The past year was another busy one for cannabis news in Canada. Here are a few of our most popular topics and stories of 2024. 

Wholesale prices rally

Canada’s wholesale market continues to shift from a buyer’s market to a seller’s market. While the beginning of cannabis legalization in Canada was characterized by a surplus of product, many in the industry say that trend has been shifting to a shortage in recent months. 

Regulatory changes

Another of the more significant stories of 2024 was Health Canada’s massive regulatory proposal in June. The proposed changes include regulatory amendments that align with the findings and recommendations from the federal government’s expert panel’s final report on the Legislative Review of the Cannabis Act.

The final draft of these proposed changes is expected sometime in 2025, but an early election could impact them or even cause them to die on the vine.

Israel and international markets

In January 2024, Israel opened an “anti-dumping” investigation into cannabis imports from Canada.

In July, the Israeli Government released its preliminary decision regarding accusations that Canadian cannabis companies are dumping low-cost cannabis products into the Israeli medical cannabis market, with the Canadian cannabis industry and Global Affairs Canada expressing disappointment with Israel’s report.

In November, a new report suggested adding up to 175% tax on Canadian cannabis imports, with the Canadian Cannabis Council and Global Affairs Canada raising several questions and concerns regarding the report, along with Israel’s Ministry of Health, which argued that tariffs on Canadian cannabis would harm patients and benefit the illicit market.

Not to be left out, similar concerns have been raised more recently by some producers in Australia.

Meanwhile, the export market into and through Germany is heating up, while Aurora and Tilray/Aphria operate two of the country’s three production facilities. Mother Labs also announced a plan to bring branded cannabis genetics to the German market.

In addition, a new retail cannabis project in Germany could be good news for Canadian cannabis exporters, and a Danish medical cannabis company is looking to bring its unique cannabis oil to Canada.

Provincial distributors streamlining supply

In July, the OCS announced that it was planning to begin reducing the number of products it carries in its warehouse by several thousand in the coming year-and-a-half as it moves to create a more efficient supply chain amid a glut of product.

The move is expected to begin in September. It comes as several other provincial distributors have made similar efforts to handle a growing number of products in limited storage space at central distribution warehouses. This is due to slowing market growth as demand seems to be reaching a saturation point. 

To address this, provincial distributors, like the OCS, LDB, AGLC, and MBLL, have been paring down their offerings and shortening the time they give products to grab consumer interest. 

In May, some businesses in Manitoba said they were caught off guard by the province’s recent “pause” on “controlled access” retail cannabis licences. In October, the province announced it was extending that pause for another 18 months. 

Fines and other penalties

The Alcohol and Gaming Commission of Ontario (​​AGCO) fined an Ontario cannabis retailer $100,000 for illegal “data deals.” The decision, posted by the AGCO on November 19, came following an initial issuance of an administrative penalty to Cannabis Xpress in April 2024. The topic struck a nerve among many in the industry who are frustrated by such “data deals.”

Several other types of enforcement actions were popular among StratCann readers.

In October, a BC pot shop was fined for selling cannabis at too low of a price.

In December, the AGCO issued a Notice of Proposal to suspend the Cannabis Retail Store Authorization for Montrose Cannabis in Pickering, Ontario, following inspections that revealed significant breaches of the Cannabis Licence Act, 2018 (CLA) and its regulations.

The Victoria Cannabis Buyers Club, an unlicensed medical cannabis dispensary that has been operating in Victoria since the 1990s, was issued a $3.2 million fine from the province. 

A cannabis store in Kelowna, BC received a one-week suspension for failure to ID minor, and another was fined $7,000 for failing to check ID, while there were two enforcement actions against BC Cannabis Stores.

Politics

In federal politics, the industry has continued to fruitlessly wonder if Trudeau even remembers that he legalized cannabis. In April, Trudeau said that concerns (mostly from Conservatives) over cannabis legalization violating international treaties were unfounded.

In June, a Conservative MP said he would vote to recriminalize cannabis if given a chance. In November, Trudeau and Poilievre traded barbs over the latter’s attempt to conflate cannabis legalization with the opioid epidemic.

Many of our readers also enjoyed our satirical takes on this topic for last year’s April Fools Day. 

Unfortunately, cannabis appears to no longer be an election issue. 

Is the black market making a comeback?

Meanwhile, we looked at the illicit and unregulated cannabis market, which, despite significant declines since legalization, continues to have a foothold, especially online. Retailers in Ontario say they are frustrated by the recent increase in unlicensed stores returning to local neighbourhoods.

In addition, the CBSA has seized thousands of kilograms of cannabis in the first half of 2024-2025.