Industry News

Did you know?

 

Consumers can now purchase cannabis directly from Ontario producers, but there’s one eyebrow-raising caveat. 

 

For producers to legally sell cannabis to end users in Ontario, they must first sell the products to the OCS (Ontario Cananbis Store), then purchase it back from the OCS before selling them to consumers. The OCS is owned by the province and currently holds a monopoly on the cannabis market. 

 

Imagine driving over to Niagara on the Lake to enjoy exquisite wine directly from the vineyards. Now, imagine that these vineyards had to sell their wine to the LCBO and then purchase them back before you can enjoy the wine. The resulting markup is about the equivalent to what’s happening with the OCS arrangement. 

 

This seemingly unnecessary middle-man arrangement may sound like a cash grab to you… and you would be right! This controversial topic has sparked much debate from consumers to growers to lawyers, primarily arguing over the relevance of adding an extra markup. 

 

Lawyers representing the cannabis production industry have been seeking answers as to why this markup is allowed to happen when it makes them less competitive against the underground cannabis market. For instance, the average gram of cannabis is $10 through the OCS while the average price per gram is $5 for underground.

 

For those who are unfamiliar with the OCS, producers can only sell cannabis intended for sale in Ontario through the OCS. Furthermore, retailers acquire cannabis from the OCS.

 

Consumers who are in-the-know tend to purchase their cannabis products from long-standing reputable MOM’s with a trusted brand. Among the top on the list is Sweedy, a cannabis MOM in the Greater Toronto Area that features high quality cannabis products, accurate grading systems, reasonable prices, and customer service that cares. 

 

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