Lp,s are doomed!
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Great News!
Or, when selling greenhouses is tha mood! Lol.
Home / Cultivation
Germany’s proposed adult-use cannabis legalization plan excludes imports
author profile pictureBy Matt Lamers, International Editor
October 26, 2022 - Updated October 26, 2022
SHARE
Learn from top cannabis industry business leaders including Berner (Cookies), Nancy Whiteman (Wana Brands), Chris Walsh (MJBiz) and many more at MJBizCon in Las Vegas (Nov. 15-18). Register to attend.
Image of Reichstag building in Berlin.
The German government published key details of its plan to legalize and regulate adult-use cannabis, including what Health Minister Karl Lauterbach described as “complete” cultivation within the country.
The proposed blueprint also suggests 2024 is a realistic date for the program’s launch.
ADVERTISEMENT
Keeping cannabis cultivation within Germany would be a blow to some international producers, who had been hoping Europe’s largest economy would find a way to allow imports – even though adult-use marijuana shipments across borders aren’t permitted under international drug-control treaties.
“At the moment, we’re planning complete cultivation in Germany,” the health minister said at a news conference Wednesday. “That’s the current target direction.”
The German cabinet endorsed the 12-page plan.
However, before a draft law is written and considered by lawmakers, a blueprint of the law will be sent to the European Commission, the EU’s executive branch, for approval to ensure it is compatible with European Union and global drug laws.
Lauterbach said Germany will argue that the legalization plan is aligned with international treaties.
The legislative process will continue only after the plan gets the green light from the EU, Lauterbach said, implying these proposals could face changes before being presented in a draft law.
A potential blueprint for EU
If approved by the European Commission, Germany’s blueprint could serve as a basis for broader cannabis reform in countries across the European Union seeking to follow Germany’s example.
Similar to Canada’s approach, Germany proposes regulating adult-use cannabis in the primary interest of public health – both to protect youth and erode the illicit market.
There are virtually no details regarding the economics of the illicit market in the 12-page report.
Germany appears to have backed away from an earlier proposal to potentially cap allowable THC for consumers 18-21 years old. But the idea still appears to be under consideration.
The new proposal suggests cannabis could be sold in approved stores and, possibly, in pharmacies to anyone older than 18.
Germans would be permitted to grow up to three plants at home.
Cannabis purchases at stores would be limited to 20-30 grams.
ADVERTISEMENT
Only one paragraph of the 12-page proposal deals with cultivation.
Cultivation would be allowed in indoor and greenhouse facilities “to ensure appropriate quality control,” the document says.
The plan doesn’t mention any potential production quotas, which currently govern the country’s very small number of medical cannabis growers.
“The entire supply and trade chain – cultivation, processing, transport, wholesale, retail – must be subject to a controlled track-and-trace system that includes documentation for each individual step in the supply chain,” according to the document.
Activities such as cultivation, processing, storage, transport and sale will be possible only by licensees.
Applicant licensees will be required to demonstrate – among other things – expertise, proof of entry into the EU’s beneficial ownership registry, proof of sufficient financial resources and creditworthiness, the document notes.
Advertising, packaging rules
Advertising for cannabis products would be prohibited, and strict rules would be imposed on the outer packaging of cannabis products.
Packaging would have to contain information such as who produced the product, the weight, the harvest date, THC and CBD content, age and health warnings as well as addiction risks.
Other details include:
Flower, capsules, sprays and drops would be allowed, but edibles would be prohibited.
Synthetically produced cannabinoids would not be permitted.
Germany’s sales tax would be applied to recreational cannabis.
A special cannabis tax is planned, but there were no other details.
The document proposes an evaluation of the impact of the law after four years, at which time cannabis edibles products may be considered.
The health minister suggested approval or rejection by the European Commission should not take long.
Depending on that outcome, a draft law could be presented in the first quarter of 2023.
Regarding timing, the health minister suggested that a realistic expectation is that legalization could come in 2024.
22.2 MILLION EUROPEANS CONSUMED CANNABIS IN PAST YEAR, REPORT SAYS
Tilray to import cannabis to Germany. Not!
Portugal greenhouses for 10 cents on the dollar iv?
Home / Cultivation
Germany’s proposed adult-use cannabis legalization plan excludes imports
author profile pictureBy Matt Lamers, International Editor
October 26, 2022 - Updated October 26, 2022
SHARE
Learn from top cannabis industry business leaders including Berner (Cookies), Nancy Whiteman (Wana Brands), Chris Walsh (MJBiz) and many more at MJBizCon in Las Vegas (Nov. 15-18). Register to attend. Will i see you there iv?
The German government published key details of its plan to legalize and regulate adult-use cannabis, including what Health Minister Karl Lauterbach described as “complete” cultivation within the country.
The proposed blueprint also suggests 2024 is a realistic date for the program’s launch.
Keeping cannabis cultivation within Germany would be a blow to some international producers, who had been hoping Europe’s largest economy would find a way to allow imports – even though adult-use marijuana shipments across borders aren’t permitted under international drug-control treaties.
“At the moment, we’re planning complete cultivation in Germany,” the health minister said at a news conference Wednesday. “That’s the current target direction.”
The German cabinet endorsed the 12-page plan.
However, before a draft law is written and considered by lawmakers, a blueprint of the law will be sent to the European Commission, the EU’s executive branch, for approval to ensure it is compatible with European Union and global drug laws.
Lauterbach said Germany will argue that the legalization plan is aligned with international treaties.
The legislative process will continue only after the plan gets the green light from the EU, Lauterbach said, implying these proposals could face changes before being presented in a draft law.
