(Toronto) Canada’s cannabis industry hopes the review of legislation that paved the way for the use and sale of recreational cannabis will help the sector stave off some financial difficulties.
Posted at 5:26 p.m.
The statutory review launched Thursday by Health Minister Jean-Yves Duclos and Mental Health and Addictions Minister Carolyn Bennett will analyze the Cannabis Act, which sets purchase and possession limits at 30 grams of dried cannabis or the equivalent, restricts young people’s access to marijuana and establishes safety requirements for the cultivation, sale and transportation of the substance.
The federal government is required by law to conduct a review three years after the law comes into effect on October 17, 2018, to study the impact of cannabis on public health, youth and Indigenous communities.
The scope of the review will be expanded beyond what the law requires to include a review of the economic, social and environmental impacts of cannabis legalization, led by Morris Rosenberg, former Deputy Attorney General and Deputy Attorney General. General of Canada, and a group of four experts who have not yet been named.
It could also lead to changes to potency and packaging restrictions and excise tax regulations that the industry has long clung to, Duclos said.
The industry is frustrated that the launch of the review comes a year later than expected, but still hopes that it can result in enough changes to restrictions to facilitate the distribution of cannabis, attract new customers and avoid further price reductions. personnel and facility closures.
“The industry is really suffering […] Some of the restrictions and the lack of clarity in the regulations are really making it difficult for a lot of industry players,” said Sherry Boodram, CEO and co-founder of consulting firm CannDelta.
“If there are no major changes, there will definitely be harm to the industry. »
The review comes as the industry grapples with an uneven distribution of cannabis stores, which is causing store owners to struggle to make a profit. Some areas have a store on every corner, while others don’t because their municipalities have chosen not to allow cannabis stores.
Meanwhile, cannabis producers have laid off staff, eliminated facilities and attempted to bring production into line with demand, which is still being squeezed by a powerful illicit industry, whose products are not limited in terms of power and which does not bother with marketing restrictions.
Creativity demanded for packaging
Mme Boodram hopes the review will ease some of the headwinds and lead to changes that will allow companies to be more creative with their packaging and participate in events, which would reduce the stigma around cannabis, create distinct brand identities and would attract new customers.
Currently, some packaging restrictions prevent them from being appealing to young people. They cannot represent people, characters or animals, or a way of life incorporating “prestige, leisure, enthusiasm (or) vitality”. Restrictions on the display, sale and promotion of cannabis at events also exist.
Elisa Keay, owner of K’s Pot Shop in Toronto, often witnesses the problems caused by packaging regulations, when customers come in trying to remember a product they bought and liked, but can’t. may describe otherwise than a product sold in a black container.
Because companies are limited in how they can package items, many companies sell cannabis in black jars, “so you sit down with the customer and ask them 20 questions” to figure out what they’re looking for, a she recounted.
While it often ends up understanding what the person was looking for, brand loyalty shouldn’t be that hard and companies shouldn’t be “handcuffed by regulations that are a little too rigid.”
Rick Savone, senior vice president of global government relations for Aurora Cannabis, agrees.
“Not only do companies have to deal with competition rules that make all our packaging look the same, but we are dealing with […] illegal cannabis producers who can use any type of packaging, any type of ingredients,” he lamented.
Illegal sellers can also make all the health claims they want, while licensed producers and stores are “gagged”.
“So the competition is much worse,” he said. It just prevents us from being able to talk to customers to say, “Here’s how you might want to use it, and here are the potential benefits you might want to know about.” »
Accelerate the flow of products to shelves
Meanwhile, High Tide, the cannabis company behind Canna Cabana stores, hopes the review will focus on the current ten-milligram limit on edibles.
The cap “only serves to incentivize consumers to buy products from the illicit market that are unregulated and not presented in (safe) packaging”, said spokesman Omar Khan.
There is also room to improve the speed with which produce moves from growers and manufacturing facilities to store shelves, Mr.me Bodram.
She wants Health Canada to reduce the time it takes to review new cannabis products or potency and ingredient changes from 60 days to a much shorter 15 or 30 days, especially when minor changes are reviewed. .
The current schedule, she pointed out, is delaying cannabis production and preventing companies from meeting consumer demand.
“Companies are losing contracts because of this, because things are not moving fast enough for partners,” she said.
Even if the government takes into account the advice of Mme Boodram and others, it could be years before any changes are made.
The Cannabis Act stipulates that the ministry reviewing the law must issue a report, including findings and recommendations, no later than 18 months after the review begins.
“We urge the government to speed up the timeline for this review, as many small players in the industry simply cannot wait 18 months for help,” Khan said.