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How the cannabis industry benefits small-town Canada

Written by Contributor on . Posted in Cannabis News, Insight.

As Canada grapples with US tariffs and widespread layoffs, cannabis is emerging as an industry that could help smaller communities weather the storm.

US President Donald Trump has slapped Canada with sweeping levies, including a 25% tariff on automobiles and a 50% tariff on steel and aluminum. As a result, Canada lost 33,000 jobs in March, and the unemployment rate went up to 6.7 per cent from 6.6 per cent in February, according to Statistics Canada.

The cannabis industry, though, is largely domestic, which has allowed it to be one step removed from Trump’s tariffs, economist Jim Stanford told StratCann. “It’s worth investigating the potential of the (cannabis) industry as a stabilizing factor,” he said. “Non-traded sectors are going to play a more important role in the next few years.”

According to Cannabis Council of Canada President Paul McCarthy, the industry employs about 80,000 people, primarily in small and medium-sized towns where cultivation facilities are often located. A recent Statistics Canada report found the industry contributed at least $7.4 billion to Canada’s GDP in 2024 and more than $43 billion since legalization.

“(The cannabis sector) is a great opportunity to revitalize smaller communities and support communities that perhaps need some good-paying jobs there,” McCarthy told StratCann. 

He noted the industry supports a wide range of roles, from skilled trades to lab technicians to corporate staff, and there is an opportunity for smaller communities to embrace the industry to bring economic advantages. This has already been done in towns across the country, with the most famous example being Smiths Falls, Ontario. Canopy Growth took over an old Hershey’s factory there and became the main economic driver for the town.

There are success stories across the country of cannabis offering impactful employment and boosting economies, according to McCarthy. Decibel Cannabis has facilities in western Canada, including one located on the outskirts of Calgary, which employs approximately 450 people. Oceanic ReLeaf is based in Newfoundland and Labrador and acquired a brand-new fish processing plant whose operations had fallen through. McCarthy said it was a let-down for the town of Burin, but cannabis proved to be their saviour, and the company now employs over 100 people there. 

Then there’s the Cannabis Summit, held in Prince George, BC, in 2024. Organizer Nadine Furnell told StratCann that the festival transformed a previously dead downtown area into a thriving scene, attracting over 2,000 people in one day. She said every vendor at the festival said they made the most money there out of any other market they’ve attended.

One of the biggest success stories of cannabis’ impact on a smaller community is Organigram, the current industry leader. The company is based in Moncton, New Brunswick, and employs over 725 people, making it one of the largest private sector employers in the province. Mark McKay, Organigram’s communications director, told StratCann that the company has contributed over $34 million in local spending. 

“(We’ve) proven to be an economic powerhouse for the province,” McKay said. “Not only through the jobs we’ve created but also through the investments that we’ve made in the province.”

Organigram recently paired with Abacus Data and found that 62 percent of Canadians thought that cannabis could play an even more important role in Canada’s economy. Out of a survey of nearly 2,000, nine out of ten Canadians said it’s time to find new ways to grow the economy.

“Canadians want their country to thrive through innovative, homegrown industries, and cannabis is firmly on that list,” Beena Goldenberg, CEO of Organigram, said in a statement.

While cannabis can look like a knight in shining armour, it does have its kinks. The economist Stanford noted that if Canada enters a recession, the industry could be affected as Canadians would have less money for discretionary spending. He also noted that the industry has its moments of instability, as seen by Canopy Growth layoffs in Smith Falls when the company downsized.

“There absolutely is risk involved,” Stanford said. “A community that is thinking about (cannabis) would have to very carefully study the demand outlook.”

McCarthy acknowledged that oversupply and rapid expansion soon after legalization created turbulence, and the last five years in the industry have been characterized by entrenchment and downsizing. However, he said the industry is now entering a new stable phase that is ripe for investment and expansion of facilities.

How much cannabis can help small towns is dependent on how much the industry is growing, and McCarthy was quick to point out government policies that he says are hindering the industry. He highlighted the excise tax and the proliferation of the illicit market as the two biggest factors that are drawing down the cannabis industry, which should be addressed if Canada wants to boost the sector. 

“The government needs to get serious about cracking down on the illegal cannabis,” he said. “They’re stealing jobs from companies that would largely be operating in small towns.”

Av Singh, the executive director of the Scotian Cannabis Alliance, echoed McCarthy’s concerns and told StratCann that the excise tax is a real limitation on the industry that prevents some companies from flourishing. His organization helps support the industry in Nova Scotia, and he has seen companies struggling and some shut down due to the tax.

“It’s a stranglehold,” he said. “It’s like a foot on your throat. It’s really hard to be able to swim when you’ve got that albatross on you.”

Singh sees hope in exports, which bypass the excise tax. He said markets like France and Germany could double or even triple exports out of Nova Scotia if they open up. “(The export market) is insatiable,” he said. “People fail to recognize how big (cannabis) is.”

~Eric Stober

Eric Stober is a Toronto-based freelance writer with over 10 years of experience at publications big and small, including Global News, Toronto Life, Real Estate Magazine,and Greencamp.

Featured image shows a cannabis-themed street fair in Prince George, BC.  

The current status of recycling cannabis waste

Written by Jonathan Hiltz on . Posted in Insight.

As Canada’s cannabis industry matures, one challenge continues to loom large: waste. From multilayered plastic containers and glass jars to vape cartridges and outer boxes, the environmental toll of cannabis packaging remains an unresolved issue.