A potential blueprint for EU
If approved by the European Commission, Germany’s blueprint could serve as a basis for broader cannabis reform in countries across the European Union seeking to follow Germany’s example.
Similar to Canada’s approach, Germany proposes regulating adult-use cannabis in the primary interest of public health – both to protect youth and erode the illicit market.
There are virtually no details regarding the economics of the illicit market in the 12-page report.
Germany appears to have backed away from an earlier proposal to potentially cap allowable THC for consumers 18-21 years old. But the idea still appears to be under consideration.
The new proposal suggests cannabis could be sold in approved stores and, possibly, in pharmacies to anyone older than 18.
Germans would be permitted to grow up to three plants at home.
Cannabis purchases at stores would be limited to 20-30 grams.
Only one paragraph of the 12-page proposal deals with cultivation.
Cultivation would be allowed in indoor and greenhouse facilities “to ensure appropriate quality control,” the document says.
The plan doesn’t mention any potential production quotas, which currently govern the country’s very small number of medical cannabis growers.
“The entire supply and trade chain – cultivation, processing, transport, wholesale, retail – must be subject to a controlled track-and-trace system that includes documentation for each individual step in the supply chain,” according to the document.
Activities such as cultivation, processing, storage, transport and sale will be possible only by licensees.
Applicant licensees will be required to demonstrate – among other things – expertise, proof of entry into the EU’s beneficial ownership registry, proof of sufficient financial resources and creditworthiness, the document notes.
Advertising, packaging rules
Advertising for cannabis products would be prohibited, and strict rules would be imposed on the outer packaging of cannabis products.
Packaging would have to contain information such as who produced the product, the weight, the harvest date, THC and CBD content, age and health warnings as well as addiction risks.
Other details include:
Flower, capsules, sprays and drops would be allowed, but edibles would be prohibited.
Synthetically produced cannabinoids would not be permitted.
Germany’s sales tax would be applied to recreational cannabis.
A special cannabis tax is planned, but there were no other details.
The document proposes an evaluation of the impact of the law after four years, at which time cannabis edibles products may be considered.
The health minister suggested approval or rejection by the European Commission should not take long.
Depending on that outcome, a draft law could be presented in the first quarter of 2023.
Regarding timing, the health minister suggested that a realistic expectation is that legalization could come in 2024.
Lots of B.S. out there Koog.
Function of Trump.
Facts are no longer facts.
Due diligence is something from the past.
Read and learn how greedy these guys can be.
News Regulations Legal Business
American packaging company files lawsuit against Canadian brands
October 27, 2022 By Grow Opportunity staff Bonno
NITROTIN cans which N2 Packaging alleges stole from their patented packaging processes. (Credit: Nitrotin, Inc.)NITROTIN cans which N2 Packaging alleges stole from their patented packaging processes. (Credit: Nitrotin, Inc.)
Idaho-based N2 Packaging Systems has filed a lawsuit against the Canadian company, N2 Pack Canada, for an alleged intellectual property theft.
N2 Packaging is known for its patented nitrogen-based packaging processes for cannabis products. According to the company’s complaint to the Arizona state court, the Canadian N2 Pack conspired with third-party companies to usurp business opportunities in Arizona, and elsewhere in the United States.
It further alleges that Canadian company Nitrotin, Inc. in Kelowna, B.C. created a “copy cat” website to sell N2 Packaging’s nitrogen-based packaging without the company’s knowledge or consent.
“We will take any and all steps necessary to protect our intellectual property and proprietary packaging processes,” said N2 Packaging CEO Scott Martin said in a statement Aug. 12.
ADVERTISEMENT
N2 Packaging is asking those who have been contacted by N2 Pack Canada, Nitrotin or others outside of N2 Packaging to reach out to the company representatives.
N2 Packaging Systems's patented Nitrogen Doser (Credit: N2 Packaging Systems)
N2 Packaging Systems’s patented Nitrogen Doser (Credit: N2 Packaging Systems)
Funny. No LPs does it. Salad.
Can you name this dispensary and what is your favorite strain Koog?
POLITICSGermany’s Government Approves Marijuana Legalization Plan, But Reform Depends On European Union Sign-OffPublished 20 hours ago on October 26, 2022By Kyle Jaeger
SHARETWEET
Germany’s Federal Cabinet has officially approved a plan to legalize marijuana nationwide. But officials say that its fate ultimately rests in whether international and European policy allows the country to move ahead.
Details about the reform framework have been surfacing in media reports over the past couple weeks as the Health Ministry has worked to finalize the plan before submitting it to the full Cabinet on Wednesday.
Now it has the government’s sign-off, moving it closer to being considered by lawmakers—but not before it is sent to the European Commission for a review. In that respect, Health Minister Karl Lauterbach said the proposal wasn’t exactly a “major breakthrough in drug policy” yet.
“If this preliminary examination clearly showed that this path would not be viable for the European Commission, then we would not develop a bill on this basis either,” he said at a press conference on Wednesday. The German government will separately issue a declaration about whether the framework aligns with broader international treaty obligations.
The majority of LPs Gamma irradiate the production in an effort to zap mold.
Funny they still get shit loads of recalls. (For molds).
Stored way too long, no expiration dates, plastic bottles too big, no air vacuum, & no nitrogen added to keep it fresh.
Bone dry city from penny pinchers.
First user won,t know the difference.
They expect a burning throat from watching Cheech and Chong.
But with time... experience... legacy on You Tube...partying on saturday nights at the school hops with little Johnny... reading Awesomesound/Lamers and many other smiling twitters...
