Complete C3 Excise Tax Survey of Licence Holders before Sep 1

Cannabis Council of Canada (C3) is conducting a study on the Canadian cannabis excise tax framework and are looking for input from licensed producers and processors from across the country.

Are you a Health Canada Licence Holder? Please take 10 minutes to fill out an anonymous survey (or forward to your CFO) before September 1st and join C3 August 31st for a virtual discussion with other leaders in the cannabis sector.

“Your input will be invaluable in shaping our conversations with government decision-makers at an upcoming lobby day and in advance of the Fall Economic Statement. All responses are anonymous and will be reported in aggregate.”

Not a licence holder? C3 encourages you to share this survey link with LPs whose operations might be impacted by a change to the excise tax framework.

Use the link below to complete the survey:
https://qfreeaccountssjc1.az1.qualtrics.com/jfe/form/SV_25f1c7xf8k9fhoq

Or visit C3 for more information:
https://cannabis-council.ca/


Exporting Cannabis to the EU

In a previous post, we discussed how some Canadian producers are selling excess inventory to export markets, including Europe.

In “The Europe Medical Cannabis Market,” Market Data Forecast reports, “The medical cannabis market in Europe is expected to grow from USD 4.96 billion in 2022 to USD 13.37 billion by 2027, growing at a CAGR [compound annual growth rate] of CAGR 21.96% from 2022 to 2027.”

Based on that report, Europe appears to be a significant marketplace for cannabis. But to sell into that market, the exporter must meet the region’s standards. In the case of Europe, those standards include the European Union’s Good Manufacturing Practices, referred to as EU GMP.

In their article, “A Look at Canadian Cannabis Exports,” published in 2021, The Business of Cannabis reported one reason why exports jumped in 2020. “In Canada, more cultivators gained the European Union’s Good Manufacturing Practices (EU GMP) certification, allowing them to export to that continent. More than a dozen Canadian LPs now have EU GMP certified facilities.”

Meeting EU GMP standards is critical for exporting into the European marketplace. But what is EU GMP and how does it differ from the standards Canadian companies already meet?

Health Canada requires that Canadian licensed producers comply with Good Production Practices or GPP standards. If you are a licensed producer in Canada, you are already familiar with GPP. If not, these standards are explained on the Health Canada website.

Essentially, GPP requires that cannabis businesses have appropriate procedures for all activities related to producing a product that is safe for public consumption. GPP mandates that systems be in place to ensure quality and traceability.

Good Manufacturing Practices, GMP, takes GPP further including requiring more stringent testing.

The Foundation of Cannabis Unified Standards (FOCUS) states, “GMP is the proactive part of quality assurance. It is designed to minimize the risks involved in all steps of the manufacturing process. A basic tenant of GMP is that quality cannot be tested into a product. It must be built into each batch of product during all stages of the manufacturing process.”

Originally designed for pharmaceutical products, GMP can be applied to any production process and is a requirement for those wishing to market medical cannabis in Europe.

The EU GMP standards are complex, and the information can be difficult to navigate, especially how it applies to cannabis.

But the Canadian government has published guidelines designed to help manufacturers meet GMP standards. Their guidance document has been written “with a view to harmonize with GMP standards from: the World Health Organization (WHO); the Pharmaceutical Inspection Cooperation/Scheme (PIC/S); the International Council on Harmonisation (ICH); the International Cooperation on Harmonisation of Technical Requirements for Registration of Veterinary Medicinal Products (VICH); other regulatory agencies in other countries.”

While the EU is not mentioned specifically, these Canadian standards are a good starting point for cannabis companies considering exporting into other markets. These guidelines will help producers understand what is required and can be used as a stepping stone toward EU GMP certification.

According to the media, the EU standards are stringent, and certification can be time consuming and costly. But with a market as large as Europe, Canadian companies are in a position to benefit from the opportunities that an EU GMP certificate can offer.


Can Canadian Producers Export Excess Supply?

With media reporting oversupply challenges in the Canadian cannabis industry, can producers turn to export markets to sell their inventory? The answer might be yes. As countries around the world legalize cannabis, new opportunities are emerging for producers in Canada.

Canadian companies have been exporting cannabis for several years already. In fact, back in June 2020, MJBizDaily published a two-part article on Canada’s export of medical cannabis during 2019. Part 1 was titled, “Canada exported record amount of dried cannabis in 2019…” Part 2 reported, “Canadian exports of medical cannabis oil jumped fivefold in 2019.”