While Health Canada mandates strict packaging requirements for safety and compliance, these often translate into materials that are not easily recyclable or biodegradable.

Yet, some companies and individuals are stepping up to address the problem. One of the most prominent grassroots initiatives is the Purple Bin program, launched by Peter Miller and Tracey Oliver, owners of Purple Hills. Far more than a symbolic gesture, their program is taking tangible steps to tackle the growing waste problem head-on.

“The Purple Bin program, we describe it more as a collection program,” explains Miller. “We find the highest and best use of the things we collect.”

Not limited to just their own packaging, Purple Hills accepts a broad range of cannabis-related waste, including cartridges, all-in-ones, and anything from the cannabis waste ecosystem. According to Miller, they’ve collected over 20,000 pounds of material to date.

With bins placed in approximately 1,000 dispensaries across Ontario, the program has seen enthusiastic uptake. Dispensaries receive a prepaid shipping label, print it, attach it to the bin, and mail it back at Purple Hills’ expense.

“Once we receive it, we do a sort and direct it to the right place,” Miller says.

What began as a hopeful experiment has grown rapidly. Purple Hills anticipated potential success, but they didn’t expect the scale it reached so quickly. They estimate the annual cost of operating the program is now around $200,000.

“It’s really blown up fast but also gotten expensive fast,” he notes, though feedback from dispensaries, customers, and even the Ontario Cannabis Store’s social impact team has been overwhelmingly positive.

Despite the program’s momentum, Miller is realistic about the need for broader collaboration.

“We can’t solve this on our own,” he says. He added that there are logical partners in this venture—groups like the OCS, hardware suppliers, and, in the most grandiose vision, even expanding the program to include vape pods and other products from the e-cigarette sector.

Is there anybody out there?

Meanwhile, other brands like Coterie are tackling sustainability from the design stage, working to reduce waste before it’s even created.

“Coterie packaging is made from backyard compostable bio-polymers known as PHA (polyhydroxyalkanoates),” says Spencer Gooderham, VP of Sales and Operations at Coterie Brands. “These materials break down naturally in 12–18 months in your home compost pile, leaving behind no micro-plastic particulates.”

For Coterie, sustainability is a core principle—not just a marketing feature.

“From our cultivation to our packaging to our merchandise itself, we pride ourselves in being sustainable from seed to sale,” Gooderham says. “It certainly requires additional effort and expense. With limited packaging suppliers and increasingly costly inputs, maintaining the supply chain has been a challenge, but one we welcome with open arms.”

While not every consumer prioritizes eco-friendly packaging, those who do have taken notice.

“Our sustainability initiatives have helped create loyal fans of our brand,” he adds. “They can enjoy the exceptional quality of our craft cannabis products and feel good about the purchasing decision they’ve made.”

Coterie is also pioneering more responsible vaping options. “We’ve brought to market one of the most environmentally-friendly disposable vapes,” Gooderham says. “It features a removable, recyclable battery housed in a biodegradable shell made of corn stover.”

But as innovative as these efforts are, the broader cannabis ecosystem still lacks cohesive recycling infrastructure—something TerraCycle is well aware of.

“Sustainability continues to evolve in Canada,” says Tom Szaky, CEO and Founder of TerraCycle. “Many companies are exploring recyclable, refillable, and compostable designs. These innovations are encouraging, but the systems to collect and process them aren’t always in place yet.”

While TerraCycle’s cannabis programs are currently concentrated in the U.S., Szaky sees clear potential—and urgency—for similar solutions in Canada. In the U.S., TerraCycle works with cannabis companies such as Curaleaf and Trulieve to collect and recycle packaging that would otherwise be sent to landfill or incineration, including flexible plastics, pre-roll tubes, and multi-material containers.

“One of the biggest opportunities for the cannabis industry is to make packaging easier to recycle—either by using curbside-accepted materials or by expanding access to specialized solutions like ours,” Szaky explains. “There’s also a real opportunity to reduce waste through reuse.”

Szaky sees great promise in reuse systems such as Loop, TerraCycle’s global reuse platform, which collaborates with brands to create durable, refillable packaging. He believes the cannabis industry, with its repeated purchases and established in-store retail network, is well-positioned to pilot and scale such systems.

Still, the sector’s regulatory complexity presents challenges.

“Child-resistant features, mixed-material packaging, and residue contamination make even recyclable materials difficult for municipal systems to process,” Szaky says. “We need more industry-wide collaboration to simplify designs, choose better materials, and educate consumers clearly on what can and can’t be recycled.”

A sustainable future, one step at a time

Despite meaningful efforts from leaders such as Purple Hills, Coterie, and TerraCycle, the Canadian cannabis industry is still in the early stages of addressing its waste problem. From compostable materials to take-back programs and refillable systems, the solutions exist, but they require alignment, investment, and infrastructure to scale.

The good news? The momentum is growing. Consumers are becoming increasingly aware, brands are getting more innovative, and environmental stewardship is becoming a key differentiator. The path to a circular cannabis economy won’t be easy, but with the right mix of creativity, collaboration, and commitment, it’s within reach.

Cannabis industry cautiously welcomes new Liberal government

Written by David Brown on . Posted in Cannabis News, Government.

Cannabis industry organizations say they are cautiously looking forward to engaging with the newly elected Liberal government following the April 28 election.

A new Prime Minister and a new cabinet provide an opportunity for a beleaguered industry to renew engagement efforts to highlight issues such as excise tax reform, annual regulatory fees, and market and promotional restrictions, among many others. 

