The price of pot has jumped since recreational use was legalized — and that, along with patchy supply issues, has kept many customers relying on unlicensed suppliers.
A new Statistics Canada study found that the cost of cannabis has risen more than 17 per cent since legalization last October. Since then, only half of the purchases recorded in the study were from legal suppliers — suggesting the other half came from unlicensed dispensaries or dealers.
The two findings are linked, believes Matei Olaru, CEO of the cannabis-focused technology and media company Lift Co.
“This study is definitely indicative of the things [like] the tax and the lack of competition,” he said.
“You basically have pressure to increase revenue, an ability to increase prices to get there by virtue of this lack of competition, and essentially a new market that is taxed very heavily.”