Ontario’s cannabis business posts $42-million loss in last fiscal year
- Thread starter gb123
- Start date
Ontario said its government-owned cannabis business lost $42 million in the last fiscal year, while the province collected barely half the amount of excise taxes it estimated it would generate, in the latest symptoms of a shaky start to legalizing recreational pot in Canada’s most populous province.
The Ontario Cannabis Retail Corporation, a crown corporation that operates the Ontario Cannabis Store’s online retail business and sells wholesale cannabis to the province's private retail stores, generated $64 million in the fiscal 2018-2019 year, according to public accounts released on Friday.
However, expenses at the OCRC ballooned to $106 million in the twelve months ending Mar. 31, up from $6 million in fiscal 2017-2018 when the government commenced operations of its cannabis business.
Daffyd Roderick, a spokesperson for the OCS, said the agency wasn’t able to book wholesale revenue from selling into the first wave of physical retail stores in the latest fiscal year, which hurt the crown corporation’s bottom line.
“OCS expects continued revenue growth as the industry evolves and Ontario’s private retail store network expands to meet the needs of adult consumers across the province,” Roderick said in an email to BNN Bloomberg.
A spokesperson for Ontario’s Finance Minister wasn’t immediately available for comment.
Meanwhile, the Ontario government said Friday it generated $19 million in revenue from cannabis excise taxes in its last fiscal year, falling well short of the $35-million estimate presented in the most recent provincial budget.
Legal cannabis sales in Ontario have totalled $121 million since October, the second-largest amount in the country behind Alberta which has sold $124 million, according to Statistics Canada. However, sales of recreational cannabis in Ontario have been off to a sluggish start amid a lack of available bricks-and-mortar retail outlets, supply shortages, and various logistical issues.
The Ontario Cannabis Retail Corporation, a crown corporation that operates the Ontario Cannabis Store’s online retail business and sells wholesale cannabis to the province's private retail stores, generated $64 million in the fiscal 2018-2019 year, according to public accounts released on Friday.
However, expenses at the OCRC ballooned to $106 million in the twelve months ending Mar. 31, up from $6 million in fiscal 2017-2018 when the government commenced operations of its cannabis business.
Daffyd Roderick, a spokesperson for the OCS, said the agency wasn’t able to book wholesale revenue from selling into the first wave of physical retail stores in the latest fiscal year, which hurt the crown corporation’s bottom line.
“OCS expects continued revenue growth as the industry evolves and Ontario’s private retail store network expands to meet the needs of adult consumers across the province,” Roderick said in an email to BNN Bloomberg.
A spokesperson for Ontario’s Finance Minister wasn’t immediately available for comment.
Meanwhile, the Ontario government said Friday it generated $19 million in revenue from cannabis excise taxes in its last fiscal year, falling well short of the $35-million estimate presented in the most recent provincial budget.
Legal cannabis sales in Ontario have totalled $121 million since October, the second-largest amount in the country behind Alberta which has sold $124 million, according to Statistics Canada. However, sales of recreational cannabis in Ontario have been off to a sluggish start amid a lack of available bricks-and-mortar retail outlets, supply shortages, and various logistical issues.
The Hippy
Well-Known Member
And remember all the whipping my ass got from the masky flems and the jack-off's who said a BOYCOTT won't work.
They can all lick me.............yack!
TORONTO, Sept. 16, 2019 /CNW/ - The President of the Ontario Public Service Employees Union says alarming financial figures from the Crown corporation responsible for cannabis are proof the Ford government must go back to the drawing board on how the drug is sold.
Warren (Smokey) Thomas says the fact the Ontario Cannabis Retail Corp. lost $42 million in the last fiscal year, combined with the botched rollout to sell cannabis in private stores, shows that Ontario must have a responsible public option.
"The bottom line is the Premier's cannabis plan is awash in $42 million in red ink," said Thomas. "This would not have happened if the Conservatives had stuck to the previous government's plan to have the LCBO handle cannabis sales."
The LCBO plan would have seen 80 stores open in Ontario, under the failed Conservative plan to rely on private retailers, scarcely more than two dozen stores are selling cannabis, Thomas pointed out.
Eduardo (Eddy) Almeida, OPSEU's First Vice-President/Treasurer and a Corrections Officer, says the only winners so far are members of crime gangs who are probably making a fortune selling cannabis.
"I have seen victims of illegally sold drugs every day when I worked in correctional facilities and it's heartbreaking to see so many young lives destroyed," Almeida said. "I appeal to Mr. Ford to put these crime gangs out of business and opt for the responsible plan to sell cannabis, a publicly run plan, the only responsible choice."
It was expected that Doug Ford would be out of his depth in terms of understanding the importance of properly funded and resourced public services, Thomas said, but it's a little surprising that the Premier is so clearly in over his head in terms of overseeing Crown corporations.