While Health Canada recently released a large package of regulatory changes addressing some long-standing industry issues, many of the larger issues remain long-term goals of the industry, especially the federally licensed cannabis producers. 

Paul McCarthy, President of the Cannabis Council of Canada, highlighted these concerns in a public statement on the election results and the general anxiety within the industry.

“Canada likes to position itself as a global leader in legal cannabis—but since legalization in 2018, the federal government has failed this industry and the tens of thousands of hardworking Canadians it supports,” said McCarthy. “With a new government in office, it’s time for action. The cannabis industry deserves the same attention and support as any sector of our economy.”  

Canada’s cannabis industry is a major driver of economic growth, notes McCarthy, contributing more than $43 billion to the national GDP since the beginning of legalization in 2018, with approximately $7.4 billion contributed in 2024 alone. 

The Council is calling for a change from an excise tax rate of $1 a gram to 10%, moving to a single harmonized excise stamp, and a more concerted effort to take on the still-present illicit cannabis market.

The CEO of New Brunswick’s Organigram Global Inc. also congratulated Carney on the results of the 2025 federal election while urging policymakers to better support Canada’s cannabis industry.

“Congratulations to Prime Minister Carney on his party’s victory and to Opposition Leader Pierre Poilievre for his party’s strong showing, as well as all who put themselves forward as candidates,” said Beena Goldenberg, CEO of Organigram.

“In this election, Canadians were asked to embrace a plan to build economic resilience against an increasingly unpredictable United States. Now it’s time for policymakers, industry leaders, and stakeholders to unite behind a shared goal: unlocking the full potential of Canada’s cannabis sector as a driver of innovation, job creation, and sustainable economic growth.”

Like C3, of which Organigram is a member, the company also lists moving from a $1 per gram excise rate to a 10% ad valorem rate, as well as encouraging more opportunities for inter-provincial and international trade. 

At the provincial level, Walker Patton, on behalf of the BC Cannabis Alliance, says the organization is excited to begin connecting with the new government to discuss options for moving the industry forward. Patton is the CcO at Woody Nelson, a cannabis producer based in eastern BC.

“We’re eager to see what an economy-focused leader will bring to the table, but the Liberals have a history of ignoring the challenges their policies have created for our industry, so we have mixed feelings,” Patton tells StratCann. “Regardless, we look forward to engaging with the country’s leadership on these issues in the pursuit of a stronger economy and bringing high-quality jobs back to small rural communities across the country.”

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Politicians won’t support cannabis without public pressure

Written by David Brown on . Posted in Insight.

The cannabis industry is plagued by two key perceptions in the general public. The first, a commonly-understood sentiment, is the traditional stigma many still have towards cannabis in general, in large part fuelled by nearly a century of prohibition.

The second, common even among many who are otherwise sympathetic to the industry—or at least to the plant itself—is the perception that the cannabis industry is full of faceless millionaire CEOs in fancy suits.

Both of these views add up to a significant amount of headwind when it comes to advocating for regulatory change through the political process. Elected officials and policymakers might take meetings, but their willingness to prioritize the kinds of issues facing the industry—namely a heavy amount of regulation on every aspect of the business from licensing to production to sales and marketing—is directly tied to how important they think those issues are for their voters.

The reality is, those voters are not focused on these concerns. Support for legalization in general is one thing: polling has shown a majority of Canadians have supported that for a long time now. But when it comes to casting a vote based on the kind of regulatory nuance the industry is calling for, or even something as simple as excise reform, voters have a lot more pressing matters on their minds.

Before politicians will listen, the voters have to be educated. Op-eds in business magazines or posts on social media are great for preaching to the choir. But does the general public really care? It would appear not.

A coordinated marketing campaign that helps explain these issues in simple terms that resonate with voters, with a multi-year game plan, could have the opportunity to create this kind of understanding in the general voting public. Clearly, other approaches industry has taken in the last six years have not worked to lower excise or increase edibles limits: among the most commonly-championed asks since legalization began.

Take a recent poll, for example funded by a cannabis producer. It showed that many Canadians would be open to the next federal government finding ways to support the cannabis industry.

Externally, this is great news in the context of many politicians’ continued reticence to do much more than pay lip service to the industry, if even that.

However, internally, it’s still important for the industry not to overhype itself regarding what this actually means in real life. Reefer madness and stigma are still very real barriers in this space, which is supported by these very same poll results.

For example, when pollsters asked about an unnamed industry that contributes to the Canadian economy, respondents were overwhelmingly supportive. Nearly three-quarters said it would be a good idea for the next federal government to support such an industry. Only 2% said it was a bad idea.

When pollsters asked the same question again, though, noting the industry in question was cannabis, support dropped to just under half (48%), while opposition increased to 20%.

Now, having 48% of respondents want to see the next federal government provide better assistance for Canada’s cannabis industry is still a significant achievement. But losing 26 percentage points as soon as they heard it was cannabis highlights the image problem this industry continues to face.

And this problem trickles up to elected officials, who see similar results in their own constituencies. If half of your electorate does not support the cannabis industry, are you, as an elected official, really going to stick your neck out to support it? Probably not. Politicians rarely lead. They usually follow where the votes are.

As some localized examples of this, we can look at two recent votes to expand cannabis regulations in two western Canadian cities—Calgary, AB, and Surrey, BC.

Calgary City Council’s Executive Committee recently voted to move forward with a plan to allow cannabis sales at age-gated events in the city. Despite this being a simple approval of a bylaw that aligns the city with existing provincial rules, and despite this rule doing nothing more than aligning cannabis with the same rules that have long already applied to alcohol, nearly half of the councillors voted against it.

