A significant portion of cannabis enthusiasts in Quebec continue to source their supplies illegally. Four years after legalization, the Quebec Cannabis Society (SQDC), which estimates that it has 58% of the market, admits that it must improve to fully meet the needs of consumers.
In recent months, edible products have appeared on the shelves of the SQDC. However, it is not possible to find gummies, chocolates or cookies, unlike the Ontario Cannabis Society. The choice is still limited to cauliflower, beets and infused figs, as well as cinnamon and black currant bites. Internally, they are affectionately called “ugly bites”, says the president and CEO, Jacques Farcy, in an interview with The duty at the Montreal headquarters of the SQDC. The idea is that these snacks are not appealing to people under 21.
The absence of some popular products from its catalog still prevents the state company from winning over more marijuana users, since in 2021, 34.4% of them had opted for food products, according to the National Institute. Public Health of Quebec (INSPQ). This is also a growing trend since 2018.
“What floods the markets among the youngest and the not so young are edible products, such as the famous jujubes”, reports Pierre Leclerc, general manager of the Association québécoise de l’industrie du cannabis (AQIC), which brings together 75 companies, including several producers and processors. The AQIC also doubts that the SQDC really holds 58% of the marijuana market, the total market being possibly underestimated according to it. “Other products that we find a lot are those for health and well-being, such as CBD creams, which are sold on web platforms and which arrive here even if they are illegal on the Quebec market”, he adds.
Vaping products have not entered the SQDC either, although 16.8% of Quebec cannabis consumers use this method. It was a public health directive that guided the choice of distributor.
In order to increase its offer while remaining within the legal framework, the CEO of the SQDC says he is discussing with industry players, including the AQIC. But that’s not the only file Mr. Farcy wants to work on. According to him, there are four important levers to attract customers: choice, simplicity, support and value for money.
“Citizens who are already consumers, we want them to come to us and keep them with us. We understand that there are developments on which they expect us and we want to make sure, in the years to come, to meet these expectations,” said Mr. Farcy.
In terms of simplifying the purchase of products, the SQDC has already significantly increased its number of branches, which should reach 98 in March, whereas there were 12 on October 17, 2018. About a quarter of these branches are operating however with reduced hours at the moment due to a labor dispute, for which Mr. Farcy hopes for an imminent settlement. The government corporation has also developed its in-store Web order delivery and collection services.
Reach customers
The CEO also believes that the SQDC’s offer, which has evolved over time to reach approximately 450 different products per branch, is not sufficiently known to customers. “For example, we sell hashish, but a lot of consumers don’t know that yet,” Mr. Farcy said.
How to publicize this range given that the SQDC is not authorized to do advertising and marketing? “We have to find the right balance to inform customers without promoting. It can be done in our points of sale, ”explained Mr. Farcy.
Citizens who are already consumers, we want them to come to us and keep them with us. We understand that there are developments on which they expect us and we want to make sure, in the years to come, to meet these expectations.
The latter recalls that the mission of his company is to migrate customers to the legal market while respecting public health imperatives. This implies a dynamic of education, but not of performance. “We often say to our teams: ‘If you spend half an hour with a client and he comes out having bought nothing, that’s perfect, we’ve done our job well’”, underlined Fr. -dg
While Pierre Leclerc salutes the efforts of the SQDC to collaborate with his association and to better meet the needs of citizens, he nevertheless believes that the SQDC still has work to do to improve its customer experience.
“A person who goes to the SQDC feels judged right now. These are plastered walls, packaging that does not allow you to see the interior. We do not have the right to touch, to circulate around the products, he reported. We could give a little more information on the flavors of the products, on the experience they provide. »
Despite everything, the SQDC increased its sales by nearly 20% and paid $214 million to the Quebec government during its last fiscal year. Mr. Leclerc, of the AQIC, believes that, to convert a greater share of consumers, the SQDC could reduce its profit margins, which have increased year on year to settle at around 27% in 2021-2022. .
A person who goes to the SQDC feels judged right now. These are plastered walls, packaging that does not allow you to see the interior. We are not allowed to touch or move around the products. We could give a little more information on the flavors of the products, on the experience they provide.
However, Mr. Farcy believes that care must be taken to ensure that prices are equivalent to those on the black market, but are not lower, otherwise “stimulating demand”. Thus, the CEO does not want to encourage new people to try marijuana. But to existing consumers who may not have been satisfied with the SQDC’s services and choices in the past, it sends a clear message: “Give us a chance again. »