A THRIVING black market and cloying limits on sales and advertising are restricting cannabis brand recognition in the fast-growing Canadian legal market place.
Bloomberg reports the number one question for Canadian High St retail stores is ‘What is your highest-THC product?’ not ‘What brand is it?
The poll of 3,000 people by the Brightfield Group found that two out of every five respondents said they were aware of Canopy Growth’s Tweed brand, while a further 17 different brands had less than 20% name awareness.
Strict rules on packaging, design and naming were implemented by the Government to curtail youth consumption and recent reports show the black market continues to account for up to half of Canadian cannabis sales.
More Job Losses In Canada
This longevity of illegal cannabis may partially explain the ongoing round of lay-offs at the licensed producers with Organigram Holdings being the latest, announcing it was axing 220 employees – over 25% of its workforce.
Likewise Canopy Growth has announced further job cuts while saying it is looking to the US CBD market and cannabis-infused vapes and drinks, for future growth.
Aurora has announced plan to close five smaller facilities in order to focus production and manufacturing at the company’s larger scale sites, with more jobs to go.
In February, it said it was taking $1bn in write-downs and 500 job losses.
Its co-founder Terry Booth has retired from the board of directors. It went on to say it plans to boost cannabis production at its Nordic facility in Denmark.
UK Supply Deal For Aussie Firm
Meanwhile fellow Canadian firm Khiron Life Sciences announced that it has signed a deal with Red Yellow Red for its Kuida CBD ‘cosmeceutical’ brand to be distributed through four major multinational drug store health and beauty groups in Spain.
The company also announced it had entered into an agreement to sell its medicinal cannabis products to Nimbus Health, a leading German distributor of prescription drugs to pharmacies.
In Greece, Kalacan Hellas is to press ahead with plans to grow and manufacture 831,598 sq ft of medical cannabis products in the region of Kalamata.
In the UK, Australian firm Little Green Pharma has exported over 1,000 units of medicinal cannabis oil to the LYPHE Group’s sister company Astral Health.
Under the sales agreement, LYPHE will prescribe and dispense Little Green Pharma’s medicinal cannabis products to patients at its clinics.