Online Cannabis Sales Switch to Private Sector in Alberta
The Alberta Gaming, Liquor and Cannabis (AGLC) is shutting down online orders in March as Alberta shifts online cannabis sales to the private sector. However, unclear regulations are leading to confusion for some retailers in the province.
“We’re down to the wire in terms of timing,” said Matthew Anderson, vice-president of legal, business affairs and compliance with Fire & Flower.
Anderson said that’s because they are having trouble getting clarity on some regulatory issues. For example, Fire & Flower acquired a cannabis delivery company called Pineapple Express. But it’s unclear if the system they want to put into place will meet delivery regulations, he said.
“Based on the responses I’ve received so far, I’m not optimistic that March 8 will be the day that we first deliver in Alberta.”
Strict Regulations for Online Cannabis Sales in Alberta – LPC
Not surprisingly, regulations for online cannabis sales in Alberta are strict. First, potential online retailers need to already have a bricks-and-mortar retail store licensed in Alberta. Currently, there are 744 Alberta cannabis retailers. Those stores can apply to add online sales to their licences. Further, AGLC inspectors must review and endorse all online cannabis sales websites before they go live.
Delivery is another sticking point. The websites need a “robust” way to verify age, and shoppers who look younger than 25 need to present ID when the delivery arrives. Businesses can use Canada Post or a courier service. They can also use their own delivery people – but from the sounds of what Anderson said Fire & Flower is facing, the regulations aren’t quite clear on what that means.
Still, many see opportunity. Andy Palalas, chief revenue officer at High Tide, said the company is anxious to start online cannabis sales from its Canna Cabana stores. High Tide already sells online in Ontario, Manitoba, and Saskatchewan, he said.
“We’ve done a pretty good job that we can operate online sales and home delivery in a safe, secure manner,” Andy Palalas said. “It’s a big part of our strategy for addressing the illicit market.”
Others are not so sure. Catherine Hill, who owns It’s 420 Somewhere in High Level, Alta., said she has no interest in launching online cannabis sales.
“Everybody’s going to be doing it,” Hill said. She’s happier to focus on the in-store experience. “A lot of people also just love going in and speaking to their local bud tender.”
The other hurdle for consumers is that it’s likely not everyone will have access to online cannabis sales. Delivery costs could force retailers to keep delivery within a certain radius of the stores. High Tide’s Palalas said it will be too expensive to deliver far from its Canna Cabana stores.
Still, Alberta’s move to allowing the private sector to provide online cannabis sales could be another step towards loosening cannabis rules in Canada.
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