Canadian Regulatory Review reported in September of 2020 that the Canadian government had even become supportive of cannabis exports. “On the export side, and to further bolster trade, as of January 2020, the federal government through Canada’s Trade Commissioner Service extended trade commissioner services for Canadian cannabis companies exporting cannabis for medical and scientific purposes.”

A few months after that article, in April 2021, Prohibition Partners released a report called “Revealed: The Canadian Cannabis Export Market for 2020.” The report notes that the largest export markets for Canada at the time were Germany, Australia, Israel and the United Kingdom. “…new data shows a huge increase in the exports of cannabis from the country in 2020, as well as a changing network of countries that are importing from established producers in Canada.”

In May of that same year, Business of Cannabis took “A look at Canadian cannabis exports,” noting that “Dried cannabis flower and cannabis oil exports more than doubled in 2020, while imports dropped to virtually zero…”

An article titled, “How Canada’s Oversupply of Cannabis Is an Export Opportunity,” was published in October of 2022 by Canadian Cannabis Exchange. “As the demand for cannabis legalization increases internationally, Canada has the opportunity to become the world leader in cannabis exports… The European Union is proving to be a lucrative market for Canadian exports.”


Stratcann: Micros Could Surpass Standards in Canada Next Year

According to an article published by Stratcann, “At the current pace of licensing, the total number of micro licences could surpass standard licences in 2024.”

Stratcann, an online news publication covering the evolution of the legal cannabis industry in Canada and around the world, reported that “Micro cannabis licences continue to grow in popularity in Canada, at almost 42 percent of all licences issued as of March 31, 2023. Just over half (51 percent) of licences were standard, three percent were nursery licences, and nearly four percent were medical-sales only licences.”


Report: Medical Cannabis Access and Experiences in Canada

The Medical Cannabis Access Survey Summary Report, issued in April of 2023, provides an in-depth view of individuals currently taking medical cannabis in Canada and their access experiences.

Topics covered by the report include:

  • Changes in Medical Cannabis Use Since Implementation of the Cannabis Act
  • Retention of the Medical Cannabis Program and Needed Improvements
  • Perceived Improvements to the Medical Cannabis Program

This report was formulated from results drawn from the Medical Cannabis Access Survey, which received ethical approval from the University of Manitoba Research Ethics Board 1 and McGill University Research Ethics Office of the Faculty of Medicine and Health Sciences.

For more information and to download a copy of the summary report, visit: https://www.medicalcannabissurvey.ca/report


The European Cannabis Report for 2023

Published by Prohibition Partners, The European Cannabis Report: 8th Edition, 2023, provides the latest information and analysis on the development of the cannabis markets across Europe.

“Included in the report are deep dives into all key sectors and geographic regions in the European cannabis industry, with many data sources which have been exclusively obtained by Prohibition Partners, or else remain un-reported to date.”

For more information, including how to download a free copy of the report, visit:
https://prohibitionpartners.com/reports/the-european-cannabis-report-8th-edition/


Health Canada Seeks Your Feedback from March 25 to May 24, 2023

In relation to a consultation on potential amendments to the Cannabis Regulations, Health Canada is seeking feedback and comments on potential amendments to the Cannabis Regulations.

The aims of the consultation include clarifying existing requirements, eliminating regulation inefficiencies and duplications and reducing administrative and regulatory burdens, and Health Canada is seeking input from:

  • cannabis industry stakeholders
  • public health stakeholders, non-governmental organizations
  • researchers and research or academic institutions
  • First Nations, Inuit and Métis partners and organizations
  • law enforcement
  • provincial, territorial and municipal governments

For more information including how you can provide feedback until May 24, 2023, visit:
https://www.canada.ca/en/health-canada/programs/consultation-potential-amendments-cannabis-regulations.html


Congratulations Headstone Finalist in 2023 Canadian Cannabis Championship

On March 21, 2023, the Canadian Cannabis Championship named 13 Flower Finalists — and AirMed client Headstone Cannabis has made the list.

The CCC competition is being held in conjunction with the Grow Up Conference & Expo happening May 28-29, 2023 in Edmonton, Alberta.

“The top flower finalists include industry leaders such as Great Gardener Farms, Truth Holdings, Distinkt Cannabis, Headstone Cannabis, Stewart Farms, North 40 Cannabis, JustFire, Black Rock Cannabis, Palm Gardens, Northside Grow Co., Origine Nature, Vertical 7, and Into the Weeds.”

