Thursday, February 9, 2023

Marijuana collapsing

The boom in marijuana production is collapsing and with it hundreds of jobs in rural Ontario.

The latest closure is Canopy Growth’s operations in the huge former Hershey’s chocolate-producing plant in Smith Falls south of Ottawa.


About 800 people will lose their jobs.


Canopy Growth Corp. said the plant employs about 35 per cent of its workforce.


The move is meant to help the company reach profitability and enable sustainable and long-term growth, said David Klein, Canopy Growth's chief executive officer.


"Canopy must reach profitability to achieve our ambition of long-term North American cannabis market leadership," he said, in a statement to The Canadian Press.


"We are transforming our Canadian business to an asset-light model and significantly reducing the overall size of our organization. These changes are difficult but necessary to drive our business to profitability and growth."


Canopy will also cease to source flower from its Mirabel, Que. facility, which is owned and operated through Les Serres Vert Cannabis Inc., a joint venture partnership between the company and Les Serres Stephane Bertrand Inc., a tomato greenhouse operator.


The company will be consolidating production to its facilities near Kincardine and in Kelowna, B.C.