Cannabis wholesale soars to $96 million in new Statistics Canada report

June 2020 wholesale of cannabis rises more than 26 percent from May

cannabis-wholesale

June 2020 wholesale of cannabis rises more than 26 percent from May. Photo DANIELE RUDISCHER

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Statistics Canada reports that cannabis wholesale totaled $96 million in June.

The number forms part of a broader accounting of wholesale merchandising in the country. All in all, wholesale sales across the economy amounted to $62.1 billion in June this year. This performance indicates a rebound to near pre-COVID-19 pandemic levels.

Statistics Canada released the report Wednesday (August 19).

The wholesale of cannabis constitutes one of four items under the food, beverage, and tobacco sector, which posted $12.3 billion.

Food represented the biggest ticket, with $10.7 billion in sales. Beverage followed with $793 million, and cigarette and tobacco products $594 million.

Cannabis bulk merchandising grows

In connection with cannabis wholesale, the June trade of $96 million represents a 26.2 percent growth over May.

In May, the bulk merchandising of cannabis reached $76 million.

Compared to the June 2019 level of $47 million, the wholesale of cannabis in June of this year made for a 106.5 percent increase.

The Canada Statistics report also includes inventories. The agency noted that cannabis wholesalers held $183 million worth of supplies in June.

The figure means a three percent increase over May inventories of $178 million.

Going back to wholesale trades in general, Statistics Canada reported that June figures grew by $9.7 billion “as large parts of the economy reopened”.

The federal agency explained that sales in June were $2.5 billion below pre-COVID-19 levels in February.

The June numbers mean an improvement from May, when sales were $12.2 billion below February.

“The wholesale sector recorded its highest-ever sales level in February 2020, before the pandemic generated a $15.1 billion drop in monthly output over the course of two months,” Statistics Canada reported.

Since then, the agency continued, more than 80 percent of the drop in monthly sales caused by COVID-19 has been recouped.

Moreover, June sales were 3.9 percent below February’s record high.

On December 11, 2019, Statistics Canada released a report about the cannabis retail market. The federal agency noted at the time that following the legalization of cannabis in October 2018, retailers have established more than 400 brick-and-mortar stores.

Retailers also registered $908 million in online and retail store sales in the first year of legalization.

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