A group of more than 750 cannabis retailers in Canada is urging provinces to lift restrictions preventing its members from working with producers to offer promotions to customers.
Marijuana sales have stagnated in 2023 in the country, after five years of market growth following the legalization of cannabis.
However, all provinces, except Saskatchewan, prohibit retailers from collaborating with producers on promotional and discount campaigns, unless the producer owns the point of sale.
According to the CEO of the retailer group Independent Retail Cannabis CollectiveShakir Tayabali, these restrictions undermine customer loyalty to product brands.
Consumers do not necessarily know the brands [de cannabis] and what they want to try.
According to him, the more people know about the products on offer, the less likely they will turn to the black market.
Brad Poulos, a lecturer at the Ted Rogers School of Business in Toronto, admits he is very, very difficult at the moment
for a producer to make himself known to consumers. Purchases are based primarily on price and quantity of THC rather than brand, according to observers.
[Les consommateurs] are looking for the product containing the most THC at the lowest price
, explains Mr. Tayabali. He said retailers should have the right to promote other aspects, such as the taste and feel of a product.
Changes in Ontario and Alberta?
The Ontario Chamber of Commerce is also urging Doug Ford’s government to “modernize” its regulatory framework and allow financial partnerships between producers and retailers, saying current restrictions undermine market growth.
The province responds that it continues to monitor the cannabis market
and to evaluate business opportunities for retailers, while protecting communities
.
In Alberta, the organization that regulates the market, Alberta Gaming, Liquor and Cannabisrecently conducted consultations on possible regulatory reform. There may be policy changes in the coming months
the organization told CBC by email.
Based on information provided by CBC’s Mike Crawley News