These aren’t all old “boomer” politicians. These are politicians reflecting what they see as the opinions of those in their districts. If we look at a recent Tweet about the issue from one of the councillors who voted against the measure, Dan McLean, we see numerous negative comments in replies rejecting the idea of allowing cannabis sales at age-gated events in the city.

While social media posts aren’t exactly the most accurate reflection of public will, they’re a useful example of the kind of resistance many in the voting public still have against cannabis in general. This breaks down across partisan lines, for the most part, with opposition to cannabis and cannabis regulations often framed in terms of social conservative concerns about “the children” or “walking through a cloud of pot” or even seeing it as a handout to industry (it’s not).

A recent vote in Surrey, BC, to move forward with nearly a dozen new cannabis stores—the first to be approved in BC’s second-largest city, more than six years following legalization—showed similar resistance to a fairly benign step forward. The council voted 5-4 on each of the nine applications, barely passing. Many of the concerns raised by those three councillors and the mayor in past discussions on the issue were similar concerns about children, or based on the overall negative perception of cannabis in general.

This is six years into legalization, where, by all objective evidence, the sky has not fallen. Cannabis stores are as normal and boring as a Tim Horton’s or a beer store. Yet we still have elected officials voting against something as simple as allowing legal, regulated cannabis to be sold at an adults-only event, or against the idea of allowing cannabis stores in a city at all.

These elected officials are not operating in some anachronistic bubble. They are reflecting the will of their constituents as they see it. Convincing politicians to support the industry is a novel effort, but it will have to occur in concert with efforts to change the minds of their voters, or it will fall flat.

Going back to the national poll that showed support for the cannabis industry, it’s also important to note that residents were not asked about any specific action items. “Support” for a vague idea is one thing, but asking for provincial governments to give up tax revenue, or to relax interprovincial trade barriers for cannabis that would undercut provincial markups, is a whole other issue.

As you engage with your municipal, provincial, and federal representatives—something everyone in the industry should do on a regular basis—it will continue to be crucial to keep these broader issues in mind. It’s not a matter of appealing to emotion or even common sense. It’s about making a compelling argument based on addressing their very real concerns, based on what their electorate is telling them.

If the electorate still sees the industry as bad because they hate cannabis, or because they see cannabis as a “liberal” issue, or because they see the industry as swimming in cash because that was the narrative in the media for many years, then the industry’s efforts to lobby for major regulatory changes will continue to fall short.

Focus on changing voters’ minds, and the politicians will follow.

Cannabis producers want to play their part in push to strengthen Canada’s economy

Written by David Brown on . Posted in Business, Cannabis News, Government, Producers.

As Canadians focus on ways to strengthen their economy in the wake of ongoing threats from the current US government, many in the Canadian cannabis industry say they think cannabis is being overlooked as an economic powerhouse.  

Contributing hundreds of millions of dollars in excise tax to provinces since legalization began, and more than $8.3 billion to the country’s GDP in 2024, including the creation of thousands of jobs across the country, while not being at all reliant on US trade, Canada’s cannabis industry is in a unique position. 

Despite this, the cannabis industry continues to be overlooked in provincial and federal efforts to strengthen Canada’s economy.

The industry has already contributed over $43 billion to GDP, supports 80,000 jobs, and generates significant tax revenue. With the right tax and regulatory reforms, it can drive even greater investment, innovation, and trade–helping to build a more self-reliant domestic economy.

Beena Goldenberg, Organigram

While Ottawa and most provinces recently agreed on a deal to allow cross-border, direct-to-consumer sales for alcohol, cannabis was ignored. 

Canada recently announced billions of dollars in aid and other forms of support to Canadian businesses and people, who are expected to be directly affected by US tariffs while finding new markets abroad. The cannabis industry was not a part of that announcement either, despite Canada dominating the global market for cannabis exports. 

According to the Canadian government, there were 67,475.28 kilograms of dried cannabis exported to the international market in the first six months of 2024 alone and 79,279.75 kilograms exported in 2023, a trend expected to continue.

“As a world leader in federally regulated cannabis production, Canada has a first-mover advantage in a global market projected to surpass $145 billion by 2026,” said Beena Goldenberg, Organigram CEO, in a recent post online. 

“The industry has already contributed over $43 billion to GDP, supports 80,000 jobs, and generates significant tax revenue. With the right tax and regulatory reforms, it can drive even greater investment, innovation, and trade–helping to build a more self-reliant domestic economy.”

Companies like Organigram are ready to work with the Canadian government to bolster this market, she adds. 

“This unprecedented challenge presents an opportunity to bolster made-in-Canada industries—including the regulated cannabis sector—and create a stronger, more resilient economy.”

Rick Savone, Senior Vice President of Global Government Relations at Aurora Cannabis, says there’s a lot more the government can do to help make the best use of the economic benefits the cannabis industry brings.

The cannabis industry can benefit from Canada’s goals of becoming more economically resilient by improving supply chains and increasing interprovincial trade in Canada.

Rick Savone, Aurora Cannabis

“If both the federal and provincial governments were to acknowledge and recognize medical cannabis as a key sector in Canada’s life sciences and pharmaceutical industries, that would help the cannabis industry tremendously,” Savone tells StratCann via email. “As a leader in the global medical cannabis market, Aurora is committed to working with the governments in Canada to prioritize and promote the economic benefits of medical cannabis and encourage them to include it in economic policy discussions and industry growth strategies.

