#licensedproducers

What is Certified-Organic Cannabis – and Does Anybody Care? – LPC

Habitat Craft Cannabis today announced the company received its Canadian General Standards Board (CGSB) Organic Aquaculture Standard Certification. According to its press release it is the first licensed producer (LP) to receive this certification. (Please see link at the end of this article.) But what does “certified-organic cannabis” mean anyway, and does anybody care? The short answer to the second question is, yes. According to the Organic Council of Ontario (OCO), 83 per cent of Millennials buy organic weekly. Since the majority of cannabis users fall into roughly the same age range, there’s considerable overlap. Habitat clearly believes there is demand as well. Justin Henry, Director of Aquaculture at Habitat, said that the goal is to develop a sustainable operation. “Habitat is the quintessential example of that," he said. "Organic certification gives the consumer the assurance that the product is produced without potentially harmful inputs.” To Habitat, certified-organic cannabis means no synthetic pesticides, no synthetic nutrients, no GMOs, no antibiotics, and no added hormones.

Certification for Cannabis Operations Tricky – LPC

Province Starts Accepting Applications January 6 with New Stores Open in April – LPC

The Ontario cannabis retail market is finally opening up. The province announced it will do away with its controversial cannabis retail licence lottery. The Alcohol and Gaming Commission of Ontario (AGCO) starts accepting operator licence applications on Jan. 6, 2020. Store authorization will come March 2, 2020 with new stores open in April, according to the Financial Post. “In response to the federal government’s decision to legalize cannabis, our government is determined to open the cannabis market as responsibly as possible,” said Attorney General Doug Downey. “We have said all along that opening more legal stores is the most effective way to combat the illicit market, protect our kids and keep our communities safe. That is our number one priority.” The Ontario retail cannabis market currently consists of 24 stores and the government-run online Ontario Cannabis Store (OSC). With a population of over 14 million, Ontario has the lowest number of cannabis retail stores per capita in the country. Starting in April, approximately 20 stores per month will open. That’s similar to Alberta’s pace. Licensed producers (LPs) growing in Ontario will also be allowed to have a storefront at their premises – something most LPs have called for. Among other things, this will help encourage craft cannabis growers and cannabis tourism. The Ontario Ford government signalled in November that it might be ready to take down cannabis retail barriers. That was after public calls from licensed producers (LPs) that lack of retail outlets, particularly in Ontario, has led to oversupply and financial losses. The Ontario Cannabis Policy Council also openly called for a system more like Alberta’s. Alberta cannabis retailers are seen as the gold standard in Canada with almost 300 stores.

What Does an Open Ontario Retail Cannabis Market Mean for LPs? – LPC

Will Christmas Cannabis Edibles Be Under the Tree This Year? – LPC

Cannabis edibles, vapes, beverages, and topicals are scheduled to hit the market in mid-December. Theoretically, at least. Several companies have applied to Health Canada during the 60-day review period. That means this could be the first year of Christmas cannabis edibles as stocking stuffers and other gifts over the holidays. What exactly will be available? COO Sarah Gillin said Olli Brands will have plenty. Although not specifically marketed as Christmas cannabis edibles, their cannabis- infused cookies and teas are gift-giving favourites. “Olli is planning on launching with a strawberry real fruit chew, a butter cookie, a hemp crunch chocolate,” Gillin said.  There will also be five specialty teas: Melo Green, Vanilla Black, Misty Mint, Sweet Chamomile, and Berry Bliss. However, Olli doesn’t say how much THC is in each product. The Olli website shows packaging with THC stickers, but amounts are at this point unspecified. “They will be offered in a variety of dosing options with CBD being featured prominently in almost all of them,” Gillin said. Olli partnered with MediPharms Labs, who provided the cannabis oil extract for its products. MediPharm was the first licensed producer (LP) for cannabis oil production.

Edibles Not the Only Thing in Stock, or Stockings – LPC

Math, Not Gloom and Doom, the Cause in Most Cases – LPC

The consumer market saw legal cannabis sales decline in September, with recreational cannabis sales down 2.4 per cent from August. The legal market sold approximately $123 million, down from $126 million in August. However, not all analysts saw it as a “gloom and doom” story. Chris Damas of The BCMI Report indicated that for the most part it came down to math. “Part of the September sales drop was due to the 30-day month compared to August’s 31-day month,” he wrote. “Most cannabis stores are open seven days a week.” “The other aspect could be a ‘back to school’ phenomenon,” he added. Cannabis sales decline – along with many other recreational activities – after summer comes to a close. That may be true for many provinces. In Ontario, the legal cannabis sales decline was six per cent decline while sales increased in Quebec by 4.7 per cent.

