What is the forecasted total annual demand in Canada in KG?
Currently, all of Aphria's production sells and does not go into inventory. This is not the case for ACB and some other producers.
This is because Aphria has the lowest retail cost because they have the lowest production cost due to their high efficiency operation. APHA has good quality products at low cost. A lot of ACBs production goes into inventory. ACB will have difficulty due to their higher priced mediocre quality products - their % of the market is actually forecasted to decrease. Aphria's products will continue to sell due to their lower retail prices.
In the rec market, youll have higher end products like Broken Coast that will be priced at a premium. And then you'll have the regular products, and for the regular products, it will be all about the lowest price (holding quality constant). None of the large producers are able to get down as low as Aphria on cost for regular products, so Aphria's products will be the first to go. I've spoken with some users here in Canada and they are very happy with Aphrias products and the price points. Specific mentions were given to Soleil...high quality product at low price.
That's why Aphria will.be able to sell it's full 255,000 kg production
