Cannabis Industry Update: December 20, 2023

Dear ABLE BC Cannabis Members and Industry Colleagues,

Here’s what you’ll find in today’s update:

  • Happy Holidays from ABLE BC

  • Reminder: Petition to Raise THC Limits on Edibles

  • Ontario Increases Store Cap from 75 to 150

  • Extend the CEBA Deadline: Take Action Now

  • Reminder: Single-Use Plastic Prohibition Takes Effect 

  • Order Your 2024 ID Checking Guide Now

  • go2HR: Reflections and Planning for Workplace Psychological Health and Safety

  • Out and About with ABLE BC

Find all past updates here.

Sign up for future newsletter updates here.

Happy Holidays! (from Bo)

Hi folks, 
It has been quite a ride since I've joined ABLE BC in October — although my time in this role is short (and yet somehow feels long), I've discovered that BC's retail landscape within our industry is quite different from my LP experience in federal licensing and quality assurance.

In BC, we see such a diverse background for retailers — whether legacy, liquor, indigenous, or independent, etc — each perspective is unique and is drawn from a rich history of passion, dedication, and business acumen. These past couple of months, I've had the pleasure in connecting directly with some different stores and learned about their challenges and where they are coming from. More importantly I've also been optimistic in seeing where there are shared goals amongst different retailers, such as preserving BC's cannabis culture, exploration of new growth opportunities, and the focus on ensuring the industry's path to financial viability.

The input I've received so far has been refreshing and I'm fascinated to continue to process to continously learn more from you all. As the holidays sneak up on us and 2023 winds down, I'll be reflecting on what I have learned and continue to build a gameplan for 2024 with the rest of the ABLE BC team.
Please note this will be our last Cannabis Industry Update newsletter for 2023. Our next issue will be released January 17, 2024.

Additionally, our office will be closed from December 23 to January 5. Should something urgent arise, you can still reach me at  bo@ablebc.ca (though responses may be delayed).

In the meantime, I wish you all happy holidays, a profitable season, and a wonderful time with your cherished ones!

Reminder: Sign the Petition to Increase THC Limits on Edibles

Don't forget to sign the petition to increase the current limit of 10 mg THC per package to 100 mg for cannabis edibles. Benefits of raising the limit are:

  • permit more product diversity and innovation within the market;

  • provide product offerings that matches consumer demands;

  • allow the licensed market to compete further against the illicit market and convert consumers to purchase from legal sources.

Over 2500 people have signed the petition, which is open until March 7, 2024.

Industry Update: Ontario Increases Store Cap from 75 to 150

The Province of Ontario has announced plans to raise the store cap, increasing the number of stores a retailer can operation from 75 to 150.

Ontario does not have a store-to-store distance criteria and its store count has rapidly increased over the past years — the total now is approximately 1,800 stores that are authorized to open.

For retailers in Ontario, the impact from this type of saturation has resulted in several issues:
1) Shrinking each store's marketshare and driving retail margins down; 

2) Concerns from financial institutions on the risk of overcompetition and lack of stability;

3) Non-viable stores that are nearing or entering bankruptcy are being consolidated by larger entities;

4) Market value of licensed stores and their location has diminished;

In other words — existing stores in Ontario are losing revenue for their respective locations, the banks do not have much confidence in supporting these stores, and there is not much value recuperated when being bought out by larger stores. Not exactly a diverse or thriving retail landscape for private stores. Drawing these observations from Ontario, it is not farfetched to imagine British Columbia in a similar scenario.  

One of ABLE BC's top advocacy priorities is to work with our provincial and municipal government partners to implement a mantatory distance rule between new cannabis stores (including goverment stores) and existing ones. Based on our proven track record of success in the liquor retail and pub industries, we know that a regulated door-to-door distance criteria will benefit your businesses positively, including by protecting revenues, enhancing profitability, and increasing the value in your licensed asset. 

You can read our written submission to Minister Farnworth here.

As a non-profit organization, ABLE BC's advocacy efforts are supported and funded by BC's cannabis retailers. Sign up now for Cannabis Membership or reach out to our Head of Cannabis Membership for more info.

Take Action Now – Send a Letter to Minister Freeland Asking for an Extension to the CEBA Deadline

It’s no secret that our industry is still struggling to recover financially from the pandemic. Retail and hospitality businesses continue close at an alarming rate, and those remaining open are struggling with rising costs, tightening margins, and a shortage of staff.

