Author name: Kducey

Written June 5, 2025 | David Brown. Posted in Stratcann

The Société Québécoise Du Cannabis (SQDC) recorded $741.5 million in sales for the fiscal year ending March 29, 2025.

The 149,223 kg of cannabis sold in provincial stores and on SQDC.ca in 2024-2025 resulted in $118.1 million net profit. This, combined with additional taxes, resulted in $295.9 million going back to the provincial government.

This was an increase from $662.1 million in sales and net income of $104.1 million in the previous year, with $258 million going back to the province. The amount of cannabis sold in the province also increased by 21.8%, from 122,478 kg in 2023-2024.

The corporation generated $243.2 million in gross profit, up from $214.0 million in 2023–2024. Net expenses in the most recent fiscal year were $125.1 million, while staff compensation totalled $67.1 million.

The SQDC attributes the increase in sales to the addition of new retail locations. At the end of the 2024-2025 fiscal year, there were 104 such retail locations. Seven branches were opened during the year, and six were renovated to provide a better consumer experience. The most recent fiscal year also had one less week than the previous year.

The average selling price in the most recent fiscal year was $5.71 per gram, including taxes and for all cannabis products combined. This is down from $6.22 per gram in 2023-2024.

While most sales were in brick-and-mortar stores, sales through the SQDC’s website were $32.8 million. This was down from $40.0 million in 2023–2024. A postal strike in the third quarter of the most recent fiscal year could explain all or some of the decline in online sales. 

The Société québécoise du cannabis was recently listed as one of 14 winners of the Retail Council of Canada’s 2025 Excellence in Retailing Awards for its 90-minute delivery service from orders placed online. 

Launched in 2022, the service accounts for 43% of all online orders from SQDC. There were 133,640 orders with this delivery type during the 2024-2025 fiscal year. Two new territories were added during the year, Drummondville and Saint-Hyacinthe, bringing the number of regions where the service is now offered to nine.

For products sold in the dried flower, pre-rolls, ground cannabis, hashish, and kief categories, 381 certified products were grown in Quebec, representing 61.4% of the total product listings in the province. The SQDC sells these under the  “Cultivé Québec” label. 

Cannabis vapes are still expected in the fall of 2025, and in 2024, the SQDC also expanded its range of available accessories, including water pipes and torches, pipe screens, and adapters for concentrates.

“With a view to expanding its market coverage and being even more accessible, the Corporation plans to open new points of sale during the next fiscal year,” said President and CEO Suzanne Bergeron. “With customer satisfaction at the heart of its priorities, the SQDC will continue to take advantage of the opening of its new branches to optimize the experience with better adapted customer journeys and an improved product offering.”

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Written June 9, 2025 | Sarah Clark. Posted in Stratcann

Retail cannabis prices nudged up in March to $428.4 million from $408.2 million in February.

Sales in March 2025 were also up compared to the $406.8 million in March 2024.

After several years of consistent growth, retail cannabis sales in Canada have been fluctuating between $400 and $500 million a month for most of the past two years. Year-over-year sales have increased each month since August 2024, although for several months prior, month-over-month sales showed annual declines. 

All figures are from Statistics Canada’s seasonally adjusted monthly retail commodity sales. Looking at the agency’s unadjusted monthly retail trade sales by province and territory, Ontario continues to lead the country in sales with $174.5 million in March 2025. 

Ontario is followed by Alberta in a distant second with $81.5 million in sales, BC with $61.6 million, and Quebec with $45.6 million. Alberta and BC’s combined sales in March were less than Ontario’s. 

Similarly, Manitoba and Saskatchewan’s combined monthly sales in March ($39 million) were less than Quebec’s. 

Stats Canada grades the quality of their figures from A to C, with A being the highest quality data and C being considered “good.”

View other cannabis industry news – Click Here

Written May 30, 2025 | David Brown. Posted in Stratcann

Canada was again the largest exporter of medical cannabis products to Germany as of the first quarter of 2025.