So they move to a different dispensary only to learn the sad thruth...
Dispensaries mostly cary "flavor of the month".
Recently heard at Bob,s Bar and Dispensary 6 miles south of Peco.
"hey Bob... car broke down, pain in the neck man... would you have some Recal Kush ? i, i, i need it badly.
Real sorry sir...
Recal Kush is on back order...
Would you care for an eight of Bubba instead?
Competition in the Korean cannabis medical market heats up.
Korea is moving to medical cannabis.
ivman...
You are still here checking on daily fluctuating share prices going nowhere fast?
You have missed the boat!
Me son in law bought 100k of Crappy Growth on day one.
He sold at 50$ and moved on.
He knew this Ponzi was a one time deal.
Good luck to all "legal" pot... lol.
How,s the "stock market weed legalization" works for you so far?
Poor quality and too expensive, especially for medical duders.
Who wants to buy expired-expensive-Gamma-raid-bunk-stale-weed?
Answer : non users
Non users are in charge of legalization.
I call it doomed.
More B.S.
“Drug policy has to be updated,” said health minister Karl Lauterbach on Wednesday, citing unchecked rising consumption of cannabis among young adults, and an increasing threat to public health from impure and high-strength products as reasons behind the proposed change.
As a heavy daily calm medical canna user since 2001 (RSO 4grams/day) i have sample both LPs and Legacy cannabis.
LPs grows lots of "unpure Weed" hence the many recalls.
LPs canna is way too expensive, harsh and burns black.
Lps have no way of knowing the quality of their offerings.
None of them are partakers.
Legacy farmers smoke their shit and strive for best quality.
Legacy is passionate about growing fire.
They have won ALL the High Times awards to prove it.
As for the kids, eight grader little Johnny will provide for the frey...
Lot,s and lot,s of canna naive B.S. out there.
What ever happenned to D.D.?
I call it doomed iv!
Have you tried a Martha yet?
“Drug policy has to be updated,” said health minister Karl Lauterbach on Wednesday, citing unchecked rising consumption of cannabis among young adults, and an increasing threat to public health from impure and high-strength products as reasons behind the proposed change.
Sleeepy Joe has pardonned 2600 cannabis users.
They are still in jail.
Good luck with that.
You want to get rid of the competition?
It,s an easy answer..
Grow better weed.
high rso dose works for me
Tilray reports net revenue of $153.2M in Q1 2023
The company reported an international cannabis revenue of $10.4 million and Net loss reached $66 million during the quarter, an increase from $35 million last year.
ByNatalia Buendia CalvilloPublishedOctober 23, 2022
Tilray reports net revenue of $153.2M in Q1 2023Image via Tilray
Tilray Brands, Inc. (Nasdaq: TLRY) (TSX: TLRY) has the leading net cannabis revenue worldwide after its constant push to expand its international operations.
On Friday, the company announced its financial results for the first quarter of the fiscal year 2023 ending on August 31 this year and reported net revenue of $153.3 million.
It also saw that its adjusted earnings before interest, taxes and depreciation during the quarter totalled $13.5 million which is the second highest in the history of the company.
The company reported an international cannabis revenue of $10.4 million. Portugal Tilray & Aurora will not grow for Germany.
Germans have no interest on Canada Canna implentation. They went instead for a free market more like California. Talks of Coffee Shop are also heard.
Cash by the end of the period totalled $490,000 which increased from $376,000 last year.
Net loss reached $66 million during the quarter, an increase from $35 million last year.
The company also achieved $108 million in annualized cash cost-savings since the closing of the Tilray-Aphria transaction in May last year.
Company stock went up by 3.22 per cent in the last five days but dropped to $4.07 on Tuesday after dropping 6 per cent on the Toronto Securities Exchange.
Read more: Tilray relaunches oral solution under Irish cannabis access program
Read more: Tilray receives approval to distribute cannabis oral solution in Italy
“Most notably, we are now the leader in net cannabis revenue worldwide, highlighted by medical cannabis leadership globally and adult-use cannabis market share primacy in Canada,” said Tilray CEO Irwin D. Simon.
“These achievements affirm that, amid market disruption and macroeconomic challenges, we have leveraged our scale, marketing acumen and CPG expertise to deliver strong – and sustainable – top line growth.”
The company has optimized and expanded cost savings across the company’s platform and said that through the end of the first quarter, it has saved $95 million and increased a $100 million goal of annualized cost savings.
“It has also saved $13 million from its recently launched $30 million cost optimization plan for our existing cannabis business,” Simon added.
He said the company also wants to make $40 million in revenue and interest payments from the strategic HEXO transaction.
“These initiatives, combined with our market share and revenue gains, should position Tilray Brands extraordinarily well for the future, allowing us to reconfirm our guidance of $70 – $80 million of adjusted EBITDA and be free cash flow positive.”
Questions on cannabis cost and quality were left un-answered.
Best to stay with alcool. They are awful at growing cannabis.
Recall city!
Home / Cultivation
Canadian cannabis producers’ unpaid tax bills soar as industry seeks reform
author profile pictureBy Matt Lamers, International Editor
October 18, 2022
SHARE
Map and chart showing Canadian cannabis duties by region and year.
A growing number of Canadian cannabis businesses are failing to pay their federal excise taxes on time, a sign that companies are struggling and deferring their tax bill to meet more pressing needs – such as paying employees.
Industry officials said the unpaid taxes – nearly 100 million Canadian dollars ($72.4 million) for the first half of the federal fiscal year – are “a canary in the coal mine” signaling a financial crisis for licensed cannabis producers, and they’re urging the federal government to reconsider how the excise tax is calculated.