Judging will take place at the conference on May 28 with winners announced live on Tuesday, May 30.

For more about the Canadian Cannabis Championship, click here: https://canadiancannabischampionship.com/2023-finalists/

For more about Grow Up, click here: https://growupconference.com/

For more about Headstone Cannabis, click here: https://headstonecannabis.com/


Read about Great White North Growers in Cannabis Prospect Magazine

AirMed client, Great White North Growers, has been profiled in a feature article in the December 2022 edition of Cannabis Prospect magazine.

The article, titled “The French Connection: How Great White North Growers Became Synonymous with Quebec Cannabis” features an interview with company co-founder George Goulakos.

The author writes, “In a few short years, Great White North Growers has gone from a licensed producer of its house brand and 514 Cannabis to a powerhouse working with over 30 growers in the province to get its products in SDQC stores.”

In the interview, Goulakos describes his company’s history, business model and future plans. “My partner Peter Schissler and I realized that there was a fantastic opportunity in this exciting new industry, and we decided to get in early… We were one of the first Licensed Producers in Quebec to be granted all Health Canada licenses and saw an opportunity to assist Quebec-based micro cultivators bring their products to market… Our mission is to be a proud Canadian company with strong values and a social conscience.”

To read the full article visit: https://issuu.com/cannabisprospectmag/docs/cannabis_prospect_magazine_dec._22_issue_-_digi/10

For more information on Great White North Growers, visit: https://gwng.ca/

Cannabis Prospect Magazine is Canada’s premier trade publication for cannabis industry professionals. Cannabis Prospect Magazine showcases the people and companies forging this new industry with articles written by industry experts and advisors that make up this new and dynamic marketplace. For more information visit: https://cannabisproonline.com/


Read about AirMed client Rogue Processing at Stratcann

AirMed client Rogue Processing has been profiled on Canada’s legal cannabis news platform, StratCann.

The article features Graham Taylor, the President and CEO of Rogue Processing, which is located in Niverville, Manitoba, about 20 km south of Winnipeg. Rogue offers state-of-the-art co-packing services to Canadian cannabis companies looking for a client-focused, eco-friendly, cost-effective, and tech-savvy alternative to current service providers.

“It’s sustainable not only because we’re using more environmentally friendly packaging, it’s also a more financially sustainable model where customers keep more profits in their pocket allowing them to…grow their business.” Graham Taylor

Stratcann covers the evolution of the legal cannabis industry in Canada and around the world, publishes news, company features and brand profiles.

To read the full Rogue Processing profile on the Stratcann website visit:
https://stratcann.com/profiles/rogue-processing/

For more information on Rogue Processing, visit: https://rogueprocessing.com/


Research Predicts International Cannabis Market Increases Across Globe

A new research report forecasts increases over 2021 cannabis sales from 16 percent in Europe and 22 percent in Asia to 45 percent in Latin America.

The report titled “International Cannabis Refresh: The impact of shifting global regulatory environments” was published in October 2022 by the Brightfield Group.

The researchers state that growth in Europe “can largely be attributed to the commencement of adult-use sales, both in trial programs and in formal regulation…” But they also say that domestic cultivation could boost market sizes, “with many countries currently relying on imports from other nations.”

The Asia Pacific & Middle East region shows even higher forecasted increases over 2021 – as much as 22 percent. Israel has the largest market with Australia in second place.

In Latin America, cannabis sales are expected to increase by as much as 45 percent over 2021. This is attributed to the expectation that Mexico and Costa Rica will enter the marketplace by 2025.

The publishers of this report, Brightfield Group, is a research firm specializing in emerging categories including CBD, cannabis, and wellness.

For more information visit: Brightfield Group.


What to Expect from the Cannabis Act Review

Since the announcement of the Cannabis Act review, people are speaking out about what they hope to see from reviewers.

The review was initially planned to begin in 2021 and look at the public health implications of the legalization of cannabis in Canada.

The CBC reported that the government delayed the start of the review to expand the scope. “The review mandate has been expanded to include an examination of the social and environmental effects of the Cannabis Act, the impact of legalization and regulation of medical cannabis and the impact on racialized communities and women.”

Read more here: https://www.cbc.ca/news/politics/public-health-cannabis-mandated-eview-1.6591442

An article in The Globe & Mail stated that “For George Smitherman, the chief executive officer of the Cannabis Council of Canada, the national industry association, the announcement comes at a critical time. Companies continue to face pressure from the illicit market, as well as excise taxes, provincial distributor markups and regulatory fees.”

