Short­ages are short-term, in­sists Canopy Growth

Sup­ply and de­mand mar­ket equi­lib­rium com­ing

The Telegram (St. John’s) - - BUSINESS - Tele­gram@thetele­gram.com

At least two Tweed stores in St. John’s were al­most en­tirely sold out of prod­ucts on Fri­day morn­ing.

The Tele­gram con­tacted lo­ca­tions on Ken­mount Road in the cap­i­tal city and Com­mon­wealth Av­enue in Mount Pearl and learned that nei­ther had any of the flow­ered bud or pre-rolled joints avail­able. Both stores, how­ever, were ex­pect­ing a ship­ment in the morn­ing and ex­pected to be fully stocked again by the early af­ter­noon.

The Tweed store in down­town St. John’s could not be reached.

The Tele­gram also con­tacted a cou­ple of the in­de­pen­dently owned cannabis dis­pen­saries — namely the Wild New­found­land Blue­berry Cannabis Co in Por­tu­gal Cove-st. Philips and the Par­adise Green Stop. Both say they were well-stocked with a va­ri­ety of strain and sizes, with the lat­ter sug­gest­ing an­other big or­der had just ar­rived in the morn­ing and would be on the shelves later that day.

As for when cus­tomers can ex­pect the Tweed sup­ply to nor­mal­ize, Jor­dan Sin­clair, vice pres­i­dent in charge of com­mu­ni­ca­tions for the par­ent com­pany Canopy Growth, says the end is in sight.

“There’s enough ca­pac­ity with plants in the ground and with the li­censes we’ve just re­cently re­ceived to be able to con­fi­dently see an end to this pe­riod where there are short­ages,” he says.

“Re­ally, we’re look­ing at a sys­tem that’s just been stood up, it’s just get­ting go­ing and the way that the li­cense has been is­sued and the na­ture of the agri­cul­tural prod­uct is go­ing to have a lit­tle bit of a lag be­fore the mar­ket reaches that equi­lib­rium of sup­ply and de­mand.”

While there’s been a lot of dis­cus­sion and me­dia cov­er­age of short­ages across Canada, Sin­clair says an an­gle that hasn’t been ex­plored is what could have oc­curred if there had been too much sup­ply when le­gal­iza­tion came into ef­fect on Oct. 17.

“If you think about Canopy, for ex­am­ple, we’ve in­vested close to a bil­lion dol­lars across the coun­try in all of our grow­ing fa­cil­i­ties. If we came out of the gate and there was too much cannabis — so there wasn’t enough de­mand in the mar­ket or peo­ple just pre­ferred the black mar­ket — that would have been dev­as­tat­ing for us as a busi­ness.”

FILE PHOTO

A sam­ple of cannabis for sale at a St. John’s Tweed out­let.

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.