The Alberta cannabis industry is in a state of crisis. Two companies, High Tide Inc. and Aurora Cannabis Inc., have been locked in a battle for the bottom, driving down prices and squeezing out smaller competitors. This battle has had a devastating effect on the industry, and the effects are being felt across the province.
The battle began in 2018, when Aurora Cannabis Inc. entered the Alberta market. Aurora is Canada’s largest cannabis producer, and they quickly began to undercut the prices of their competitors. This put pressure on smaller producers to match their prices, and many were unable to do so. This drove down prices across the board, and the effects were felt throughout the industry.
The situation was further exacerbated by High Tide Inc., a company that sells cannabis accessories. High Tide has been accused of engaging in predatory pricing, selling their products at below-market prices in order to drive out competition. This has had a devastating effect on the industry, as smaller producers are unable to compete with the low prices offered by High Tide.
The result of this battle for the bottom has been a dramatic decrease in prices for cannabis products. This has been good news for consumers, as prices have dropped significantly. However, it has been bad news for producers, as their profits have been squeezed to the point where many are struggling to stay afloat.
The situation has become so dire that the Alberta government has stepped in to try and address the issue. They have implemented a number of measures, such as the Alberta Cannabis Framework and the Alberta Cannabis Retail Framework, in order to try and protect smaller producers from predatory pricing.
The battle for the bottom has been a disaster for the Alberta cannabis industry. Two companies have driven down prices to the point where many smaller producers are unable to compete. This has had a devastating effect on the industry, and the effects are being felt across the province. The Alberta government has taken steps to try and address the issue, but it remains to be seen if these measures will be enough to save the industry.