Canadian cannabis sales for adult use has been legal for just over a year now.
If you’re not familiar with the situation, Canada enacted a federal law making Canadian cannabis sales to adults legal, and that law went into effect slightly more than one year ago. We’re taking a look at where things are overall at the federal level, and breaking down a few provincial issues as well in the latest podcast episode.
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As the world watches, Canada is closing in on one year of cannabis legalization and there’s a lot that’s happened over the course of this last year. No one could expect that the CEO of a major LP is ousted, an LP itself lost its cultivation License nor that the black market is still going strong – wait people did predict that one…this and more on today’s podcast.
There have been a few upsets and downsides to the Canadian cannabis legalization process as the year has progressed, but things are still moving along at a really rapid pace. Stores have opened, online sales are going strong, and people seem happy, but all is not roses and sweet smells in the land of adult use Canadian cannabis.
Pardon me? Canadian cannabis industry vs. the Canadian legal system
Many cannabis advocates have worked with the Canadian government to get past cannabis convictions overturned, since its not a crime. And the government announced in the summer that pardons are now available for Canadians convicted of simple cannabis possession. The introduced bill C93 which enables Canadians to obtain a free, no wait pardon for simple possession of cannabis.
“We know that this is particularly significant for many in minority communities, including black and Indigenous Canadians who have been disproportionately affected by the enforcement of cannabis laws.”
So many people who have been convicted of Canadian cannabis related crimes will find themselves not completely cleared of wrong doing but with a partial redemption on their records. Neat, huh?
Hindsight update on the Canadian cannabis market in November of 2019 –
Canadian Cannabis Crossroads: November 2019 Snapshot
In November 2019, the legal Canadian cannabis industry was still finding its footing, one year and a half after recreational marijuana was officially legalized in October 2018. The market presented a mix of promise and challenges, with early successes overshadowed by supply shortages, regulatory hurdles, and a persistent black market.
Early Signs of Growth: The industry witnessed early signs of progress. Consumer demand remained high, with reports indicating Canadians were spending millions on legal Canadian cannabis each week. Licensed producers (LPs) were ramping up production, with new cultivation facilities coming online. However, these efforts weren’t enough to meet initial demand.
Supply Shortages and High Prices: A major hurdle was a significant supply shortage. LPs struggled to produce enough cannabis to meet consumer needs, leading to empty shelves and frustrated customers. This scarcity also led to inflated prices, making legal cannabis less competitive compared to the black market.
Regulatory Roadblocks: The complex regulatory framework presented challenges for businesses. Strict licensing procedures, stringent quality control measures, and limitations on product types hampered innovation and slowed down market expansion. Additionally, marketing restrictions limited brand awareness and consumer education efforts.
Black Market Persistence: The legal market’s struggles fueled the black market. Lower prices and easier access continued to attract consumers, hindering efforts to fully displace illegal cannabis sales. Law enforcement agencies were grappling with the continued presence of the black market, highlighting the need for a more competitive legal market.
Looking Forward: Despite the challenges, there was optimism for the future. The federal government acknowledged the supply issues and expressed commitment to streamlining regulations. Industry analysts predicted that as production capacity increased and regulations became more flexible, the legal market would become more competitive.
Evolving Landscape: November 2019 marked a pivotal point for the Canadian cannabis industry. While initial hurdles persisted, the groundwork was laid for future growth. Focus on increasing production, adapting regulations, and addressing black market competition remained key priorities as Canada’s legal cannabis industry navigated towards a more mature and sustainable market.