Those tax revenues will start pouring in any day now;
Canopy Growth Corp. said it will shut down two major cannabis production facilities and lay off about 500 staff in an effort to restructure its operations to better address changing consumer demand in the Canadian pot sector.
The Smiths Falls, Ont.-based company said its facilities in Aldergrove and Delta, B.C. represent about three million square feet of production space and will be shuttered, resulting in the reduction of about 500 jobs. Canopy will also halt plans to build a greenhouse in Niagara-on-the-Lake, Ont., the company said.[…]
Canopy’s announcement comes amid a recent string of similar moves by other Canadian cannabis producers that have laid off staff in an effort to cut costs and become profitable. Last month, Aurora Cannabis Inc. announced it would lay off about 500 people, while Tilray Inc. said it would reduce its 1,450-odd workforce by about 10 per cent, and the Supreme Cannabis Co. announced plans to reduce its headcount of 700 by about 15 per cent.
Fancy that.
(h/t sfr)
There seems to be a dope store on every other block here in Calgary.
Strikes me as an unsustainable volume of store fronts.
But I’ve probably, incorrectly, said the same thing about liquor stores.
Watch for the inevitable shakeout. The same thing happened in Edmonton during the 1990s. A lot of the smaller operators either went belly up or were taken over by larger outfits.
There are pot stores on every corner here in Edmonton too. Funnily enough I never see customers entering or exiting them. I regularly see customers enter and exit the local liquor stores but in the months that the pot stores have been open I have only seen one guy walk out of a pot store. I guess his dealer was on vacation……
I do maintenance work for several Calgary cannabis retailers, and I just noted today to my work partner how little traffic they get. The city morgue probably sees more activity. One has to wonder how they keep the lights on.
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too much competition is my theory
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Lots of Stores alec with staff being paid a min of 25+/hr and Most likely ZERO SALES.
Not what I would call Self sustaining business..
I smoke occasionally, & buy it online fairly cheap….like once every 6 months or so.
1/4 oz for $40 is reasonable.
Walked into one of Calgary C0-Op store recently fer shits n giggles and looked at their version of the High Times Price boards and started to laugh….!!
1/8 oz of nothing spectacular for $53.95. LMAO.
Desperation pot priced accordingly.
Give it a year…and most will shut down and disappear….and no one will give a rats ass cause now, lots are home growing..and those that aren’t are buying online.
Math is hard….(for some apparently). About as bright as that stunned quim that figured Bloomberg coulda given every American a 1m cheque ’cause he spent 500m on his campaign.
Where does the planet find these simpletons..??
Bottom line: Money talks and Bullshit walks.
…The moral of the story is “Don’t count your chickens before they hatch”.
Losing money on a “sure thing” like that reminds me of the following line from the movie A River Runs Through It:
“The Burns family run a general store in a one store town and still managed to do badly.”
Murphy’s Law will be confirmed once again.
“The Olympics can no more lose money than a man can have a baby.” Jean Drapeau, Montreal Mayor.
Never underestimate the hubris of any politician promising economic development and diversification.
Never forget MagCan, Sprung Greenhouses, Bricklin Automobile Corp, Pacific Western Airlines (google these if you’ve never heard of them). All so-called money-making economic diversification projects that disappeared into clouds of lost tax dollars. Manna from heaven sprinkled upon the unknowing and the gullible. It’d all be so sad if it wasn’t so damn predictable.
The situation varies from province to province – roll out of stores has been slow in Ontario. The main reason sited for low sales I’ve always heard is that people are still buying from their old illegal suppliers. I don’t believe legal is even 50% yet.
There was another huge oversight.
Our government betters, and yes the “industry” had ridiculous expectations that non-smoking citizens would become stoners overnight, cuz LEGAL.
Nope………Remember, this is a Trudeau promise, no wonder it is failing spectacularly!
I think you’re right; and the moe growers are crtainly growing more than their ration (here in Ontario).
Why would you buy lousy, dry, over-priced ‘legal’ pot where they hassle you as you walk in the door, demanding ID (I’m freakin’ 60 years old!!), and treating you like you’re a leper, when I can go to my dealer, pull up a comfy chair, have a couple of tokes, sample a few strains, and then go on my way for less money?
The greedy government completely blew it again. Should have gone in at $5/gram, and completely eliminated the black market. Instead, they went in at a premium price for a sub-standard product.
Just make a health claim that ties cannabis to preventing corvid-19 and watch the money pour in.
Up in smoke.
It tales a liberal to turn selling pot into a money-losing proposition.
There is nothing in the universe, so well run, that a liberal won’t screw it up.
No it takes government …
In other news Hells Angels report double digit growth.
Too bad they weren’t listed on the TSX. And if they were every cop and border agent would have pant-loads of shares.
