Craft Cannabis Struggles for OCS Space
New OCS Product Call Schedule Will Lead to Craft Cannabis Struggles, Some Say – LPC
When the Ontario Cannabis Store (OCS) announced a new product call schedule, many saw the craft cannabis struggles ahead. Currently, the OCS is reviewing products until mid-August. It won’t review new products for its shelves until April. Bev Altberg, OCS Vice President of Merchandising told BNN Bloomberg the plan is to help find better products that will sell.
“Let me understand your innovation, what genetics are you growing now, how are you thinking about innovation and does that coincide with the trends that we’re seeing,” Altberg said.
She added that although some companies might have a hard time with the new schedule, ultimately it will help the cannabis industry.
“Every single partner on the phone as we ran the assignment said that short-term pain will be worth the long-term benefits of being able to longer plan out and align on innovation windows,” she said.
However, many see the schedule – and perhaps the OCS in general – as a key issue in craft cannabis struggles. Max Zavet, CEO at Robes Cannabis, said the changes are “definitely frustrating” for new or small cannabis producers and processors.
“If we don’t get any listings in, it could be very challenging for us,” Zavet said. “We do get some of the products in with the OCS’s product call and we are flexible enough to survive, but if we didn’t, then it would be a big problem for sure.”
Craft Cannabis Struggles Against Canada’s Biggest Market – LPC
It wasn’t that long ago that Ontario has one of the smallest cannabis markets in the country, despite the fact it has by far the largest population. Once the Ontario retail cannabis market opened up, that quickly changed. OCS even opened a second cannabis distribution warehouse to meet demand.
Now, Ontario is the largest cannabis market in Canada. That means the OCS, as the province’s sole legal wholesaler, wields a huge amount of power in the Canadian cannabis industry. Its decisions impact what cannabis companies do – or can’t do. For small and mid-size companies like craft cannabis, struggles are inevitable.
“While some craft producers have gradually gained market share from bigger players, they may not have the resources needed to stay afloat until the next product call window opens up,” noted BNN Bloomberg.
Larger companies, on the other hand, are applauding the move. They say it will give them more time to develop and support products.
“Although it does impact our planning for next year, the OCS’s interaction and feedback process is welcomed,” said Tilray’s Berrin Noorata. “The changes are necessary in the process and it’s the right step forward for the industry.”
Craft cannabis struggles already abound. As will many industries, small size is often a disadvantage, even when you’re competing on quality. The simple fact is, if gatekeepers like OCS put up barriers to your cannabis company, it’s going to be difficult to reach consumers.
There is a lot to be said for creating a list of curated products. However, it certainly depends on who’s doing the curation – and what their motivations are. A system that favours larger producers will streamline the wholesalers’ job. It may also reduce the number of products that would not sell.
But the side effects of such a system need to be considered, too. There is room in a market the size of Ontario for variety. And, a government-run cannabis wholesaler should not be as focused on profits as a private wholesaler would be. That’s when consumers are funnelled into purchasing the most “popular” brands, smaller brands can be steamrolled, even if they have better quality.
The focus, instead, should be on getting consumers the best – and safest – legal cannabis available for more choice. Otherwise, craft cannabis struggles will become consumer struggles for those who are searching out quality cannabis.
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