Nearly a year and a half after Canada officially flipped the switch on adult-use cannabis legalization, the Great White North is still struggling to push out the country’s massive marijuana black market. But with cannabis supply finally outpacing legal demand, Canadian pot brands are adjusting their business models to finally try and bring black market customers into the legal industry. And what better way to entice cannabis users than with cheap weed.
According to a new report from CNBC, a who’s who of Canada’s biggest legal weed companies are set to debut a variety of discount bud brands, in a vocal attempt to persuade legalization holdouts away from their neighborhood dealer.
At Tilray Cannabis, the new sub-brand “The Batch” will sell quarter ounces of weed that tests at 10-16% THC at discount prices. Aurora’s “Daily Special” brand will feature weed testing between 15-21% sold in half ounce packages. And for the most bang for your buck, Canopy Growth will push their “Twd.” brand by packaging $112 ounces of pot testing between 13-25% THC.
"All of this is designed to draw consumers from the illicit market and into legal channels," Adam Greenblatt, Canopy's business development lead, told CNBC. "It's there to provide more variety and more of a value offering to ideally mature the market. Low-cost cannabis attracts bulk purchasers, people on the illicit side who would buy their cannabis by the ounce. People who buy cannabis by the ounce have been toughest to convert."
The quality versus quantity conundrum has long been a contentious topic for burgeoning cannabis brands. But in the early days of Canada’s nationwide legal market, supply issues negated nearly all consumer choice, with sparse products setting high prices for nearly all cannabis products. But as the tables turn on Canada’s marijuana backstock, the same companies who have spent the last year pushing pricey grams are now loading baggies with mid-grade bulk.
"The Batch is a new no-frills cannabis brand focused on delivering quality cannabis flower and pre-rolls at competitive prices," said Adine Fabiani-Carter, Tilray's Chief Marketing Officer. "We expect our new product format and offerings to increase revenue and profitability over the long term."
And while local customers have not yet reported widely on the quality of Aurora, Tilray, and Canopy’s new discount weed, we’re guessing that the price-conscious pot is a welcome respite from the expensive offerings at Canadian dispensaries. All three brands of discount cannabis will hit Canadian dispensary shelves in the coming weeks and months.
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