Of the 37,223 kilograms of dried cannabis flower imported into Germany in the first three months of 2025, about half, 16,057 kg, were from Canada. The second-largest importing country into Germany was Portugal, with 12,059 kg, and Denmark in a distant third, with 2,634 kg, out of 16 importing countries. 

Cannabis flower imports into Germany have increased over the last five quarters from just 8,143 kg in Q1 2024. The amount of cannabis imported from Canada in the first three months of 2025 was about half of the total amount (33,155 kg) imported from Canada in all of 2024. That figure doubled from the 16,895 kg imported from Canada in 2023. 

The import of cannabis for medical or medical-scientific purposes into Germany is expected to continue, provided that a corresponding permit is obtained under Section 4 of the Medical Cannabis Act (MedCanG).

Cannabis for medical purposes that was cultivated in Germany under state control can also be exported, although Canada has continued to only allow cannabis imports for scientific purposes, rather than for medical use. 

An increasing number of Canadian cannabis companies have been turning to the international export market, drawn by higher prices and higher demand, especially in countries like Australia, Germany, Israel, and the UK. Some cannabis producers in Israel, Colombia, and Australia have expressed concern about their ability to compete with the amount of imports coming from countries like Canada.

From October 2018 to September 2024 (most recently available data), there were 295,933,850 grams of cannabis and  52,662.1 litres of cannabis oil exported from Canada to markets like Australia, Israel, Germany, and the UK.

Based in the US and Canada, Tilray received the first cannabis cultivation licence issued under Germany’s new Cannabis Act in July. This licence allows Aphria RX to cultivate and manufacture cannabis for medical purposes in Germany.

The American cannabis company, which operates in Canada, the United States, Europe, Australia, and Latin America, was the first to receive a cannabis production licence in the country. Canadian cannabis company Aurora and the German company Demecan are also now licensed for production in the country, as well.

In February 2024, Germany passed the German Medical Cannabis Act, expanding the country’s medical cannabis laws.

Written May 28, 2025 | Sarah Clark. Posted in Stratcann

Rubicon Organics achieved $12.4 million in net revenue in the three months ended March 31, 2025 (Q1 2025), gross profit of $4.2 million, and a $322,064 loss. 

Net revenue was down compared to the previous quarter’s (Q4 2024) record of $14.2 million, but up 39.2% year-over-year compared to the $8.9 million in revenue in Q1 2024. Product sales of $16.1 million were up from $11.4 million in Q1 2024. The company incurred $3.7 million in federal excise taxes, representing 23% of the $16.1 million in sales. 

The company’s $322,064 net loss was down considerably from a $1.9 million net loss in Q1 2024.

Rubicon’s production base is anchored by its fully licensed Delta Facility in BC, expected to be complemented by the planned acquisition of the former Canna Farms facility in Hope, BC, which the company says will expand its production capacity by over 40% and support future growth in both domestic and export markets. 

The Delta facility has an annual production capacity of 11,000 kg. The Hope facility will add an annual production capacity of 4,500 kg.

”We’re proud to deliver another strong quarter of revenue growth and profitability. Rubicon is cementing its leadership in premium organic cannabis through innovation, disciplined execution, and brand trust,” said Margaret Brodie, CEO. “With the removal of conditions for the purchase of the Hope Facility and the successful completion of our $4.5 million private placement, we are well-positioned for long-term growth, both in Canada and internationally. Our strategic priorities remain focused on disciplined growth, operational efficiency, and product innovation.”

Rubicon sells under the Simply Bare, 1964, Homestead Cannabis, and Wildflower brands. Wildflower remains the number one topical brand in Canada, with a market share of 26.6%, according to Hifyre.

The company also ranked fifth in the overall edibles category across all price tiers in Q1 2025. The Company offers edibles under the Simply Bare, 1964, and Wildflower brands, which collectively captured a 26.7% market share in the premium edible segment for Q1 2025, increasing from 22.8%2 in Q1 2024, and a 27.2% share for the 12 months across all premium edible categories in Canada, increasing from 8.5%2 in prior year. The Company ranked fifth in the overall edibles category across all price tiers in Q1 2025.