Read more here: https://www.theglobeandmail.com/business/article-health-canada-cannabis-act-review/

The Toronto Star notes that the pot sector wants packaging changes and financial relief from the review. “The industry is frustrated the review’s launch arrived a year later than mandated but is still hoping it can result in enough tweaked restrictions to make cannabis distribution easier, draw in new customers and prevent more staffing and facility cuts.”

Read more here: https://www.thestar.com/news/cannabis/2022/09/22/pot-sector-wants-packaging-changes-financial-relief-from-cannabis-act-review.html

The review is expected to be completed in 18 months, and government officials say that it will consider health issues as well as financial, tax, regulatory and criminal-justice matters.


Media Marks the Fourth Anniversary of Cannabis Legalization in Canada

Yesterday, October 17, 2022, was the fourth anniversary of the legalization of cannabis in Canada.

Canada legalized cannabis on October 17, 2018. Since then, there have been many changes to the cannabis landscape, but some say we need even more reform.

The media took the opportunity to mark the day with reviews of the progress, criticisms of the process and calls for improvement.

Stratcann, an online news publication covering the evolution of the legal cannabis industry in Canada and around the world, chronicled Canadian legalization.

Read the article here:
https://stratcann.com/insight/four-years-later-following-canadas-path-to-legalizing-cannabis/

The Toronto Sun claimed, “Still much to iron out on fourth anniversary of Canada’s legalization of cannabis.”

Read the article here:
https://torontosun.com/news/still-much-to-iron-out-on-fourth-anniversary-of-canadas-legalization-of-cannabis

MJBizDaily, a news source for the cannabis industry in the US and Canada, published that “Canadian marijuana businesses pitch reform on legalization’s 4th anniversary.”

Read the article here:
https://mjbizdaily.com/canadian-cannabis-businesses-pitch-reform-on-legalization-4th-anniversary/

The Toronto Star declared that Canada’s cannabis producers say they’re in crisis.

Read the article here:
https://www.thestar.com/news/canada/2022/10/17/canadas-cannabis-producers-say-theyre-in-crisis-heres-what-theyre-asking-the-government-to-do.html


B.C. Enables Cannabis Farm-to-gate Sales

The Province of British Columbia announced last week that it will introduce a new cannabis retail licence that will allow eligible federally licensed cannabis producers to sell non-medical cannabis products from stores located at their cultivation site.

The producer retail store (PRS) license is expected to go into effect on November 30, 2022.

Standard cultivators, micros and nursery licence-holders will be eligible to apply through the Liquor and Cannabis Regulation Branch’s (LCRB) liquor and cannabis licensing portal.

The media release published on the Province’s website reads, “This licence was created as part of the Province’s commitment to enable farm-to-gate cannabis sales in British Columbia… This launch follows the recent opening of the first farm-gate cannabis facility in B.C. in Williams Lake, which was a result of the government-to-government agreement between the Province and Williams Lake First Nation.”

B.C. currently has 212 federally licensed cannabis producers, which includes 74 micro-producers.

To read the full media release visit: https://news.gov.bc.ca/releases/2022PSSG0061-001490

Information about cannabis regulation in B.C.: https://www.cannabis.gov.bc.ca

Information about the Buy Legal campaign: https://www2.gov.bc.ca/gov/content/safety/public-safety/cannabis/buy-legal

Licensed cannabis producers and retail stores in B.C. interested in participating in direct delivery can find information on the program’s website:
https://www.bcldbcannabisupdates.com/LDBDirectDeliveryProgram

Information about the BC Indigenous Cannabis Product (BCICP) program: https://www.bcldbcannabisupdates.com/BCICP


Government of Canada Launches Cannabis Act Review

On September 22, 2022, the Government of Canada announced the launch of a legislative review of the Cannabis Act.

The announcement stated, “Parliamentarians recognized the need for an early assessment of the Government’s new approach to cannabis control, and included a provision requiring a review in the Act. The review will help ensure that the Act adapts to the current situation and continues to meet Canadians needs and expectations.”

An independent panel of experts will lead what is being called a credible and inclusive review. “The Panel will provide independent, expert advice to both Ministers on progress made towards achieving the Act’s objectives, and will help identify priority areas for improving the functioning of the legislation.”

In conjunction with the legislative review, an online engagement process has been launched.

