New regulations may spark Canada’s craft cannabis revolution
- Thread starter gb123
- Start date
The Hippy
Well-Known Member
You got that already....it's called.....ssshhhhhh!!!!!
If your legal with big expenses......so much for your BM low costs edge. Wink...knudge.
I don't need no stinking badges. It's a rouse imo.
GroErr
Well-Known Member
There's definitely some opportunities the way the federal rules are setup. The key will be how each province handles it. Hopefully the provinces will publish details on their program. ON is not looking good at this point but we'll see what Ford brings to the table. No hurry for me, I'd just like to have something setup for "retirement", even if I could cover off costs I'd be happy & give me something to do.
GroErr
Well-Known Member
So I searched and downloaded the regs and guides from some provinces (ON, NB, PEI, AB, BC). It's still a mish mash of federal and provincial rules/laws to put it all together. Not all are very clear at the provincial level, although some indicate that more information will be posted as it's ready. BC and AB seem to have the most open systems as far as retailing, if that's where you have an interest those look like the best bet. All of them seem to be scrambling to put programs together.
None have online sales as an option, none have nor likely to have options for selling direct to consumers other than the retail options in BC and AB. Without online and direct sales (other than retail) this is not looking good for what I'd like to do. I have no interest in a retail shop, that's the most costly and inefficient sales model there is for a small business. Thanks, but no thanks.
So, from the information available today, the HC provided guide here's my current take on options if you're a little guy and want to go legal (where allowed):
To grow plants, seeds, clones and sell them:
- Obtain a Micro Cultivation or Nursery license
- Obtain a Micro-Processing license
Anything that you produce with the above licenses can be sold to other licensed cultivators, processors, authorized researchers. Processing license also allows sales to other Federally Sale License holders (LP's), and Provincially Licensed/authorized sellers (e.g. in Ontario that would be the OCS, competing with larger LP's for price and shelf space). Thereby, by obtaining a cultivation and processing license, you're in the game, but you still cannot sell direct to consumers. Even the two Provinces that may allow private retailers, you won't be able to sell to the retailers. You can sell to the Provincial distributor, who will then sell to the retailers.
To sell direct to consumers in a retail shop (in the Provinces that allow it, currently only BC and AB):
Obtain a business license from your local Province like any other business, plus whatever license is available for independent Cannabis retailers in your province. Setup your shop and supply of product will depend on the province you're in. Currently only BC and AB are clear on this option. In BC for instance, you'll get a business license, then a Cannabis retailing license from Liquor Control and Licensing Branch. But you'll have to buy all of your product (flower, accessories) from the BC Liquor Distribution Branch as they will have a monopoly on distribution.
To sell direct to consumers at retail or online:
Obtain a Federal Sale License (Medical) - This allows phone or online sales to registered patients
Obtain a Federal Sale License (Non-Medical) - This allows phone or online sales to Adults
Obtain an Authorized Provincial and Territorial Sale License - This allows sales to Adults, however there is currently no information/policy from any provinces other than BC/AB on what you can sell and whether online sales are even an option. At this point only retail outlets are allowed/announced in these Provinces.
That's all I've deciphered at the moment. Not exactly an open market when the provinces essentially have a monopoly on distribution and even online sales to consumers (ON). Perhaps some laws/rules will change in the future but this is not something I'd sink any investment into until the market matures a bit, and maybe some of the laws are relaxed, particularly at the Provincial level.
R.Raider
Well-Known Member
So can they sell directly to dispensaries than? Or no?
GroErr
Well-Known Member
No, producers can only sell to the provincial monopoly that will control the distribution right now. The dispensaries will have to buy their product from the provincial distributors, in the provinces that allow them of course and right now the only two I can see with some form of "dispensary" type retail outlets are BC and AB.
Edit: Horrible business model
Somatek
Well-Known Member
Didn't Saskatchewan also go with private retailers? I believe they issued 50 licenses already.
I'm not too worried about the gov stores trying to restrict sales to specific LP's as that'd be counterproductive. If they don't have a good selection that competes with the BM they won't be profitable & the plan falls apart. It's in their best interest to offer as much diversity from as many producers as possible & leave it to the customer. Especially as there's concern there won't be enough supply at the start.
There's still too much uncertainty to say definitively where it'll lead. I imagine the legal market will eventually undercut the BM once the growing pains are worked out. If you aren't already involved in commercial production (legal or otherwise) I think this is an incredibly risky time to be getting in. There's probably more money in the short term in peripheral businesses catering to home growers, commercial hemp production (medicinal & fiber), etc.
R.Raider
Well-Known Member
Yes they did. What I wanted to know is can licensed micro-growers sell directly to these places? From what GroErr is saying I take it that's a big no.
GroErr
Well-Known Member
Didn't check, only checked the provinces I listed. Main check though seems to be the provincial level if anyone's interested in getting in. The federal laws/rules seem consistent but if a province like ON decides they'll be the distributors and retailers there's not much hope short term.
Regardless of the province, the legal retail market at this point seems like a waste of time and money. Too many uncertainties and future prospects doesn't pay the bills. You'll need deep pockets, mom & pop shops are history imo, so are most dispensaries unless they have deep pockets behind them.
Somatek
Well-Known Member
That's an assumption but you don't actually know & GroErr didn't look at Saskatchewan. If I was looking at investing in starting a company I'd be sure I fully understand the laws & not be going off assumptions.
GroErr
Well-Known Member
Didn't check it, will see what I can find out. I'd only checked the provinces there'd be an even remote chance I'd consider moving to
GroErr
Well-Known Member
Processors (micro or not) do the packaging.
R.Raider
Well-Known Member
Hey what are you trying to say?Didn't check it, will see what I can find out. I'd only checked the provinces there'd be an even remote chance I'd consider moving to
R.Raider
Well-Known Member
Ahh k, good to know. One less question now lol.
Somatek
Well-Known Member
I'd agree that it's hugely risky time to invest. I bet a lot of people are going to lose a lot, the big question is who'll come out ahead. I think dispensaries never had much hope of being licensed as the gov sees them as criminals exploiting the situation. Not that it's right, just the sad reality that all the people opposed to legalisation would tear them apart if they did. Just too much political blowback.
If you have the resources or a group that can pool them, are confident in your strains & production or have innovative ways to process it there is a huge potential though to create market presence in a new industry.
Somatek
Well-Known Member
Keep in mind the packaging is also fairly standardised with just a small area for branding. Similar to the plain packaging for tobacco they've been moving towards.
R.Raider
Well-Known Member
One of the rare things that I did know the answer to but interesting none the less.
However, who sells the packaging? How much do they cost?
WHATFG
Well-Known Member
Someone on a government contract no doubt...remember, it cost Ontario over 600k to come up with that plain OCS banner...lol...nothing the gov is directly involved with is going to be cheap....