Connect with us

Hi, what are you looking for?

Monday, Dec 6, 2021
Mugglehead Magazine
Cannabis & psychedelics industry news based in Vancouver, B.C.
  • Loading stock data...

Business

Cannabis NL reports steady profits, improved distribution

In October, the province started fulfillment and delivery from its distribution centre in St. John’s

Spiritleaf on Topsail Road in St. John's Newfoundland. Image via Spiritleaf

Profits continue to roll in for Newfoundland and Labrador’s provincial cannabis business, as the Crown corporation makes improvements to its supply chain.

In a statement Tuesday, Newfoundland Labrador Liquor Corporation (NLC) its results for the second fiscal quarter, with retail cannabis sales of $16.1 million, up 5 per cent from $15.3 million last quarter.

Commissions from legal weed rose 11 per cent to $5.1 million, from $4.6 million last quarter.

Beverage alcohol sales were $78.7 million in the quarter, earning the corporation total net revenue of $57.2 million, up nearly 11 per cent.

Read more: Sales climb 8% for Cannabis NL

On Oct. 1, the NLC says it introduced a significant change to pot distribution: It streamlined supply into the province, as well as started fulfillment and delivery from its distribution centre on East White Hills Road in St. John’s.

“Shipments from the distribution centre translate into significantly faster order fulfilment times for licensed cannabis retailers, and shorter delivery times (one to two days, down from five to 10 days in previous model) and decreased shipping fees for online customers,” reads the statement.

Cannabis NL reports steady profits, improved distribution - table

Chart via NLC

“The change has also increased the selection of products to all licensed cannabis retailers throughout the province, and will improve NLC’s regulatory effectiveness for the cannabis industry.”

With better delivery and lower prices, the NLC says it will further disrupt the illicit market.

Four new pot shops opened in the quarter, brining the total to 32 stores.

In terms of regulatory duties, the NLC conducted 1,089 inspections on liquor establishments and cannabis retailers, down slightly from the last quarter.

According to the agency, it continues to disrupt the illicit market through enforcement activity. The NLC says it made two seizures in the quarter worth around $10,000.

 

Follow Mugglehead on Twitter

Like Mugglehead on Facebook

Follow Nick Laba on Twitter

nick@mugglehead.com

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Health and Safety

Science doesn't know yet, but one psychedelic researcher is chasing clues to see if it can

Canada

As more medium-to-small producers came into play this year, great weed started hitting legal shelves at fairer prices

Culture

Punishments for possession include caning and the death penalty. Despite a global trend of reform, The Fine City remains staunch in its anti-drug stance

Analysis

While legal weed businesses decry enforcement of their accounts, the platform says it's keeping its all-ages community safe