Cannabis sales in March 2020 totaled CAD 181.1MM, a nearly 200% increase from March 2019 sales of CAD 60.9MM!
Retail sales of regulated cannabis in Canada surged by 19% in March, reaching a record CAD 181.1MM. The spike in cannabis sales in March came even as overall monthly retail sales in Canada declined 10%.
Retail cannabis sales grew month-over-month in every province except Prince Edward Island, which is a very small province on the east coast of Canada, where cannabis stores closed March 19, then reopened on May 22.
On an annual basis, the CAD 181.1MM. sold in March represents a nearly 200% increase from March 2019 sales of CAD 60.9MM.
Nelson Peltz, the veteran activist investor, signed on this week as a strategic adviser to Aurora, a Canadian cannabis producer, picking up a load of stock options in the process. News of the appointment sent Aurora's New York-listed shares up 14 per cent, bringing gains for the year to more than 80 per cent.
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The challenge now for investors is how to see through the haze to sort winners from losers.
Plenty of start-ups will founder, said Bruce Linton, chief executive at Canopy Growth, a Canadian cannabis producer. His company — stock ticker WEED, and based in an old Hershey chocolate factory in the small town of Smiths Falls, Ontario — has a market capitalisation of C$21bn (US$15.7bn), on sales of C$147m over the nine months to December.
"Google came out of [the dotcom boom], but so did a bunch of other companies that disappeared," said Mr Linton.
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Insiders point to cannabis as having a multitude of untapped applications across several industries including pharmaceuticals, packaged foods and beverages as well as cosmetics and beauty.
Last year Altria, the tobacco company, took a stake in Canada's Cronos Group, and Corona beer maker Constellation Brands invested in Canopy. Vancouver-based Tilray, meanwhile, formed partnerships with AB InBev and pharmaceuticals group Novartis.
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Still, many are optimistic. Cowen, one of the few US-based investment banks doing cannabis research, says CBD can "conservatively" generate sales in the US of $16bn by 2025
"You don't get an opportunity every day to participate in the very early stages of the creation of a large global industry and that is what is happening now,"
The High Sales Figures, no pun intended, are just the beginning.
Attachment 1 shows sales figures for North America. The figures are already nearing the sales of the U.S. beer market-and the cannabis industry is just getting started…
Attachment 2 displays the potential spending for legalized cannabis in North America, simply staggering.
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