The figure is already significantly higher than last year’s total of CA$52.4 million.
Roughly 172 cannabis businesses had an excise tax deficit owed to the Canada Revenue Agency (CRA) as of September – the halfway point for the federal government’s fiscal year ending March 31, 2023.
In September, 259 cannabis licensees were required to remit excise duty under the Excise Act.
That means about two-thirds of Canadian cannabis businesses regulated by the federal government are struggling to make ends meet.
The number of cannabis companies with a tax debt has doubled every year since Canada legalized adult use in 2018.
As of March 2019, the figure stood at 12, rising to 33 in 2020, 68 in 2021 and 141 in March 2022.
The CEO of Toronto-based cannabis producer Sensi Brands isn’t surprised by the increase.
“When you factor price compression, excessive (federal and provincial) taxation and provincial distribution fees, to name a few, there is not a lot of margin left, which is forcing licensed producers to prioritize their payables to stay afloat,” said Anthony Giorgi, Sensi’s chief executive.
“They’re basically using their CRA excise tax as working capital. They need the working capital to keep running the company.”
Giorgi is on the board of the Cannabis Council of Canada, which is gathering industry leaders in Ottawa, Ontario, this week to mark the fourth anniversary of legalization and “push for urgent change to ensure the financial viability of the sector.”
Canada’s excise duty imposed on producers’ dried cannabis is either CA$1 per gram or 10% of the value of the gram, whichever is greater.
Growing unpaid tax bills stem in part from an industry skating on thin financial ice, industry officials have said.
They point to various factors, on top of a high federal excise tax:
Severe price compression reduced the average price per gram of cannabis to about 50%, to CA$5.66 as of December 2021.
The number of licensed producers entering the market is far outpacing those exiting.
Most of the biggest LPs (by number of employees) continue to sell products at a steep loss, undercutting smaller rival producers.
Provincial governments are syphoning too much margin, leaving little on the table for well-run businesses.
The federal government poured hundreds of millions of dollars in free COVID-19 pandemic cash into the biggest producers, worsening the already-sizable oversupply of product.
66% of Canadian cannabis companies had an outstanding excise debt as of September 2022
Mounting tax debts
Federal excise debt, meanwhile, is continuing to rise.
The amount owed by cannabis businesses reached CA$97.5 million through roughly the first six months of the current fiscal year.
At the current pace, excise tax debt could reach CA$200 million before the end of the fiscal year in March 2023.
“Overdue excise duties are the canary in the coal mine for the financial crisis facing the legal cannabis industry,” said Pierre Killeen, vice president of legislative and regulatory affairs for the Cannabis Council of Canada.
Killeen said the data underscores the need for urgent action at the federal and provincial government level.
“The public health, safety and economic gains of legalization are hanging in the balance,” he said.
MJBizDaily previously reported that the most profitable cannabis businesses in Canada are entirely government-owned, while private-sector profits are scarce.
In response, the Ontario Cannabis Store (OCS) pledged to conduct “a holistic review” of its approach to pricing – including the markup it imposes on private marijuana companies.
The government-owned wholesaler is the most profitable cannabis corporation in Canada.
Most of the CRA debt as of September belonged to cannabis companies based in Western Canada – consisting of Alberta, British Columbia, Manitoba and Saskatchewan.
Seventy-seven businesses in those provinces owed CA$57 million in overdue excise payments as of September, the data shows.
In Ontario, 62 businesses owed about half that amount, or CA$28.9 million.
In Quebec, 14 companies had CRA debt worth CA$6 million, and 18 companies in Atlantic Canada (consisting of New Brunswick, Newfoundland, Nova Scotia and Prince Edward Island) owed CA$5.5 million.
Directors on hook
Dan Sutton, CEO of British Columbia-based cannabis producer Tantalus Labs, called the excise burden “extreme” and in need of reform.
“This new data paints a very clear picture that the excise burden is so extreme on producers that they are forced to defer their excise taxes payable,” he said in a phone interview.
“This is problematic, because it’s not just the limited-liability corporation that’s liable for excise due; it is also the directors and officers of the company.”
Sutton said personal liabilities for directors and officers now ranks in priority with keeping their businesses alive.
“It’s my view that this is clearly indicative that excise policy is in need of recalibration in Canada,” he said.
Sutton suggested that if Canada’s tax collector chose to aggressively pursue unpaid excise taxes, small craft businesses would disproportionately be pushed toward insolvency.
“Whereas the survivors of those aggressive tactics would be the companies that have the largest amount of treasury resources, likely subsidized by public market investments,” he said.
When producers get paid
Sensi’s Giorgi said there’s an imbalance between when the federal government expects to be paid its excise and when provincial wholesale buyers – namely, the OCS – pay licensed producers.
The CRA expects to be paid within 30 days, whereas the OCS – the largest purchaser of cannabis in the world – pays producers only once every two months.
“So if you’re an LP doing a significant amount of business in Ontario, I would not be surprised if a lot of those businesses who are not paying excise are delaying payment until they receive their receivables,” he said.
“There is a gap in payment terms between the federal government’s expectations in receiving excise tax within 30 days, and provincial distributors – specifically the Ontario Cannabis Store that pays the LPs net 60 days for wholesale product – thereby putting added pressure on the LPs to finance working capital and more difficult to manage cash flow.”
Ontario recorded CA$159.5 million in cannabis sales in July, accounting for 40% of all sales in Canada.
“There are (other) LPs who are saying, ‘I’ll pay you the excise once I get the money, but you’re asking for the money in advance of me receiving it.’ That’s just another financial burden on an LP,” Giorgi said.
