VFF - Cannabis Slowdown In Canada: Analyst Spotlights What Still Sells And Where The Money Is Going | Benzinga
In a recent report, Pablo Zuanic of Zuanic & Associates analyzed trends in Canada's recreational cannabis market through May 2024.
The report highlights a deceleration in market growth and notable shifts in sales dynamics among leading licensed producers (LPs).
Market Growth Deceleration
The report points to a significant deceleration in Canada's recreational cannabis market. Official data from Statistics Canada shows a mere 2% year-over-year (YoY) increase in recreational sales in the first quarter of 2024, a decline from 11% YoY growth in the previous quarter. However, Hifyre scanner data suggests a potential rebound, with 7% and 10% YoY growth projected for April and May, respectively.
Top LP Sales Trends
Among the top five LPs, Village Farms International (NASDAQ: VFF), Organigram Holdings (NASDAQ: OGI), and Cronos Group (NASDAQ: CRON) saw double-digit sales growth from January to May 2024, while Decibel Cannabis Company (OTC: DBCCF) and Tilray Brands (NASDAQ: TLRY) experienced declines.
Specifically, Tilray's sales fell 17% YoY during the March-May period, whereas Village Farms grew by 41%, OGI by 24%, and Cronos by 34%. Village Farms now holds an 8.6% ...