Thomas said Ford's experience of running a small labelling company, which among other things designs pricetags and packaging for retail stores, has clearly not prepared him to handle difficult issues like the responsible management of cannabis sales.
"The numbers are in and this government's handling of the cannabis file is not working," Thomas said.
"But this is far bigger than dollars and cents, the lives of our young people are at stake and they deserve better than half-baked plans dreamed up by backroom lobbyists. "
SOURCE Ontario Public Service Employees Union (OPSEU)
Warren (Smokey) Thomas says the fact the Ontario Cannabis Retail Corp. lost $42 million in the last fiscal year, combined with the botched rollout to sell cannabis in private stores, shows that Ontario must have a responsible public option.
"The bottom line is the Premier's cannabis plan is awash in $42 million in red ink," said Thomas. "This would not have happened if the Conservatives had stuck to the previous government's plan to have the LCBO handle cannabis sales."
The LCBO plan would have seen 80 stores open in Ontario, under the failed Conservative plan to rely on private retailers, scarcely more than two dozen stores are selling cannabis, Thomas pointed out.
Eduardo (Eddy) Almeida, OPSEU's First Vice-President/Treasurer and a Corrections Officer, says the only winners so far are members of crime gangs who are probably making a fortune selling cannabis.
"I have seen victims of illegally sold drugs every day when I worked in correctional facilities and it's heartbreaking to see so many young lives destroyed," Almeida said. "I appeal to Mr. Ford to put these crime gangs out of business and opt for the responsible plan to sell cannabis, a publicly run plan, the only responsible choice."
It was expected that Doug Ford would be out of his depth in terms of understanding the importance of properly funded and resourced public services, Thomas said, but it's a little surprising that the Premier is so clearly in over his head in terms of overseeing Crown corporations.
Thomas said Ford's experience of running a small labelling company, which among other things designs pricetags and packaging for retail stores, has clearly not prepared him to handle difficult issues like the responsible management of cannabis sales.
"The numbers are in and this government's handling of the cannabis file is not working," Thomas said.
"But this is far bigger than dollars and cents, the lives of our young people are at stake and they deserve better than half-baked plans dreamed up by backroom lobbyists. "
SOURCE Ontario Public Service Employees Union (OPSEU)
cannadan
Well-Known Member
The only smart thing he done was to not give in to the LCBO....
They should stick to what they know...nothing
Besides other provinces who used the liquor store model all lost money as well...
The private store model can be an effective one assuming they do away with this lotto crap and start taking on business plans from individuals who think they will have a shot at making it in this sector....
Any politician who suggests the LCBO run the show....needs to be voted down...regardless whose colors they wear..
They should stick to what they know...nothing
Besides other provinces who used the liquor store model all lost money as well...
The private store model can be an effective one assuming they do away with this lotto crap and start taking on business plans from individuals who think they will have a shot at making it in this sector....
Any politician who suggests the LCBO run the show....needs to be voted down...regardless whose colors they wear..
odam2k
Well-Known Member
So if HE sells those same drugs now, they will no longer be VICTIMS? Another hypocrite, first I jail you, then I do the same thing you did, but this time, it's ok, because, well, just because...
Flash63
Well-Known Member
More like a pack..a wolf pack!
cannadan
Well-Known Member
Its funny.... that the group of stoners here.... makes way more the sense of all things cannabis,,,,,,than the average employed and educated political type or civil type person that we see so often making comments about things in the paper or on-line....
I sometimes think.... they actually believe what they are saying is true....
"
Thomas said Ford's experience of running a small labelling company, which among other things designs pricetags and packaging for retail stores, has clearly not prepared him to handle difficult issues like the responsible management of cannabis sales."
The above could apply
Unless your a small cannabis retailer who has enough sense to order all your labels from Dougy
Much better chance at getting your name picked from a hat
I sometimes think.... they actually believe what they are saying is true....
"
Thomas said Ford's experience of running a small labelling company, which among other things designs pricetags and packaging for retail stores, has clearly not prepared him to handle difficult issues like the responsible management of cannabis sales."
The above could apply
Unless your a small cannabis retailer who has enough sense to order all your labels from Dougy
Much better chance at getting your name picked from a hat
The Hippy
Well-Known Member
Him and his brother were hash dealers in Etobicoke
odam2k
Well-Known Member
Sorry, yes, I knew that, what I meant was, who sells JUST hash? He probably sold anything he could get his hands on...
odam2k
Well-Known Member
he he, Crackhead Bob...
There is and there has been for ever!
He sold shmea to keep his low key hash burning cheap because he was CHEAP
!Sold it out of his car in JAmes gardens..cops drive in one side he leaves out the other. Back then it was stupid funny shit
He and his brothers and his sister have lived off of the FAMILY fortune their whole lives ............Junkies ....as well some of them. but that's another story,
He never ran any business. ANYONE IN ETOBICOKE WHO KNOWS THEM, KNOWS THIS!