New Brunswick Cannabis Sales Decline 40% – LPC

Government Agency Introduces Hybrid Model It Will Still Be Part of – LPC

The OCS wholesale cannabis monopoly is coming to an end. The Ontario Cannabis Store (OCS) announced that it is creating a hybrid distribution model. Under the new model, the private sector will be able to buy directly from licensed producers (LPs) as well as store and distribute cannabis. The news came on November 19, 2019 via email to LPs. This didn’t come as a surprise to many industry analysts. The story was first leaked in September 2019, though the rumour then was that the Ontario Cannabis Store was closing. Feedback showed producers wanted more control over the distribution of cannabis. The OCS wholesale cannabis monopoly was initially planned by the previous Kathleen Wynne Liberal government. That was to strictly monitor cannabis storage and distribution. Reports are the OCS consulted with LPs over the past month over various changes to the system. Those consultations found that the OCS wholesale cannabis monopoly system introduced too many inefficiencies. “The OCS is moving ahead with expanding its privately-operated third-party centralized distribution network,” the email read. This will “introduce flow-through capabilities to the network over time to maximize choice for consumers.”

OSC Wholesale Cannabis Monopoly Isn’t the Problem for LPs – LPC

  Newest LP Helps Companies Extract CBD and THC Just in Time for Edibles Rush – LPC

GreenLeaf Productions Inc. might be a new licensed producer (LP), but it’s no stranger to extract processing. Founder and president Mike Hodgson opened the processing facility in southwestern Ontario initially to extract CBD from hemp. Now that GreenLeaf Productions Inc. has become a Health Canada processing licence holder, it will be able to work with cannabis too. And perfect timing – edibles, topicals, and cannabis vaping will be legalized in just over a month. “Our CBD oil extraction services help growers who do not have their own ability to process biomass or adequate extraction capacity or who want to branch into other products,” said Hodgson. He added that GreenLeaf Productions Inc. can help micro-cultivators trying to reach niche markets as well as provide overflow services for larger companies. Quality is the key, he said, to improve safety. “The strength and purity of black market cannabis products have remained largely unknown since the earliest days of its recreational use. Legalization has brought with it the opportunity to better ensure the safety of the cannabis consumer.”

Turning Ontario’s Tobacco Belt into Cannabis – LPC

Canada Could Switch from Shortages to Cannabis Oversupply Quickly – LPC

Analyst Tom Adams of BDS Analytics said that Canada could see cannabis oversupply as early as 2019. He based his predictions on patterns on other markets, and the ability of licensed producers to increase production. “The point of balance will last about 10 seconds,” Adams said. “We’ll be on to the competitive battle that consumers can look forward to, of course, because that means lower prices.” He predicted the overall market in Canada would jump from approximately $750 million to almost $7 billion by 2024. (Canadian dollars used here. Adams used US dollars in his estimations.) According to the Global report (please see link below), cannabis supply chain problems and perceived cannabis shortages that led to legal retail cannabis challenges improved. Health Canada figures show that as of March 31, 2019, monthly sales of dried cannabis amounted to 7,627 kilograms. There were also 30,802 kilograms of finished inventory and 143,773 kilograms of unfinished inventory in the system. These numbers could point to cannabis oversupply. However, analysts from BMO Capital Markets warn that at least some of the unfinished inventory may be dated or otherwise not be suitable for sale. “We believe this is due to the learning curve associated with growing cannabis at scale,” the company told clients.

Edibles, Topicals, and Extracts the Dark Horses in Oversupply Equation – LPC

Often MMPR applicants don’t know what to expect from Health Canada when reporting on a monthly basis. We’ve had the pleasure of working with several licensed producers and developing an extensive record keeping and seed to sale traceability system, to make your monthly reporting a breeze. In fact, Grow One allows for “one click” Health Canada reporting, doing all the investigative work for you and your team.

In this article, we outline a monthly Health Canada report at a high level, and what information you will be expected to collect.