Cannabis Industry Update: January 17, 2024

Dear ABLE BC Cannabis Members and Industry Colleagues,

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

  • Happy 2024 from ABLE BC

  • ABLE BC's Meeting with Minister Farnworth

  • Member Spotlight: Brunette Cannabis Co.

  • BC Store Cap Discussion

  • RSVP — Feb 1st: ABLE BC Industry Reception

  • 2 Cannabis Shop Break-Ins & BC's Business Rebate 

  • Health Canada Releases New Data & Future Plans

  • Out and About with ABLE BC

  • Advertise with ABLE BC: 2024 Media Kit

  • go2HR on Tap: New Year, New Start: Setting Intentions to be a More Mindful Employee

Find all past updates here .

Sign up for future newsletter updates here.

Happy 2024 from ABLE BC!

Hope you all enjoyed a short break and closed off a profitable retail season from the holidays! 
With the new year upon us, it's full steam ahead for our team here at ABLE BC with plenty of updates on our advocacy efforts and industry news. Let's dig in!

Bo, Head of Cannabis Memberships 
bo@ablebc.ca 

Advocacy Update: ABLE BC's Meeting with Minister Farnworth

Earlier this week, ABLE BC met with Mike Farnworth (Solicitor General and Minister of Public Safety) to discuss various topics relating to the financial health of our industry, including:

  • Effective market controls to support retailers (such as a minimum distance between retailers combined with a measured increase to the store cap),  

  • Improving distribution and revising elements of the LDB's Direct Delivery program,  

  • Reducing red tape to improve store operations, for example by streamlining the process for license transfers and store relocations, and 

  • The need for a collaborative "Shop Safe, Shop Legal" education campaign, funded by government and supported by all retailers in BC, to encourage customers to choose legal cannabis. 

Regarding market controls, we reiterated that a small increase to the eight-store cap would be good news for industry if implemented at the same time as a regulated minimum distance between new stores. Based on feedback from our members and our experience in BC’s liquor retail industry, we know that a minimum distance rule will support the financial health of all retailers by protecting market share and revenue, increasing the value of a retailer’s license, and building confidence with financial institutions. We clarified that existing licensed retailers should be grandfathered into their current locations. Additionally, we recommended that licence transfers and relocations should be easier and a separate process from the new application wait list. 

On distribution, we emphasized the negative impact that the 15% Direct Delivery mark-up has had on the overall financial health of our industry. We made it clear that revising the current Direct Delivery program will help the entire industry —from retailers to licensed producers to cultivators — by enhancing margins across the value chain. We also discussed the need to permit “Tied House White Labelling” relationships, which would allow LPs and BC cultivators to produce branded products for specific retailers to increase margins and provide more reliable revenue. 

We also discussed the overwhelming burden of needless red tape and bureaucracy. Some irritants require only minor policy changes (for example, permitting minors to enter a cannabis store if accompanied by a parent or guardian… instead of leaving them outside in this type of weather!), while others may require more extensive work (such as improving the process for licence transfers and relocations).

Lastly, we were particularly excited to explore the idea of a collaborative marketing effort between retailers and the provincial government to increase consumer awareness about the differences between legal and illicit cannabis supply. We look forward to following up on this idea in meetings with government in the coming weeks.

Overall, it was a positive and productive discussion. Minister Farnworth seems genuinely committed to making the right policy changes to support our industry’s financial health, which is encouraging.

To learn about how you can support our dedicated advocacy work for cannabis retail in BC, contact our Head of Cannabis Membership, Bo Chen (bo@ablebc.ca). ABLE BC is a non-profit organization, so your support is essential to our efforts! 

Member Spotlight: Brunette Cannabis Co.

Brunette Cannabis Co, your boutique cannabis location in the heart of Coquitlam, B.C. Our curated selection of premium cannabis products caters to both enthusiasts and first-timers, offering a nuanced experience.

Step into our comfortable space, designed for exploration. Our knowledgeable staff is more than just guides; they're your partners, ensuring a personalized journey through our selection.

Compassion is our cornerstone. Beyond transactions, we believe in connections. Your visit is more than a transaction to us; it's an enjoyable, meaningful experience.

Brunette Cannabis Co. goes beyond retail; we're a community hub fostering a shared love for cannabis culture through education.

