Despite its lower production costs and sustainability advantages, outdoor cannabis cultivation has had a challenging go of it in Canada’s legal market. While large-scale indoor and greenhouse operations dominate, outdoor growers face unique challenges—from market oversaturation to unpredictable weather. Yet, those who have weathered the storm are beginning to see glimmers of opportunity.
Industry insiders are witnessing shifts that could signal a turning point for outdoor cultivation, but what are the biggest hurdles facing this important part of the sector, and what can be done about them?
“[A big challenge] has historically been the oversaturation of product,” said Che LeBlanc, Director and Founder of Rosebud Cannabis Farms. “A lot of large, broad-acre producers saturated the market with a medium-quality product. We are still facing some of that, although it is lessening all the time.”
LeBlanc added that from his perspective, things are getting better for outdoor producers, but he doesn’t recommend that anyone get a fresh license at this time. However, he sees a trajectory to potential profits mainly because many larger producers have closed or shifted to international sales.
“That’s the big change I’m seeing right now in our industry. A lot of our product is moving internationally, with more all the time. This means there is less product available here, less of a saturated market.” he said. “Also prices are slowly returning as well in the domestic market.”
LeBlanc said that international sales as a current moneymaker, until the domestic market strengthens, is an effective way to pull in some revenue, which is why Rosebud does take advantage, with two SKUs in Australia under a co-branding opportunity. There are also a number of other opportunities in different international markets they are currently considering.
That being said, he added that Rosebud’s heart is in their community, which is where they want to sell their product. They just need to ensure everything is profitable at the end of the day.
“International sales is a great opportunity,” he said. “If it’s not panning out to line up that opportunity as an independent, then it would make sense to work with another company.” He added that there are now a number of companies acting as conduits to international sales.
McIntyre Creek Cannabis is another strong player in the outdoor cultivation sector that is taking advantage of other countries’ needs for quality products, but CEO Colin Davison points out that it may not be for everyone.
“Export is definitely not going to be for every level of outdoor grower, because it does present a level of quality complexity,” he said. “We definitely need to touch the flower more in order to meet the medical requirements of shipping to Germany, United Kingdom, South Africa, and Australia, which are the four primary places that we ship.”
Davison added that the price they make for their products abroad justifies the added quality control.
B2B Bread and Butter
So beyond export, where is this outdoor cannabis all going, and how does it fit into the big picture for the Canadian market? Davison said the vast majority of outdoor producers are focused on supplying for domestic B2B.
“There are still some LPs trying to integrate growing, processing, and marketing brands, however I would say that’s the outlier. Most companies are not finding profitable success in that fashion.”
To that point, several outdoor cannabis operations attached to larger companies have ceased in the last few years due to financial pressures and industry challenges. For example, Canopy Growth shut down its outdoor cultivation operations in 2020, citing oversupply and cost-cutting measures. Phoena Group (formerly CannTrust) wound down operations in 2023, and Auxly sold its outdoor facility in Nova Scotia in 2022.
Most recently, however, innovations in genetics and cultivation are helping, and outdoor flower is seeing a renaissance of sorts in domestic bagged consumer SKUs.
“You can get high-potency THC distillate or high-potency THC diamonds and you can inject that into flower,” said Davison. “The knock on outdoor sometimes is that it’s not as potent as indoor, but we’ve seen the evolution of genetics. I can grow 24% – 28% THC flower outdoor now, whereas in the first few years [of legalization] we struggled to get 21% THC, so genetics have come a long way.”
Outdoor flower has also traditionally been a great input for solventless products, and as such, live resin and live rosin have been obvious transactions. Davison pointed out that there has now been a “big switch” to put outdoor flower in pre-rolls, particularly infused pre-rolls.
“There isn’t really the demand to grow indoor flower for infused pre-rolls [anymore]. The flower and the infusion now typically come from outdoor flower, whereas just two years ago infused pre-rolls had indoor flower and the infusion came from outdoor.”
The bottom line is that both domestically and internationally, Davison feels there’s enough room for every outdoor operation to succeed.
“All outdoors are not trying to grow the same thing. There are outdoors that grow specifically for the distillate market, which is much more of a high-volume, low cost model. Then there are more craft growers, and then there’s the in-between.”
The Future of Outdoor Cannabis in Canada
While outdoor cannabis cultivation in Canada has faced its share of obstacles, there are clear signs that the sector is adapting and evolving. The shift toward international markets, the increasing role of outdoor flower in infused pre-rolls and solventless extracts, and improvements in genetic potency all point to a more sustainable future for outdoor growers.
The market will likely continue to separate into distinct segments: large-scale producers growing for extraction, craft cultivators focused on premium flower, and those navigating a middle ground. As consumer preferences evolve and regulatory frameworks shift, outdoor cannabis could carve out a more significant role in Canada’s legal industry, not just for its cost-effectiveness but also for its potential to meet the growing demand for high-quality, sustainable cannabis products at home and abroad.
