Pricing & Dumping In Cannabis.. Are Stiizy Playing Fair? | Cannabis Law Report | Where to buy Skittles Moonrock online
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Regular readers will already know of Israel’s reaction to Canadaian dumping. There’s not much i agree with when it comes to Israeli govt policy these days but they do have it right when it comes to Canadians dumping cheap weed.. oops I meant to say medical cannabis on their market. Their tariff response is one i fully concur with.
Now the US domestic market is experiencing the same problem but this time it’s major cannabis companies flogging off their inventory at costco prices and in the end benefiting themselves twice over. They sell off stock before it becomes unsaleable and at the same time SME’s and smaller operators can’t compete with the price drops. They then go out of business leaving the bigger players to control the prices in cartel fashion.
Weedweek reports on Stiizy who, unsurprisingly, deny everything.
STIIIZY’S PRICES ANGER COMPETITORS
In early October, a writer who identified themself as a San Francisco dispensary owner sent an email, “To all cannabis retailers, cultivators and manufacturers.” Their shop, and others they had spoken to, had seen a “noticeable drop” in sales, up to 50%, since the beginning of summer. The writer alleged the drop owed to market leader Stiiizy’s “heavy discounting” of its products, especially at the vertical operator’s own stores.
In a separate email to State Sen. Scott Wiener (D-SF), the shop owner wrote “with vertically integrated companies like Stiiizy using their retail outlets as dumping grounds for near-wholesale-priced products, many independent retailers, manufacturers, and cultivators simply cannot survive.”
Stiiizy president Tak Sato denied the allegations: “The math and the arguments in the letter don’t add up.”
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