People want cheap weed, and Aurora Cannabis is paying the price

Market share for pot costing less than C$9 a gram has grown from 2% to 17% since the summer, and pace is expected to continue

Canadians want cheap weed, which isn’t great for companies that want to make expensive cannabis.

Cannabis companies in Canada have long promised “super premium” products, some going as far as predicting demand for $100 grams of the plant. Canadian consumers are heading the other way, however, as Aurora Cannabis Inc. ACB, +5.78% ACB, +3.57% outlined Thursday in an earnings report that revealed quarterly losses of more than C$1 billion.

Chief Financial Officer Glen Ibbott said in a conference call that 17% of the Canadian cannabis market was purchases of cheap weed — less than C$9 ($6.79) a gram — as of December, up from just 2% over the summer. Meanwhile, premium pot went from a market share in the mid-30% range to 17%.

by Marketwatch
Read More Here: www.marketwatch.com/story/people-want-cheap-weed-and-aurora-cannabis-is-paying-the-price-2020-02-13