Private Cannabis Stores Coming to New Brunswick
New Brunswick’s Finance Minister Ernie Steeves introduced a bill that will allow private cannabis stores to sell recreational cannabis. Unlike most provinces, New Brunswick’s retail cannabis sales are currently government run through its Cannabis NB stores.
“It won’t be in corner stores, it won’t be (in) gas stations or anything like that,” Steeves said. “It will be a standalone store, and it’ll be a mini version of what we have right now.”
Steeves said the move would help combat the illegal cannabis market in New Brunswick, ultimately keeping residents safer. He noted that products from illegal sources can be inconsistent and even contaminated since there isn’t any oversight during production or sale.
“We found that (illegal gummies) were announcing… 15 milligrams” of THC, Steeves said. “There was probably like seven or eight there.” Testing of dried cannabis found mouse feces in it, he said.
The bill includes – and seems to build on – the bill the province announced in August to allow direct cannabis sales.
Will Private Cannabis Stores Save Legal Cannabis in New Brunswick? – LPC
New Brunswick’s legal cannabis sales have struggled from the start. A little less than a year after legalization, the province revealed the biggest sales decline in Canada – 40 per cent – in legal cannabis sales. The province lost $12 million in the first six months of operations.
That prompted drastic action: the announcement that Cannabis NB was up for sale. Ultimately, that sale never happened. In May 2020, Cannabis NB turned a profit and projected a year-end surplus that year.
So, sales have turned around under the government-run market. But would a privatized cannabis market work better? As other provinces with private cannabis stores have shown, a private retail sector market does build sales. Alberta cannabis retailers were the first to build a robust cannabis retail market. Ontario faced over-regulation and under-licensing for the first year of legal cannabis sales in Canada.
And in fact, Ontario’s experience shows there is a direct correlation between the legal recreational cannabis gains in Ontario and the decline of illegal cannabis. On the other hand, municipalities with no legal cannabis outlets such as Mississauga see more illegal cannabis activities. One legal cannabis store for every 10,000 people seems to be the magic number for disrupting the illegal cannabis market.
Other programs such as farm-gate cannabis and legal cannabis consumption cafés could potentially help as well.
Private Cannabis Sales Can Only Help No Matter Where They Are in the Country – LPC
In short, the more and easier access there is to legal cannabis options, the more consumers will turn to those options – and the less the illegal cannabis market will be relevant. That includes New Brunswick. Cannabis NB and Alcool NB Liquor spokesperson Thomas Tremblay said that although hard numbers aren’t available, they believe having legal options in that province are already working. Private cananbis sales will help further.
“Anecdotally, we have received a great number of consumers who have shifted from the illicit market to Cannabis NB because of the regulated and safety standards of our products,” Tremblay said. “We are excited about future opportunities for the cannabis industry in New Brunswick, and looking forward to determining the best way forward to ensure education and access to safe, regulated products to consumers.”
Read the Original CBC Story Here
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