Cannabis Industry Update---------------------------------------------------------
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Cannabis Industry Update:
March 13, 2024
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Dear ABLE BC members and industry colleagues,
Here's the latest news for the private cannabis industry:
- ABLE BC’s Comment on Budget 2024
- Update - Lower Licence Fees in Powell River
- ABLE BC's Survey for Cannabis Members Now Available!
- ABLE BC & Cannabis Caucus Co-Chair, MP Patrick Weiler
- CSU Enforcement in Comox
- Member Spotlight: Cheekys Cannabis Merchants
- Store Fined $7,000 & Another Closed for a Week — Failure to Check ID
- Burb Cannabis Opens at UBC
- ABLE BC 20 Years
- StatsCan Releases 2022-23 Sales Data — Alcohol & Cannabis
- Minimum Wage Increases on June 1
- go2HR on Tap: Edit This Part
- Out and About with ABLE BC
- Help Our Cannabis Advocacy! Join ABLE BC!
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ABLE BC's Comment on Budget 2024
Last month, the provincial government released Budget 2024: Taking Action for You. We are delighted that government listened to the needs of hospitality businesses, as our industry struggles to recover financially from the pandemic.
Budget 2024 addresses inflation and labour shortages for small and growing businesses by doubling the Employer Health Tax (EHT) threshold from $500,000 to $1 million. It means many of you will no longer be subject to this payroll tax, which several members say will save about $15,000 per year—money obviously better left in your pocket right now.
ABLE BC, along with dozens of other industry associations, have been advocating for this change since the EHT was first introduced. This change will make 90% of businesses exempt from the tax, which is estimated to save them more than $100 million a year.
And there’s more good news for businesses! The BC Electricity Affordability Credit will reduce electricity bills, saving businesses up to 4.6%. For the average small business, this means saving $400 over the course of the year.
Despite these successes, we are concerned about the nearly $8 billion projected deficit, which means the province will be going further into debt to finance its operations. That’s obviously unsustainable in the longer term and may impact BC’s credit rating.
The Budget also projects the BC Liquor Distribution Branch’s (LDB) annual net income will decline slightly from $1.2 billion to $1.1 billion, based on lower revenue expectations due to economic conditions, shifts in consumer behaviour, and a downward trend in liquor consumption. Additionally, the LDB will be investing $90 million in self-supported capital, including investments for update and improvements to liquor stores, technology-related projects, and ongoing operating equipment replacements.
Following the release of Budget 2024, ABLE BC’s Executive Director Jeff Guignard met with Premier David Eby at Junction Pub, a long-time member of the Alliance.
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ABOVE - Minister Brenda Bailey (Jobs & Economic Development), MLA Spencer Chandra Herbert, Premier David Eby, Byron Cooke (GM of Junction), and ABLE BC Executive Director Jeff Guignard
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BC’s Hub for Workplace Mental Health
The Canadian Mental Health Association has created a resource hub for employers and employees dealing with mental health challenges at work.
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Liquor Industry Update Newsletter
Sign up for our Liquor Industry Update Newsletter to learn more about our advocacy for liquor businesses. Click here to read past liquor newsletters.
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ABLE BC
Member Portal
The Member Portal is your hub for all resources and benefits available to ABLE BC members. Contact david@ablebc.ca if you need help logging in.
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Update - Lower Licence Fees in Powell River
ABLE BC is focused on supporting the financial viability of your businesses and we are delighted that our collective efforts with our Cannabis Retail Membership have prompted the Council of Powell River to vote unanimously and request city staff to explore implementing a lower business licensing fee for cannabis retailers in that community!
ABLE BC Member Debbie Dee from Suncoast Cannabis Shoppe led the presentation to Council and rallied support from other local private cannabis retailers, proposing to lower the business licensing cost from $2,000 to $180.
This change will occur effectively immediately after city staff submits their report back to Council in the next meeting.
We look forward to bringing you more updates on this end and as well as representing your business interests on many levels of government.
