Seed-to-Sale Cannabis Opens in Ontario

Thrive Cannabis’ Greybeard Brand Looks Every Bit as Roadside-y as It Should – LPC

The look of Thrive Cannabis’ new seed-to-sale cannabis store reminds you of many farm shacks you find in Ontario. It is perhaps a bit slicker – its “Greybeard Cannabis Co.” brand is stenciled perfectly on the clean cedar cladding. Inside has the look and feel of an 1880’s Old West General Store with rough-hewn beams and plank service bar. You can see the metal of the shipping containers peeking through here and there, but it’s hidden enough that the illusion is complete.

In fact, it is a historical building – the first seed-to-sale cannabis store in Ontario and indeed Canada.

“We’re not just some boardroom brand that’s out there,” said Bubba Nicholson, Thrive’s VP of business development. “We call it a team of misfits.”

The seed-to-sale store opened almost one year to the day after Ontario announced legalizing farm-gate cannabis sales.

Chief commercial officer of the Ontario Cannabis Store (OCS) Cheri Mara said at the time that the framework would help define craft cannabis in Ontario. “And this definition is going to go beyond just marketing and actually reflect into the roots of craft cannabis growing in the legacy market,” she said.

That “legacy market” is of course the illegal cannabis market. But will seed-to-sale cannabis really make a dent in illegal cannabis sales?

A Short History on Seed-to-Sale Cannabis in Canada – LPC

From the start, seed-to-sale cannabis seemed like a no-brainer. Farmers do it. Breweries do it. Wineries and distillers do it. Why shouldn’t licensed producers do it?

Part of the problem is the way that the Cannabis Act was laid out. The licensed producers are regulated federally with regards to cultivation and processing, as well as with medical cannabis sales. But provinces and territories regulate recreational sales. That would tend to curtail craft cannabis sales as well.

The fact that Ontario has the first seed-to-sale cannabis store is astounding. For the longest time, Ontario was the hardest province to open a cannabis store. At first, only 25 retail licences were available for a province of over 14 million people. It was also militantly against cannabis cafes when people pushed for them.

But Ontario did indeed announce farm-gate cannabis sales could start.

Alberta Seemed Most Likely to Open Seed-to-Sale Cannabis – LPC

In fact it seemed to be that Alberta would be the most likely to open seed-to-sale cannabis stores. Edmonton area’s Parkland Flower has pushed for farm-to-table cannabis tourism since October 2020. Some companies have skirted the laws including a tour company in Calgary offering cannabis tours. It was also by far the most open with its retail cannabis licences. Until recently, Alberta led the country in number of cannabis stores.

So far though, farm-gate sales are not available in Alberta, though the province hasn’t shut the door on it. B.C. seems to be the most likely next province to open up seed-to-sale cannabis opportunities. And, as point of fact, Saskatchewan already allows seed-to-sale cannabis stores, but so far no licensed producer has taken the opportunity.

In Ontario, the Alcohol and Gaming Commission of Ontario (AGCO) said it received 13 other licence applications and approved five others including Tweed Inc., Dykstra Greenhouses, Medz Cannabis Inc., Muskoka Grown Ltd., and Level Up Infusions.

Seed-to-Sale Cannabis Outlets Offer Marketing Opportunities – LPC

One of the biggest advantages of seed-to-sale cannabis stores is the marketing opportunity it provides. Marketing cannabis is notoriously difficult in Canada. Denis Gertler, an adviser at CannDelta, said that farm-gate operations are an opportunity to boost recognition and answer consumer questions.

“It’s an opportunity for a savvy company to build a brand,” Gertler said. “Distilleries are often in these kinds of areas too and many of them have factory stores, which are essentially farm-gate. But there isn’t the same kind of stigma around alcohol as there is around cannabis.”

And there it is – that cannabis stigma. Marketing can help reduce cannabis stigma. That in turn will help increase the legal cannabis market.

So yes, seed-to-sales can make a dent in illegal cannabis sales. Not all on its own. But it is part of a snowball effect that is slowly bringing the Canadian retail cannabis market to maturity.

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