Adaptability and strategic partnerships will be key for those still in the game. Whether through export opportunities, B2B supply chains, or premium niche markets, outdoor growers who can differentiate themselves and remain financially viable will be the ones leading the charge in the years ahead.
Cannabis sales spiked to a new high in December 2024 of nearly half a billion dollars, but overall, retail sales continue to show signs of slowing down following exponential growth in the first few years of legalization.
As this initial momentum cools off, retailers in Canada say they continue to see new aspects of the market and much more noticeable seasonal and even regional differences.
Several retailers we spoke with, representing large chains operating in several different provinces, say they continue to see year-over-year growth in most markets at around five to six percent. This growth is driven not only by new stores, something that has slowed down in the past few years, and retail consolidation, but also by bringing in new clients and creating better customer loyalty.
Plantlife Cannabis
“I know we’re still growing, maybe about five-and-a-half percent, but it’s not the same year-over-year growth we saw earlier,” says Ashton Faulkner, a regional manager at Plantlife Cannabis, which has 42 locations in Alberta.
We have a lot in the pipeline in terms of a growth plan and more shops. At the same time, we see some that are really struggling. Some mom-and-pops can’t necessarily compete with some of the advantages of the bigger chains.
Faulkner, who is based in Edmonton and has been with Plantlife since 2019, recalls the rapid expansion of the market in those early days of legalization. He says that while growth has obviously slowed, he still sees a healthy market with opportunities.
“I still think there’s some growth there, at least on the Plantlife side. I also think the craft and premium categories are bringing in new consumers that are helping with our growth. So I don’t think we’re at a plateau yet, I think we’re a couple years from that.”
What has become more noticeable as the market matures, says Faulkner, are some of the seasonal and regional nuances of sales. Some areas have more budget-focused shoppers, while others prefer large format flower SKUs or high-potency products.
“We do see completely different trends in different regions,” he explains. “Calgary, for example, is known for being more bargain-based, especially with a large number of university students. When we go north into places like Fort Mac, we see a lot of high potency, high-end products, and concentrates,” something he attributes to more customers working in the trades.
Cannabis beverages on display at a retailer in British Columbia
Meanwhile, beverages sell better in the summer, along with customers just popping in for something convenient like a pre-roll, while winter sales—especially around the holidays—focus more on large-volume purchases.
“Pre-rolls are always popular, but we see a spike in sales in the summer months.”
He says he doesn’t think it’s gift-giving so much as people stocking up while having time off from work or school, or even preparing themselves for holiday gatherings.
“I find [seasonality] is a mixed bag,” adds Faulkner. “Year over year it changes as new products come out. With the holidays you get a lot more bulk purchases with consumers getting more things at once, as opposed to just one quick single purchase.”
Owner-operators are not going anywhere. There’s a ton of consolidation through franchises, but there’s a ton of indies that are doing well across Ontario that usually hyper-perform in their local areas. I think those owner-operators will keep their businesses, whereas I think we’ll see all the chains melt into one another.
There are still a lot of opportunities in the retail space, although he does see challenges for independent operators.
“I think for us [at Plantlife], the skies are the limit. We have a lot in the pipeline in terms of a growth plan and more shops. At the same time, we see some that are really struggling. Some mom-and-pops can’t necessarily compete with some of the advantages of the bigger chains. But we’re definitely seeing good growth on our end.”
Eric Chittim, VP of supply chain at True North Cannabis, with 48 locations in Ontario, says he sees a spike in vape sales in the winter, which he attributes to people not wanting to go outside to smoke flower when it’s cold out. Flower sales, he says, are more common in the summer, as are beverages, echoing a trend noted by every retailer StratCann spoke with.
“Wintertime would be heavy disposables and vapes and the summertime is high flower sales,” says Chittim.
Similar to what Fualker says he sees in the Alberta market, Chittim also says he sees single-digit growth through the next year or so, but sees that growth ultimately cooling off.
“I see us probably being flat or single digit this year. I feel this year is the last year of retail growth and next year is when I project downward trends for the Ontario market.”
While there are always popular, in-demand products that all retailers need to carry, Chittim says retailers need to also focus on bringing in more unique products that, while not always high-volume, can bring in a loyal clientele who then might purchase other products. One of those product categories is capsules and oils, especially as a budget-friendly alternative to edibles.
Cannabis capsules, oils, and topicals on display at a retailer in Ontario
“Capsules and oils are a rather small category, but it’s something with a pretty consistent base across all my stores. People are always looking for sugar free CBN products, be it oils or capsules. That’s an easy example of a wellness product that might not ever break $100k in monthly sales but will bring a customer base to your store. It is an easily overlooked product.”
However, Unlike Faulkner, Chittim says he sees a bright future for independent retailers and chains like True North. If anything, he sees more consolidation among chain stores rather than well-run independents.
“Owner-operators are not going anywhere. There’s a ton of consolidation through franchises, but there’s a ton of indies that are doing well across Ontario that usually hyper-perform in their local areas. I think those owner-operators will keep their businesses, whereas I think we’ll see all the chains melt into one another.”
