Marijuana Business Daily

Ontario Cannabis Store plans to overhaul wholesale markups

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The Ontario Cannabis Store (OCS) says it is reforming markups on wholesale marijuana at the expense of its own margins in a move meant “to help enable a vibrant cannabis marketplace.”

The OCS, which is owned by the Ontario government, has a monopoly on supplying licensed recreational marijuana stores in Canada’s largest provincial cannabis market.

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“Reduced margin levels are expected to help enable a vibrant marketplace so that it is better positioned to compete with illegal operators,” the OCS said in a Thursday announcement.

The OCS told MJBizDaily in September that it was reviewing its markups.

MJBizDaily has reported that the wholesaler in Canada’s most valuable adult-use market was cumulatively the most profitable cannabis business in the country.

In December 2021, Ontario’s auditor general knocked the OCS for its value-based pricing approach for cannabis products, saying it was “not based on sufficient analysis and is not transparent

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