Canada Cannabis Spot Index (CCSI) 

Published February 22, 2019

The CCSI jumped back up by 7.7% this week to C$6.51/gram, after hitting a low of C$6.04/gram last week. Last week’s price appears to be an anomaly, perhaps due to potentially lower quality and lower priced product changing hands. This week’s price mean reverted back to the 2-month moving average of C$6.45/gram. C$6.51/gram equates to US$2,232/pound at current exchange rates.

This week we dive a bit deeper in the quarterly earnings reports issued by Canopy Growth and Aurora Cannabis.

The Health Canada Cannabis Tracking System report gives us complete view of both medical and recreational sales in the last quarter of 2018. From the latest data issued on Jan 29th, a total of 40,753 kg equivalent was sold across Canada with an almost perfect 50/50 split between the medical and recreational markets during this time period.

Using this data as a reference point, we calculate the reported Canopy sales volumes of 10,102 kg equivalent for that timeframe for dried cannabis and extracts to be approximately 40% and 9% of the total Canadian recreational and medical markets, respectively. Aurora, the second-largest producer, came in with a smaller market share of 20% of recreational sales, but a substantially larger share of the medical market at 16%.

Both producers also gave some insight into their average net selling prices. Canopy’s average net selling price for dried cannabis in the recreational market was slightly higher than our average index price over Q4, while Aurora’s was more comparable to our price assessments. Canopy and Aurora stated their average net selling prices (net of excise duties) to be C$6.96/gram and C$6.23/gram, respectively. The CCSI averaged approximately C$6.32/gram over Q4 2018 (net of the C$1.15 provincial and federal excise duties estimated by Cannabis Benchmarks [$C7.49 less C$1.15]).