Cannabis Industry Update: February 14, 2024

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Cannabis Industry Update: February 14, 2024

Dear ABLE BC Cannabis Members and Industry Colleagues,

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

Message from ABLE BC President Yvan Charette
ABLE BC Engages Surrey — Cannabis Retail
Celebrating 20 Years of ABLE BC!
ABLE BC & LCRB: Retail White-label
LCRB Update — Public Patios (Bulletin 24-01)
Member Spotlight: 1st Cannabis
Craft Cannabis: Ministry Seeks Members Feedback
Stores in Vancouver Island Seeks New Ownership
ABLE BC's Event: Cannabis, Liquor, Hospitality
Reminder: Petition - Increase THC Limits on Edibles
Out and About with ABLE BC
go2HR on Tap: WorkSafe BC Updated its Planned Inspectional Initiatives

Find all past updates here.

Cannabis Industry Update Newsletter

A Message from ABLE BC President Yvan Charette

Sometimes being President of ABLE BC is a little bit of fun. Last week, we hosted our annual post-holiday industry reception at the Labatt Beer Institute in Vancouver. Our special guest for the evening was Deputy Premier and Solicitor General Mike Farnworth , who spent three hours chatting with our liquor retail, publican, and newly welcomed cannabis retail members. I know the Minister enjoyed meeting many of you and really appreciated the thoughtful conversations and honest feedback.

While I loved chin-wagging with the Minister about government policy, for me the best part was talking one-on-one with members. Sharing stories, swapping tips, and brainstorming about how to tackle industry challenges is one of the reasons I love being President of ABLE. I was also excited to welcome so many of our new cannabis retail members, as it clearly demonstrates that our industries are much stronger when we work together.

Also last week, ABLE BC’s Board of Directors convened its first meeting of 2024. We received reports from our LRS and LP Policy Committees, reviewed progress on our current policy priorities, and discussed several issues impacting members’ profitability. We also met directly with senior executives from the BC Lotto Corporation (BCLC), the Liquor and Cannabis Regulation Branch (LCRB), and the Liquor Distribution Branch (LDB). I would characterize these meetings as honest and collaborative discussions about how we can work together to achieve our shared goals.

For example, in our meeting with the BCLC, we discussed the exciting spring 2024 roll out of long-overdue new lotto machines, which will drive new opportunities in sports betting. I also personally pressed the need for increased commissions to help support struggling hospitality businesses.

In our meeting with the LCRB, we followed up on questions from our fall 2023 conference, such as the impact of the Minors as Agents Program and whether government liquor and cannabis stores are held to the same inspection standards as private businesses. I’m pleased to report that government shared the Memorandums of Understanding in place between the LCRB and the LDB, which states clearly that government-run liquor and cannabis stores are held to the same standards and frequency of inspection as private stores . There is no difference in fee schedule, fines, suspensions, or inspections. I want to offer my sincere thanks to our partners at the LCRB and LDB for their transparency and cooperation in sharing these details with us.

At the end of the day, I am a small business owner like you. I know firsthand how tough it is to succeed financially right now. All indications suggest 2024 is going to be another challenging year for industry. That’s why I’m so proud of the work ABLE BC’s Board of Directors and full-time staff are doing to support you and to fight for your interests. We have a lot of work to do, and I can’t thank members enough for their ongoing trust and support.

Are there issues or concerns you want to bring to the Board’s attention? Are you interested in joining our LRS, LP, or Cannabis Policy Committees? If so, please contact our Executive Director, Jeff Guignard, at jeff@ablebc.ca.

ABLE BC Engages Surrey — Cannabis Retail

The City of Surrey recently released its' proposed draft plan to permit cannabis retail within its' borders. Surrey's proposal allows for a total of 12 stores in the city, with a maximum of two stores in each town centre (City Centre, Guildford, Fleetwood, Newton, Cloverdale, and Semiahmoo).

The proposal also includes a minimum distance of 200 metre from sensitive youth areas, other cannabis stores, and cannabis production locations.

Surrey has the second largest population in Metro-Vancouver, so this is encouraging news for cannabis industry in BC.

On your behalf, ABLE BC recently wrote to Mayor Brenda Locke and Surrey's City Council to express our strong support for permitting legally licensed cannabis retailers in Surrey.

Similarly, ABLE BC also supported the District of North Saanich's current process to consider permitting licensed cannabis retail in their community.

What are your thoughts on Surrey and other closed cannabis communities?

Contact our Head of Cannabis Membership to share your perspective.

Celebrating 20 Years of ABLE BC!

2024 marks ABLE BC’s 20th anniversary – but did you know that ABLE’s advocacy work began in 1975 in our first iteration as the BC Neighbourhood Pub Owners’ Association (NPOA)?

