Econo-style value brands are beginning to dominate REC sales–and in response, REC stores have begun seriously cutting prices.
MJ Biz Daily
- Last week, a Toronto Tokyo Smoke franchise offered Pure Sun Farm value ounces for $65, and Hexo‘s value ounces at $77–dramatically lower than illicit market prices, and also lower than wholesale costs (which some provincial regulators don’t allow).
- MED prices are also falling, even before compassionate pricing discounts for patients with limited incomes. BC micro-umbrella LP Shelter is offering MED at $3.21 per gram, while James Wagner is offering MED at $4.33 per gram.
BC LP Tantalus Labs CEO Dan Sutton warned lower price products will favour bigger companies able to produce cheap product. He suggested expecting to pay $10/gram to keep micro-cultivators and small LPs functioning, while “$7/g buys a small market with large players.“
- Sutton posted a chart breaking down of all different costs that make up a $7 gram of cannabis in a helpful chart.