Cannabis Industry Update: November 8, 2023

Dear ABLE BC Cannabis Members and Industry Colleagues, 

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

  • Head of Cannabis Membership: Bo says Hello!

  • Member Spotlight: Muse Cannabis

  • Sign Up Now: Digital Age Verification Pilot

  • Update: HC Streamlines LP Presale Inspection

  • Update: More Consumers Buying From Legal Market

  • Reminder: Pay Transparency Rules Now in Effect

  • Out and About with ABLE BC

  • Due Diligence Templates for ABLE BC Members

  • go2HR: Mental Health Awareness in the Workplace

Head of Cannabis Membership:  Bo says Hello!

 Hi folks,

It is an honour for me to take on the role here at ABLE BC as the Head of Cannabis Membership.

I'd like to thank my predecessor, Nick Landells, for his amazing advocacy work and laying the foundations for us to build on (Nick has now returned to the United Kingdom to spend time with his family).

My industry experience stems from the Access to Cannabis for Medical Purposes Regulations (ACMPR) days on the Licensed Producer side (LP), particularly focused on licensing and regulatory matters.

Since then, I've been passionately supporting our unique and challenging industry by helping stakeholders transition into the licensed space.

Fast-forward to now, I find myself in a privileged position to work alongside all of you and to advocate on behalf of British Columbia's cannabis retailers. 

Outside of work, I geek out about fitness, wellness, and flyfishing... so definitely avoid those topics around me unless you're up for a lengthy conversation!

I look forward to meeting you and most importantly hearing your story. Please feel free to connect directly here and say hello: bo@ablebc.ca

Members Spotlight

Muse Cannabis is a premium, family-run cannabis retail experience that emphasizes listening to customer's needs and preferences first. The team at Muse serve as wayfarers who provide extensive product knowledge and help guide customers toward the selection best suited for their lifestyle.

Whether seniors, women, or those who don't fit the (inaccurate) cannabis stereotypes, the unique aesthetic of Muse Cannabis welcomes a diverse audience of cannabis patrons and those who are curious to try.

You can find their stores located at:

  • Maple Ridge (Westgate Centre)

  • West End (Denman & Nelson)

  • South Granville (at 15th Ave)

  • Downtown Granville (at W Pender)

  • and Deep Cove

Sign Up Now: Digital Age Verification Pilot

Calling all Cannabis Retailers in BC!

Do you sell products online? 

Are you interested in participating in a fully funded pilot project to test digital age verification?

Contact ABLE BC and join us with the LCRB for an information session!

Recent regulatory changes allow British Columbians to order cannabis online. ID checks are required upon ordering and delivery, but these transactions aren’t secure or verifiable.

We are currently seeking members who do a reasonable volume through e-commerce who would be interested in incorporating BC’s technology into their software for purchases.

  • A pilot using the BC Wallet, namely the ‘Person Credential’ (derived from  BC Services Card), to validate one’s age has now been officially approved for online/app purchase and delivery of restricted goods such as cannabis.

  • The Province of BC is looking for partners launch this exemplar age verification pilot. The pilot would be to validates one’s age upon ordering online and verifying age at the delivery location. Also in scope is the issuance of a ‘Selling it Right’ credential.

  • BC and other provincial jurisdictions continue to move forward on the adoption of compatible Verifiable Credentials.

This pilot could be a significant step to reduce liability and risk associated with serving minors.

For more details or to register, email bo@ablebc.ca

Industry Update: Health Canada Reduces Redtape for LPs to add new Classes of Products

When it comes to federal processing licences, the initial conditions on the licence determine what a LP can produce and sell as a cannabis product. To sell a particular class of cannabis product (i.e., dried, extracts, edibles and topicals), LPs submit a sales amendment licence application to Health Canada and then undergo a pre-sales inspection. For example, if LP "X" (producing/selling dried flower & non-infused prerolls brands in the market) wishes to launch a new infused preroll SKU, they must first apply to add the extracts class onto their licence. Essentially, the sequence for LPs are: 

ONE. prepare all the required documents and produce product batches that are ready for inspection;

TWO. submit your licence amendment;

THREE. and WAIT for Health Canada to respond, schedule a presales inspection, pass the inspection, and then finally obtain a successful licence change.

This entire process on average (starting from application submission) takes approximately four to five months. You can imagine how much time and capital is needed just to launch into a new product category.

Fortunately, LPs can now bypass this arduous journey! In early October 2023, Health Canada started phasing out pre-sales inspections. This is a significant reduction of federal redtape that--in theory--will provide a more efficient pathway for our LP partners to commercialize new products, respond quickly to market demands, and allow a diverse offering that gives licensed cannabis retailers more SKU options to choose from. 

