Cannabis NB sales head upward but continue to lag behind other provinces

The legal sale ofcannabis in government run stores in New Brunswick is showing ongoing signs of improvement but continues to trail results in neighbouring provinces by a wide margin, new figures show.

Statistics Canada reports that sales inCannabis NB outlets totalled $3.31 million inOctober, a 2.6 per cent improvement over September.

More promising over the most recent three months, August, September and October, the federal agency says sales in New Brunswick were$12million, a 28 per cent jump over the previous three months.

Sales in August were especially strong in New Brunswick, at $5.4 million, thanks in part to five weekends in the month plus a holiday Monday on Aug.5.

In an email Fabrice Mosseray with Statistics Canada said the sales figures only include Cannabis NB.

"That survey covers legal, recreational sales. In the case of New Brunswick this would be Cannabis NB," wrote Mosseray.

"The number reported in the Retail Trade release would include all sales made in these stores including cannabis accessories.It would not include any unregulated (illegal) sales."

Although improving, sales in New Brunswick over the last three months were still the lowest in the region.On a per person basis they were an average 18 per cent less than sales in the other three Atlantic provinces.

There are signs sales may improve further as the year comes to an end.

Last month, police began cracking down on illegal retailers in the province who have been draining market share, and this week it became legal to start selling edible cannabis products.

"We continue to provide competitive pricing for our products and are encouraged by law enforcement officials' efforts to deal with illegal operations," said Marie-Andree Bolduc, a spokesperson for Cannabis NB.

Still the New Brunswick government is not interested in waiting for a turnaround.In Novemberthe New Brunswick government announced plans to recruit a private operator to run Cannabis NB in hopes of cutting its losses.

"We are seeking proponents who have demonstrated experience in recreational cannabis sales. The financial capacity to develop and sustain operations and a viable plan to combat the illegal market through price competitiveness and product diversity," said New Brunswick Finance Minister Ernie Steeves.

Steeves said selling cannabis legally and profitably requires significant business skills especially given high store rents. Cannabis NB locked itself into for 15 years and strict marketing rules imposed by Health Canada.

"They are not a fan of this business," said Steeves."But having said that we're stuck with the business.Health Canada has come up with rules like you can't smile.We can't have on our website somebody smiling because that encourages people to take part in this activity."