“I think they have to adjust that. Either Ontario has to start paying every 30 days or the federal government has to give more time.”
Home / Cultivation
Germany may rely on domestic cannabis cultivation, leaked paper suggests
author profile pictureBy Matt Lamers, International Editor
October 20, 2022 - Updated October 20, 2022
SHARE
Learn from top cannabis industry leaders including Berner (Cookies), Nancy Whiteman (Wana Brands), Chris Walsh (MJBiz) and more at MJBizCon in Las Vegas (Nov. 15-18). Register to attend.
Germany’s recreational cannabis market should impose a cap on potency and rely on domestic cultivation, according to preliminary proposals for the planned recreational market by the country’s Ministry of Health.
Germany wants this to work, contrary to Canada who blew it.
The publication RedaktionsNetzwerk Deutschland published details of the ministry’s suggestions earlier this week.
Notably, the ministry argues that imports might violate international treaties, so Germany’s draft law should allow only domestic supplies, RedaktionsNetzwerk Deutschland reported.
The draft law is expected to be published in the coming weeks.
Whether Germany will allow recreational imports has been a focus for the sector, as doing so would open the door to cultivation opportunities outside the country.
However, limiting the market to local cultivation could prolong the runway needed to launch the industry.
Only heavily fortified indoor cultivation is currently permitted in Germany, and experts say much time and capital would be needed to lay the groundwork for mass-scale production.
“This is one of the bigger questions to answer,” Constantin von der Groeben, managing director of Berlin-based cannabis company Demecan, previously told MJBizDaily.
“Currently, I think Germany will have to breach the (United Nations’ 1961 Single Convention on Narcotic Drugs) at least for some time. This will probably mean that all recreational cannabis must come from within Germany as imports will be restricted.”
Pablo Zuanic, managing director at New York-based investment banking firm Cantor Fitzgerald, noted that cannabis would no longer be a narcotic under the ministry’s proposal, “which would mean greenhouse growth would be allowed.”
“As rec cannabis would not be considered a narcotic, producers would not need to grow cannabis in indoor facilities with 40(-centimeter) thick concrete walls, and apparently greenhouses would be allowed. We think this would speed up new licensees getting up and running, and lower production costs,” he wrote in a note to investors Thursday.
Allowing greenhouse cultivation “would reduce costs and considerably lower the timeline for facilities to be up and running.”
However, cannabis producers have already spent hundreds of millions of dollars expanding cultivation footprints in countries like Portugal and Denmark.
If Germany follows through with not allowing imports, that could be detrimental to those facilities as the international import market for medical marijuana remains extremely small.
Germany was the biggest importer of marijuana in the world, at only 20,589 kilograms (45,391 pounds) for medical and scientific purposes last year.
Canada was the biggest supplier to Germany.
Industry sources expressed concern that Germany is weighing a cap on potency.
The proposal suggests a 15% THC limit for consumers older than 21, while those 18-20 years old would be limited to 10%.
The leaked paper also suggests Germany could issue licenses for adult-use stores in addition to allowing pharmacies to sell recreational marijuana.
Online sales would also be allowed.
Like Canada, Germany would impose an outright ban on advertising cannabis products.
The Ministry of Health also proposes allowing home cultivation of no more than two plants per household.
Matt Lamers can be reached at matt.lamers@mjbizdaily.com.
Les Leyne: B.C. bud now a ho-hum issue
The legal cannabis industry is like any other enterprise now — complaining about taxes and regulation, grappling with supply-chain issues and worried about the same headaches other businesses have
Les Leyne to Bonno
Oct 19, 2022 3:30 AM
Share via Text Message
web1_20220801150840-62e82c4ce8da7a3274b972eajpeg
B.C. Stats published results two months ago from an in-depth survey of what the change has wrought and found that it increased consumption only minimally. A third of B.C. adults reported using cannabis, up just four points from a similar survey pre-legalization. THE CANADIAN PRESS/Ryan Remiorz
Listen to this article
00:05:00
Four years after the decriminalization of cannabis in Canada, the issue is so ho-hum in the home of B.C. bud that the anniversary passed virtually unnoticed.
“B.C. produces some of the best cannabis in the world,” a cabinet minister boasted this month. For people who lived through the prohibition era, it’s still slightly jarring to hear.
The government marked the moment with a modest change allowing farm-gate sales from licensed producers and a bill aimed at a holdover problem — marked growth in illicit stores that sell unregulated black market cannabis.
The legal cannabis industry is like any other enterprise now — complaining about taxes and regulation, grappling with supply-chain issues and worried about the same headaches other businesses have.
They fit right in.
B.C. Stats published results two months ago from an in-depth survey of what the change has wrought and found that it increased consumption only minimally. A third of B.C. adults reported using cannabis, up just four points from a similar survey pre-legalization.
By contrast, StatsCan released a survey over an earlier time period showing northern residents consumed the most cannabis and B.C. was in the middle of the pack.
About 24 per cent of B.C. cannabis consumers use it medically, mostly for pain, while 37 per cent consume it recreationally, about the same breakdown as previously.
Average transaction: $57.
“There is still a stigma associated with using cannabis. One in five reported experiencing negative judgment or stigma about their use.”
Half the recreational users consume it weekly or daily. The study quoted another paper that found 10 per cent of Canadian cannabis users are responsible for 66 per cent of sales. Most people report only positive impacts on their daily lives, but the report notes concern about overuse.
A quarter of the respondents who used it in the year prior to the study said they used it daily. That’s about 260,000 people in B.C. And half of them used it multiple times a day.