Grant Sanderson, VP of cannabis retail operations at Nova/SNDL, says he also sees a similar growth rate, reflecting his colleagues and Statistics Canada’s regular-updated figures. SNDL is Canada’s largest private-sector cannabis retailer by store count, operating 187 locations across several provinces under its three retail banners: “Value Buds”, “Spiritleaf”, and “Superette.”
For sure 2025 will be an interesting year, and I think we’ll see a lot of things shake out with some continued consolidation, contradiction, and some full-exits this year.
Like Chittim predicts, Sandereson sees increasing competition among some of the larger chains as new store growth slows down.
“When markets start to stabilize, competition intensifies,” explains Sanderson. “Retailers are battling for the loyalty of the customer base, and we have to make efficient operating decisions. We all source products from the same distributors, so we need to distinguish ourselves from each other with a combination of convenience, price, service, and selection.
“For sure 2025 will be an interesting year and I think we’ll see a lot of things shake out with some continued consolidation, contradiction, and some full exits this year.”
Still, he sees a continued opportunity for growth, and into new markets, not only in larger cities that had previously banned retail and are now opening up, but also in smaller regions in many parts of Canada.
“There are still underserved areas across the country where I think there are opportunities for expansion and organic growth. I think there are a lot of spots across all provinces [that allow private stores].”
That growth can come in many ways, from leaning into new product categories to doing a better job of attracting and retaining existing consumers.
“That four wall execution means more today than it has in the past,” says Sanderson.
“That promiscuous shopper that is shopping around looking for a deal, I think there’s an opportunity to create more brand loyalty with that kind of shopper than there has been in the past. I don’t think it’s necessarily all about just price. It’s a mixture of price, execution, assortment, and service.”
Another area for growth is deliveries, which are still somewhat limited to mail order and delivery by retailers in provinces that allow it. If third-party delivery services are allowed to actually deliver cannabis for a retailer, he says he sees that being fruitful as well.
“I think when we see more red tape reduction around third party delivery, that will be the real catalyst to e-commerce. There’s still some growth there now, but that will change everything.”
Andy Palalas, the Chief Marketing Officer at High Tide Inc., which operates Canna Cabana—the largest single cannabis retail brand in Canada with over 190 retail locations from BC to Ontario—also sees continued opportunities for growth in the retail cannabis sector.
“Our same-store sales growth remains fairly strong,” says Palalas. “We also have opened up, organically, more stores than your average chain [29 in 2024]. This last year plus has been largely us opening new stores as opposed to acquiring new locations through mergers and acquisitions.
“Sales growth in general has been really strong over the past twelve months with new stores coming through, and we did about $33-34 million in January of last year. We pushed about $42 million in December. So overall the revenue picture has been quite bright for us. In terms of same store sales on mature stores, we still see meaningful growth in many of those locations.”
Like Faulkner at Plantlife in Alberta, Palalas says holiday sales are not particularly pronounced in the retail cannabis space. However, people do tend to buy more—mostly for themselves—if they are on a holiday break or vacation.
Beverages are definitely up in the summer, but they’re not a huge percentage of sales.
“I think one of those misconceptions about cannabis retail, at least in the early days, was that Black Friday was going to be a significant sales event for us. In cannabis retail in general, I don’t think those categories of cannabis are particularly conducive to gifting; we don’t see a lot of gifting going on.” [Not counting ancillary products, which he notes do increase in the holiday season].
In general, verticals like electronics and toys and other gitfables are going to do a bit better than cannabis at the end of that November mark. Really, it’s when we come into December, around the second week when folks start getting off on vacation, that we see enormous growth in sales.”
Infused and non-infused cannabis pre-rolls are popular year-round
As for seasonal sales and different product categories, like other retailers StratCann spoke to, Palalas says beverages are more popular in the summer and a bit around the winter holidays, while pre-rolls spike in summer and vapes increase in the colder months.
But while beverage sales spike in summer, he says it’s still a very small category overall, especially compared to flower and concentrates like vape pens.
“Beverages are definitely up in the summer, but they’re not a huge percentage of sales,” explains Palalas. “They are about a quarter of the size of the edibles category. Edibles are around four and a half percent under our banner, while beverages are about one and a half.
“So it does surge in the summer. It also has a pick-up in December. But pre-roll is really what we see surging in the summer. Pre rolls had a huge summer this year: it reached all-time highs in June, July, August of this year, even September. And we’ve seen that reliably pretty much every year. In general, vapes performed better this summer than they had in previous years. Pre roll is definitely the key category throughout the summer.”
Two trends in vape right now are the move to liquid diamonds, and the move to all-in-one vaporizers. Both of those have been a hockey stick up and to the right, with sequential growth that really hasn’t plateaued at all.
“Two trends in vape right now are the move to liquid diamonds, and the move to all-in-one vaporizers. Both of those have been a hockey stick up and to the right, with sequential growth that really hasn’t plateaued at all.
“Vape all-in-one devices still have lots of room for more brands to enter the space. We’re starting to see licensed producers release meaningful products in the all-in-one category. The category is wonderful because there’s a real hardware and brand component that is making the difference for consumers in that category.”