While many Canadian cannabis companies have begun focusing on the export market, Rubicon says they are continuing to focus primarily on serving the domestic market. However, the company will continue to test the waters of the international market with small amounts in 2025, while ensuring that the Canadian market remains its priority. Rubicon recently made its first international shipment to Poland. 

In May 2025, the company announced the appointment of Glen Ibbott, a cannabis industry veteran and former Chief Financial Officer of Aurora Cannabis Inc., as its Interim Chief Financial Officer.

Written by Johnny Green on May 26, 2025. Posted in Business. 

Germany’s legal medical cannabis industry continues to expand at a staggering rate, as demonstrated by new medical cannabis import numbers. In the first quarter of 2025, Germany imported over 37.223 metric tonnes of medical cannabis products.

To put that figure into perspective, the total imports for Q1 2025 increased by roughly 14.8% compared to the Q4 2024 total (32.419 metric tonnes), which was itself a record at the time. Q1 2025’s import total is an increase of over 457% compared to the same period one year ago. Germany imported 8.143 metric tonnes of medical cannabis products in Q1 2024.

Alfredo Pascual, CFA, Executive Director at Seed Innovations Ltd (LON: SEED), posted the updated statistics on his LinkedIn page earlier today:

Germany

Cannabis stores in Ontario sold nearly 409 million grams of cannabis in 2024, worth more than $2.15 billion in sales, an 11.3% increase from the previous year.  

The 432,495,489 grams of cannabis the OCS shipped to cannabis stores in the province was a 16% increase compared to 2023, and 106,691,440 units, a 14% year-over-year increase. The price of cannabis continued to decline in 2024, while the number of Ontarians who say they only buy legal cannabis has continued to increase.

Cannabis pre-rolls were the most commonly distributed unit, followed by dried flower and then edibles. Edibles surpassed dried flower in terms of units shipped to retailers for the first time in the last few months of 2024.

Infused pre-rolls and vapes continued to compete for the fourth and fifth most distributed units, followed by beverages, concentrates, caps and oils, topicals, and then seeds.

While the amount of units of (infused and non-infused) pre-rolls increased in 2024 compared to 2023, along with edibles, vapes, beverages, and concentrates, dried flower SKUs decreased.

Vapes once again received the most complaints by product category, with 71% of the 2,334 complaints received by the OCS. This was followed by dried flower at 16%, extracts at 9%, and edibles at 4%. The most commonly sold vape product was again 510-thread vape carts, with 76% of vapes sold, while disposables were 22%, up from 12.7% in 2024.

As of December 31, 2024, there were 5,192 active SKUs listed by the OCS. There were 3,380 new SKUs added and 2,171 dropped.

One-half of those active SKUs are dried flower (26%) or pre-rolls (24%). Another 15% were vapes, 11% were infused pre rolls, 7% were edibles, 5% were other concentrates (distillate, hash, kief, shatter and wax), 4% were beverages, 4% were extracts (capsules, bottled oils, softgels and oral sprays), and 2% were topicals.

Dried flower, pre-rolls, vapes, and infused pre-rolls sales all increased year-over-year.

On average, the wholesale price per gram of dried flower (without HST, including dried flower and pre-rolls) was $3.81 in Ontario in 2024, down from $4.05 a gram in 2023.

There was also an increase in the percentage of Ontarians reporting buying only legal cannabis in 2024, according to Statistics Canada, with 61% of Ontario cannabis consumers saying they only buy legal cannabis, up from 54% in the previous year.

The number of cannabis stores increased by just six in 2024, totalling 1,720. The most significant change was the GTA, which saw 40 new stores in this period, while Toronto had 43 fewer stores than the previous year.

The Ontario portion of the Federal Cannabis Excise Duty from 2022-2024 brought in $656 million ($310M in 2022-23 and $346M in 2023-24). The province projects another $376 million in the 2024-2025 fiscal year.

The Ontario Cannabis Store’s income was $234 million in 2022-2023 and $244 million in 2023-2024. It was projected to decline in 2024-2025 to $215 million.

Written May 26, 2025 | David Brown Posted in Stratcann

Cronos Group Inc. brought in $32.3 million in net revenue and reported $13.7 million in gross profit in the three months ended March 31, 2025 (Q1 2025), with $7.7 million in net income and $3.2 million in comprehensive income (all figures in US dollars).