If you are a licensed cannabis retailer in a community that is also challenged by costly municipal business licensing fees, please contact our Head of Cannabis Membership for support.
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ABOVE - Council Meeting of Powell River
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ABLE BC's Survey for Cannabis Members Now Available!
ABLE BC's Cannabis "Checking In" Survey is now available!
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As ABLE BC's Cannabis Retail Membership continue to grow and we make strides in advocacy initiatives on many levels of government — we are checking in with you. We want to hear your feedback on specific cannabis retail issues by completing our 10-minute survey:
Our advocacy program is driven by our Cannabis Retail Members, so your input is important and will help strengthen our initiatives.
The survey is only available for our Cannabis Retail Members and will close on March 25, 2024.
Not sure if you are Member or would like to learn more?
Please contact our Head of Cannabis Membership
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ABLE BC & Cannabis Caucus Co-Chair, MP Patrick Weiler
In late February, ABLE BC met with Member of Parliament Patrick Weiler, Co-Chair of Parliament's Cannabis Caucus.
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ABOVE - ABLE BC, President Yvan Charette, Cannabis Committee Chair Steve Dowsely, MP Weiler & staff
During the remote meeting, we discussed the most urgent federal issues impacting the success of retailers in the legal market and how industry and government can work together to address these challenges. Examples included:
• personal possession limits;
• promotions and advertising restrictions;
• the need for more online enforcement tools;
• and permitting kids with their parents/guardians in stores.
MP Weiler sponsored a recent petition to raise THC limits on cannabis edibles (the petition is now closed and has collected enough signatures to move onto the next phase).
ABLE BC will continue to collaborate with MP Patrick Weiler on federal changes and we look forward to bringing you more updates in the near future.
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CSU Enforcement in Comox
Earlier last month, the RCMP and BC's Community Safety Unit (CSU) raided four unlicensed cannabis stores in the Comox Valley.
As BC's provincial agency responsible for enforcement on illicit cannabis, the CSU shut down the Cedar Bark Dispensary, The Buddery House, 3420 Cannabis, and The Butterfly Effect, all of which are unlicensed either by the Liquor and Cannabis Regulation Branch (LCRB) or under 119 Section Agreement of the Cannabis Control and Licensing Act.
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In past meetings with Solicitor General and Deputy Premier Mike Farnworth and the CSU, ABLE BC expressed concerns on the lack of enforcement in Comox Valley and emphasized the financial detriment to legally licensed private retailers in the community. During the seizure, local licensed stores noted a positive effect in increased sales within that period.
A day later after the enforcement, The Buddery House and 3420 Cannabis re-opened.
While the illicit market continues to thrive, ABLE BC advocates to protect your business and to balance the playing field between the legal and illicit market.
If you are a licensed cannabis retailer who would like to learn more about the CSU and their enforcement initiatives, please contact our Head of Cannabis Membership.
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Members Spotlight: Cheeky's Cannabis Merchants
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With International Women's Day just recently passing by, who else better than to highlight as ABLE BC Cannabis Retail Members than Cheeky's Cannabis Merchants!
Women owned (and operated!) — Cheeky's not only provides excellent customer service with a focus on education in product knowledge, but also operates on a friendly neighbourhood shop approach to community engagement and compassionate contributions to those in need.
Cheeky's Giving Program called "Green Gratitude" provides charity to World Housing — an organization providing housing to the world’s most vulnerable people by working with global NGO charity partners (funded over 900 new homes and housing over 4,500 people in Canada, Mexico, El Salvador, Haiti, Cambodia, Colombia and Philippines).
Be sure to follow Cheeky's on socials and check out their locations below!
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Store Fined $7k & Another Closed for a Week — Failure to Check ID
Last month, the BC Liquor and Cannabis Regulation Branch (LCRB) ruled that Kiaro Cannabis will be fined a penalty of $7,000 CAD for failing to check a minor's identification in July 2023.
Another similar incident also took place with Prime Cannabis — resulting in the store opting to close for a week.
