Ontario Drives Canadian Cannabis Sales 6% Higher in August to $245 Million

Statistics Canada released August retail sales for the country this morning, with sequential growth slowing from last month’s 15% gain, as overall cannabis sales grew 6% sequentially to C$244.9 million, up 94% from a year ago. The report detailed how Ontario, which grew 11% to C$66.9 million, drove the sales, as other major provinces increased 2-5%:

August’s growth was the first time that the market failed to achieve more than 100% growth from the prior year. Hifyre IQ had forecast sales of $255 million based upon its data. The data analytics provider had estimated September growth to be 7% above its August forecast.

Drivers of growth include the expansion of stores in BC and especially Ontario, the success in value-priced flower and the roll out of next-generation products, especially vapes. The 6% advance in August was slightly below the average monthly growth rate of 7% over the past year. Alberta and Quebec experienced growth of just 2% sequentially, while BC grew 5% and Ontario, which represented 27% of the market, gained 11% compared to the prior month:

Hifyre IQ estimated that product categories changed only slightly in August compared to September, with pre-rolls increasing from 18% to 19%, while flower fell from 54% to 53%. Its forecast for September suggests that flower expanded again.

The September sales will be released on November 20th.

Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online communities 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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