Tony Rushworth, Branch Operations Advisor for the Royal Canadian Legion BC/Yukon Command, joined the NPOA in 1989 and later served as President from 1997-1999. At the time, he owned Mulvaney’s Pub in Burns Lake and Alpenhorn Pub in Smithers. Tony was, and continues to be, a strong advocate for the pub and private liquor industry in BC.

The foundation for ABLE BC was laid by Tony and his colleagues in the NPOA long before 2004. In 1999, Tony, Brenda Locke (then Executive Director of the NPOA), and members of the BC and Yukon Hotels’ Association and the BC Cabaret Owners’ Association were working together on shared liquor policy and smoking ban issues. These associations understood the need for a unified voice and the power of their collective members when working with government. They agreed to from one group, the Alliance of Beverage Licensees, which would officially form in March 2004.

Tony continues to support the private liquor industry and ABLE BC in his current role with the Royal Canadian Legion. The BC/Yukon Command’s 143 branches are all active and valued members of ABLE BC.

We will continue to share highlights from key moments, influential ABLE members, and historic policy wins from the past 20 years all year.

Do you have a story to share about your own history with ABLE BC? Get in touch with ann@ablebc.ca.

And stay tuned for an anniversary party announcement!

ABLE BC Engages LCRB: Retail White-label Clarification

In December 2023, the LCRB wrote to ABLE BC that one of the next cannabis market controls to be reviewed is white-labeling. Earlier this week, ABLE BC engaged again with the LCRB on a discussion call regarding "Retail White-labelling".

What is Retail White-labelling ? Is it the same as Tied House White-labelling?

The short answer is no.

Retail White-labelling is when a cannabis retailer partners with a Licensed Producer to create a branded cannabis that aligns with the retailer’s brand, but without any financial or ownership ties between the retailer and LP.

In our view, this practice is similar to "private labelling" or "co-packing" in the liquor industry, where for example a pub might work with a brewery to brand one of the brewery's existing beers as the pub's "House Lager." This activity is permitted so long as there are no ownership or financial ties between the licensee and the brewery, and the pub continues to sell a representative selection of other beers as well.

In addition, we also reiterated the financial benefit for LPs and micro-cultivators if Retail White-labelling is permitted, since it opens additional revenue potential for LPs and growers as well.

On behalf of our Cannabis Retail Members, ABLE BC is currently seeking clarification about whether "Retail White-labelling" is already permitted under the current provincial regulations. We look forward to updating you as soon as we hear from our government partners.

Share your thoughts on Retail White-labelling?

Contact our Head of Cannabis Membership

LCRB Update — Public Patios (Bulletin 24-01)

In addition to discussing Retail White-labelling with the LCRB, ABLE BC also gauged topics of Consumption Spaces and Special Events.

Earlier this morning, we received a letter from both the Ministry of Public Safety and Ministry of Tourism. You can read it here.

In summary, the BC Government has removed the prohibition on promoting places to consume cannabis and equalized smoking and vaping cannabis on public patios where smoking or vaping tobacco is already allowed. LCRB's latest Bulletin 24-01 will reflect this . Section 5.1.7 of the Cannabis Retail Store and Producer Retail Store Licence Handbooks will also be removed to ensure businesses have equal opportunity to participate in cannabis advertising, including allowing licensees to promote an out consumption space (e.g., patio).

ABLE BC Executive Director, Jeff Guignard shared his comments:

“This is great news for BC’s cannabis, hospitality, and tourism industries and we’re immensely grateful to our government partners for their support.

“Not only can businesses now promote places to consume cannabis, but the government has also aligned cannabis consumption rules with the rules for smoking or vaping tobacco. Which just makes sense. It gives businesses much-needed flexibility to serve their cannabis-friendly customers.”

“We’re also excited that government is taking further steps toward cannabis consumption lounges, which will create an entirely new dimension for our growing industry,” he adds. “As we discussed with Solicitor General Mike Farnworth recently, we still have a lot of work to do to support legally licensed retailers. But these small steps in the right direction are clear signs that government is listening, and we as an industry are making important progress.”

Regarding Consumption Spaces and Special Events, ABLE BC has already initiated engagement with its' Cannabis Membership on developing proposed plans to the LCRB and how these two policy frameworks can financially benefit private retailers in BC.

If you would like to participate or learn more on this topic, please c ontact our Head of Cannabis Membership

Member Spotlight: 1st Cannabis Co.

1st Cannabis Co. is conveniently located near The Shipyards District and is one of North Vancouver’s first licensed cannabis stores.

With friendly staff service, fantastic selection, expert product knowledge, and deliveries available, 1st Cannabis Co. offers a unique experience for the neighbourhood and folks visiting North Vancouver's vibrant waterfront.

Get a few canna-goodies at the store, grab some snacks, and then watch the unobstructed views of Vancouver's stunning skyline at the Shipyard District!

1st Cannabis Co., where the grass really is greener!

Follow 1st Cannabis Co. on socials!