The cannabis producer saw a $7 million year-over-year increase (15.6%) in net revenue compared to Q1 2024, which the company attributes to higher international sales, as well as cannabis extract sales in the Canadian market.

Also, due to the consolidation of Cronos GrowCo’s results of operations in the company’s financial statements beginning July 1, 2024, Cronos GrowCo contributed $2.9 million of cannabis flower sales in the three months ended March 31, 2025. No such sales were recognized for the three months ending March 31, 2024.

Cost of sales for Cronos also declined compared to the same quarter in the previous year, which the company says was primarily due to lower direct costs and production efficiencies, partially offset by higher sales volumes and the impact of the inventory step-up from the Cronos GrowCo Transaction.

Cronos reported $9.6 million in federal excise taxes on $41.9 million in sales in the first three months of 2025, or a nearly 23% rate.

Cronos GrowCo is licensed to sell certain cannabis products to other license holders in the wholesale channel, as well as to provincial cannabis control authorities. It is also licensed to export dried flower to the Israeli medical cannabis market.

On June 20, 2024, Cronos Group made an additional investment, the “Cronos GrowCo Transaction,” in Cronos Growing Company Inc. (Cronos GrowCo) to fund the expansion of cultivation operations.

The company’s gross profit of $13.7 million represented an increase of $9.3 million from the three months ended March 31, 2024. The increase was mainly attributed to higher sales volumes and average sales prices, lower direct costs, and production efficiencies, partially offset by the impact on cost of sales from the inventory step-up from the Cronos GrowCo Transaction.

“2025 is shaping up to be a transformative year for Cronos as we execute our strategic priorities to drive revenue growth, expand margins, and maintain disciplined cost management,” said Mike Gorenstein, Chairman, President and CEO of Cronos.

“While strong demand for our flower products has recently outpaced supply, we are confident that our Cronos GrowCo expansion, on track for completion in the second quarter with initial sales in the second half of the year, will unlock significant capacity to meet this demand and fuel our next phase of growth.”

Cronos reports through one consolidated segment, including operations in Canada and Israel. In Canada, Cronos operates one wholly owned license holder under the Cannabis Act, the Peace Naturals Project Inc., which has production facilities near Stayner, Ontario, called the Peace Naturals Campus.

On July 1, 2024, the company also obtained majority control of the board of directors of Cronos GrowCo, a license holder under the Cannabis Act. Cronos maintains its 50% equity interest in Cronos GrowCo. Cronos says the construction of GrowCo’s expanded cultivation facilities is on track for completion in Q2 2025, with first harvests and sales beginning in the second half of the year.

In Israel, Cronos operates under the IMC-GAP, IMC-GMP and IMC-GDP certifications required for the cultivation, production, distribution and marketing of medical cannabis products in Israel.

Israel has recently threatened to add a tariff of up to 165% on Canadian medical cannabis products brought into the country. While the future of those tariffs is in dispute due to internal conflicts in the Israeli government, the Minister of Economy has said he will still be moving forward with them.

In a recent interview, Israel’s Ministry of Economy, Danny Tal, specifically called out The Cronos Group by name. According to Tal, Cronos accounts for more than 75% of total imports from Canada, accusing them of being the most prominent participant in the alleged “dumping” process.

In response, Mike Gorenstein, the CEO of Cronos, recently told StratCann that such claims are unfounded.

“The idea that Cronos is sitting on immovable inventory and shipping it to Israel because it’s ‘cheaper than destroying it’ is pure fiction, which is par for the course in the Trade Commissioner’s investigation,” says Gorenstein. “As I have said before, we are struggling to keep up with global demand, which is why we announced a 70% capacity expansion at Cronos GrowCo last year.

Written May 8, 2025 | Sarah Clark Posted in Stratcann

Organigram Global Inc. brought in $42.5 million in net income for the three months ending March 31, 2025 (Q2 2025) from $102.8 million in gross revenue and $65.6 million in net revenue.