Lastly, Palalas notes differences in different provinces, something a large chain like High Tide is uniquely positioned to speak on.
BC, he says, is a difficult market for vapes because of a high retail tax and other product limitations. Meanwhile, provinces like Alberta and Saskatchewan take the lead in vape sales, while Ontario shows more willingness among some consumers to pay a bit more for higher-quality or craft-focussed products.
“BC has been a challenge on vape, despite a clear consumer desire for all-in-one formats. British Columbia is a really challenging market for vapes because of the pretty onerous consumer vape tax. We do tend to index into pre-roll much heavier in that market. It is the leading pre roll market.
“Alberta is the second-largest vape market by share and number one by volume, with around 25-26% market share,” which he says “compares to Ontario at around a 21% share and Manitoba at about a 20% share.
“Definitely Alberta is a major ready-to-use market, notes Palalas, adding that he sees a lot of downward pressure on dried flower brands in Alberta and a decline in flower sales.”
The Canadian recreational cannabis industry is over six years old at this point, which is long enough to determine that the sky has not fallen with the end of prohibition. The sector has matured, fostered innovation, and even helped normalize cannabis use after decades of prohibition and negative propaganda.
Despite these achievements, little to no progress has been made on the massive restrictions that still exist in advertising, marketing, packaging, and retail. This ongoing embargo becomes a further eyesore when considering the cannabis advertising freedoms in legal states or even the alcohol industry here in Canada.
“[The US] has colours and designs on the packages, you can just see it all over the store,” said Matt Maurer, Chair of the Cannabis Law Group at Torkin Manes. “Canada on the other hand is incredibly restrictive. The default approach is, to paraphrase the Cannabis Act, you’re not allowed to advertise at all unless you do it in accordance with how we say you’re allowed. So you start from a position where you can’t do anything.”
I think it’s impossible to not know that, given how the [cannabis] industry has been yelling at them for six or seven years about why we can give away free things on the top of a whiskey bottle, but we can’t do anything with cannabis.
The restrictive nature goes beyond advertising and into the retail framework itself. For example, anyone under the age limit is not allowed into a retail location, and in many parts of the country, it is still required for store windows to be opaque, which has been a breeding ground for robberies.
On the other hand, alcohol retailers allow accompanied minors, which makes it more convenient and safer for customers who have children with them, and liquor store windows are not obscured.
The government is aware of the double standard. “I think it’s impossible to not know that, given how the [cannabis] industry has been yelling at them for six or seven years about why we can give away free things on the top of a whiskey bottle, but we can’t do anything with cannabis,” said Maurer.
The reason changes to these areas have not been made is that the government simply has no incentive. “Who are the voters that the government would be pandering to in order to change it? It’s really just people in the cannabis industry and that’s not a large segment of voters.”
Baby steps
Despite the cannabis industry’s weak voting position, there are people lobbying for change. One such person is Paul McCarthy, President of the Cannabis Council of Canada. He feels that the government is well aware of the issues, and he’s persistently ringing the bell so they don’t forget.
“The Government of Canada is in the final stages of developing a regulatory package that would see amendments on security, packaging, labelling and a host of other things that Licensed Producers would like to see changed,” he said.
“This past summer they conducted a consultation on these proposed changes and we submitted our comments. Much of what we had to say was: please action this as quickly as possible. I have been lobbying Health Canada since October to expedite this package.”
There’s an added wrinkle in the quest for amendments to these problems—the fact that the Canadian government is in a period of significant instability. This has put a timer on the clock to get it done before the election, as chances are it won’t get done after.
“In early January, on the heels of prorogation, I wrote to the Minister of Health and urged him to push these regulatory changes through before we end up in an election,” said McCarthy. “I don’t know if we will get it done but I can tell you that we are doing everything that we can to see them come into force before a writ.”
Despite the archaic nature of these restrictions, slow improvements have been made, such as the aforementioned frosted windows situation, which has cleared up in some provinces.
“In Alberta, you don’t have to have the frosted windows anymore [and] that was driven by people getting robbed,” said Maurer. “They go in, lock the door and no one can see what’s going on. It took months of that happening, if not longer, for at least some of the provincial governments to change it.”
To serve and protect
Another glaring burden that still exists is that cannabis products, infused beverages as an example, are still not permitted in the same areas where alcohol consumption is both available and encouraged.
“Why can’t we sell cannabis beverages at events, or restaurants, or at a hotel?” said Maurer. He went on to mention that the government could create a new class of licenses for these establishments, which would basically allow the venue to purchase products from the provincial body or even retailers.
It seems McCarthy agrees these venues should have those rights, and he added some cautious optimism as well. “I do foresee a time when that happens but I don’t have any insight as to when that may be. I would add, if/when we were to achieve that, I suspect it would be a bit of a marker that we are close to treating cannabis as it should be.”
As restrictive as the Canadian regime currently is in these areas, it’s possible that the US is too far in the other direction.
