CANNABIS CULTURE – Financial experts blame price wars with the legacy market, increased competition, and unexpected consumer disinterest in Cannabis 2.0 products for the plummeting stocks of corporate LPs like Aurora and Canopy. However, with the number of sales at legal retailers being higher than ever, their return on investment issues may be as much about culture and quality as they are about competition.
Larger LPs seem to be struggling to understand the typical consumer, and it hurts their bottom line. For example, Aurora saw that its products cost more than buyers wanted to pay, and it responded by putting everything into creating a cheaper product. You can now find legal buds in most provinces for prices you probably paid in someone’s basement as a teenager.
But no one wants to buy the cheap stuff either. It’s still too expensive, and the quality is just not there. “These LP’s believe cannabis can be grown like all other crops, but they are quickly starting to realize that growing premium quality cannabis isn’t easy on a large sale,” says David Hargreaves of Grump Weed, a craft cannabis producer out of Minnedosa, Manitoba.