“The cannabis industry can benefit from Canada’s goals of becoming more economically resilient by improving supply chains and increasing interprovincial trade in Canada. To do so, the current cannabis excise stamp regime—which is inefficient and costly—needs to be improved by quickly moving to a national excise stamp for the cannabis industry.”

Savone notes that while there are some supports in place for the Canadian medical cannabis export market, much more can be done, including lowering regulatory fees and doing more to advocate for Canadian companies in the international market. 

“In regard to export support, while support from Embassy and Trade Commissioner Service (TCS) has improved for Canadian Licensed Producers, Global Affairs Canada sometimes refuses advocacy services for the cannabis sector, so we urge the Government of Canada to unleash the economic development potential of our medical cannabis industry,” adds Savone. “Also, Health Canada applies a 2.3% Annual Regulatory Fee (ARF) on export products, which poses significant challenges against foreign producers. Health Canada should stop applying the ARF to medical cannabis.” 

Alannah Davis with the BC Cannabis Alliance, which represents cannabis producers in BC, recently shared similar sentiments with StratCann about being excluded from these conversations on interprovincial trade, especially when it’s already a strong part of the Canadian-made economy. 

“As an industry that has proven itself to be durable through recessions with a supply chain that’s almost entirely Canadian, it’s disappointing to see cannabis being left out of conversations that would help keep Canadians employed while improving economic opportunities in BC’s rural communities,” Davis said.

New government could mean big delays in cannabis industry demands

Written by David Brown on . Posted in Business, Cannabis News, Government, Insight.

The Canadian cannabis industry is preparing for potential change in government while also managing a current federal government that is largely in limbo as the Liberals choose a new leader. 

A change in government could mean a significant reset and subsequent delay in any ongoing issues the industry has been trying to communicate to the federal government, says the CEO of one cannabis company. 

Realistic expectations

Emma Andrews, the CEO of Nextleaf Solutions, which manufactures cannabis extracts like oils, capsules, and vape pens, says she is preparing for a three to five-year time period following the upcoming election before the industry can expect to see changes to the kind of big-ticket items industry have focussed on over the years. These include excise tax reforms and changing the THC potency limits, such as the 10mg THC limit for edibles.

I’m projecting at least kind of a three to five-year timeline before we can ever anticipate any momentum, change, or regulatory reform that could dramatically effect the industry, whether that’s THC potency limits, whether that’s excise tax.

Emma Andrews, CEO, Nextleaf Solutions

In an online “fireside chat” on Friday, January 24, Andrews spoke with Shadd Dales, host of The Dales Report, which covers the publicly traded side of the industry. When asked where she sees the industry going in the coming years, especially with an expected change of government soon, Andrews said she is captaining the ship at Nextleaf by focusing on realistic expectations.

“You cannot hope for the best in this industry and be, you know, skating towards where you hope the puck is going to go,” Andrews told Dales. “You have to be very clear about your immediate opportunity, yet have kind of an opportunistic lens about where things could shift. But you can’t count on that. I’ve seen businesses fold for that reason.

“So for us it’s understanding that yes there’s a leadership change. There’s likely to be an election soon which would potentially change the party in power, which means that there’s a delay or prolonged ability for that [future new] cabinet to evaluate anything that’s coming from industry in regards to requests for excise tax relief or just to listen to us as an industry, so I’m projecting at least kind of a three to five-year timeline before we can ever anticipate any momentum, change, or regulatory reform that could dramatically effect the industry, whether that’s THC potency limits, whether that’s excise tax, but a patience-game to let the new cabinet sit, settle, assess, and follow protocol.”

Navigating proposed regulatory changes

The current shift in government could also mean more immediate challenges for the sector, with a large package of proposed regulatory changes expected to be finalized later this year. A package which is now in potential limbo with the possibility of an early election.

If the election is called after the summer, it’s possible the package could still go through—if not, it could be delayed well into the next government. The recent discussion around harmonizing the excise tax into one single national stamp would also likely be, at best, seriously delayed by this current upheaval in government with Trudeau stepping down. 

If the Liberals do not form government again later this year, the shift could also mean a change in priorities, including spending, which could have an immediate and long-term impact on the industry. Less funding for agencies connected to cannabis, namely Health Canada’s various cannabis-touching files and departments, can mean longer processing times for applications, amendments, or general correspondence. 

I would expect there to be very little activity outside of Canada US/relations issues.

Hugo Alves, CEO, Auxly Cannabis Group

For Hugo Alves, the CEO of Auxly Cannabis Group, the current situation means lowering expectations for any immediate changes while also preparing to work with any possible incoming ministers, whether there is an early election call or one later in the year as scheduled. 

Even if the Liberals manage to hold off an early election call, Alves says he sees the federal government focusing most of their attention on US/Canada relations, with cannabis-industry issues taking a back seat. 

“The way I see it is if there is a vote of no confidence that passes, then you’re really into a kind of caretaker government pending a May election, and I would expect there to be very little activity outside of Canada US/relations issues,” explains Alves. “If the vote of non-confidence doesn’t pass for whatever reasons, and there’s an October election, then I still think what you’ll really get is US/Canada relations kind of items dominating where the government spends their time.” 

“I just don’t see the government focussed on anything other than US/Canada relationships,” he continues, “and resolving government leadership until a new government is installed. So that’s the way we are planning it. Just business as usual. In terms of the way Auxly operates, I don’t think we’ll change anything until there’s a reason to do so.”

