Cannabis 2.0 Frenzy Still in Full Force
Stores in Calgary Sell Out Edibles in Hours Each Week – LPC
If Calgary is any indication, the Cannabis 2.0 frenzy is still in full force a month after cannabis edibles became available last December. Mylann Doell is a manager at Queen of Bud in Sunalta, a neighbourhood in Calgary. She said that they only get enough edibles stock for about 100 customers per week. Doell said she feels like they are “constantly letting our customers down.”
“They come in on Mondays, we sell out of them on Mondays,” Doell said.
What does come in this week isn’t always the same as what came in last week. The general consensus is the licensed producers (LPs) are not able to keep up with the Cannabis 2.0 frenzy. LPs remain tight-lipped about production, but it’s perhaps not surprising so early on. Companies are becoming more profit-focused than growth-focused, which means they’ll probably err on the side of less product until demand becomes clear.
And, as was hoped, the Cannabis 2.0 frenzy is attracting new users who don’t want to smoke. That’s boosting demand further.
“Definitely lots of new faces because they’re not comfortable smoking and they wanted to try the edible route,” Doell said. “They find that it’s more fun to eat a candy or even chocolate bar compared to just like taking the oil.”
Quantity Expected to Increase to Feed Cannabis 2.0 Frenzy – LPC
Cannabis edibles have been flying off the shelves since retailers started selling them in December in most provinces and territories. (Ontario, Alberta, and Quebec didn’t start selling until January.) Heather Holmen of Alberta Gaming, Liquor and Cannabisis (AGLC) said that she expects shortages due to the Cannabis 2.0 frenzy will end.
“We are expecting quantity and selection to increase, but based on the newness of the industry, there is limited product right now,” Holmen said. “In Alberta, we have more than 400 licensed retail stores. So the AGLC is working hard to ensure that retailers have access to the limited inventory.”
Holman said that shortages are out of AGLC hands. It’s up to producers to provide more product.
New LPs are coming online as well. Olli Brands just received its processing licence from Health Canada in January 2020. It will enter the market with its own teas and edibles, and will sell private label product to other resellers.
Analysts and LPs alike are hoping that the Cannabis 2.0 frenzy will spark a new cannabis bull market in 2020.
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