Both were fined by LCRB inspectors under BC’s Minors as Agents Program (MAP), which is aimed specifically at prevent underage drinking and cannabis use. Given the potentially severe consequences of underage drinking and cannabis use, preventing the sale of liquor and cannabis to minors is one of the LCRB’s key priorities.
The program was started in 2010 and, according to section 78 of the Liquor Control and Licensing Act, allows minors who are “employed or contracted by a municipal police board, the provincial police force or the general manager to test the compliance of a licensee” to purchase liquor or cannabis. Under MAP, one to three undercover agents, including a minor, will enter a licensed establishment and attempt to purchase liquor in order to test the establishment’s compliance.
MAP does not allow the undercover agent to lie, an important distinction from entrapment. Minor agents work under supervision of inspectors and will answer any questions (such as their age) honestly.
If you sell liquor or cannabis to a minor agent, you have the option to:
• admit to the contravention and accept the proposed penalty;
• admit to the contravention and dispute the penalty; or
• dispute that the contravention occurred.
To prevent future mishaps, ABLE BC's ID Checking Guidebooks are an excellent resource to help your staff check IDs and add an extra layer of protection in your staff training. These books also help ensure you are kept updated on the latest versions of all ID formats.
If you have any other questions or concerns regarding the ID Checking Guidebooks, please contact ABLE BC at 604-688-5560 or david@ablebc.ca.
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Burb Cannabis Opens at UBC
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A university/college experience isn't really complete unless you tried some cannabis.
Kidding aside, back then you probably had to meet your contact in some dimly lit parking lot on campus to get the goods (or when you finally become friends, they might invite you up to their dorm to check out their stash — even then you didn't really know what you were getting).
All that changes with Burb Cannabis's grand opening of their store at UBC late last month.
Located in what is colloquially known by students and alumni as "The Village," Burb's new location is the closest licensed cannabis store to UBC and also marks their 8th location.
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ABOVE - Burb CEO John Kaye & ABLE BC Cannabis Committee Chair Steve Dowsely
The process was not easy and the location faced multiple challenges along the way. It took three years, a million dollars, lengthy licensing burdens, and relentless determination to overcome local stigmatism to get it done. CEO John Kaye and the Burb team officially opened the store to a lineup of students on Friday by simply saying, "Let’s cut the ribbon, let’s get high".
At ABLE BC, we are proud to support the growth of our Cannabis Retail Members and are please to see our Members expand into new and unique markets!
Do you own a cannabis retail store? Reach out to our Head of Cannabis Membership to learn how an ABLE BC Cannabis Membership can support your business.
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Celebrating 20 Years of ABLE BC!
We’re continuing to look back on the past 20 years of ABLE BC’s history, and this week we’re highlighting the Business Technical Advisory Panel (BTAP). Did you know that ABLE BC has played a key role in this government-appointed panel since its inception, and that many of the historic policy wins we have achieved in recent years have been a result of BTAP’s work?
In 2017, the BC government appointed Mark Hicken, a BC wine industry lawyer and liquor policy expert, as the Ministry of Attorney General’s Liquor Policy Advisor. Mark met with industry stakeholders, including ABLE BC, over several months to identify specific areas for government to improve efficiency and business relations with BC’s liquor industry.
In April 2018, Hicken and the newly formed BTAP presented government a report including 24 recommendations for improvements. ABLE BC has been a key contributor to BTAP, ensuring that our members’ voices were heard and understood by government. Read the original report here.
Because of our work with BTAP, ABLE BC is proud to have secured several policy wins for industry, including wholesale pricing for hospitality businesses, allowing LRS’s to sell to Special Event Permit Holders, and ongoing improvements to the distribution system.
In 2020, ABLE BC’s Executive Director Jeff Guignard stepped into the Chair position of BTAP. With ABLE BC at the helm of BTAP, we are your direct line to decision-makers who shape the future of our industry.
As Hicken commented, “ABLE has always been an active and vital part of the BTAP process. It has been a pleasure to work with Jeff on policy changes over the years. I look forward to seeing further success in the years to come.”
