Cannabis retailers and producers hope an upcoming move by Ontario’s pot distributor to lower its price markups will help an industry still struggling to compete with the illicit market.
Ontario Cannabis Store, the Crown agency that has a monopoly on legal distribution in the province, is changing its pricing structure starting in September. The changes will reduce most wholesale markups that OCS imposes on cannabis products it sells to retailers, lowering its profit margin.
What remains to be seen is the impact the reduction will have on prices consumers pay for pot or on the bottom line of cannabis companies.
Granted the “private sector” can out compete the government system but I wonder if the total demand for pot was over estimated?
