About Ottawa Cannabis Market

Ottawa Cannabis Market companies are struggling to make money as they struggle to toe the line between building a robust industry and public health. Regulatory hiccups and oversupply have forced many producers to cut jobs and shutter stores as sales slump. Others have abandoned their plans for expanding.

But the Ottawa cannabis market remains incredibly competitive, with multiple retailers operating in the same neighbourhoods and competing for the same clientele. High Ties, for instance, opened a store in the Glebe last May and closed it eight months later, citing declining sales and operational costs. The company is now looking for a new location in the city’s core.

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Licensed producers and retailers are both facing margin compression, according to a report released this week by the Toronto-based research firm CTV News. The report surveyed more than 300 people across the country who work in the marijuana industry and found that the majority of businesses are losing money.

Some blame sky-high taxes, government overreach and advertising restrictions while others say the problem stems from having production that far exceeds demand. In a bid to improve profit targets, the Ontario Cannabis Store recently announced it will reduce its wholesale prices by about five percent. But the reduction won’t take effect until late this year, giving companies time to adjust their product mix and marketing strategies.

A panel of experts is working on a detailed report for the country’s federal health and addiction ministers that could have major implications for the marijuana sector. The nine-member panel is expected to deliver its advice in January.