Canadian Cannabis Sales Slump – New Cannabis Ventures

Statistics Canada released January retail sales for the country, with cannabis sales decreasing from the December levels, down 11.5% to C$400.7 million. December was revised higher to C$451.8 million. The sales were up just 1.2% from a year ago. This was down from the 19.8% August growth rate and the lowest annual  growth rate since legalization commenced in December.  In 2023, total sales increased 12.5% to C$5.09 billion.

An increase in the number of stores as well as falling flower prices that bring consumers from the illicit market have been boosting sales. In Ontario, the largest province in population, sales were down 14.8% from December and up 1% from a year ago. Alberta, which is the second-largest province, was down 10.1% from December and up 7% from a year ago. Quebec was down 10.0% from December and down 1% from a year ago, while British Columbia was down 9.8% from December as it fell 4% from a year ago.

Hifyre IQ had forecast January sales at C$421.7 million based upon its data, so this was far below the estimate. The data analytics provider has been estimating February sales to be 4.9% lower, which would be 0.2% above the actual actual January level and up 10.0% from a year ago, based upon its data. Hifyre estimates sales outside of flower and pre-rolls at 32.8% in December and 33.0% in January.

The February sales data will be released on April 24th.

Based in Houston, Alan leverages his experience as founder of online community 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