Although a big majority of people think cannabis impairs the ability to drive, it’s a smaller majority among people who consume it and only 53 per cent of people who use it daily hold that view.
Twenty per cent of people using cannabis admitted to driving shortly after using it at least once. That number is down from the responses in 2018.
The overall conclusion was that, despite some concerns, most are using it responsibly and usage is gradually becoming more prevalent in B.C., increasingly by way of edibles.
The pandemic had a moderate effect on consumption, with 24 per cent reporting increased usage. The most common reasons were “mental health, relaxation and boredom.”
British Columbians bought almost 85,000 kilograms of legal cannabis last year from private and government shops, paying $420 million. That’s a 28 per cent hike from the previous year and a huge jump from the $136 million generated in 2018-19.
The accelerating revenue stream is helped by an increase in retail stores, increased produce selection and price drops.
Almost 100 retail outlets were added and the number of specific products available more than doubled.
B.C. Cannabis stated: “Since legalization in 2018-19 the average wholesale price per gram of dried flower has decreased from $6.39 to $4, representing an overall reduction of 37.4 per cent.”
It’s still way higher than the illicit price. One of the political selling points of decriminalization was that it would curb disorganized crime.
Public Safety Minister Mike Farnworth told the legislature: “Our current estimate is that just under half the value of all cannabis consumed in B.C. is produced and sold illicitly.”
Liberal critics warned that illegal stores are rampant across B.C. and are pressing for a harder line against them.
LPs should apply themselves to grow good weed.
It has,nt happenned yet.
lleyne@timescolonist.com
>>> To comment on this article, write a letter to the editor: letters@timescolonist.com
Canada’s cannabis producers say they’re in crisis. Here’s what they’re asking the government to do
On the fourth anniversary of legalization, “This is an industry that cannot pay its own bills and cannot make ends meet.”
By Steve McKinleyStaff Reporter
Mon., Oct. 17, 2022timer4 min. read
updateArticle was updated 2 days ago
JOIN THE CONVERSATION ( 69 )
On the fourth anniversary of legalization, Canada’s cannabis producers are proclaiming a state of emergency and calling on the federal government for relief before, they say, many of their businesses are forced to go under.
At an Ottawa press conference Monday, members of the Cannabis Council of Canada — headlined by CEO and former Ontario health minister George Smitherman — producers and processors outlined the problems they’re facing as the market continues to falter.
“It’s no exaggeration to say that, unfortunately, all businesses of any size in the production and processing side of the cannabis industry today are systemically absent income,” said Dan Sutton, the CEO of BC’s Tantalus Labs. “This is an industry that cannot pay its own bills and cannot make ends meet.”
Bunk weed is a bitch.
The problems, Smitherman said, are primarily twofold: an excise tax that doesn’t match the realities of the real-world price of cannabis, and an unregulated illegal cannabis market largely free of enforcement.
According to Smitherman, members of the council will spend the next few days in Ottawa meeting with their local MPs and ministries to pitch relief measures to help keep cannabis producers and processors heads above water.
Sutton, who’s also the founder of Stand for Craft — an organization representing 40 small and medium cannabis enterprises, micro-cultivators and independently owned and operated small businesses across Canada — said that in a March 2022 survey of those businesses, 60 per cent didn’t believe they would last another 12 months.
“This is nothing short of an emergency in small business in Canadian cannabis,” he said.
Health Canada is about to embark upon a statutory review of the Cannabis Act, which could take as long as 18 months to complete.
Smitherman said that’s too long for many businesses. He’s asking Ottawa to streamline that process and complete the review as fast as possible.
In the meantime, he said he wants Ottawa to place a moratorium on a 2.3 per cent tax levied by Health Canada to cover its costs of the regulation of the cannabis industry.
And, as part of that review, he wants Ottawa to look at updating the excise tax — the tax placed on cannabis at the point of manufacture.
Currently that tax stands at $1 per gram or 10 per cent of the sale price on dried cannabis, whichever is higher. That was premised, said Smitherman, on the idea that weed would sell for about $10 per gram.
In fact, according to the Canada Cannabis Spot index, the average selling price is now hovering around $4, meaning producers pay about 25 per cent of their revenue in excise tax, as opposed to 10 per cent.
“The sad part about this is now companies that have found their way in this industry and are doing everything right are in a position where — I’ll speak for my company — I’m prepared to throw in the towel,” said Mark Ripa, of Hamilton-based AB Laboratories. “We can’t make a profit or even make a living with the current excise taxes.”
Smitherman wants Health Canada to update that excise tax to reflect real-world pricing, but he knows that won’t be an easy task.
Further complicating matters is the fact that that excise tax revenue is split between the federal government and the provincial ones, with the latter receiving 75 per cent.
“That’s going to take work with numerous governments,” said Smitherman. “Our eyes are wide open about the fact that the excise is very much a shared revenue tool with provincial governments and the like. But we’ve got to get back to the public health mission of elimination of the illicit market, and that helps to bring these things into clearer focus.”
That, said Sutton, is the other thing they’re calling on the government to do: crack down on the illegal market.
Good luck with that. Sutton should grow better weed. Might help.
“The illicit cannabis industry has thrived in Canada for the last few years,” he said. “This is a competitor that does not bear costs associated with lab testing or quality assurance. It can deliver great cannabis within 20 minutes to any city and town across the country for half Government cannabisprices.”
For its part, Health Canada on the day marked the passing of the fourth anniversary of legalization by noting in a release that the Cannabis Act’s purpose was not only to protect the health and safety of Canadians consuming marijuana, but also to establish a competitive legal industry to displace the illicit market.