 While we welcome this change, it is only a small step to improve our regulated supply chain. It will also be some time before retailers can expect to see any impact, as LPs still need to conduct extensive planning into their operations, adjust their production methods, source new bill of materials, submit their Notice of New Cannabis Products (NNCPs) to Health Canada, and register the new product with the BC Liquor Distribution Branch. Each of these steps require time, cashflow, and troubleshooting (and this is not even factoring in actual warehousing and distribution in the LDB's Central Delivery System). 

 A case could be made that the LDB's Direct Delivery Program is a viable path to help LPs reduce lead times, redundancies, and offer fresh new product directly to licensed retailers in BC. However, industry has been clear that the current 15 per cent mark up applied by the LDB creates a financial disincentive for those using the program (we hope to be able to offer an update on this issue soon). 

As we celebrate this success for our LP partners, it is clear we have much work ahead to streamline the overall supply chain in our industry and to foster a thriving cannabis retail ecosystem here in BC.

Industry Update:  More Consumers Buying from the Legal Market

Toronto-based company Pollara Strategic Insights released poll results showing two-thirds of Canadian cannabis consumers purchase from the legal market.

According to the survey, the data shows 65% of respondents said they only purchased cannabis from legal sources in 2022 (a 15% increase from their 2021 figures which showed only half of Canadians were buying from legal sources).

Another survey from Health Canada in 2022 reveals about 61% of Canada’s cannabis consumers purchased from legal sources (a 8% increase from their 2021 figures which showed that only 53% of Canadians bought from legal sources).

Both surveys were different in their methods, so it is interesting to note that each one points towards an incremental increase of consumers choosing legal over the illicit.

Having said that, BC Stats released a survey last year showing that although British Columbians are buying less from unlicensed brick and mortar stores (a drop to 17%), purchasing from illicit online sources have actually increased (a boost to 9%) — a possible indication that illicit sources have been transitioning away from traditional physical locations as their business model and thus becoming more challenging to enforce. 

When it comes to all these different types of surveys, we do have to take it with a grain of salt and consider: possibility in margins of error, how representative the sampling is, and drawing the line between correlation versus causation. For example, if cannabis promotions are highly restricted, how would an end-consumer (who doesn't work in our industry) know the difference between legal or illicit sources? What data in these surveys point out and measure if the consumer can recognize the distinction between the two? And if this was not factored in, then how do we know the accuracy of answers from these respondents? 

While these figures may reflect all our collective efforts against the illicit market and does allow some optimism going into 2024, it is essential that we continue our momentum in raising public education and awareness, improving access to legal storefronts and sources, conducting more enforcement actions against illicit activities, and tackling on various advocacy initiatives to address specific issues within our industry.

At ABLE BC, we look forward to the advocating on your behalf and the positive changes to come in BC's legal cannabis retail industry.

Industry Reminder:  Pay Transparency Rules Now in Effect

British Columbia employers are now required to include expected pay or pay range in job postings. BC’s Pay Transparency Act came into force on November 1 in an effort to help address systemic discrimination in the workforce. 

All people deserve to be paid fairly and our communities are stronger when everyone is treated equally. However, too many women in B.C. are still making less than men. Last year, women in B.C. earned 17% less than men. The pay gap also disproportionately impacts Indigenous women, women of colour, and immigrant women, as well as women with disabilities and non-binary people.

Click here for more information.

Out and About with ABLE BC

We got to hang with one of our Cannabis Members, KushKlub, at their Customer Appreciation Day Event. It was a great moment to connect further with Feven and her team to learn their story, culture, community vibes, and of course the challenges legacy stores face as licensed cannabis retailers in BC. 

BC's legacy retailers are diverse, each with their own unique experiences and perspectives. One common thread shared among these stakeholders is a desire for their point of views to be acknowledged (and understandably so, given the deep history of stigmatism toward our industry). 

Which is why you can expect a visit/call from ABLE BC soon, as we continue to listen to all cannabis retailers in BC and advocate on our industry's behalf.

New Due Diligence Templates for ABLE BC Members

Visit the Member Portal to access brand new policy templates to ensure your cannabis retail store is duly diligent.

 We understand the unique challenges and responsibilities of ensuring responsible cannabis sales. To support you, we partnered with Associate Member Thrive Advisors to create new templates to help you develop comprehensive and stringent house policies that prioritize due diligence. These templates cover a range of topics, including age verification procedures, staff training, customer interactions, and compliance with LCRB regulations. 

Implementing these policies will protect your business from legal liability and contribute to the responsible sale and service of cannabis.

Templates are available free to all ABLE BC Cannabis Members.

Not a Cannabis Member yet? Click here to sign up now!

go2HR on Tap: Mental Health Awareness in the Workplace – Starting the Conversation

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