Here, it's not just about being customers; it's about being buds.

Let's be buds! 
Follow Brunette Cannabis Co. on socials!

BC Store Cap Discussion

ABLE BC is proud to announce that in lieu of implementing an overarching distance criteria, the BC government has maintained the status quo of the current store cap and will continue to engage with ABLE BC to other explore market controls that we have been advocating for since the start of our program in Sept 2023: 

On December 20, 2023 — we received a written letter from BC's Minister of Public Safety and Solicitor General, Mike Farnworth, regarding our recommendations for the Store Cap. 

You can read the Minister's reply to our submission here. 

In short, the LCRB has completed their initial analysis on changes to the cannabis retail licence store cap in BC. Minister Farnworth welcomed our "thoughtful" submission and the balanced collective perspective of our Cannabis Retail Members.  

In a recent article by StratCann regarding this topic, ABLE BC's Executive Director, Jeff Guignard, said:

“Given the lengthy history of BC’s cannabis culture, there are a lot of diverse perspectives on the best way forward. I think the government is working hard to understand and respect those perspectives, which is why these consultations take time. In our conversations with Solicitor General Mike Farnworth, he seems genuinely committed to making the right policy changes, which is encouraging." 

“We’re encouraged that the government is working hard to understand the whole picture before it acts. For example, we’ve also been advocating for a minimum door-to-door distance criteria between retailers to be implemented at the same time as a small increase to the eight-store cap. We know from our work on behalf of liquor stores that distance rules are a very effective way to protect investments and ensure fair competition. It would make sense for those two things to be implemented at the same time.”

“A small increase to the eight-store cap would be good news for industry, especially if it’s combined with a regulated minimum distance between new stores. It would support incremental growth for businesses already at the cap, while still protecting the diversity of individual businesses at their current size. Increasing to the cap to 12 or 16 stores would give everyone room to grow while still preventing any one chain of stores from growing large enough to skew the market. Long term, increasing the cap will be essential for the financial health of BC’s cannabis retailers.”

To learn more about how you can contribute and support our dedicated advocacy work for cannabis retail in BC, please contact our Head of Cannabis Membership.

ABLE BC Industry Reception on February 1

Join ABLE BC's Board of Directors, staff, and local industry professionals for an evening of fun as we celebrate the end of another busy and successful holiday season!  

We will be joined by special guest, the Honourable Mike Farnworth, Minister of Public Safety and Solicitor General. Come and hear directly from Minister Farnworth on his plans for liquor and cannabis policy reform. 

Are you interested in meeting with the Minister for a private reception? Please reach out to ABLE BC’s Executive Director Jeff Guignard at jeff@ablebc.ca for more information.

Light refreshments and beverages will be available.

This event is generously sponsored by Labatt Brewing.

Event details:

Street parking is limited, but there are several parking lots within walking distance. The Yaletown-Roundhouse Skytrain station is just 200m away.

Store Burglaries in BC & Small Business Rebate

Unfortunately, two cannabis retail stores in BC experienced break-ins earlier this month. 

  • UEM Langley: Two vehicles with six people broke into the store in the early morning and caused significant damage. The individuals took vape pen batteries, cannabis beverages, and extracts. 

  • Seed & Stone in Chilliwack: Similar to the Langley incident, two vehicles were involved and the individuals did damage to the store in the early morning, resulting in the store having to be temporarily closed for repairs. 

ABLE BC is dedicated to protecting and growing your business and as such, we'd like to remind you that BC’s Securing Small Business Rebate Program Open Now

The BC Government’s $10.5-million Securing Small Business Rebate Program is designed to ease the financial burden on small businesses like you—who are bearing the brunt of a staggering increase in vandalism, theft, and property crime. To help ease the pain, BC’s small business owners are now eligible to be reimbursed up to $2,000 per business for costs incurred due to vandalism. Businesses may also claim up to $1,000 for preventative measures such as security cameras. 

Applications are open until Jan. 31, 2025 and are retroactive to Jan. 1, 2023 to cover any costs incurred over the year. 

This rebate is offered at a first-come, first-served, basis. As such, we encourage members to apply as soon as possible. 

Click here for more information.

