NEWSCANOPY GROWTHCANOPY STOCK PRICECULTUREFEATUREDLAWMARIJUANA LEGALIZATIONMARIJUANA NEWSTHC NEWS33 VIEWS
Canopy Growth Corporation is announcing layoffs. Canada’s largest cannabis producer seeks to cut costs, including reducing the number of “dedicated team members.” Framed as “Strategic adjustments” in the Company’s press release, Canopy expects the move to save them $100 – $150 million within 18 months.
A company press release stated: “As a result of these challenging but necessary changes to the organizational structure, dedicated team members will be impacted as the Company operates with a reduced headcount moving forward. The Canopy Management team wishes to acknowledge the efforts of these individuals during their tenure and thanks them for their contributions to the Company.”
Canopy Layoffs Have Happened Before
Canopy Layoffs
This isn’t the first time Canopy has announced layoffs. Cutting costs by laying off employees is becoming routine. In late 2020, Canopy laid-off several hundred workers across Canada. And then again, in early 2021, Canopy announced the layoff of 75 employees at their Smith Falls headquarters.
Last year they reported a net loss of $829.3 million; this previous quarter saw that net loss shrink to $115.5 million. Canopy’s net revenue is down 8%.
The Company’s free cash flow has been negative since its inception. Free cash flow filters out all the accounting gimmicks enforced by industry and government standards. It takes into consideration operating activities and investing activities.
Hope for the Future?
Will Canopy have to announce layoffs again in the future?
“To realize profitability and power growth, we are taking critical actions to further evolve Canopy Growth into an agile organization with a clear focus on the areas where we have the greatest potential of success,” said David Klein, Canopy Growth Chief Executive Officer. “These necessary changes are being implemented to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company.”
Happy, time to borrow money and cop more crappy shares...
Before they pop.
Good call!