New Brunswick to Allow Direct Cannabis Sales
Provincial Regulator, Cannabis NB, Announces Farm-Gate Program to Allow Direct Cannabis Sales – LPC
Licensed producers (LPs) in New Brunswick will soon able to provide direct cannabis sales to their customers. The provincial cannabis regulator, Cannabis NB, announced a new farm-gate program that invites the province’s LPs to apply for permission to sell their products onsite. According to a CBC article, Cannabis NB CEO Lori Stickles said that the program will allow LPs to “educate customers about their products” and create tourism opportunities.
Rod Wilson of the New Brunswick Craft Cannabis Association said he expects the program will work in a similar way to wine tours at wineries.
“It’s an encouraging step in the right direction,” Wilson said. He agreed that allowing direct cannabis sales would also allow LPs to build brand loyalty.
However, there is a catch. One of the stipulations of direct cannabis sales is that all products must be grown, produced, and packaged onsite. That would automatically cut out LPs that only have cultivation or micro-cultivation licences, who rely on other companies for processing and packaging.
There are currently 19 LPs listed on the LPC New Brunswick Listings page (the CBC reports 16). Wilson estimated about a dozen of those are craft cannabis producers. There are other logistics – many processors are apparently located in industrial parks, which would make things like cannabis tourism difficult. But, assuming those issues can be ironed out, direct cannabis sales could start in New Brunswick within two months.
“The timeline really depends on our partners, the conversations we have with them, and what kind of timeline they need to set up in their location,” said Lara Wood, Cannabis NB vice-president of operations.
Direct Cannabis Sales in New Brunswick Another Step in the Right Direction for Craft Cannabis – LPC
Direct cannabis sales in New Brunswick is another step in the right direction. But it’s been a long time coming for Canadian craft cannabis, which has seen struggles. Many thought the micro licences would provide opportunities for craft cannabis to grow like craft beer. However, many smaller LPs are struggling against the larger ones. Craft cannabis growers are struggling to find space on Ontario Cannabis Store (OCS) stores, for example.
Farm-gate sales could be a step in the right direction. Ontario launched its own seed-to-sale cannabis program in May. Thrive Cannabis opened the first near Jarvis, Ontario, and others will come. Parkland Flower in Alberta is also pushing for farm-to-table cannabis tourism. These initiatives can help counteract Canada’s strict marketing laws. Although put in place for safety (much like laws regulating tobacco and alcohol marketing), they can severely restrict brand growth. That means companies must get more creative in their cannabis marketing plans.
Craft cannabis has an incredible opportunity to make an impact on the Canadian cannabis market. The recent Houseplant-Canopy split, rumoured to be at least in part due to quality control, is seen by many as another opportunity for craft cannabis to step up. There is definite market demand for quality cannabis. But the catch-22 is that although smaller LPs may have the advantage over larger ones in quality, they are also more likely to be squeezed out of the market. Hybrid models like the new Entourage cannabis play might be another answer.
In any case, direct cannabis sales including farm-gate and seed-to-table business models will help boost smaller LPs, promote cannabis tourism, and provide more wind in the sales of all craft cannabis growers.
Read the Full CBC Article Here
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