Ontario Cannabis Store reduces price margins to help cannabis stores compete with private market
The OCS says the pricing changes will be implemented in September and will contribute about $35 million into the marketplace this fiscal year.
The Ontario Cannabis Store says it will be reducing its price margins in a bid to help pot retailers compete with the private market.
The provincial pot distributor says the pricing changes will be implemented in September and will contribute about $35 million into the marketplace this fiscal year.
The OCS expects the contributions to hit $60 million in the 2024 fiscal year and compound annually in the years thereafter as the legal cannabis market grows.
The OCS says the changes will include a fixed mark-up for each product category and will be applied as a percentage above each product’s landed costs, which already take into account producers’ margins and excise taxes.
The OCS will post the markups publicly along with a pricing calculator to give producers more certainty.
It says the margin reduction and fixed mark-up structure will come into effect later in the year to give the OCS and licensed producers time to consider changes to existing products and their release schedules.
