Beginning October 1, Alberta Gaming, Liquor and Cannabis (AGLC) is reducing the SKU listing fee for cannabis producers.
Previously $1,500, the reduced fee to list a new SKU to sell into the Alberta market is now $250.
The changes were shared with producers on September 29 as part of an ongoing effort by what ALGC says is its focus on “removing legislative barriers and red tape that impede producers and retailers, and support business.”
Terri Blooms, CEO of Almanac Grow Corp, an Alberta-based producer that sells under the Plaid Trout brand, says this change is a good start, but the AGLC needs to do more to help a struggling industry, including lowering more province-level taxes applied to cannabis in Alberta.
“This 83 percent reduction in listing fees is a good start. It’s a shame so many Alberta-based licence holders are struggling in their home province. Hopefully, this is just the start of changes. We’re hopeful direct delivery is next, and, critically, they’ve got to reconsider the 16.8 percent additional tax applied on top of the federal excise tax. It’s unsustainable, and in business-friendly Alberta, it’s not right that the provincial government collects more revenue per gram than the grower.”
Alberta has implemented several regulatory changes for cannabis producers and retailers recently, including allowing retailers to accept samples from producers. They also caused some confusion in the industry recently by temporarily halting sales of some products containing CBN, a decision they later reversed.
It’s better that producers only have to pay AGLC $250 to list a new product instead of $1,500. But that fee is irrelevant if AGLC won’t let you list a new SKU. It would be better if producers were permitted to offer whatever products they like, and were paid on a consignment basis once those products are purchased by retailers.”
Tim Mallett, the CEO and master grower at Alberta Bud and a board member with the Alberta Cannabis Micro Licence Association (ACMLA), says the lower charge will help, but he still has concerns with challenges on selling into the centrally-planned Alberta market, calling it “too little, too late.”
“It’s better that producers only have to pay AGLC $250 to list a new product instead of $1,500. But that fee is irrelevant if AGLC won’t let you list a new SKU. It would be better if producers were permitted to offer whatever products they like and were paid on a consignment basis once those products are purchased by retailers.”
Alberta currently lists about 750 cannabis retailers, with more than 200 producers and brands approved to sell in the province.