Future optimism

On the retail front, Omar Khan, Chief Communications and Public Affairs Officer at High Tide Inc., which owns and operates the largest chain of cannabis stores in Canada, says he is optimistic that if the next government in Canada is Conservative, they will be more receptive to industry concerns than the current Liberal government. 

While Khan emphasizes that as a retailer, they engage primarily with provincial governments rather than the federal government, he says his optimism about a potential Conservative federal government is informed by his experience with various conservative governments at the provincial level. 

“I am cautiously optimistic, based on my experience dealing with provincial conservative governments, that they’ll take a constructive approach when dealing with industry,” says Khan.

“We do generate taxes for governments at different levels and, more importantly, we generate a lot of employment, which also generates even more taxes. And I think they understand that. 

I am cautiously optimistic, based on my experience dealing with provincial conservative governments, that they’ll take a constructive approach when dealing with industry.

Omar Khan, Chief Communications and Public Affairs Officer, High Tide Inc.

“So I’m cautiously optimistic that if there is a federal Conservative government… that they’ll take a similar approach,” he continues. “They are not going to shout from the rooftops ‘rah rah cannabis’, but I’m cautiously optimistic that if they do get in, they will want to work with industry because I think they understand that we are job creators, we’re contributing immensely to Canada’s GDP, a lot of middle-class families, their livelihoods depend on this industry surviving and thriving. And I think they’ll understand that.”

With that said, Khan also acknowledged, like Andrews and Alves, that a potential change in government can mean a big reset in terms of getting new ministers up to speed on industry issues and getting enough wind in the sail for cannabis-industry related issues with these various ministries. 

“Whenever there’s a change of government, even when there’s a change of ministers, things tend to slow down, they need to be briefed and get up to speed.”

That will include issues like excise reform, he adds, but there are other excise-related issues the industry can focus on. 

“In terms of tax reform, I think the hope would be there would eventually be some tax reform that would correct the windfall that has gone to the provincial and federal governments at the expense of industry, but in the interim, you can look at more low hanging fruit.”

“Maybe in the interim you would look for lower hanging fruit, including how those tax proceeds could be used to help the cannabis industry and promote the objectives of the (federal) Cannabis Act.”  

The Canadian Parliament is currently prorogued to March 24, 2025.

Prime Minister Justin Trudeau announced on January 6 that he would step down as soon as the Liberals elected a new leader, who will be announced on March 9.

NDP Leader Jagmeet Singh has said he would vote to topple the sitting government in late March once the House returns following the Liberal leadership race. Other opposition leaders have shared similar sentiments, but an early election is not guaranteed, and it’s possible that Singh will hold off. 

Under Canadian law, the next election is set for no later than October 20, 2025, but an election called in March or April could lead to an election as early as May.

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Could a new Conservative government in Canada address cannabis industry concerns?

Could a new Conservative government in Canada address cannabis industry concerns?

January 8, 2025

Could a new Conservative government in Canada address cannabis industry concerns?

Written by Contributor on . Posted in Business, Government, Insight, Producers.

Sooner or later, Canada will have an election in 2025. Increasingly, it seems like this could happen sooner rather than later. And if the polls are to be believed, the Conservatives will form government after an election. 

Regardless of which party is at the helm, a new government will dictate the future of the cannabis industry here in Canada.

Of course, many in my network are now discussing the Conservatives. Their traditional stance on cannabis and other legalized drugs isn’t typically one that would excite the industry, especially as many producers are currently in financial peril.

Now is the time to demonstrate what this industry has done despite the roadblocks and challenges intentionally placed in front of it. It is time to show that the concerns many had prior to legalization didn’t end up being real.

In the spirit of open-mindedness, I watched the entire 2-hour discussion Pierre Poilievre had with that other fella and I took notes throughout.

Suppose a Conservative party would consider getting rid of legalized cannabis or imposing conditions worse than what we currently have. In that case, they would have to explain what’s going to fill the huge multi-billion dollar hole that could be left in our economy. They’d have to explain why they are giving the power back to the illicit market, and they’d have to justify their leader making quotes like this, which apply to cannabis as much as any other industry:

“We have to stop growing the money supply and start growing the stuff money buys. Produce more energy, grow more food, build more homes.”

“We have to unleash the free enterprise system to produce more stuff of value.”

“Unleash the power of the free market.”

“I will need people to put pressure on the Senate to enact economic reform.”

“I will need people to put pressure on their mayors and local councillors to get out of the way and let us build.”

“I will need businesses to actually do their part. Our corporate Canada is so completely incompetent when it comes to politics.”

“They are going to have to start to fight for the policies that are good for their workers.”

“Fire your incompetent lobbyists and go to their people and actually make the arguments for the reforms that I’m talking about.”

This industry is a powerhouse that demands respect for its contributions to our economy and public health, especially in the face of ignorance and mismanagement. If any government, regardless of colour or stance, is willing to overlook that, then I don’t see them being better than anyone else.

-Jonathan Wilson

Jonathan Wilson is CEO of Crystal Cure Inc., a micro cannabis producer in Shediac Cape, New Brunswick, that recently closed its doors with plans for a future relaunch. 

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What could an early election mean for the cannabis industry and pending regulatory changes?

Written by David Brown on . Posted in Business, Cannabis News, Government, Insight.

With an early federal election looking increasingly likely, there are several issues those in the cannabis industry should be keeping an eye on in the coming months.

Given the current and ongoing polling and national mood, this article is written with the assumption that the next government will be a Conservative one led by Pierre Poileivre. 

