With only a handful of provinces releasing their plans for the legalization of the recreational market we can look at two of those provinces to determine the lowest and the highest prices that consumers in this new framework will see in their local dispensaries. No province has released their regulations yet, so we do not know if there will be any volume pricing for quantities over that gram package.
New Brunswick was one of the early participants to announce their plans, striking up a deal and an advance purchase order with Tweed and Organigram to supply the market in the province. I have previously written about the New Brunswick no bid contract here, but the prices will work out to between $6-$8 a gram. That is before the ($1) sin tax, distribution and sales costs have been added. New Brunswick has created a for-profit Crown corporation that will be responsible for the distribution and sales.
Ontario has previously announced that their target is $10 a gram.
Contrast this with Quebec whose newly released plans are similar to Ontario’s in having the provincial liquor board control sales and distribution with one key exception. Quebec, in responding to the original spirit of Bill C-45 have chosen the goal of eliminating the black market to drive their policies and ensured that the newly formed crown corporation will be set up as a non-profit. You read that right, Quebec is more concerned with the elimination of the black market that in order to reduce costs to the end user it has stated that it does not want to make a profit. All profits will be funnelled back into education programs.
So in the war of which province will have the most open market, Quebec takes a giant leap ahead.