The BC Liquor Distribution Branch (LDB) just announced it will be applying a 15% markup on the of cannabis distributed throughout the province to retail stores and the LDB’s online store.
Retailers will pay the markup on the landed cost, which includes the original price of the product, transportation fees, duties, taxes, packaging and handling. In comparison, the graduated markup for spirits is up to 124%, 89% for wine, and between $0.55/L to $1.08/L for beer.
“We’ve heard concerns that the LDB will impose a significant mark-up on legal cannabis, in the interests of making money,” said Blain Lawson, LDB’s general manager and CEO. “Today’s announcement reaffirms the Province’s principal goal is eliminating the illicit market.”
Cannabis retailers will purchase product at a common wholesale price and will be prohibited from pricing cannabis below that amount.
BC Cannabis Stores and licensed private retailers will access the same wholesale product assortment.