Cannabis N.B. blames multi-million-dollar loss in Q1 on illicit weed market
- Thread starter gb123
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The loss comes on the heels of a previous loss of $11.7 million during the first six months of legalization.
Cannabis N.B. is reporting a $2.2 million loss for the first quarter of 2019 and the provincial cannabis retailer has pointed its finger squarely at the culprit: the illicit market.
A Cannabis N.B. spokesperson noted in a recent statement that unlicensed dispensaries in the province were monopolizing the cannabis retail trade.
“The emergence of many illegal dispensaries—up to 40— throughout the province continues to be the biggest risk and threat to a safe, legal cannabis retail industry,” reads the statement. “And the continuing stabilization of the portfolio and having access to full product offering is improving, but still not at our originally anticipated levels,” it adds.
The deficit has left the province scrambling to come up with a solution that provides New Brunswick residents access to legal cannabis from licensed producers, but doesn’t continue bleeding cash.
The prospect of privatizing the embattled retailer was first raised following the conclusion of its first fiscal year, although no final decisions have been made. Also mentioned as options were closing stores that don’t perform or hiring experienced “experts” to take over the business. Again, a final decision on that is not expected to be made until the end of the year.
Former Cannabis N.B. president and CEO, Brian Harriman, who resigned in April, had initially predicted sales of approximately $45 million in the first fiscal year of operations. It was expected the retailer would turn a profit, or a least break even.
New Brunswick is far from the only province that has posted losses since legalization. Quebec’s SQDC (Société québécoise du cannabis) posted a $4.9 million loss in its first fiscal year, despite selling more cannabis than any other province in Canada. And the Nova Scotia Liquor Corporation has yet to turn a profit despite upwards of $17 million in sales.
Cannabis N.B. is reporting a $2.2 million loss for the first quarter of 2019 and the provincial cannabis retailer has pointed its finger squarely at the culprit: the illicit market.
A Cannabis N.B. spokesperson noted in a recent statement that unlicensed dispensaries in the province were monopolizing the cannabis retail trade.
“The emergence of many illegal dispensaries—up to 40— throughout the province continues to be the biggest risk and threat to a safe, legal cannabis retail industry,” reads the statement. “And the continuing stabilization of the portfolio and having access to full product offering is improving, but still not at our originally anticipated levels,” it adds.
The deficit has left the province scrambling to come up with a solution that provides New Brunswick residents access to legal cannabis from licensed producers, but doesn’t continue bleeding cash.
The prospect of privatizing the embattled retailer was first raised following the conclusion of its first fiscal year, although no final decisions have been made. Also mentioned as options were closing stores that don’t perform or hiring experienced “experts” to take over the business. Again, a final decision on that is not expected to be made until the end of the year.
Former Cannabis N.B. president and CEO, Brian Harriman, who resigned in April, had initially predicted sales of approximately $45 million in the first fiscal year of operations. It was expected the retailer would turn a profit, or a least break even.
New Brunswick is far from the only province that has posted losses since legalization. Quebec’s SQDC (Société québécoise du cannabis) posted a $4.9 million loss in its first fiscal year, despite selling more cannabis than any other province in Canada. And the Nova Scotia Liquor Corporation has yet to turn a profit despite upwards of $17 million in sales.
grapenut2457
Well-Known Member
Well in NBs capital city the native community now has about 5 or 6 outlets on the local reserve. No move yet by outside authorities to shut them down.
radiant Rudy
Well-Known Member
You might be surprised. Dont underestimate trump . He "lost" almost a billion $ over 10 years or so as a private citizen. As a "politician" he's exponentially exceeded his private citizen financial disaster accomplishments.
CalyxCrusher
Well-Known Member
Oh so NOT the ACTUAL monopoly held by LPs? The ones who formed a coalition to lobby against patients rights to grow to eliminate competition? Or the ones who helped decide they were the only source for starting materials and charge hundreds for clones?
Yeah, I TOTALLY can't see WHY for the life of me why people wouldn't want to shop at a store that not only supports these practices by doing business with them but ALSO sells an over priced sub par product. A product you can't see or smell which can vary greatly from batch to batch AND you have to buy on good faith, with ZERO return policy.
CalyxCrusher
Well-Known Member
We're talking about Canada and the legal federal market. FYI almost all politicians walk away richer then when they took office, unless they were wealthy to begin with. .All you have to do is look at their salary compaired to net worth before and after office .
radiant Rudy
Well-Known Member
CalyxCrusher
Well-Known Member
Sigh....not worth the effort
BurtMaklin
Well-Known Member
GreenHighlander
Well-Known Member
They can't go after them as they are not breaking the law. Nobody in law enforcement is in a big hurry to set even more precedence in court and going after on reserve natives who aren't breaking any laws would do just that.I understand there's quite a few here in Ontario as well. I think if they go after them, we're gonna hear about itThey won't take kindly to that....
Just another thing these pigs in suits didn't think of when they made prohibition 2.0
Cheers
VIANARCHRIS
Well-Known Member
Absolutely zero difference between Trump vs. Kim Jong Un....both dumber than dirt and ridiculous hairdo's.
Canadian politics and politicians couldn't be much different from Americans than they are now. If Trump were PM, he would have been arrested and charged as the criminal he is. We wouldn't let a rogue group like the NRA dictate our politics and Mitch McConnel would be deported to Moscow where he belongs.
radiant Rudy
Well-Known Member
Groveling water boy greedy dollars IS just one of his failings.
He's good as a national disgrace, a human horror, pathological liar, cheat, crook and coward.
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BurtMaklin
Well-Known Member
Are you going to change the flag to orange, white and blue, and replace the stars with little combovers?
radiant Rudy
Well-Known Member
NAIVE
radiant Rudy
Well-Known Member
Is that a canadian style quip? It's as flaccid and cringe provoking as the labia on trumps neck vagina.
Give us some John Candy/Samantha Bee wit, water boy
VIANARCHRIS
Well-Known Member
What does that have to do with my post....?
NAIVE
radiant Rudy
Well-Known Member
your analogies and fantastical predictions about Ca govt norms and justice fail to factor the level of complexity that accompanies an economy exponentially larger and it's coresponding politics.
BurtMaklin
Well-Known Member
So it is irrelevant.