If an election is called, it could mean changes to several ongoing issues the industry is focused on. Here are a few worth watching.

Regulatory changes

Health Canada delivered a large package of proposals and changed the federal cannabis rules and regulations in 2024, lowering fees and regulatory requirements and increasing the amount of cannabis that micros can grow and process. Since they were first proposed, the changes have been expected to come into force in early to mid-2025.

If an election is called at any point, these regulatory proposals will not immediately stop as they would if they were legislation (like a proposed bill), but this would mean that the work would be primarily paused until the end of the election. The new government could then choose to continue that work, pause it indefinitely, or even scrap it entirely. 

If the new government is the Liberal Party of Canada, under the leadership of Trudeau or someone else, then such work will likely continue, and the final changes will be solidified and posted on Gazette II. 

However, if the new government is, as expected, the Conservative Party of Canada under the leadership of Pierre Poilievre, then it is possible the work will be shelved, possibly indefinitely, or even scrapped entirely. The Conservatives would likely not lose much political capital in doing so and might even gain some capital among specific sectors of their base. 

That said, it’s also possible that given the general red-tape-reduction and streamlining nature of the proposed changes, a new conservative government could still implement all or some of these proposed changes. However, it wouldn’t necessarily need to be given the same level of priority in terms of implementation as the Liberals would likely have given. 

Excise stamps

The federal government also recently said it’s considering possibly moving from 13 separate cannabis excise stamps to one national one, something the industry has been asking for. The timeline for this consideration was next spring. Similar to the issues relating to the proposed regulatory package, a new government would not necessarily need to keep such a promise, and an election could, at best, slow down the process of investigating the issue. 

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Conservatives and cannabis

The above issues relate to ongoing work the current government has done on the cannabis file. But what could a Conservative federal government mean for the cannabis industry and the associated Act and Regulations, in general?

This is a very broad question that deserves its own in-depth analysis, as there are many layers to consider, but here are a few high-level considerations:

The Conservatives have several known talking points related to the cannabis file that could signal the possible direction a new Conservative-led federal government might take. 

Medical cannabis: The Conservatives have, in the past, tried to make significant changes to Canada’s medical cannabis access programs. Repeatedly forced to manage the medical cannabis file by the courts, in 2013, the Conservatives first tried to get rid of the ability for medical cannabis users entirely, with approval from a health care provider, to grow their own cannabis or to designate someone to do so on their behalf.

Their messaging since that time has not changed much, with a big focus from many conservative MPs over the years to highlight how this personal and designated producer system is, at times, abused for the purpose of diversion into the illicit market. So it’s not much of a stretch to assume they will continue this focus if they again hold the reigns of power in Ottawa.

Home Grow: Not only do Conservative party members have a track record of trying to get rid of medical home grow, but many in the party have long expressed concerns with people having the right to grow their own cannabis. This was one of the many aspects of cannabis legalization that the Conservative Party outright opposed on principle, with one famous Conservative MP suggesting that young kids would be getting high with their parents’ home grow, utilizing toaster ovens. Another Conservative MP compared homegrown cannabis to being able to make fentanyl at home (seriously). 

It was a Conservative Senator, Vern White, who proposed an amendment to Bill C-45, the cannabis legalization bill, that would have removed the allowance to grow up to four plants at home. The amendment was defeated 40-33. Then another Conservative senator, Claude Carignan, proposed an amendment that would have only allowed indoor cultivation. That was also defeated, in a 40-31 vote.

Even after legalization, the Conservative’s Shadow Minister of Health at the time, Marilyn Gladu, told the Globe and Mail in 2019 that the party would seek to ban home grows and further restrict personal and designated medical grow licenses while supporting larger publicly traded licensed producers.

So it’s not a stretch to suggest this could also be within their sights. 

A less diverse industry: The coming into force of the federal Cannabis Act and Cannabis Regulations represented a significant shift from the previous medical-only status quo. Not only did this mean more broad access to a regulated cannabis supply chain for adults in Canada, it also meant new production regulations that were much less one-size-fits-all than the previous Conservative government’s medical rules had established. 

While legalization itself was built around the basic foundation of federally licensed producers first created by Health Canada under Harper’s watch (MMPR), broader cannabis legalization simplified certain aspects of those regulations and the application process and created new licence categories to allow for smaller and less capital-rich businesses to participate. No longer was there just one large “LP” licence that could cost tens of millions and take years to apply for. Some producers today, especially micros and nurseries, can make it through the licensing process in less than a year and, at times, well under a million dollars (some have even done it for under $100,000).

This process itself, though, isn’t easy. It requires a lot of time and resources to manage the number of licences and licence categories, not only during the application process but also once they are licensed. Staff must answer phone calls, respond to emails, and undertake inspections. Licensing hundreds of small micros is not cost-effective, and a new government seeking to cut red tape and bureaucracy could view such an approach as inefficient. 

If you’re working at or invested in a big licensed producer, this could be a win for you. But if you’re a smaller business operating in or looking to operate in the cannabis space, this might mean longer wait times for service. If you think it’s bad now, imagine if there were, for example, 25% fewer employees to respond to your requests. 

Now, it’s not necessarily all doom and gloom. There are arguments to be made for red tape reduction and streamlining of some of the more onerous aspects of the federal regulations. But given the Conservatives’ overall resistance to the cannabis file in general (remember, all but one Conservative voted against legalization itself), it’s unlikely to see this as a priority. 

