While some cannabis companies are in no hurry to transport their 2.0 products, others are aiming for a first-mover advantage, Cantor Fitzgerald’s Pablo Zuanic said in a Thursday note, adding that “it is not all up to them.”
“The timing of 2.0 availability will depend on each province’s buying patterns.”
One year after Canada legalized recreational marijuana, the government is now rolling out "Cannabis 2.0" — the availability of edibles, extracts and topicals.
British Columbia 'First Out Of Gates'
British Columbia is the first province to welcome 2.0 products, and sales began there Thursday, Zuanic said.
The products include a vape, two cartridges, a mint, two chocolates and one cookie product, all from Aurora Cannabis Inc. (NYSE: ACB), the analyst said.
Retailers in British Columbia couldn’t place orders in advance, as the board wasn’t able to affirm which products would arrive, he said, adding that companies have been revising their shipments almost daily.
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British Colombia was the fourth-largest cannabis market in September with $12 million in sales, but lagging per-capita consumption at $2.40 per month.
“Perhaps 2.0 products will help boost per caps in the province,” Zuanic said.
Ontario Was Canada's Largest Cannabis Market In September
As for the other provinces, the analyst said retail stores in Ontario can expect to receive their first 2.0 products by Jan. 6.
Ontario was the largest cannabis market in September, with $32 million in sales, and it has made a lot of progress recently in regard to a shortage of stores, he said.
On the other hand, Zuanic said “stores are not everything,” noting that per capita spending in Alberta in September was $5.91 versus $2.19 in Ontario.
Alberta is expected to receive the first 2.0 product shipments Jan. 12, he said.
Quebec has banned 2.0 products, and cannabis companies are working to change this, according to Cantor Fitzgerald.
Cantor Highlights Aurora, British Columbia
“Yes, of course, we realize we should not make too much of 2.0 news flow over the next four weeks (it will take time), but kudos to ACB for being first and also to BC."
Aurora clearly has good relationships in the province, with 20% of the dried flower SKUs in British Columbia's online portal, Zuanic said.
Canopy Growth Corp (NYSE: CGC) is second with 10% of the SKUs in the province, the analyst said.
Aurora shares were trading 0.88% higher at $2.30 at the time of publication.
Canopy Growth shares were trading 0.3% higher at $20.13.