TOO MUCH WEED: Government has over 30 times more marijuana than it’s able to sell
Canada has a marijuana problem, but it’s not the one you might think.
It’s quite the opposite: Canada is sitting on massive stashes of uncompleted inventory that many analysts believe could cause massive price crashes in the industry.
Get ready Quebecers under 21, the over-priced, under-stocked legal provider of cannabis in the province will no longer sell to you!
The Coalition Avenir Quebec (CAQ) government’s legislation raising the minimum age for smoking marijuana from 18 to 21 will go into full effect starting Wednesday.
The age raise means that Quebecers under the age of 21 will no longer be allowed to possess or purchase recreational cannabis.
The legal drinking age in Quebec remains 18, the province has no plans on raising it.
This move is very interesting, as a significant portion of marijuana consumers in the under 21 age category chose to use the drug under criminalization less than 14 months ago.
Furthermore, the black market which accounted for 82% of all marijuana products bought in Quebec during the first year of legalization has ample enough supply to provide to anyone under the age of 21.
That black market is notably no longer hidden behind a web of connections.
It is out in the open and can be regularly accessed through uber-like services on the web.
That means that while illegal, it is likely that most individuals under 21 will not reduce their consumption, but rather just switch their provider from a legal one to an illegal one.
Some Canadians with be able to get cannabis edibles for the Christmas season starting today. But not every province will have the option. The edibles will likely not be available in Ontario, Quebec and Alberta until sometime in January. These provinces have more strict regulations as they have distribution systems of their own.
Lisa Campbell, a retail cannabis expert told CTV News, “Unfortunately it’s just standard government bureaucracy,” she went on to say, “These are the same timelines as was always expected from the big provinces that have government distribution. Everything has to go through the government warehouse before it gets out to retail.”
Some edibles will come in the form of baked goods, drinks, gummies and more.
Licensed producers can send products straight to retailers in most provinces. Canadian companies were required to give a 60-day notice to Health Canada prior to selling the products. The notice expired on Tuesday.
B.C., Manitoba and Saskatchewan
A store located on Vancouver Island is expecting lots of different kinds of edible orders. The owner of Coast range cannabis, Sheila Rivers said, “Fingers crossed that there won’t be any delay in our holiday delivery.”
Some Saskatoon stores were expecting products to arrive by Tuesday. Geoff Conn, general manager of The Pot Shack in Saskatoon said, “I tell you, it’s going to be like Christmas all over again for everybody.”
In Manitoba, products could be arriving this week according to Manitoba Liquor and Lotteries.
Newfoundland and Labrador, Nova Scotia and New Brunswick
In Newfoundland and Labrador, they have a more direct approach to cannabis retail. Producers can sell their products on location which means that the edibles could be available throughout the province at some point this week.
According to the Nova Scotia Liquor Corporation. Nova Scotia could have a small amount of edibles available by December 23.
New Brunswick could get “limited shipments” this week according to BNN.
Ontario, Quebec and Alberta
Things are happening at a slower pace in Alberta. Edibles will not be available until close to the middle of January. According to the Gaming, Liquor and Cannabis agency.
An AGLC spokesperson said, “Once product is ordered, shipped to us, received and put into inventory, retailers will be able to place their orders.”
In Quebec, edibles could be on shelves and ready to sell by January 1 according to The Societe Quebecois du Cannabis (SQDC). Fabrice Giguere, a spokesperson for the SQDC said there will be “limited product offering that will increase progressively over time throughout winter and spring.”
“Like we said on many occasions, this new wave of legalization is not a race.”
In Ontario, edibles will slowly become available by early 2020. The Ontario Cannabis store plans to sell the edibles online as well as in stores.
Have you ever wondered how much it costs to grow outdoor marijuana?
Thanks to a new by Global News story we know its roughly 25 cents per gram for companies like 48North to produce the product.
This is multiple times cheaper than indoor operations which have a growing cost of $2 per gram.
This 25 cent per gram grown marijuana will then be sold in Quebec for $7 per gram, roughly 28 times the cost of production. While extremely expensive, in relation to production cost, the product will be the cheapest available option for legal consumers.
At $7 dollars per gram, the outdoor-grown product remains far more expensive than illegally grown marijuana which has continuously dropped in price since legalization. According to StatsCan, the price averaged at $5.90 per gram, with options available at even lower price points.
In virtually every province, sites like Weedmaps now provide extremely low-cost options to consumers, with 28-gram orders dipping at or below $3 per gram.
Of course, this is an illegal option, but with black market prices rapidly dropping far below the cheapest prices in the legal market, and most consumers already use to buying from an illegal market place, the long term capability for legal producers to compete for clients remains in question.
Canopy Growth Corporation, formerly Tweed Marijuana, is teaming up with Toronto-based rapper and recently-named artist of the decade Drake.
Drake will now be holding a 60 percent stake in More Life and Smiths Falls-based Canopy Growth will own the remain 40 percent.
Canopy Growth will provide all day-to-day operations and maintenance of the Toronto-based More Life cannabis production facility, also retaining all rights to product distribution at the location.
On the flip side of the deal, Drake has granted More Life exclusive rights to use certain intellectual property, brands, and imagery with the growth and sale of marijuana and marijuana products, merchandise, paraphernalia, and accessories at home and abroad.
The move to partner with Canopy Growth came shortly after Drake had sent out bouquets of flowers to various companies around the GTA, hoping to make partnerships headed into his next business venture.
Though the partnership seems to be a match made in heaven for both parties, only time will tell whether or not this business venture is as successful as his others.