“Certainly from a political point of view, they probably are,” said Maurer. “There’s stuff that looks appealing to kids.” He added that if you draw a line of distinction between what’s appealing to children and what really has nothing to do with that, you will end up with a balance. The litmus test is if children will find it enticing.
“Ask, does it make it more appealing or more accessible to children? If the answer is no, [it passes]. What else is going to happen if it’s not appealing to children? What’s the downside?”
Good things come in new packaging
It’s clear to many in the Canadian cannabis industry that it’s also time to loosen the restrictions around packaging. The current rules, as they stand, are a complete hindrance to any sort of brand loyalty or, at the very least, brand development. There’s no good way to differentiate products because it is prohibited to talk about effects and various other indicators.
“When you go into a store all you know is who makes it, the name they call it, the [potency] percentages, and if it’s an indica or sativa,” said Maurer. He went on to say that the customer can go with budtender recommendations, but those are sometimes biased based on the products they are required to move.
It seems clear that for the Canadian cannabis sector to evolve with healthy brand development, advertising and marketing restrictions need to be revised and availability increased. There are other industry examples to choose from, namely booze.
“Treat it like alcohol. You need to have a license to sell it, keep the prohibitions on certain types of packaging, but let adults purchase it outside of cannabis stores at venues where it makes sense.”
January marks Alzheimer’s Awareness Month, a time to reflect on the growing impact of dementia on individuals and families across Canada. The numbers are frankly alarming – over 700,000 Canadians are currently living with this condition, and projections suggest that the number could double by 2050.
It’s not just the memory loss; for many with moderate to severe Alzheimer’s, agitation and aggression become a daily struggle, deeply affecting both the individuals themselves and those who care for them.
As a pharmacist, I’ve witnessed these struggles firsthand and seen the frustration when conventional treatments just don’t seem to make enough of a difference. It’s in this context that the potential role of cannabis has begun to spark interest and raise important questions.
A glimmer of hope: what the research suggests
The connection between cannabinoids and dementia is still a developing area of research, but some promising findings have emerged. As a pharmacist, I find it particularly intriguing to see studies exploring cannabinoids’ potential to address challenging symptoms like agitation and aggression in Alzheimer’s patients.
For example, a 2018 study conducted at Sunnybrook Health Sciences Centre demonstrated that nabilone, a synthetic cannabinoid, significantly reduced agitation in patients, with a 47% decrease compared to a 23% reduction in the placebo group. A more recent 2024 study from Johns Hopkins and Tufts Universities found that dronabinol, another synthetic cannabinoid, showed similar benefits in reducing agitation, with fewer side effects than traditional antipsychotics.
While these early studies give a glimmer of hope, they also emphasize the need for cautious, informed application of cannabinoids in dementia care, given the complexity of their effects on the brain.
The importance of careful guidance
Cannabinoids interact with a brain affected by Alzheimer’s in unique and sometimes unpredictable ways. While many people turn to cannabis for its calming properties, dementia patients may experience adverse effects, such as heightened confusion or excess sedation. As a pharmacist, I’ve seen firsthand how these complexities require thoughtful consideration and a tailored approach.
This is why I advocate for pharmacist-led guidance when exploring the use of cannabis. With our clinical training and understanding of both conventional and alternative therapies, pharmacists are uniquely positioned to ensure cannabis is used safely, effectively, and in alignment with the specific needs of each patient. At Apothecare, my co-founder Ajay Chahal, a fellow University of Toronto-trained pharmacist, and I are dedicated to closing the gap between traditional and alternative medicine.
As pharmacists, we understand the complexities of incorporating cannabis into patient care, and we’re passionate about empowering patients and caregivers to make informed decisions. Our approach is rooted in evidence-based cannabis education, ensuring that any use of cannabis is accompanied by close monitoring and a plan tailored to each patient’s unique needs. We see ourselves as trusted navigators, helping patients and their families understand the intricacies of cannabis therapy, and prioritizing safety and efficacy every step of the way.
Looking ahead: the future of research
The conversation around cannabis for wellness purposes is constantly evolving, and Canada is playing a key role in this ongoing research. While the initial findings on cannabinoids and their potential to improve quality of life for dementia patients are preliminary, it’s important to remember that more research is needed. We need larger-scale studies to really establish best practices and robust safety guidelines. That said, even the limited research done so far offers some encouragement.
For anyone considering cannabis as a potential treatment option, I urge you to have a thorough conversation with your healthcare provider. It’s about making informed decisions, weighing the potential benefits against the risks, and ensuring proper oversight. With the right approach – grounded in education, careful monitoring, and personalized care – cannabinoids could potentially become a valuable tool in our efforts to provide better care and a better quality of life for those living with this challenging condition.
About the Author:
Anushya Vijayaraghevan is a licensed pharmacist and co-founder of Apothecare. She holds a Doctor of Pharmacy from the University of Toronto and is deeply committed to integrating evidence-based cannabis use into patient care.
While the beginning of cannabis legalization in Canada was characterized by a surplus of product, many in the industry now say that trend has been shifting to a shortage in recent months.