The Canada Emergency Business Account (CEBA) loans were an essential lifeline to nearly 900,000 Canadian businesses during the pandemic. While the repayment deadline has been extended before (from the end of 2022 to the end of 2023, then to January 18, 2024), our most recent surveys suggest that 80 per cent of industry is unable to repay at this time. Those who cannot repay will be required to pay the full $60,000 loan, plus interest.

We are disappointed that our federal government partners failed to understand the serious financial pressure our industry is experiencing. More debt is clearly not the solution. ABLE BC—along with a broad coalition of industry partners—have requested another extension of interest-free repayment terms for another year.

You can take action now by submitting a letter to the Honourable Chrystia Freeland, Canada’s Minister of Finance, sharing why extending CEBA until the end of 2024 is the best solution for industry.

Click here to submit your letter.

We will continue to press government for this change in the weeks ahead.

Reminder: Single-Use Plastic Prohibition Starts December 20, 2023

The federal Single-Use Plastics Prohibition and provincial Single-Use & Plastic Waste Prevention Regulation are coming into effect on December 20, 2023. Under these regulations, several single-use plastic items will be banned, including:

   • Checkout bags
   • Cutlery
   • Foodservice ware
   • And more (Plastic ring carriers will also be banned beginning June 20, 2024)

Learn about how these regulations will affect your business, read our FAQ here.

Last week, the province announced an adjusted timeline for some additional regulations. To be clear, plastic items such as checkout bags, cutlery, and other foodservice ware are banned as of December 20, 2023. Some additional requirements, such as charging a fee for new reusable or paper bags, have been extended to July 15, 2024.

Click here for more information on which additional requirements have been extended.

Out & About with ABLE BC

In recent weeks, ABLE BC’s Executive Director Jeff Guignard, President Yvan Charette, Cannabis Chair Steve Dowsley, and Head of Cannabis Bo Chen met with Solicitor General and Deputy Premier Mike Farnworth at an event at Tinhouse Brewing in Port Coquitlam.

They discussed several issues impacting BC’s liquor and cannabis industries, current economic conditions, and made plans to host an event with Minister Farnworth in the New Year. (We’ll circulate details of the event in early January.) 

In addition, ABLE BC appeared in the following media recently:
   • December 10, Global News: Vancouver city expected to change liquor rules
   • December 11, CKNW with Jody Vance, Changing Liquor Regulations (interview begins at 3:05)
   • December 11, City News: Vancouver looking at relaxing liquor rules

Order Your 2024 ID Checking Guide Now

The NEW 2024 North American ID Checking Guide and 15th Edition International ID Checking Guide are now available to order through ABLE BC.

Place your order before January 11, 2024, to secure our group buying discount

The 2024 North American guide includes additions of new licenses and ID cards and the elimination of no longer current formats. There are dozens of important changes with respect to interim licenses, enhanced licenses, terms of licenses and other details such as changes to security features.

The 15th Edition International Guide covers driver’s licenses and ID cards from 175 countries and includes more than 570 official documents. Full page coverage of each country’s IDs make it easy to check the material, the codes, and the security features of each document. 

The ID Checking Guidebooks help you and your staff make accurate, on-the-spot verification of driver's licenses and ID cards - your best protection against ID fraud. These books also help ensure you are kept updated on the latest versions of all ID formats. 

For more information on the ID Checking Guide Books download our FAQ.

Place your order HERE by Thursday, January 11, 2024, for the 2024 North American ID Checking Guide and 15th Edition International ID Checking Guide. 

Anticipated 2024 Prices:

  • North American Guide Book - $16.60

  • International Guide Book - $37.00

  • Please note these prices do not include shipping and handling or reflect the US-Canadian conversion rate

  • Non-members will be charged a $15.00 administration fee

If you have any other questions or concerns, please contact ABLE BC at 604-688-5560 or david@ablebc.ca

go2HR: Reflections and Planning for Workplace Psychological Health and Safety

go2HR is a regular contributor to the ABLE BC Cannabis Industry Update newsletter, providing tips and guidance on current HR trends, new legislation, employee recruitment and retention, and more. To read the latest instalment, sign in to the member portal or sign up for the newsletter.

Ann Brydle