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Growing Relationships BC – 2024 Synopsis

At our 2024 Growing Relationships networking event in Kelowna on June 10, we brought together over 170 licensed producers, retailers, and ancillary service providers serving the BC cannabis industry.

As part of the Growing Relationships event series, StratCann conducts a Regulatory Roundtable to gauge the industry’s pulse and identify the unique priorities faced by the local sector.

While common topics like the excise tax rate and the 10mg THC limit for edibles frequently arise, this roundtable provides an opportunity to uncover and delve into some of the more unique and nuanced issues currently impacting the industry. These discussions not only cover the various levels of government regulations but also explore how to do business with each other more efficiently and effectively. 

Attendees were given about 15 minutes to discuss among their table of eight the most pressing issues facing their businesses and compile a list of the top three concerns, as well as some improvements they’ve seen. Below is a compilation of some of the issues raised in BC.

Attendees also expressed support for many of the recently proposed regulatory changes presented by Health Canada in Gazette 1, released just three days prior to the event.

Summary of Discussion Items

Federal level
  • The integrity of Lab results. This one came up several times, with producers and retailers concerned that the issue undermines the credibility of the industry in general and misrepresents the nuances of cannabis. 
  • The 30-gram possession limit was also brought up numerous times as an aspect of the federal regulations that needs to be updated. A reasonable increase would allow consumers improved freedom with more efficient purchasing decisions without risking being confused by law enforcement with someone trafficking illicit cannabis. 
  • There is too much paperwork for producers, especially micros, who continue to emphasize that satisfying their federal administrative requirements accounts for a disproportionate amount of time compared to other activities related to growing or processing cannabis, adding to their many ongoing challenges. 
  • Excise tax and other federal fees remain a significant concern for licence holders across the board. 
Provincial level
  • BC’s 15% markup on sales through Direct Delivery remains a significant concern for producers and retailers in the province who feel this makes the program much less viable. Many producers would like to use this program, but when the fee is the same, plus all the extra costs associated with distributing it themselves, it undermines the program’s viability. Although Direct Delivery was framed as a way to help smaller growers with smaller SKUs, many producers feel the program is underutilized because of the fees. Although more of a B2B issue, there is also a desire for more streamlined payment plans between producers and retailers.
  • BC’s 20% vape tax is a continued concern for producers and retailers alike for such a popular product category. 
  • Retailers want more guidance from the province on how sampling and record-keeping of sampling should be conducted.  They also want more consistency from producers in sampling procedures, enabling them to maintain better records. 
  • Farm-gate fees are too high, several times higher than for a brewery, cidery or winery, preventing others from applying and utilizing this to bring in more revenue for their cannabis farms. BC’s one licensed farmgate PRS store speaks of the need to promote themselves so people are even aware of this unique type of store. 
  • BC has far fewer SKU options than other provinces, which contributes to price compression. The province needs to be open to higher-priced craft SKUs, to give them a chance to find their place in the market.
  • Both retailers and consumers feel it would be reasonable to allow adults to bring minors into a cannabis store with them as part of their shopping, similar to alcohol stores. The current approach can mean many parents are forced to leave their child/children outside a store, often being watched over by a store employee (unofficially). 
Industry-wide issues
  • Many expressed concerns with “pay-to-play” between producers and retailers.
  • The industry is experiencing a “brain drain” as companies find it hard to afford the kind of professionals that are required by regulations and industry demands. 
  • There is demand for more streamlined payment options for B2B transactions across all aspects of the industry, from producers to retailers to distributors.
  • Both product and general liability insurance is still very high for producers and retailers, and there are not a lot of options with insurance providers. There is a need for more insurance providers to be willing to work with cannabis companies.
Join us at the next event!
Big thanks to Pau Antonio of Mixed Sweet Media and Jeff Curtis of Boro and Beyond for the incredible photography and videography services!