Newfoundland sold $52 million worth of cannabis in the last year

| Staff

Newfoundland and Labrador sold $52.1 million worth of cannabis in the last year, with $14.2 of those sales in the final reporting quarter ending in April 2021, bringing in $14.5 in commissions for the province.

The results, provided in the Newfoundland and Labrador Liquor Corporation’s most recent quarterly report, were published on June 15 and represent an increase in sales of 35.7% over the previous year.

Commissions earned by the province on those sales of cannabis through licensed cannabis retailers (LCRs) totalled $4.1 million in Q4, for a total of $14.5 million for fiscal year 2021, an increase of 34.1% over the prior year. Net Earnings from the sale of cannabis totalled $11.1 million for the year, an increase of 66.4% over last year.

The report notes that “economy and larger formats” were selling well, with cannabis 2.0 products like edibles, concentrates and beverages selling was as “incremental purchases”.

Purchases in the brick-and-mortar stores made up the majority of sales ($14 million) compared to just $156 thousand for those made online through the provincial online store in Q4 2021. Although online sales increased almost 60% in the last year, they decreased by 35% in the last quarter. 

Earlier this year, the province announced plans to add 16 new retailers to their 30 already operating in the province. Eight new stores were announced in late May, a few of them containing the allowance for a drive-thru window. The NLC opened a new RFP for up to nine more locations on June 2, which closed on July 13.

The provincial cannabis regulator also announced their plans for a centralized warehouse later this year. Currently, retailers order products directly from those producers authorized to sell into the province.

The report also notes that in 2021 the NLC’s Regulatory and Compliance department worked with its partners in local law enforcement and Canada Post to investigate 27 files resulting in seizures of 148 kg of cannabis products with a market value of $1.7 million. Since legalization in October 2018, NLC’s Regulatory Compliance and Enforcement team has seized $4.8 million in illegal cannabis products. NLC is committed to providing systematic and thorough regulatory oversight that helps ensure public safety and provides a safe and secure supply of cannabis to the province. 

NLC currently has products from 19 licensed producers available for sale in the province, including supply agreements with local producers BeeHighVE and Argentia Gold. Eight new licensed cannabis producers are said to be approved for sale in the province in June of 2021.