Like most businesses, the cannabis industry will have direct competition that may impact their price points.
A recent survey conducted by Statistics Canada found that New Brunswick is home to the second-lowest pot prices in the country at $6.38 per gram, only after Quebec which pays the lowest prices for marijuana at $5.88 per gram.
“We’re inheriting sort of the legacy of the illicit market pricing program and we’re working with that knowledge and understanding so that as an industry, we can position ourselves as being price comparative against the illicit market,” explained Ray Gracewood, the chief commercial officer for OrganiGram.
The Moncton-based company has been contracted to supply retails stores with marijuana when it’s legalized later this summer.
Gracewood suggests the StatCan analysis factors in a discount for people who are buying large quantities on the street.
“I would say based on that StatCan analysis, we’re relatively confident that we’re still working towards a model that will be price-competitive,” he said.
While companies are studying the market dynamics on the street, other agencies are looking at ways to capitalize on the new industry.
“Maybe there’s someone who makes containers, somebody who’s involved in shipping, it’s like any other product that has some benefits outside the core product,” says John Wishart, the chief executive officer for the Greater Moncton Chamber of Commerce.
The Greater Moncton Chamber of Commerce is looking at potential business opportunities, the spin-offs from the marijuana sector.
They’ll be hosting the CEO of OrganiGram next week to discuss where the organization sees the industry is headed.
Meanwhile, the date for legalization has been pushed back from July 1 to the end of August as the Senate studies the new proposed legislation.
© 2018 Global News, a division of Corus Entertainment Inc.