The AGLC is reminding the Canadian cannabis industry that cannabis product samples may only be provided by provincially-registered cannabis representatives within retail stores. 

The provincial cannabis regulator (Alberta Gaming, Liquor and Cannabis) sent out a memo on October 18 to all cannabis licensees, representatives, and suppliers, reminding them of the province’s rules around cannabis sampling. 

While the AGLC allowed cannabis sampling in 2023, cannabis suppliers must be registered with the AGLC as “cannabis representatives,” and samples can only be provided by those representatives directly to retail cannabis store licensees in retail cannabis stores. 

These product samples, reminds the AGLC, are for licensee use only and may not be provided directly to a licensee’s staff or the general public. 

The memo also notes that “AGLC inspectors attended recent cannabis industry events and observed Cannabis Representatives and Cannabis Suppliers providing cannabis product samples to event attendees.” 

From the memo:

“Cannabis product samples may only be provided by Cannabis Representatives directly to Retail  Cannabis Store Licensees in retail cannabis stores. Cannabis product samples are for licensee use only and may not be provided to a licensee’s staff or the general public. They must meet all Health Canada requirements including packaging, labeling and federal compliance reporting. Records of all cannabis product sampling activities must be retained for 6 years. Cannabis Suppliers are not permitted to represent or promote cannabis products in Alberta including engaging in cannabis product sampling activities unless they are a registered Cannabis Representative with AGLC. Cannabis Representatives and Cannabis Suppliers may not sell or give away cannabis products in Alberta.”

Trina Fraser, who works with many clients in the cannabis industry as a partner at Brazeau Seller Law in Ottawa, says she has some initial questions about the new guidance provided in the memo. 

“The clarification that samples can only be provided within retail cannabis stores (thereby prohibiting the provision of samples at industry events taking place outside of a retail store) is new,” Fraser tells StratCann via email. “That said, it has always been clear that the quantity limit is on a ‘per licensee’ basis (as opposed to a ‘per budtender’ basis), making compliant distribution at events challenging.

“It is interesting, though, that they say samples are ‘for licensee use only and may not be provided to a licensee’s staff’,” she adds. “Most licensees are corporations. How does a corporation “use” cannabis? Who exactly are you providing the sample to, if not to a staff member?”

Randy Rowe, CEO and President of the Grow Up Conference and Expo, which held its two-day industry conference and trade show in Edmonton in September, said he’s surprised by the memo and is prepared to take all steps necessary to ensure his event and its attendees remain compliant. 

“I agree that there needs to be strict processes for handing out samples,” says Rowe, who has worked with other provinces to ensure that all his events carefully track any sampling activities that may occur at his trade shows—information he’s happy to provide to regulators as well as brands. 

“It’s not affordable for smaller craft growers to compete with larger producers that can go store to store providing samples,” adds Rowe. “Holding events that allow compliant sampling is essential for brands to get their product to as many retail cannabis store licensees as possible. By allowing compliant sampling, brands can hit hundreds of retail stores in one day, saving thousands of dollars.”

Jen Meyers, CEO & Founder of Alberta-based micro processor Zelca Ltd., tells StratCann that she would prefer to see the province find a way to regulate sampling at events because it’s more cost-effective for smaller companies like hers rather than needing to hire a marketing agency to visit hundreds of stores across the province. 

“Do you know how hard it is to get to all the stores? It’s very nice to be able to go to an event and talk to 30 retailers in an hour. They can’t just kill that altogether. How can I, as a small producer, get out to all those stores if I do want to give them samples?”

The AGLC lists more than 700 licensed cannabis retailers in the province.

Kendra Richter, an assistant manager at Calgary Co-op Cannabis, says she’s open to guidance, but is left with more questions than answers with the way the memo is worded.

“I agree that there needs to be strict processes for handing out samples. The surprise here is this feels over and above the initial cannabis sampling policy. It’s interesting that they put this policy in place and let it run for over a year and are now adding to it in this way.”

Two key pieces she’s reaching out to the AGLC to get more clarity on are the requirement that samples be provided to the licensee rather than a store owner, manager, or buyer and if the part about samples not going to employees applies to store managers like herself, as well. 

“The way this has been presented is as if it’s just making sure we’re aware [of existing policy], but I think more questions need to be asked so we can know what this really means.”

Alberta’s rules for cannabis sampling allow for a maximum size of 3.5 grams of flower or its equivalent in other product types. For products that are not available in that small of SKU size, the smallest available product may be used instead. Records of all samples provided must be retained for six years and are subject to AGLC review upon request. Each product may be sampled no more than twice in a calendar year.

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