The Alberta government announced today that it will begin adding a six percent markup on the wholesale price of cannabis starting February 25.
The province did not initially add any markup to cannabis prices, a move they say was to help combat the illicit market.
According to a letter AGLC sent out to cannabis producers and retailers and other related stakeholders, the change in policy is a reflection of the current maturity of the legal market in Alberta more than three years in.
The Alberta government also announced that starting Feb. 25, the two percent Public Education Fund Fee (PEFF) will no longer be charged on gross shipment amounts.
The six percent markup will apply to all cannabis products across all categories.
|MSRP without Markup||MSRP with 6% Markup|
|Best Seller 0.35 gram Pre-Roll|
(ccost per unit based on 10 pack)
|$ 1.89||$ 2|
The AGLC emphasizes that while it sets the wholesale price, each retailer is responsible for determining its own retail, consumer pricing.
The provincial regulator also says that the markup will be offset by falling cannabis prices, arguing that cannabis prices have fallen over 40% since the beginning of legalization in October 2018, and an expectation of them continuing to fall another 10-15% in the coming years.
Alberta will also be closing their province-run online cannabis store on March 8, and allowing private retailers to take over the online sales channel in the province.
There are currently more than 750 private retail cannabis stores in Alberta.