This is good news for cannabis growers, as it means having more leverage on the market, putting brokers and third-party processors in a less-than-ideal position for potentially the first time.
Jacquie Trombley, director of sales, marketing, and product development at Agmedica Bioscience Inc. in Ontario, says she has seen a significant shift in 2024 from a buyer’s market to a seller’s market.
There’s been a significant shift to 100% cash up front and we’re getting it! Before the product leaves our facility.
Agmedica sells in Canada’s medical and non-medical markets, both under their own brands and in the B2B market, and exports to international markets.
“Historically, we would usually have at least some inventory in our vaults, but right now the majority of the requests we receive for product go unfilled,” explains Trombley. “We get asked for product pretty much every day, and we cannot meet the demand.”
This is in part because of the increasing demand of the export market, she says, but it’s also the result of the number of cannabis producers closing up shop. Some struggling producers who might have been desperate to move products at a discounted rate are now out of the market, and, over time, this benefits those who have been able to stick it out.
This is reflected by the increase in price for not only top-quality flower, but also the rise in price for smalls and trim, which generally aren’t making their way to the international markets.
“Pricing has come up dramatically,” she continues. “We used to sell A [grade] flower for what we’re selling B [grade] flower for now. B flower and trim pricing has probably doubled.”
Another big turn, says Trombley, is payment terms for growers who are selling to processors, something that is arguably more impactful than the price increase, where various consignment deals and terms have been common for growers in the first few years of legalization, meaning full payment might not have been provided for some time after product had sold in a provincial market.
“We are no longer offering terms to B2B domestic buyers because you just might not get your money,” she continues. “There’s been a significant shift to 100% cash up front and we’re getting it! Before the product leaves our facility.”
This is a big deal for small growers who are struggling to keep the lights on.
“Right now, I think some of those smaller companies absolutely can demand cash up front right now, or at least improved payment terms.”
Steve Clark, founder of the Canadian Cannabis Exchange, says the issue is something many in the industry have been discussing this year.
“We are seeing domestic supply shrinking in a number of ways,” says Clark. “The closures of growing facilities and reduction of square footage of canopy in Canada. The companies who were producing for their own internal supply in these facilities have flipped from net sellers to net buyers, (further taking supply off the market), and the pull from export into intensive markets is reducing overall flower availability.”
Michael Gorenstein, president and CEO of the Cronos Group, another cannabis company that sells domestically and in international markets, made similar comments on a recent quarterly report earnings call.
“We’ve really seen a huge shift in the supply dynamics where we’ve had significant oversupply in the past,” said Gorenstien.
Although he says he still believes there is a large supply of low-quality cannabis flower in the market, this isn’t necessarily a product with much market demand. Quality cannabis, he says, is a different story.
“As we said in the past, there’s a difference between available cannabis inventory and available inventory that’s sellable as quality flower,” continued Gorenstien. “While there’s plenty of the former, there is now a shortage of high quality desirable flower that is sellable to consumers in Canada.”
The company’s most recent quarterly report also noted: “We are anticipating shortages in raw materials and may be unable to obtain adequate supplies of raw materials in a timely manner and at commercially reasonable prices.”
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![Rotating cannabis from Health Canada to Agriculture](<img width="1024" height="576" src="https://stratcann.com/wp-content/uploads/2022/09/BC-Cannabis-Farms-Good-Buds-1024x576.jpg" class="attachment-large size-large wp-post-image" alt="" srcset="https://stratcann.com/wp-content/uploads/2022/09/BC-Cannabis-Farms-Good-Buds-1024x576.jpg 1024w, https://stratcann.com/wp-content/uploads/2022/09/BC-Cannabis-Farms-Good-Buds-600x337.jpg 600w, https://stratcann.com/wp-content/uploads/2022/09/BC-Cannabis-Farms-Good-Buds-300x169.jpg 300w, https://stratcann.com/wp-content/uploads/2022/09/BC-Cannabis-Farms-Good-Buds.jpg 1366w" sizes="(max-width: 1024px) 100vw, 1024px" />)
