Stocknovice101 wrote: https://www.journaldemontreal.com/2018/01/28/le-pari-aventureux-de-la-saq-avec-le-cannabis
Its new subsidiary dedicated to the legal sale of pot in Quebec intends to capture 30% of the black market in its first year of existence MARTIN ALARIEWith a price of between $ 8 and $ 9 per gram, Alain Brunet is certain that consumers will quickly cross the doors of the SQC's branches.
PIERRE COUTURE Monday, 29 January 2018 00:00Update Monday, 29 January 2018 00:00 The Quebec Cannabis Society (SQC) believes it can recover 30% of the black cannabis market in its first year of existence in Quebec. "We think that in our first year, we will be able to get 30% of the current black market. It's time that will fix things. This is the long term, "said the CEO of the Socit des alcools du Quebec (SAQ), Alain Brunet, during an interview in the
Journal .
The latter, who will also oversee the new SQC, a subsidiary of the SAQ, argues that the quality of cannabis sold in state stores as well as competitive prices will be decisive in countering organized crime controlling the black cannabis market in Quebec since decades.
Several analysts estimate that the current cannabis market is worth more than $ 1.5 billion / year in Quebec.
With prices ranging from $ 8 to $ 9 per gram (taxes included), the SQC believes it can rally a large number of customers quickly.
"On it, I do not see any problem. At around $ 1 per gram compared to the black market, I'm sure people will follow us if quality and prices are there, "said Brunet.
Huge needs By the end of June, the SQC plans to be fully operational to respond to the legal sale of recreational cannabis in Quebec.
For its first year of operation, the SQC hopes to sell a lot of cannabis. The needs of the SQC are estimated at 50 tons of marijuana (1 ton equals 1000 kilograms).
Once the market is controlled, the annual needs of the SQC could reach 150 tons of cannabis.
"We already have a good idea of our needs. We have discussions with producers and they will be able to provide us with cannabis in large quantities, "said Brunet.
By the end of June, the SQC is planning to open some 20 stores dedicated to the sale of cannabis in Quebec.
According to Mr. Brunet, the SQC's game plan mentions the opening of 20 other stores in the fall of 2018.
In two years, the SQC hopes that the number of cannabis stores under its responsibility will reach 150 branches in Quebec.
Online commerce From the first day of its existence, the SQC also intends to be very active on the web where it will quickly set up a transaction site to sell cannabis.
"We will be very efficient, you will see. From day 1, our online transaction site will be very efficient. Just like the current producers of medical marijuana, we will ensure that customers have the legal age to order on our platform, "said the CEO of the SAQ.
SAQ net
profits :
$ 1.086 billion SAQ sales:
$ 3.12 billion Net profit margin on sales:
34.8% Branches across Quebec:
405 Number of employees :
7033 5 QUESTIONS TO ALAIN BRUNET
Pot Made in Quebec Aware that few Quebec producers have been accredited to produce marijuana by Health Canada (only 6 out of 88 in the country), the CEO of the SAQ hopes to have reliable supply in Quebec to supply the SQC network. "We work with producers who are in Quebec. There is for example Hydropothicaire and Canopy Growth. And it will develop. We see players emerge. We want to put in place a structure that will grow well. We want quality and current producers have very good expertise, "says Brunet, recalling that quality control laboratories of the SAQ will also be involved.
SAQ anticipates little impact on sales The CEO of the SAQ does not believe that the legalization of marijuana for recreational purposes will have a big impact on sales in state monopoly branches. "People who consume wine do not look for the same buzz," he says. Although he argues that the so-called discretionary dollars of consumers are limited, he is anticipating a rise in sales to the SAQ in the coming years. "We have lowered our prices over the last year and we have seen a rise in ridership in our stores. We will continue to negotiate tightly with our suppliers. "