Statistics Canada revealed in its National Cannabis Survey that one in five people in the country’s provinces reported using cannabis in the past three months, an increase of 14 per cent over pre-legalization.
The legal cannabis industry has, thus far, contributed some $43.5 billion to Canada’s GDP since legalization in 2018, according to Deloitte Canada.
SM
Steve McKinley is a Halifax-based reporter for the Star. Follow him on Twitter: @smckinley1
“Domestic production alone will hardly be able to meet Germany’s demand for adult-use cannabis from day one,” Niklas Kouparanis said."
More B.S.!
Germans legacy growers can easily supply german folks.
They have been at it for ages.
No need for LPs Gamma blasted bone dry weed.
Thailand also go for home growers supplying Thai folks.
People for the people works in a capitalist system.
Specially knowing suits can,t cut it.
Cannabis needs to be grown by users.
The proof is in the pudding.
Heads don,t care for Martha!
They may fare better with alcool...
Suits are,nt "good" at growing cannabis.
Best to leave it to pros, i.e. Bonohead/Awesomesound/Germans
No lps bunk needed. Germans know how to grow fire.
Replacing a dud? by another dud??
Makes sense...
Lol.
More BS... Dude!!! Germany doe,nt want nothing to do with lps.
Germany not to deal with Canadian LPs... has.nt for a while Doomed again iv. Lol
HOW GERMANY WILL LEGALIZE CANNABIS
Bonno·OCTOBER 20, 2022
How Germany will legalize cannabis was leaked to the RND newspaper group this past week. If signed into law, this means Germans will be able to buy, sell, and grow legal cannabis.
The leaked plan also suggests the Germans will limit advertising and ban any promotion of consumption.
How Germany will legalize cannabis has been on many people’s minds since the centre-left coalition came to power last year. German bureaucrats have been visiting US legal states like California to understand how to legalize cannabis successfully.
Interestingly, when Chancellor Olaf Scholz visited Canada recently, cannabis legalization was not one of the topics discussed.
The plan circulating German halls of government is more incremental than comprehensive. Still, it’s a significant step compared to European countries decriminalizing cannabis (like Portugal).
Germany is the wealthiest and most populous European Union nation. How Germany will legalize cannabis is just as important as when.
The German coalition government promised legalization in November 2021.
DETAILS OF THE PLAN
The leaked paper results from an inquiry by Germany’s commissioner on narcotic drugs. Like the Canadian “police task force” leading up to legalization, the German government appointed their own task force. Burkhard Blienert addressed the issue.
The Blienert plan would legalize the purchase and possession of up to 20 grams of cannabis by adults. The plan also permits Germans to cultivate two cannabis plants per household.
It proposes Germans who want to sell cannabis can do so in licensed specialty shops and pharmacies. (Pharmacies are better equipped to handle rural areas, says the paper).
Unlike Canada, the Germans are interested in having these specialty shops double as consumption centres. There is also talk about “coffee shops” like in Amsterdam.
German pharmacies have been selling medical cannabis since 2016. Until recently, Germany imported most of this cannabis from Canada’s licensed producers. Not anymore.
THC CAPS & INTERNATIONAL LAW
How Germany Will Legalize Cannabis
As part of their “public health” approach to legalization, the Blienert plan recommends a THC potency cap of 15 percent.
Interestingly, they also recommend a different age-restricted THC cap for young adults. If you’re over 18 but under 21, the law will prevent you from purchasing cannabis with over 10 percent THC.
The United Nations Single Convention on Narcotic Drugs from 1961 prevents nation-states from legalizing cannabis.
Uruguay and Canada ignored the Convention when they legalized cannabis. The situation is a little more complicated in Germany since they are also signatories to European laws preventing cannabis legalization.
The Blienert plan recommends producing and selling cannabis exclusively in Germany to get around this issue.
How Germany will legalize cannabis will no doubt be a shock to the large Canadian producers who hoped to be the supplier of cannabis in Germany.
CRITICISMS OF HOW GERMANY WILL LEGALIZE CANNABIS
How Germany Will Legalize Cannabis
Germany’s government is a coalition of left-wing political parties. The Blienert plan accommodates all the different interests in how Germany will legalize cannabis.
But as the saying goes, you can’t please all the people all the time.
Kristine Lütke, a politician in the three parties of the ruling coalition, took to Twitter to voice her dissent. Calling the THC caps and different rules for young adults “Unnecessarily restrictive!”
She tweeted that these rules “will drive consumers to the black market. A disaster for youth, health & consumer protection.”
Others are more welcoming of the Blienert plan but expect parliament to change some details on how Germany will legalize cannabis.
As of this publication, the Health Ministry of the coalition government has not released an official statement on the Blienert plan to legalize cannabis.
Germany not to deal with Canadian LPs... Doomed again.
How Germany will legalize cannabis will no doubt be a shock to the large Canadian producers who hoped to be the supplier of cannabis in Germany.
HOW GERMANY WILL LEGALIZE CANNABIS
Bonno·OCTOBER 20, 2022
How Germany will legalize cannabis was leaked to the RND newspaper group this past week. If signed into law, this means Germans will be able to buy, sell, and grow legal cannabis.
The leaked plan also suggests the Germans will limit advertising and ban any promotion of consumption.
How Germany will legalize cannabis has been on many people’s minds since the centre-left coalition came to power last year. German bureaucrats have been visiting US legal states like California to understand how to legalize cannabis successfully.
Interestingly, when Chancellor Olaf Scholz visited Canada recently, cannabis legalization was not one of the topics discussed.
