Each week, Business of Cannabis delivers a series of insights from our partners at Cannabis Benchmarks®.
The Canada Cannabis Spot Index was assessed at C$6.04 per gram this week, up 1.3% from last week’s C$5.96 per gram. This week’s price equates to US$2,703 per pound at the current exchange rate.
This week Cannabis Benchmark’s analyzed data from the Ontario Cannabis Store’s (OCS) Q1 report, focusing on expanding product variety and sales breakdowns by product type. With the introduction of cannabis 2.0 products, consumers seeking more variety presumably have greater reason to purchase from legal channels. OCS data for the three-month period beginning April 30 shows that cannabis 2.0 products are already making up 30% of total sales revenue.
The OCS also broke out revenue by product category and calculated a dry cannabis equivalency (DFE) for cannabis 2.0 products, providing an estimate of the number of grams of dried flower represented by the sales of each respective product type. This data shows that while cannabis 2.0 products made up 30% of sales revenue, they only accounted for 23.5% of all grams sold. However, the overall premium commanded by cannabis 2.0 products was not distributed equally across all product types. Topicals, vapes and capsules commanded the highest premiums.
Another difference between the types of cannabis 2.0 products is where they were sold – through the provincial online store or in brick-and-mortar retailers. Most products see a higher proportion of sales occurring through physical storefronts, but some cannabis 2.0 products – such as capsules, concentrates, and beverages – saw nearly equal sales distribution, while a greater proportion of oils were sold online.
Source: Canada Cannabis Spot Index, Cannabis Benchmarks