Excise tax 

Conservatives hate taxes, right? Well, sort of. Yes, the Conservatives, especially Pierre, have spent much time railing about the excess taxes in Canada, especially the carbon tax. “Verb the Noun!” as the slogans go. 

But does this translate to excise tax reform for the cannabis industry? It’s possible, but I wouldn’t hold my breath. Any changes to the federal excise rate for cannabis mean less money for the provinces, who bring home almost all of that money. That’s not something many federal leaders would see much benefit in doing, especially on a file that most voters don’t seem to care much about, if at all. 

So, what will a Conservative government in Canada mean for the cannabis industry? At best, I would prepare for less federal support, not more, and a delay in any ongoing regulatory changes, such as harmonizing excise stamps or the massive regulatory package proposal shared in 2024. 

At worst, the industry should prepare for a shrinking federal regulatory agency that will seek to streamline operations, which would likely mean a redefined focus on a few touchpoints (a handful of big companies, not tons of little ones). This could be good news for the handful of big pubcos on the producer side, but for the little guys, it might be about to get a lot harder. 

That said, none of this is a foregone certainty. While much of the above is negative, there’s also the possibility that with the right advice a Poilievre’s government could approach this differently, unshackling cannabis from the over-regulation of the nanny state. Some past statements in regard to edibles potency limits, for example, show some potential openness to this approach. 

Coming up with a game plan to take these factors into account would be wise and might be the difference between keeping the lights on in 2025 and beyond, or not. But we’re probably going to find out sooner than later.

How the Canada Post strike is affecting medical cannabis access

Written by Jonathan Hiltz on . Posted in Business, Cannabis News, Government.

As the Canada Post strike nears its 4-week mark, it has created a ripple effect across the country, disrupting the delivery of countless essential goods and services at the busiest time of year.

For many Canadians, the strike has been an inconvenience; for others, particularly those who rely on medical cannabis, it has become a critical issue. 

Medical cannabis patients, many of whom depend on reliable and timely delivery for symptom management, are now facing significant delays and uncertainties. Canada Post remains the primary shipping method for the majority of licensed cannabis producers, and the strike has exposed vulnerabilities in the supply chain, leaving patients scrambling for alternatives.

“This strike has added another layer of complexity to an already difficult medical cannabis access process”

Dr. Karolina Urban, Avicanna

This disruption has not only delayed access to medication but has also raised questions about the resilience of Canada’s medical cannabis system. With limited options for same-day or in-person delivery in many regions, patients have found themselves stuck in a system unprepared for such logistical challenges.

“It’s another hurdle in an already complicated system,” said Ajay Chahal, Pharmacist and Co-Founder of Apothecare, a company that consults with both patients and doctors on cannabis access and use. “Medical patients who are enrolled with an LP and a doctor who prescribes [are experiencing] delays in getting access to their cannabis.”

Chahal added that various LPs are switching to Purolator and other delivery services, but because of the Canada Post strike, there have been significant delays even with those companies as they are overrun.

A further wrinkle are customers who don’t have a traditional address to deliver to. This has been an issue with providers including Avicanna, a biopharma company based in Toronto.

“This strike has added another layer of complexity to an already difficult medical cannabis access process,” said Dr. Karolina Urban, Avicanna’s executive VP of Medical Affairs. “One of the biggest issues is patients who are in areas where delivery is only available to PO boxes, currently serviced by Canada Post.” 

“I see medical patients just leaving altogether, especially if they are more elderly. They need access, and if they are not getting it, if it’s getting delayed, or not coming at all, they will need to get it somewhere. Once they see how it’s easily accessible they might not come back.”

Ajay Chahal, Apothecare

Confusion and the illicit market

One of the challenges that comes along with Canadians not being able to access their cannabis prescriptions is that they are forced to seek out alternatives by using recreational stores. “If the products are not the same, there might be some difficulty in making sure they transition to an equivalent product,” said Chahal. 

He added that a further issue lies within the ongoing illicit market retailers. Some patients have trouble determining the difference between legal and illegal stores, both in-person and online, and some access illicit market cannabis unknowingly.

“Black market stores are rampant. A lot of my patients had no idea they were going into a black market store or ordering online from a black market store. We [then] help navigate them to a legal store.”

Confusion over where to get products during this time aside, the strike is also not helping the growth of the medical cannabis sector in Canada at a time when that part of the industry could use some expansion. Active client registrations for medical cannabis with a federal license holder have gone from 345,520 in 2018 to 180,878 in 2024.

“I see medical patients just leaving altogether, especially if they are more elderly. If they’re dealing with pain and a lot of significant conditions, they can’t just stop. They need access, and if they are not getting it, if it’s getting delayed, or not coming at all, they will need to get it somewhere. Once they see how it’s easily accessible they might not come back.”

As for the effect this will have on the cannabis sector and its reliance on Canada Post, Urban believes the landscape will change out of pure necessity for patients to receive their medicine. This however, will come at a cost.

“We believe many companies will move away from primarily relying on Canada Post,” she said. “Unfortunately, the reality is that the cost of shipping with alternative carriers is still higher and this will ultimately impact patients.”

An ounce of prevention

Nothing can stop the current situation regarding the Canada Post strike this time around. But is there a way the government and the industry can put something in place to ensure the medical cannabis sector is not affected if and when this happens again? Chahal believes there is.

“I would like to see the government integrating medical and retail. That would be a fantastic way to solve access issues,” he said. “What that could mean is patients being able to access medical prescriptions at retail stores. There would have to be additional checks and balances [like the] integration of healthcare professionals in the retail stream, but the infrastructure is there.”

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