A subsidiary of Canada’s largest medical marijuana grower announced it is lowering its MMJ prices to $5 per gram, about a third lower than the average price in the country of $7.50 per gram.
Bedrocan Canada, which is owned by Ontario-based Canopy Growth Corporation, announced the price cut as part of a new pricing structure it calls True Compassionate Pricing, and said it would apply to all six of its products. While the move will certainly please Canadian patients, it’s also an attempt to increase market share, according to the Financial Post.
Bedrocan was able to lower the price because of a new cultivation facility in Toronto, which opened last year, that is mostly automated and requires only five staffers on the floor at any given time, the Post reported. There are 27 legal growers in Canada who directly mail product to patients’ homes.
Other Canadian growers have temporarily decreased prices to as low as $5 per gram, but never for all their products. An analyst told the Post that at least one of Bedrocan’s competitors enjoyed a boost in customer share after slashing its prices, suggesting that MMJ prices in Canada are “elastic.”
While Bedrocan’s smaller competitors would find it hard to maintain those prices, it should be easier for Bedrocan because the new plant is larger and more efficient, the paper reported.