Cannabis Legalization 2.0 saw edibles, vaporizer products, and cannabis extracts hit the Canadian market in a slow rollout. The OCS reports an increased $4.3 million in revenue, with a 10% increase solely thanks to vape-related products. Next to be released: cannabis beverages and topicals.
When Canada began the cannabis legalization process, the first step was to only legalize raw flower or the cannabis buds itself for sale. This left the other cannabis-related, or infused products in the dust, including edibles, topicals, and beverages. After a year of marijuana legalization, and a test run of what the province was to expect for purely dried flower sales, the Ontario Cannabis Store (OCS), finally began to consider the full-gamut of cannabis-related products. Dubbing the next wave as “cannabis 2.0”, the OCS began to release edibles and vape-related cannabis products to consumers in some provinces in December of last year.
Last week, the Ontario Cannabis Store reported that it sold approximately $4.3 million in sales from “cannabis 2.0” products this past January, according to an official statement issued by the provincial retailer. The figures indicate strong demand from consumers, the Ontario Cannabis Store said in a statement.
Cannabis 2.0 products include vape pens, cannabis-infused beverages (teas, alcohol, and energy drinks), edibles (gummies, baked goods, etc.) and topicals. Of the $4.3 million generated, $3.77 million was attributed to the sales of vape products, and $569,000 came from sales of edibles. These numbers include both online sales on OCS.ca and sales to the 43 official cannabis retailers across Ontario and include data from 54 various vape products and 24 edibles brands. Cannabis 2.0’s whopping success is in contrast to a lower-than-expected end of the year in 2019 for overall legal weed sales, which came in at $1.2 billion.
Cannabis 2.0 generated a great amount of buzz before it’s release, with the OCS expecting the 70 different types of products to sell out within a week. “Every new product we introduce, every price drop we make and every authorized retail store that opens strengthens the legal marketplace,” said Cheri Mara, the chief commercial officer at the OCS in a statement.
Lower sales numbers for edibles could be attributed to a shortage, as licensed producers weren’t able to keep up with the consumer demand. Thanks to very heartening numbers, we foresee an opportunity for licensed producers to grow more and up their product offerings, helping to respond to consumer demand.
Truly, the OCS only represents a fraction of the complete Canadian cannabis market, yet the newly released numbers around cannabis 2.0 can help paint a picture of the extensive financial benefits that legalization can bring to a country. After what was a shaky first year of legalization, cannabis sales in Ontario can now show that they are providing great growth and opportunity to licensers, store owners and the government alike.
In the next wave of products to be released, the OCS said that consumers can expect cannabis beverage and topicals this week. Look out for Tilray’s CBD beverage brand, High Park, to hit shelves this week, as well as additional beverages from The Valens Co. following shortly after. Due to lessons learned around edible shortages, the OCS shared that it will prioritize shipments to authorized retail stores before selling elsewhere.