Net income for the Moncton-based producer increased 163.8% year-over-year compared to Q2 2024’s net loss of $27.1 million and an increase from the $23 million net loss in Q1 2025.

The company harvested 21,133 kilograms of cannabis flower in the first three months of 2025 and sold 19,701 kilograms, a 1% and 17% increase YOY, respectively. Organigram attributed this increase to the success of its large format value products, an increase in international sales, and higher sales of infused pre-rolls.

Of the $65.6 million in net revenue, $56.7 million (87%) was from sales in the adult-use market in Canada, while $6.1 million (9%) was sold in the international market, and $2.9 million (4%) was from other revenues.

These increases in recreational cannabis revenue were mainly attributed to financial contributions from Motif and international sales, respectively. Organigram acquired Motif in December 2025. The newly acquired Motif London Facility, which serves as a dedicated central Ontario distribution hub, is anticipated to reduce shipping costs and streamline logistics, enhancing overall operational efficiency.

In addition to its flagship Moncton facility, Organigram has acquired production facilities across Canada, including in Ontario, Quebec, and Manitoba.

“Our record revenue this quarter reflects the strength of our brands and our ability to execute across both domestic and international markets,” said Beena Goldenberg, Organigram’s CEO. “We are unlocking meaningful global growth potential—from increasing sales into key international markets like Germany, to our entrance into the US hemp-derived beverage space. We expect this momentum to continue as we further strengthen our leadership in Canada and head into the seasonally stronger back half of the year.”

While dried flower and pre-rolls continue to dominate Organigram’s sales, in Q2 Fiscal 2025, the company held the number three market position in the gummy category and holds 5.6% of the cannabis infused beverage category. Through the company’s acquisition of Motif, Organigram also leads in market share in the vape category.

Organigram also sells internationally with medical customers in Australia, Germany, and the UK, and has completed a significant strategic investment in a German cannabis leader, Sanity Group, to establish a foothold in the growing European cannabis market.

The company has also completed strategic investments into two U.S.-based companies, OBX and Phylos. Through its acquisition of CPL, Organigram participates in the hemp-derived beverages segment. The company says it continues to monitor and explore opportunities in the US market.

In February 2025, Organigram also closed on the final $41.5 million tranche of funding from British American Tobacco’s Jupiter Pool funds, helping strengthen the company’s balance sheet and fuel international expansion goals.

​​In 2023, Organigram said most of a $124.6 million investment from British American Tobacco (BAT) would be used to create a strategic investment pool named Jupiter, focusing on emerging cannabis opportunities, including geographic expansion. In 2021, the deal was first announced as a C$221 million strategic investment and has continued to evolve over the years.

The company paid nearly $37.2 million in excise taxes on its gross revenue of $102.8 million, for a rate of about 36%.

Written May 12, 2025 | Sarah Clark Posted in Stratcann

Village Farms International, the parent company of Pure Sunfarms, reported US$39.2 million in cannabis sales for the three months ended March 31, 2025 (Q1 2025). (All figures in US dollars).

The bulk of those sales, $34.8 million, were from the Canadian market (including exports), for a net of $3 million after costs of sales and other expenses. 

The bulk of those cannabis sales were from branded revenues, $22.8 million (reported net of excise tax on products), while $6.3 million came from non-branded sales. In addition to sales through Pure Sunfarms, Village Farms has an 80% ownership interest in Rose LifeScience Inc., with a presence in Quebec as a cannabis supplier, producer, and commercialization expert.

Another $5.4 million came from international sales, while sales in the US under the company’s wholly owned subsidiary, Balanced Health Botanicals, were $3.9 million. Balanced Health develops and sells cannabidiol (CBD) based products in the US market, including ingestibles, edibles, and topicals. Net income from US cannabis sales, after costs, was $58,000.

Village Farms also owns Leli Holland BV, a vertically integrated licensed producer and supplier of cannabis products sold to coffee shops in the Netherlands. The company reported $486,000 in sales through Leli. The first harvest from the Leli facility was expected to hit markets earlier this year. After expenses, Village Farms reported a net loss of $242,000 from its Netherlands facility. 

