Canadian Cannabis Sales Accelerate in July to $232 Million

Statistics Canada released July retail sales for the country this morning, with very positive data for the cannabis sector, as overall cannabis sales grew 15% sequentially to C$231.6 million, up 116% from a year ago. The report detailed substantial growth in Ontario, which grew 23% to C$60.3 million, with the other large provinces, Alberta, British Columbia and Quebec all experiencing solid growth as well:

Part of the growth may be that July had an extra day, but this was a clear improvement from recent trends. Hifyre IQ had forecast a big jump based upon its data, though its estimate at $238 million was slightly above the actual outcome. The data analytics provider had estimated August growth to be 10% above its July 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 buying ahead of the pandemic in March appears to have impacted the sequential growth patterns, with July finally showing robust growth that had been lacking in May (+4%) and June (+8%):

The August sales will be released on October 21st.

Exclusive article by Alan Brochstein, CFA
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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