![Christina Lake Cannabis completes acquisition of Midway farm](<img width="1024" height="576" src="https://stratcann.com/wp-content/uploads/2024/02/Christina-Lake-Cannabis-Farm-BC-1024x576.jpg" class="attachment-large size-large wp-post-image" alt="" srcset="https://stratcann.com/wp-content/uploads/2024/02/Christina-Lake-Cannabis-Farm-BC-1024x576.jpg 1024w, https://stratcann.com/wp-content/uploads/2024/02/Christina-Lake-Cannabis-Farm-BC-300x169.jpg 300w, https://stratcann.com/wp-content/uploads/2024/02/Christina-Lake-Cannabis-Farm-BC-600x337.jpg 600w, https://stratcann.com/wp-content/uploads/2024/02/Christina-Lake-Cannabis-Farm-BC.jpg 1366w" sizes="(max-width: 1024px) 100vw, 1024px" />)
![UBC and Aurora Cannabis looking at developing better outdoor cultivars for Canada](<img width="1024" height="576" src="https://stratcann.com/wp-content/uploads/2023/07/Cannabis-Breeding-Canada-Autoflower-1024x576.jpg" class="attachment-large size-large wp-post-image" alt="" srcset="https://stratcann.com/wp-content/uploads/2023/07/Cannabis-Breeding-Canada-Autoflower-1024x576.jpg 1024w, https://stratcann.com/wp-content/uploads/2023/07/Cannabis-Breeding-Canada-Autoflower-300x169.jpg 300w, https://stratcann.com/wp-content/uploads/2023/07/Cannabis-Breeding-Canada-Autoflower-600x337.jpg 600w, https://stratcann.com/wp-content/uploads/2023/07/Cannabis-Breeding-Canada-Autoflower.jpg 1366w" sizes="(max-width: 1024px) 100vw, 1024px" />)
![Federal government “exploring” single harmonized cannabis excise stamp](<img width="1024" height="576" src="https://stratcann.com/wp-content/uploads/2024/12/Cannabis-Excise-Canada-Tax-1024x576.jpg" class="attachment-large size-large wp-post-image" alt="" srcset="https://stratcann.com/wp-content/uploads/2024/12/Cannabis-Excise-Canada-Tax-1024x576.jpg 1024w, https://stratcann.com/wp-content/uploads/2024/12/Cannabis-Excise-Canada-Tax-300x169.jpg 300w, https://stratcann.com/wp-content/uploads/2024/12/Cannabis-Excise-Canada-Tax-600x337.jpg 600w, https://stratcann.com/wp-content/uploads/2024/12/Cannabis-Excise-Canada-Tax.jpg 1366w" sizes="(max-width: 1024px) 100vw, 1024px" />)
![Cannabis caught in interprovincial barriers](<img width="1024" height="576" src="https://stratcann.com/wp-content/uploads/2025/02/Canada-Provinces-Cannabis-Border-1024x576.jpg" class="attachment-large size-large wp-post-image" alt="" srcset="https://stratcann.com/wp-content/uploads/2025/02/Canada-Provinces-Cannabis-Border-1024x576.jpg 1024w, https://stratcann.com/wp-content/uploads/2025/02/Canada-Provinces-Cannabis-Border-300x169.jpg 300w, https://stratcann.com/wp-content/uploads/2025/02/Canada-Provinces-Cannabis-Border-600x337.jpg 600w, https://stratcann.com/wp-content/uploads/2025/02/Canada-Provinces-Cannabis-Border.jpg 1366w" sizes="(max-width: 1024px) 100vw, 1024px" />)
![Cannabis sales continue to increase in Quebec](<img width="1024" height="576" src="https://stratcann.com/wp-content/uploads/2025/02/SQDC-Q3-2024-1024x576.jpg" class="attachment-large size-large wp-post-image" alt="" srcset="https://stratcann.com/wp-content/uploads/2025/02/SQDC-Q3-2024-1024x576.jpg 1024w, https://stratcann.com/wp-content/uploads/2025/02/SQDC-Q3-2024-300x169.jpg 300w, https://stratcann.com/wp-content/uploads/2025/02/SQDC-Q3-2024.jpg 1366w" sizes="(max-width: 1024px) 100vw, 1024px" />)
![Wholesale cannabis sales in BC remain relatively stable in Q3 2024, direct delivery sales rebound](<img width="1024" height="576" src="https://stratcann.com/wp-content/uploads/2024/02/Cannabis-Stores-Canada-1024x576.jpg" class="attachment-large size-large wp-post-image" alt="" srcset="https://stratcann.com/wp-content/uploads/2024/02/Cannabis-Stores-Canada-1024x576.jpg 1024w, https://stratcann.com/wp-content/uploads/2024/02/Cannabis-Stores-Canada-300x169.jpg 300w, https://stratcann.com/wp-content/uploads/2024/02/Cannabis-Stores-Canada-600x337.jpg 600w, https://stratcann.com/wp-content/uploads/2024/02/Cannabis-Stores-Canada.jpg 1366w" sizes="(max-width: 1024px) 100vw, 1024px" />)
