Photo by Sharon Montgomery / Saltwire
According to Nova Scotia’s official cannabis retailer, not only are Nova Scotia’s falling prices of cannabis affecting the legal market but the illicit one too. Bev Ware, a spokesperson from the Nova Scotia Liquor Corporation, told CBC that the entire reason behind legalization was to “impact the illicit market.”
Ware added that since Canada legalized cannabis in 2018, the price of cannabis in Nova Scotia has been lower than ever, standing at $6.50, down by 40% of what it was in 2018. She made a point that stable supplies of one-ounce packages of cannabis, which can sell as low as $110, are helping “compete with the illicit market.”
Data from the NSLC’s second quarter demonstrates that cannabis sales were up nearly 20% for a total of $26.6 million, and average cannabis prices plummeted by 13%. In other words, when customers in Nova Scotia were buying more cannabis each visit to the NSLC, they were spending roughly 12% less. Ware says that suppliers have been decreasing their price points during the last few price reviews while offering “more value-priced products to customers.”
Although raw cannabis flower makes up for about 60% of NSLC’s cannabis sales, more than half of that comes through one-ounce packages, which is also near the cut-off points for possession under federal law. In addition, there has been an abundance of new NSLC stores across the province; about 18 opened in the past year, which has allowed Nova Scotians to purchase their cannabis from safe and official retailers conveniently.
In terms of sale consistency, Ware added that although customers are faithful and drawn to their favorite alcoholic drinks, cannabis sales are typically driven by the price point, quality, and strength of the weed. She said that cannabis doesn’t see much “brand loyalty,” so customers usually look for higher THC content and a reasonable price.
A former Health Canada cannabis policy analyst named David Brown offers regulatory advice to Canadian cannabis businesses, and he said that the falling prices are a global trend. Brown told CBC that one interesting aspect of legalization is not only the price decrease of cannabis but the “price of illegal cannabis declining too.” Brown also writes about the cannabis industry for StratCann, a website committed to cannabis news.
Finally, Brown concluded that he’s often hearing about how many black-market growers are “struggling” because prices are lower than what they’ve been in a very long time.
The campaign's website debunks any cannabis myth you could think of.