Anybody who couldn’t see this coming had rocks in their head. I recall reading posts from people saying that the taxes on pot sales could cut our deficit way down. But the simple truth is that it was mostly well connected Liberals who set up this fraud so they could make lots of money from their fraudulent IPO’s. It was a set up from the start. It didn’t take a genius to realize that when that puke Allan Rock was front and centre.
Marijuana is just like everything the Liberals do. Obnoxious, gross, half baked and smells really bad.
That’s dope!
Jobs lost in Eastern Canada? OMG, it’s a national emergency.
“Those tax revenues will start pouring in any day now;”
Yeah, seems that the owners of post media have invested heavily into the weed, even though they think that farmers are very much simple minded people. Anybody can put a seed in a hole in the ground and water it and suddenly you gotta weed.
The daily propaganda in The Calgary Herald for the weed industry and consumption is relentless.
So the guy that owns the post media went to the airhead and begged for money from the taxpayer to help him to keep his lifestyle. As we know, the airhead concluded that I scratch your ass, you scratch my ass and we will be even.
Worked out as planned.
So if the post media have investments in the weed industry, you are right.
Watch for it.
They may go ’bout it round about way, that will still be money of those that get up in the morning to go to work to make living for themselves and their families, where the “Liberal” government of Canada will take by force their money and give it to those that help them rule the country Canada.
Its been like that for a long time.
Most of the people don’t know, don’t think, don’t care.
It will be that way for a time until the whole thing crashes and only the ruling class will remain in charge.
The poor will be poorer, the comfortable will be poor and those that caused the disaster will be comfortable.
Yup that sums it nicely.
Subsidies all round.
More crushing of individual rights.
Outright swat on private growers.
“Do not steal,your government hates competition”
The black market is efficient, and people will still go there.
Just like in Ontario with native cigarettes. Pay $2 for a pack from a guy on the street corner, or play it straight at a legit store for $15. One is illegal, the other is not, but the wallet decides.
A taxed and regulated industry versus a mature laissez faire (underground economy), no brainer.
Having the Spawn in charge of a huge portion of the economy is no different than a monkey playing with a live hand grenade
A picture being better than a thousand words, I’d like to offer up this video allegory to your “Monkey with a live hand grenade!” At least with the hand grenade it only explodes once and the damage is proximate. When you put clowns like the Liberals in charge of a country it is more like this.
https://www.youtube.com/watch?v=GhxqIITtTtU
And the extent of damage is far more reaching and longer lasting.
People in the know tell me that the big guys are just too fancy with too much overhead, too much capital cost and too many managers. Apparently, the “factory” operations (i.e. indoor, all artificially lighted production) spend something like $700/pound just on electricity!! They put on a show to woo investors instead of using their heads and old school greenhouse technology.
dot com 2.0
In an unrelated story … CA Lottery revenues are funding our children’s schools. Right?
People in the know told me that the real users do not want to have anything to do with the “legal” stores.
Reason 1 is that they want their dope then and there, not 2 weeks away in mail.
Reason 2 is that they want freshly picked weed, not something that sat in a container for 6 months and lost its potency.
The legal pot industry sounds to me like a make-work project. But of course! Turd dough pushed for it hard, so now it has to take off. No? Not taking off? Oh, well, Canadians have a short attention span and they will forget it eventually. Oh, crap, they still remember? Then we have to make it look like this make work project really works, otherwise credibility loss will be substantial for turd dough.
The Hippie Lettice is just to easy to home brew so the next step is to expand the product line. By legalizing all drugs and setting up commercial Meth and Cocaine “Safe” user sites the Liberals will surely make a profit.
Greenhouse operators will buy these sites for cents on the dollar and repurpose to grow lettuce, peppers, cucumbers and tomatoes assuming the configuration and tech is transferable.
Stuff that average people actually want.
So maybe a few jobs will be saved.
Reminds me of 20 years or so ago when a lot of farmers were spending big bucks converting hay fields into ginseng plantations with dreams of $50K profit per acre in a few years time dancing in their heads. Almost none of them ever got a first crop because the market was flooded and prices tanked. One of them bought up a lot of farms to go into it a big way and ended up begging the BC government for subsidies to stay afloat, to no avail. All back to hayfields now.
is it true ginseng only grows once in any particular spot?
kinda vaguely familiar with the subsidies mkt . . . .
(Im eluding to the fact I believer there is a type that watches for gubbamint subsidies and
does the ‘get in early, leave just before the subsidies are no longer dependable’)
the link says it all:
https://www.thegrowthop.com/cannabis-news/why-do-ex-cops-keep-getting-picked-to-run-cannabis-startups
more ‘cops are tops’.
Lots of ex-cops got involved. Now it’s much less profitable. Coincidence?
They went from busting pot dealers … to busting pot dealers.
Pot should be sold by the gangs where it should be.