Ontario is poised to be the largest market — once the number of retail stores catches up

The east and west coasts are reaping some of the largest gains in Canadian retail cannabis sales according to the latest figures from Statistics Canada.

B.C. sales nearly doubled from July 2019 to August 2019, leaping from $5.9 million in sales to $11.9 million.

On the other side of Canada, New Brunswick recorded a near 60 per cent gain in the same time period, earning $5.3 million in August 2019 compared to $3.3 million the month before. Newfoundland and Labrador, Prince Edward Island and Nova Scotia also saw double-digit growth.

The new data shows Canadians further embracing cannabis, with the country selling a total of $806,601 since legalization one year ago.

The new wave of legal cannabis products filling store shelves in December may also boost sales.

Ontario poised to be the ‘biggest market’ in Canada

Ontario has more total cannabis sales than any other province, with$33.7 million, but Alberta is still leading per capita profits with $24.8 million.

Matt Maurer, partner and vice chair of the cannabis law group, Torkin Manes LLP, blamed the numbers on the stark difference in the number of shops in each province — Alberta has 306 stores, more than 12 times as many as Ontario, which only has 25.

“More storefronts correlate to more sales and Ontario has bigger population,” he said in a phone interview.

“With only 25 stores, they were able to do $10 million more in revenue … Ontario is going to be the biggest market in the country. It probably won’t even be close by the time it’s all said and done.”

‘Surprising’ small dip in Manitoba cannabis sales

While the country’s cannabis sales show promising signs, Manitoba is the only province to see a decline in sales.

“It’s a little bit surprising, but given it’s a one percent drop, there could be all sorts of reasons for it,” Maurer said.

“It’s a small dip and it’s unexpected, but I don’t think it’s a long term signal of anything.”

He expects to see sales across Canada rise come Christmas time.

“People who historically are not consumers in many years are slowly easing their way back into it, especially with edibles and other types of products,” he said.

“But also, we’ve already started to see spikes in numbers when we get to long weekends, big events, 4/20. The Christmas holiday may have good numbers in December too, but it’s conceivable for holiday parties and family gatherings people may turn to cannabis instead of alcohol.”

• Email: bhristova@postmedia.com | Twitter: bobbyhristova

Want to keep up to date on what’s happening in the world of cannabis? Subscribe to the Cannabis Post newsletter for weekly insights into the industry, what insiders will be talking about and content from across the Postmedia Network.