The Globe and Mail reports in its Friday, Jan. 24, edition that the price gap between legal and illicit cannabis is widening.
A Canadian Press dispatch to The Globe reports that Statistics Canada said Thursday that the average price of legal cannabis increased to $10.30 a gram in the period between October, 2019, and December, 2019, from $9.69 a gram the year before.
The average price of illegal weed fell to $5.73 a gram in that fourth quarter from $6.44 a gram a year earlier.
The data come as the industry is grappling with how to minimize the underground cannabis market. Brock University business professor Michael Armstrong says: "Legal cannabis has been priced much higher than the black market ever since legalization day. I think for any of the mass market producers, [price] has to be their objective for this year, if it hasn't been already."
In a bid to undercut the illicit market, Hexo rolled out Original Stash, a 28-gram product in Quebec cannabis stores for $125.70 with taxes included, or $4.49 a gram, in October.
When Mr. Armstrong recently checked out the Ontario Cannabis Store website, he spotted a few products costing $5 or $6 a gram, but said, "those are still in the minority."
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