You can add location information to your Tweets, such as your city or precise location, from the web and via third-party applications. You always have the option to delete your Tweet location history. Learn more
It is time to shift the narrative from wasteful pubcos bearing the brunt of industry dysfunction. Their largesse is a self evident truth, but it overshadows the deep structural dysfunction of Canadian cannabis. Thread.
Craft cultivators often pay 30% of their top line revenues to excise tax. This is untenable, and new operators who have mortgaged their lives on a chance in this new industry are waking up to a financial picture that structurally sucks them dry even while succeeding in market.
We are milking a calf to death. Our greatest bellwethers in the pubco space are seemingly happy to sell at a gross margin loss, with unit economics that would be laughable in any healthy 'CPG' model.
Meanwhile, there are emerging case studies of craft scale operators launching to market excitement with quality and passion. They deliver consumer value at their price points, and are scrapi tonggether meagre profits on their growth path. Then they pay their excise tax.
This might start at 20% of top line for an exclusively premium priced offering. As prices compress, they move to larger format offerings, and they introduce more SKUs, it pushes to 30% and beyond. This tax burden is beyond exceptional, blowing the roof off of CPG and alcohol.
If we don't come together as an industry and community to demand changes now, the Canadian cannabis industry is destined to exclude small business. We are moving towards an oligopoly, one where consumer choice product quality cannot hold a candle to our illicit competitor.
You will see more from me and others on this front. If you are the kind of person who cheers for local brands, quality products, and deep personal stories behind the companies you support, stand with us. I want to build a Canadian industry we can be proud of.
Really sad we F’d this great business up. I’m optimistic we learn and get better. 
We hear you. Now they allow us to mix a flower with a concentrate but have to tax us a concentrate excise which is WAY higher than the flower excise that is mixed with it. This goes for resin infused pre rolls, moon rocks , etc. Blows minds everywhere. Doesn’t make sense.
Taxes taxes taxes. That's all the consumer sees too. Glad I have my own unit because I couldn't afford my medication otherwise. CBD for arthritis in my hips back, and hands.
Would gladly sign on an open letter to CRA/ Federal Politicians with you @DSutton1986 This needs to change!
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.
