“The expectation upon legalization was that government and law enforcement would prioritize eradicating the illicit cannabis sources – including illicit physical stores and online stores – to support their legislative objectives of protecting the health and safety of Canadians and preventing youth from accessing cannabis.
Source: Why isn’t Canada’s cannabis market thriving? Here are some ideas
fta: “Yes, excise tax is eating a disproportionate amount from licensed producers’ profit and loss statements. It should have represented about 10% of gross sales.
Instead, it is around 30%, (which) doesn’t leave much for LPs to operate, to comply with regulations, to compete with illicit market pricing or to reinvest.”
fta: ““The expectation upon legalization was that government and law enforcement would prioritize eradicating the illicit cannabis sources – including illicit physical stores and online stores – to support their legislative objectives of protecting the health and safety of Canadians and preventing youth from accessing cannabis.”
i beelive the legal market’s floor price is what’s keepoing the illegal market alive illegal can make money at the curent ~$100/oz level; things have probably stabilized wrt the split between legal and illegal markets; in order to get the vast mojority of people into the legal market, legal must undercut illegal such that there is no prifit for the illegal, no reason for peole to go there. i think.
a related report: Clearing the smoke: insights into Canada’s illicit cannabis market