Health Canada: Releases New Consumer Data & Future Plans

Health Canada released new data in the Canadian Cannabis Survey 2023 earlier last week. The survey covered various topics ranging from social acceptability to cannabis consumption methods and types of product use.

An interesting topic was "Exposure to advertisements or promotions of cannabis," where over half of respondents had not noticed any cannabis advertisements (54%), an increase since 2022 (51%). Where seen, most were outside of stores that sell cannabis (24%). 

New topics were also introduced, such as "Identifying legal store and websites" — for storefronts, 72% reported they did not consume cannabis or did not know how to identify a legal store. For websites this was even higher, with 89% saying they do not order cannabis online or did not know how to identify a legal website. 

Given the promotional and advertising restrictions in the cannabis space, the two data points above are not surprising and continues to be a challenge for our industry. 

Additionally, Health Canada also released their Forward Regulatory Plan: 2023-2025 —  which outlines their regulatory initiatives that they aim to propose or finalize in the next two years. 

Some key proposed amendments for cannabis include:

  • restrict the production, sale, promotion, packaging, or labeling of inhaled cannabis extracts (i.e., vapes) from having a flavour, other than the flavour of cannabis; 

  • streamline Cannabis Regulations in: federal licensing, personnel and security measures, production requirements, packaging and labelling requirements, and record keeping/reporting; 

  • enable access to safe, effective, and high quality health products containing CBD that would not require the oversight of a practitioner (i.e., available without a prescription). 

If you have any questions or comments, please contact our

Head of Cannabis Membership to share your perspective on these matters.

Out & About with ABLE BC

ABLE BC's Executive Director, Jeff Guignard, addressed Vancouver City Council on December 13, 2023, in support of key policy changes for Vancouver’s Liquor Primary Businesses.

In December 2023, we were thrilled to celebrate several advocacy wins for Vancouver's Liquor Primary businesses. As a direct result of our work with the City of Vancouver, and with the support of our partners in the Hospitality Sector Working Group, nightlife businesses in Vancouver will see more opportunities and more profit in 2024 and beyond! 

The following changes are now in effect: 

  • Distance requirements lifted - The City of Vancouver has long implemented distance requirements that throttled the growth of similar-sized Liquor Primary businesses. With these requirements now lifted, more establishments of similar size can open in a given area and encourage more customers and tourists to visit.

  • Moratorium on new liquor establishments lifted - Removing the moratoria on new liquor establishments in the Granville Entertainment District, Gastown, and other areas of Vancouver allows room for business expansion, new business opportunities, and innovative economic activity. This will increase business diversity, attracting new customers and improving safety with more open businesses in the daytime and evenings. 

  • Harmonized closing hours - Nightclubs, pubs, and bars on Granville Street now have harmonized closing hours, providing the option to stay open until 4am and increase opportunity for financial viability.

  • Increased capacity of Class 2 establishments - The largest liquor establishments allowed next to residential areas (Class 2 establishments) can now increase to 200 seats, allowing these businesses increased opportunity for profitability.

  • Authority delegated to the Chief Licence Inspector - The Chief Licence Inspector can now make recommendations to the Liquor and Cannabis Regulation Branch (LCRB) without a Council resolution, streamlining the licensing process for faster approvals and changes.

  • Dual-licence establishments can transition to into bar at 9pm -  The transition time has moved up one hour (from 10pm), bringing this regulation into alignment with the rest of BC.

Advertise with ABLE BC: 2024 Media Kit Now Available

Attention ABLE BC Associate Members, agents, producers, and industry suppliers: connect with BC’s private liquor and cannabis industries by advertising with ABLE BC! Put your business in direct contact with owners, managers, and decision-makers of BC’s bars, pubs, nightclubs, hotels, and private liquor and cannabis stores. 

ABLE BC Associate Members receive a 15% discount on print and digital advertising! 

Enjoy a wide range of advertising options: 

  • The Quarterly Pour magazine 

  • The Liquor and/or Cannabis Industry Update newsletters 

  • Dedicated E-blast 

  • The annual Buyers’ Guide 

  • Sponsor or present a webinar 

  • Social Media posting 

  • And more! 

Contact Joyce Hayne, EMC Publications, at 1-800-667-0955 or joyce@emcmarketing.com to book in now!

go2HR on Tap: New Year, New Start: Setting Intentions to be a More Mindful Employee

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