All Canadians are invited to read Taking Stock of Progress: Cannabis Legalization and Regulation in Canada.

Read here: https://www.canada.ca/en/health-canada/programs/engaging-cannabis-legalization-regulation-canada-taking-stock-progress/document.html

Canadians are also encouraged to share their views via the online questionnaire or through written feedback until November 21, 2022.

Take the survey here: https://ca1se.voxco.com/SE/?st=3KoT2Xgsv4uHJF2%2F0i%2F7oo5IS3ATejUCjIjdJ4lUsME%3D&lang=en

You can also read the original announcement on the Government of Canada website.

Visit: https://www.canada.ca/en/health-canada/news/2022/09/government-of-canada-launches-legislative-review-of-the-cannabis-act.html


Micro licences take off in Quebec

According to a recent post at the cannabis news website, Stratcann, Quebec has seen more new micro licences in 2022 than any other province so far this year.

The CEO of the Association québécoise de l’industrie du cannabis (AQIC), Pierre Leclerc, says believes the recent increase may be a reflection of the maturing market.

“I think Quebec entrepreneurs sat back a little and watched how the market would play out… building a business model around the micro licence production is something that makes sense in Quebec.”

Read the full article here: https://stratcann.com/news/micro-licences-taking-off-in-quebec/

For more information on how AirMed supports micro growers and processors, visit our Software page.


Read about AirMed client Craft Kings at Stratcann

AirMed client Craft Kings has been profiled on Canada’s legal cannabis news platform, StratCann.

The article features Tye Harlock and Kyle Windle, co-founders of Craft Kings, and their approach to micro cultivating at their facility in Sooke on Vancouver Island.

“I really do believe that the industry is going to be heavily reliant on craft. So that’s what we’re focused on. It’s what we know how to do, and the people buying it seem to agree. We just want to keep finding new strains to bring them, and to keep getting better.”

Stratcann covers the evolution of the legal cannabis industry in Canada and around the world, publishes news, company features and brand profiles.

To read the full Craft Kings profile on the Stratcann website visit:
https://stratcann.com/profiles/vancouver-islands-micro-grower-craft-kings-focusses-on-small-batch-quality/

For more information on Craft Kings, visit: https://craftkings.ca/


Survey Shows Decrease in Illegal Cannabis Use in BC

The government of British Columbia recently published a news release stating, “A recent survey is showing positive changes in behaviour among B.C. cannabis consumers, including more responsible use and fewer people purchasing from unlicensed sellers.”

The survey results that were referenced showed a significant decrease in the number of consumers who reported buying from an unlicensed store: from 56% in 2018 to 17% in 2021. The survey also showed that 71% of consumers reported purchasing from licensed retailers.

“Findings suggest that most people in B.C. who choose to use cannabis are doing so responsibly.”

The announcement was issued by the Public Safety and Solicitor General on August 2, 2022, and the 35-page report can be downloaded directly from the government website.


Cannabis Packaging Market Report 2022-2027

This report provides Global Industry Trends, Share, Size, Growth, Opportunity and 2022-2027 Forecast for the Cannabis Packaging Market.

According to the report, the global cannabis packaging market reached a value of US$ 982.4 Million in 2021. Looking forward, IMARC Group expects the market to reach a value of US$ 3949.6 Million by 2027, exhibiting a CAGR of 25.40% during 2022-2027.

In this report, IMARC Group provides an analysis of the key trends in each sub-segment of the global cannabis packaging market, along with forecasts at the global, regional and country level from 2022-2027.

For more information about the report, visit:
https://www.imarcgroup.com/cannabis-packaging-market
For information on how AirMed helps manage packaging, visit:
https://airmedcloud.com/software/#stock


Cannabis Delivery Options Expanded in British Columbia

As of Friday, July 8, 2022, licensed cannabis retail stores (CRSs) in the province of British Columbia are permitted to deliver non-medical cannabis to consumers through Canada Post and other common carriers.

This change has come about as a result of lobbying by the Association of Canadian Cannabis Retailers (ACCRES) and other groups. Until now, only the government in British Columbia has been able to do this since legalization.

“Since federal legalization of non-medical cannabis, we have continued to look for ways to support the cannabis industry in our province while providing safe and accessible options for British Columbians,” says Mike Farnworth, Minister of Public Safety and Solicitor General. “Expanding delivery-service options not only builds equality within the market, it also gives consumers one more reason to buy legal instead of illicit.”