![New Brunswick reports $25 million in cannabis sales in final three months of 2024](<img width="1024" height="576" src="https://stratcann.com/wp-content/uploads/2023/10/Cannabis-NB-5-Years-1-1024x576.jpg" class="attachment-large size-large wp-post-image" alt="" srcset="https://stratcann.com/wp-content/uploads/2023/10/Cannabis-NB-5-Years-1-1024x576.jpg 1024w, https://stratcann.com/wp-content/uploads/2023/10/Cannabis-NB-5-Years-1-300x169.jpg 300w, https://stratcann.com/wp-content/uploads/2023/10/Cannabis-NB-5-Years-1-600x337.jpg 600w, https://stratcann.com/wp-content/uploads/2023/10/Cannabis-NB-5-Years-1.jpg 1366w" sizes="(max-width: 1024px) 100vw, 1024px" />)
![Cannabis sales and inventory figures through June 2024](<img width="1024" height="576" src="https://stratcann.com/wp-content/uploads/2025/01/cannabis-inventory-update-2024-1024x576.jpg" class="attachment-large size-large wp-post-image" alt="" srcset="https://stratcann.com/wp-content/uploads/2025/01/cannabis-inventory-update-2024-1024x576.jpg 1024w, https://stratcann.com/wp-content/uploads/2025/01/cannabis-inventory-update-2024-300x169.jpg 300w, https://stratcann.com/wp-content/uploads/2025/01/cannabis-inventory-update-2024-600x337.jpg 600w, https://stratcann.com/wp-content/uploads/2025/01/cannabis-inventory-update-2024.jpg 1366w" sizes="(max-width: 1024px) 100vw, 1024px" />)
![BC continues to debate increasing 8-store cap for cannabis retailers](<img width="1024" height="576" src="https://stratcann.com/wp-content/uploads/2024/01/BC-Cannabis-Retail-Cap-1024x576.jpg" class="attachment-large size-large wp-post-image" alt="" srcset="https://stratcann.com/wp-content/uploads/2024/01/BC-Cannabis-Retail-Cap-1024x576.jpg 1024w, https://stratcann.com/wp-content/uploads/2024/01/BC-Cannabis-Retail-Cap-300x169.jpg 300w, https://stratcann.com/wp-content/uploads/2024/01/BC-Cannabis-Retail-Cap-600x337.jpg 600w, https://stratcann.com/wp-content/uploads/2024/01/BC-Cannabis-Retail-Cap.jpg 1366w" sizes="(max-width: 1024px) 100vw, 1024px" />)
![Is the future of vapes disposable?](<img width="1024" height="576" src="https://stratcann.com/wp-content/uploads/2024/12/Disposable-Vapes-Canada-1024x576.jpg" class="attachment-large size-large wp-post-image" alt="" srcset="https://stratcann.com/wp-content/uploads/2024/12/Disposable-Vapes-Canada-1024x576.jpg 1024w, https://stratcann.com/wp-content/uploads/2024/12/Disposable-Vapes-Canada-300x169.jpg 300w, https://stratcann.com/wp-content/uploads/2024/12/Disposable-Vapes-Canada-600x337.jpg 600w, https://stratcann.com/wp-content/uploads/2024/12/Disposable-Vapes-Canada.jpg 1366w" sizes="(max-width: 1024px) 100vw, 1024px" />)
![Pump up the volume – the influence of corporate cannabis in Alberta](<img width="1024" height="576" src="https://stratcann.com/wp-content/uploads/2024/11/Cannabis-Alberta-Craft-1024x576.jpg" class="attachment-large size-large wp-post-image" alt="" srcset="https://stratcann.com/wp-content/uploads/2024/11/Cannabis-Alberta-Craft-1024x576.jpg 1024w, https://stratcann.com/wp-content/uploads/2024/11/Cannabis-Alberta-Craft-300x169.jpg 300w, https://stratcann.com/wp-content/uploads/2024/11/Cannabis-Alberta-Craft-600x337.jpg 600w, https://stratcann.com/wp-content/uploads/2024/11/Cannabis-Alberta-Craft.jpg 1366w" sizes="(max-width: 1024px) 100vw, 1024px" />)
![High Tide reports record revenue in 2024 and declining losses](<img width="1024" height="576" src="https://stratcann.com/wp-content/uploads/2025/01/Canna-Cabana-2024-1024x576.jpg" class="attachment-large size-large wp-post-image" alt="" srcset="https://stratcann.com/wp-content/uploads/2025/01/Canna-Cabana-2024-1024x576.jpg 1024w, https://stratcann.com/wp-content/uploads/2025/01/Canna-Cabana-2024-300x169.jpg 300w, https://stratcann.com/wp-content/uploads/2025/01/Canna-Cabana-2024-600x337.jpg 600w, https://stratcann.com/wp-content/uploads/2025/01/Canna-Cabana-2024.jpg 1366w" sizes="(max-width: 1024px) 100vw, 1024px" />)
![Expand legal market to better compete with illegal online sales, says U of M researcher](<img width="1024" height="576" src="https://stratcann.com/wp-content/uploads/2025/01/Interac-Cryptocurrency-Cannabis-Canada-1024x576.jpg" class="attachment-large size-large wp-post-image" alt="" srcset="https://stratcann.com/wp-content/uploads/2025/01/Interac-Cryptocurrency-Cannabis-Canada-1024x576.jpg 1024w, https://stratcann.com/wp-content/uploads/2025/01/Interac-Cryptocurrency-Cannabis-Canada-300x169.jpg 300w, https://stratcann.com/wp-content/uploads/2025/01/Interac-Cryptocurrency-Cannabis-Canada-600x337.jpg 600w, https://stratcann.com/wp-content/uploads/2025/01/Interac-Cryptocurrency-Cannabis-Canada.jpg 1366w" sizes="(max-width: 1024px) 100vw, 1024px" />)
