AGLC delisting more than 500 cannabis SKUs

| David Brown

Alberta Gaming, Liquor and Cannabis (AGLC) has notified several licensed producers that they will soon be de-listing more than 500 slow-selling SKUs from their central warehouse. 

Several producers received recent notices from the AGLC, informing them the SKUs will be put into the agency’s Do Not Purchase list.

A representative from AGLC confirmed with StratCann:

“AGLC is reviewing our cannabis product listings in order to streamline our supply chain, better manage inventory and remove some slow moving SKUs. Simplifying our supply chain will create more efficiencies and allow Alberta to focus more on best-performing products. This impacts between 550-600 SKUs. We are working with stakeholders to make this transition gradually over the next month to allow sell-through of impacted products.

“Alberta continues to have a wide range of products available for retailers and consumers. We encourage Albertans to talk with their retailer to find something similar if a product is no longer available.”

The move will allow the AGLC to free up warehouse space through their third-party vendor for faster-moving products. BC recently announced similar changes to its policies for accepting new products and storing existing products as the industry closes in on six years of operation. 

This sort of “SKU rationalization” is not uncommon, in or outside of the cannabis industry, and other provinces have instituted similar measures, although at times with more notice.

One complaint StratCann heard from more than one producer who reached out to us on the issue was a sense of frustration that this policy change came with little to no advanced notice. Another producer, speaking on background, says they had received an initial notification from AGLC last week informing them that certain SKUs would be delisted effective immediately, before receiving a second notice giving them 30-45 days before they would be delisted. 

Although the reasoning behind such a quick delisting process is unclear, the province has been making efforts to provide more opportunities for its local cannabis industry.

Sources close to the file say the regulator is interested in topics like farmgate and even direct delivery, which could potentially offer more opportunities for local producers and retailers to distinguish themselves from bigger chains. 

The AGLC uses a third party company, Connect Logistics, to manage its warehouse and wholesale distribution.

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