Branded cannabis sales in Canada were down 27.5% from the same quarter in the previous year (Q1 2024), while non-branded sales remained relatively level (-3.2%). 

International cannabis sales were up 72.2% year-over-year from Q1 2024, while sales in the US were down 16.2%. 

“Our first quarter results demonstrate success in our strategy to drive more profitable sales in Canadian Cannabis, with our strongest quarter of adjusted EBITDA performance in three years and another quarter of healthy cash flow from operations,” said President and Chief Executive Officer Michael A. DeGiglio. 

“Sales of higher margin medical exports from Canada grew 285% year-over-year, contributing to gross margin expansion in Canadian Cannabis to 36% and placing us firmly on track to meet our stated target of tripling international export sales in 2025. We are maintaining a top market share position in Canada despite our reduction in lower-margin branded sales, and feel confident in our ability to drive operating leverage through the business as our international revenues continue to increase.”

“The first quarter also saw the initial contribution of our first European recreational cannabis sales through our Leli Holland subsidiary in the Netherlands, where sales began in late February,” he added. 

“Our Phase I operations are now fully ramped, and we are feeling very confident about the quality of our products and position in this new marketplace. We are continuing to introduce new products into the market and expect to complete our Phase II facility in Groningen in Q1 2026. The completion of our Phase II facility is expected to quintuple our annual production capacity, and given the more favourable margin profile of our Netherlands recreational sales, we believe this will position us to drive a very strong year of profitable growth in 2026.”

High taxes in Canada, flower prices increasing

For the three months ended March 31, 2025, Village Farms incurred excise duties from Canadian cannabis sales of $13.9 million (C$20 million), or 38% of gross branded sales. This compares to $19.7 million (C$26.6 million), or 40% of gross branded sales, for the three months ended March 31, 2024. 

For the three months ended March 31, 2025, 65% of net sales were generated from branded flower, pre-rolls and cannabis derivative products, down from 77% for the three months ended March 31, 2024. 

Non-branded, international, and other sales accounted for 35% of Canadian cannabis net sales for the three months ended March 31, 2025, compared with 23% for the three months ended March 31, 2024.

The net average selling price of branded flower and pre-roll formats also increased in 2025 compared to 2024. Excluding pre-roll formats, the average net selling price of branded flower increased by 11% in 2025 due to a lower sales ratio for Pure Sunfarms’ value brand, Fraser Valley Weed Co.

The net average selling price of bulk non-branded flower increased by 33% and bulk trim increased by 43% in 2025, which the company says is primarily due to an increase in the market price and a reduced need to move aged flower inventory compared to 2024.

Written May 12, 2025 | Sarah Clark. Posted in Policy.

Health Canada has updated regulations governing the nation’s cannabis operators to address industry challenges while keeping intact public health and safety standards.

The updates to the nation’s Cannabis Act as well as the Cannabis Regulations and Hemp Regulations were published March 12 in the official Canada Gazette.

Pre-rolls are no longer limited to 1 gram for each unit, and the use of ethyl alcohol in certain cannabis products is now allowed as an ingredient in inhaled extracts up to 7.5 grams.

Packaging for dried marijuana, fresh cannabis or seeds now can have cutout windows and containers as well as different colors, not just one.

Labels now can include QR codes and peel-back labels are permitted on all package sizes, not just small containers.

Other changes to the regulations include:

• Researchers no longer need a license to conduct non-human or non-animal research while possessing 30 grams or less of dried cannabis or its equivalent.
  
• The limit for micro-cultivators growing increased from a 200-square-meter canopy to 800 square meters with no limit on how much volume of cannabis can be grown.
  
• Micro-processors production capacity increased from 600 kilograms (roughly 1,323 pounds) to 2,400 kilograms.
  
• Health Canada can suspend licenses operators that have unpaid fees or who fail to submit a statement of cannabis revenue.
  
• The regulatory changes are expected to save licensees nearly 18 million Canadian dollars (roughly $12.5 million) in compliance costs and more than CA$24 million in administrative costs, according to StratCann.

Written by Hazel Norman on March 3, 2025. Posted in Policy.