Weekly Cannabis Commentary
Cannabis Industry Performance
Last week, both Canadian and U.S. cannabis stocks fell, despite positive sector news:
- Uber (NYSE:UBER) announced plans to allow Ontario users to buy cannabis on its Uber Eats platform. We believe this is a significant development, as this is the first time Uber has listed a cannabis retailer on its app.
- Statistics Canada reported that cannabis sales grew 0.19% MoM in September. Although growth was modest, September marked another record month of sales in Canada.
As of November 22, 2021, the Canadian big four LPs were trading at a 56% premium (down from 75% in the previous week) over their U.S. peers.
The average retail price per gram was flat WoW.
Canadian Retail Cannabis Stores
As of November 22, 2021, there are 2,807 retail cannabis stores in Canada, a WoW increase of 33 stores, including 23 in Ontario, five in Alberta, and five in B.C.