The head of Ontario’s cannabis distributor says the “race to the bottom” happening with cannabis prices risks hurting the market’s future.
“Once you condition consumers to certain prices, it may take a generation to change perceptions and price tolerances,” David Lobo, Ontario Cannabis Store president and chief executive, said in a speech at the Lift cannabis conference in Toronto on Thursday.
“In an economy where inflation has impacted every other consumer good, we can’t keep pushing lower.”
His remarks come as the cannabis boom that materialized in 2018, when the substance was regulated, and money poured into the sector, has since dissipated. Cannabis companies are taking multimillion-dollar writedowns, laying off staff, and rethinking their product mixes as the industry gets a better sense of consumer demand and regulatory hurdles.
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