Canada has record legal cannabis sales in May
Statistics Canada May 2020 data showed a record CA$186 mm in legal cannabis sales. MoM, total legal sales grew by 4.2%. The growth seems to be driven by the provinces from Alberta and British Columbia, with respective market shares of 24.9% and 14.6% of May sales, BPS market share change MoM of 118 BPS, and 123 BPS, and MoM sales growth of 9.4% and 13.8%.
In an interview with CTV News, a spokesperson for a Toronto cannabis store suggested that the strong sales data was at odds with the revenue losses that he and other cannabis retailers have incurred during COVID. Rather, he suggested that the surge in sales could be explained by the influx of active, licensed retailers across the country.
Since January, the total number of active cannabis retailers has grown 36%. Ontario has been the force behind the momentum in unit growth, growing 333% in the same time period.
FDA’s new guidance on cannabis drug development
Earlier this week, the FDA published draft guidance on cannabis-based drug development. However, it remains unclear if their guidance will evolve into actual federal regulation. Much of the released document detailed their “current thinking” on the basics in conducting federally authorized research for cannabis-based drug development. It did not provide clarity on the FDA’s plans for consumer CBD products. The federal agency has yet to establish regulations for hemp in dietary supplements and food, despite hemp being legalized two years ago under the 2018 Farm Bill.
Massachusetts regulators consider ending vertical-integration requirement
The Massachusetts Cannabis Control Commission is considering an end to the vertical-integration requirement for medical cannabis companies. The current regulation requires medical dispensaries to cultivate, process, and operate retail facilities – recreational operators do not face the same hurdles entering the MA adult-use market. Ending the vertical-integration requirement would lower the barrier of entry, decrease costs, and allow operators to focus on core competitive competencies. The state’s cannabis commissioners brought up the issue in an online meeting Monday and said they would seek a debate with the public before progressing further.
The commissioners did indicate that they would prefer to keep a per license cap of three cultivation facilities, three product manufacturing facilities, and three retail facilities. Public comment is scheduled to close on August 14, and the cannabis commission is set to vote on final regulations sometime in September.
