Canadian Cannabis Sales Bounced Back Strongly in December

Statistics Canada released December retail sales for the country this morning, with cannabis sales growth increasing sequentially. Sales of C$298.4 million rose 14.3% from November, which had fallen 3% from October levels, and rose 102% from a year ago. In November, year-over-year growth had slowed below 100% for the first time, gaining 93%. For all of 2020, cannabis sales increased 121% to $2.62 billion.

Hifyre IQ had forecast sales of C$285 million based upon its data. The data analytics provider has been estimating January growth to be 12.6% below its December forecast, which would be 17% lower than the actual December sales level and up 62% from a year ago.

The increase is partially due to an extra day in December compared to November. An increase in the number of stores as well as falling flower prices have been boosting sales. In Ontario, the largest province in population, sales grew in line with the market at 14%. Alberta, which is the second-largest, grew 18%. Quebec grew 13%, while British Columbia gained 16.5%%.

 

Hifyre IQ estimated that product categories have been stable, with a slight decrease in pre-rolls towards flower. Flower and pre-rolls represent, according to Hifyre IQ data, 74% of the market.

The January sales will be released on March 19th.

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

Get Our Sunday Newsletter