BC Craft Cannabis Designation: Ministry of Agriculture Seeks ABLE BC Members Input

BC's Ministry of Agriculture is seeking feedback on the feasibility of a recognized BC “craft” cannabis designation. As we prepare our comments, we want to hear from you.

In the coming days, ABLE BC will circulate an online survey to all Cannabis Retail Members, Associate Members, and Industry Partners.

Specifically, we are seeking feedback on:

• What qualifications should be considered for a "craft" designation;
• How should those qualifications be evaluated;
• What types of industry challenges could a craft designation help address and how could it improve your business;

Responses are confidential and due by February 26, 2024. Look for the ABLE BC email in your inbox!

Stores in Vancouver Island Looking for New Owners & Investors

In December 2023, Trees Cannabis entered CCAA for financial restructuring and then was granted creditor protection.

Unfortunately, in late January 2024 the legacy brand also began the sale and investment solicitation process (SISP) for their four locations on Vancouver Island (2 in Victoria and 2 in Nanaimo).

Potential buyers interested in acquiring these assets must submit their bid in the SISP (and other required materials/info) by no later than 5:00 p.m. (ET) on February 29, 2024.

ABLE BC's Cross-Industry Reception: Cannabis, Liquor, Hospitality

On Feb. 1, ABLE BC hosted passionate professionals from the cannabis, liquor, and hospitality industries for a networking reception with Deputy Premier and Solicitor General Mike Farnworth. We were also joined by senior executives from the LCRB and several Vancouver City Councillors.

And what a vibrant crowd it was! As our first event featuring all categories of ABLE BC membership, we were delighted to be joined by so many from the cannabis industry, including retailers, LPs, brands, media, and service providers.

ABLE BC President Yvan Charette & Andy Nguyen (AR Cannabis)

Deputy Premier and Solicitor General Mike Farnworth & Steve Crichton

(Director of Education & Corp Development at Green Hedge)

Kaya (Nine Point Agency), La Canapa Boutique Team & Feven Berhane

(ABLE BC Advisory Member & Owner of Kushklub)

Assistant Deputy Minister & LCRB GM David Hume & Nameer Ramzan (Highmark Brands)

In addition to engaging directly with Minister Farnworth, many members enjoyed the opportunity to discuss common concerns and challenges of owning and operating businesses in highly regulated industries.

Our sincere thanks to Labatt Breweries for hosting and providing complimentary food and beer.

On behalf of ABLE BC's Board of Directors, staff, and members, thank you to our canna-friends for joining us. We look forward to seeing you again at our next event!

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 3000 people have signed the petition so far, which is open until March 7, 2024.

Out & About with ABLE BC

From advocating industry priorities with government, engaging Members, attending industry events, and reminding ourselves to enjoy the process...

It's been a busy 2024 start for the ABLE BC team!

ABLE BC Executive Director, Jeff Guignard visiting City Council in Comox, BC

Sabrina (Herbal Dispatch) & Bo (ABLE BC Cannabis) @ Tether's Vancouver Event!

ABLE BC visiting our Cannabis Retail Members (Dylan @ Brunette Cannabis)!

A souvenir from our friends Sun Coast Cannabis Shoppe in Powell River!

(ABLE BC's tour along the Sunshine Coast)

go2HR on Tap: WorkSafe BC Updated its Planned Inspectional Initiatives

go2HR is a regular contributor to the ABLE BC Liquor 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.

Our partners at go2HR have shared some news regarding WorkSafeBC’s planned inspectional initiatives for 2024. These initiatives are intended to promote the effective management of workplace risks by examining and promoting health and safety basics and targeting specific areas of high risk within particular industries.

Although the tourism and hospitality industry is not considered high risk, musculoskeletal injury (MSI) prevention and psychological health and safety are likely topics for discussion when WorkSafeBC Prevention Officers carry out these inspections in 2024. Employers can learn more about WorkSafeBC’s areas of focus for 2024 here , including further details about MSIs and psychological health and safety.

For support preparing for or following a workplace inspection, request a free consultation with go2HR’s health and safety advisors. Learn more about this NEW service and request a consultation here . go2HR’s team of experts can also offer advice on managing MSIs, workplace psychological health and safety, and much more!

go2HR , the HR and health and safety association for the BC Tourism and Hospitality Industry, has a wealth of free resources to support you. We invite you to connect with us to learn more about how you can support your employees at hr@go2HR.ca .

Help Our Cannabis Advocacy! Join ABLE BC!

Do you own a cannabis retail store? Sign up now for an ABLE BC Cannabis Membership to support the work we do on your behalf.

As ABLE BC works to support BC’s cannabis retailers, we meet regularly with various officials at the LDB, LCRB, and with elected officials in the federal, provincial, and municipal government. With your support, we are making meaningful headway amending regulations and policies that support industry growth.

ABLE BC Cannabis Members have access to several benefit programs that offer exclusive discounts and are designed to help your business thrive. In addition to our benefit programs, we offer expert advice , regular webinars, and many networking opportunities.