Jeff meets with Mike Farnworth, Minister of Public Safety and Solicitor General, regularly to discuss BTAP’s priorities, including the LDB’s out-dated IT system, lengthy delays receiving non-stock wholesale products, and other issues.
BTAP continues to meet on a regular basis to collaborate on key issues affecting all areas of BC’s liquor industry.
Do you have a story to share about your own history with ABLE BC? Get in touch with ann@ablebc.ca .
Stay tuned for an anniversary party announcement!
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StatsCan Releases 2022-23 Sales Data — Alcohol & Cannabis
Statistics Canada released the 2022 and 2023 sales data of alcohol and cannabis last week, indicating that alcohol consumption has reduced while cannabis consumption has risen.
Key findings:
• Sale of alcohol by volume down by 1.1%;
• Wine sales down 3%;
• Volume of beer sold per person is at new low;
• Spending has increased but most likely due to inflation and not volume consumed.
Meanwhile for cannabis:
• Retail sales of recreational cannabis increased 15.8%;
• Cannabis sales were equivalent to $150 CAD per person of legal age.
While it is not clear if there is a direct causation between these two commodities, it is clear that as cannabis becomes more accessible and less stigmatized — demand, different consumption methods, and even new business opportunities will continue to grow.
At ABLE BC, we are committed to fostering the development of our emerging cannabis market and look forward to advocating towards the financial viability of our Members and the private cannabis industry.
Reach out to our Head of Cannabis Membership and join ABLE BC Cannabis Membership today!
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Minimum Wage Increases on June 1
Last week, the BC government announced minimum wage will increase to $17.40 an hour on June 1. This represents a 3.9% increase, consistent with BC’s average rate of inflation in 2023.
We understand that this minimum wage increase will have a serious impact on your business and profitability. Our industry is still struggling to recover financially from the pandemic, and high inflation continues to put undue strain on our members. We have repeatedly communicated with government that this is the wrong time to increase costs to your businesses.
Budget 2024, released last month, addresses inflation and labour shortages for small and growing businesses by doubling the Employer Health Tax (EHT) threshold from $500,000 to $1 million. We hope that the increase to the EHT threshold will ease financial pressure on your business.
ABLE BC, along with dozens of other industry associations, have been advocating for this change since the EHT was first introduced. This change will make 90% of businesses exempt from the tax, which is estimated to save them more than $100 million a year.
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go2HR on Tap:
Continuous Learning: Advancing Equity, Diversity & Inclusion
in Your Workplace
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 .
Are you an employer committed to fostering a truly equitable, diverse, and inclusive (EDI) workplace? At go2HR, we understand that the landscape of EDI is constantly evolving. As we all embark on this continuous learning journey, new insights and best practices emerge.
At go2HR, we are actively engaged in our own EDI learning journey. This ongoing exploration has equipped us with valuable knowledge and resources specifically tailored to support tourism and hospitality employers in their EDI efforts.
We are excited to unveil our newly redesigned EDI Hub, featuring a more user-friendly layout and design. This hub continues to serve as a valuable resource for employers committed to building and sustaining an inclusive workplace.
Let us continue the conversation about equity, diversity and inclusion in the workplace! Explore the new HUB: http://go2hr.ca/edi-resources
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.
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Out and About with ABLE BC
The ABLE BC team has been busy planning out events and projects for the year.
We are getting close to announcing cross-industry meetings in the Okanagan this April and our 20 year anniversary party in late spring!
Make sure to sign up for our newsletter or follow us on Instagram or LinkedIn to stay in-the-know about all our upcoming events. Interested in hosting a liquor industry meeting in your community? Reach out to ann@ablebc.ca!
As busy as it gets, we still find time to visit & check in with our Cannabis Retail Membership!
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In addition, ABLE BC’s Executive Director Jeff Guignard appeared in the following media recently:
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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.
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BC's Alliance of Beverage Licensees (ABLE BC)
200 - 948 Howe Street, Vancouver, V6Z 1N9 Canada
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