The plan circulating German halls of government is more incremental than comprehensive. Still, it’s a significant step compared to European countries decriminalizing cannabis (like Portugal).
Germany is the wealthiest and most populous European Union nation. How Germany will legalize cannabis is just as important as when.
The German coalition government promised legalization in November 2021.
DETAILS OF THE PLAN
The leaked paper results from an inquiry by Germany’s commissioner on narcotic drugs. Like the Canadian “police task force” leading up to legalization, the German government appointed their own task force. Burkhard Blienert addressed the issue.
The Blienert plan would legalize the purchase and possession of up to 20 grams of cannabis by adults. The plan also permits Germans to cultivate two cannabis plants per household.
It proposes Germans who want to sell cannabis can do so in licensed specialty shops and pharmacies. (Pharmacies are better equipped to handle rural areas, says the paper).
Unlike Canada, the Germans are interested in having these specialty shops double as consumption centres. There is also talk about “coffee shops” like in Amsterdam.
German pharmacies have been selling medical cannabis since 2016. Until recently, Germany imported most of this cannabis from Canada’s licensed producers. Not anymore.
THC CAPS & INTERNATIONAL LAW
How Germany Will Legalize Cannabis
As part of their “public health” approach to legalization, the Blienert plan recommends a THC potency cap of 15 percent.
Interestingly, they also recommend a different age-restricted THC cap for young adults. If you’re over 18 but under 21, the law will prevent you from purchasing cannabis with over 10 percent THC.
The United Nations Single Convention on Narcotic Drugs from 1961 prevents nation-states from legalizing cannabis.
Uruguay and Canada ignored the Convention when they legalized cannabis. The situation is a little more complicated in Germany since they are also signatories to European laws preventing cannabis legalization.
The Blienert plan recommends producing and selling cannabis exclusively in Germany to get around this issue.
How Germany will legalize cannabis will no doubt be a shock to the large Canadian producers who hoped to be the supplier of cannabis in Germany.
CRITICISMS OF HOW GERMANY WILL LEGALIZE CANNABIS
How Germany Will Legalize Cannabis
Germany’s government is a coalition of left-wing political parties. The Blienert plan accommodates all the different interests in how Germany will legalize cannabis.
But as the saying goes, you can’t please all the people all the time.
Kristine Lütke, a politician in the three parties of the ruling coalition, took to Twitter to voice her dissent. Calling the THC caps and different rules for young adults “Unnecessarily restrictive!”
She tweeted that these rules “will drive consumers to the black market. A disaster for youth, health & consumer protection.”
Others are more welcoming of the Blienert plan but expect parliament to change some details on how Germany will legalize cannabis.
As of this publication, the Health Ministry of the coalition government has not released an official statement on the Blienert plan to legalize cannabis.
i will pass go and collect for the damage done
B.S. The myth is real!
Don,t wait for it… enjoy it now… you don,t need no permission.
Doomed!
Daniel Lantela
@Aliquot126
Our seeds were accepted to the OCS... excise tax is 60% of the revenue.
60%
Daniel Lantela
@Aliquot126
·
21h
Replying to
@Aliquot126
After packaging, shipping and labelling we will be lucky to make $0.30/seed while the consumer pays $3/seed.
Literally just giving them away at this point
Yup! Doomed allright~~
Bone dry, harsh and way overpriced = doomed!
dansutton.eth
@DSutton1986
·
44m
It is time to acknowledge the wrongful assumptions at the core of our excise policy.
Wholesale cannabis prices have never been $10/g. They surely never will be. That is what our excise policy assumed, and it was wrong by more than double.
We fix this, or our industry dies.
FOUR YEARS LATER: FOUR REASONS WHY CANADIAN LEGALIZATION SUCKS
Avatar photoCALEB MCMILLAN·OCTOBER 17, 2022
It’s been four years since the Canadian government passed the Cannabis Act, and here are four reasons why Canadian cannabis legalization sucks.
Now, you may think I’m just nitpicking here. But people are still receiving criminal records for cannabis. There still exists a peaceful “black market” of cannabis farmers. Even the large, licensed producers don’t like the current setup.
And thanks to the “public health” approach, Canadian cannabis consumers can’t even get their hands on affordable, potent edibles.
It’s been four years, and these are four reasons why legalization sucks.
4TH REASON WHY CANADIAN LEGALIZATION SUCKS – PRISON FOR POT IS STILL A THING
Canadian Legalization Sucks
Police are still busting grow operations falling outside Health Canada‘s realm. This was expected, as Justin Trudeau said the police would have more funding and powers to combat the “illicit market.”
But when was the last time you heard about a moonshine bust in someone’s basement? You could argue that, in time, illicit markets will diminish as more consumers move over to the legal regime.
But why would they do that? Legacy cannabis markets provide cheaper cannabis, and despite claims of mould or other toxins, a lot of homegrown bud is high-quality. Especially if you’re buying in B.C.
This leads us to the third reason why Canadian legalization sucks.
3RD REASON – BC BUD INTEGRATION
Canadian Legalization Sucks
The “illicit market” only exists because of how bureaucratic and centralized Canada’s legalization scheme is.
For example, before getting approval to grow, you must invest around $100,000 into your operation. And then there’s no guarantee you’ll actually get licensed.
$100,000 down the drain just so some bureaucrat in Ottawa can potentially deny your application. It’s true that the nine most terrifying words in the English language are: “I’m from the government and I’m here to help.”
BC Bud integration would never be part of Justin Trudeau’s legalization scam. I predicted this back in 2015. I even suggested a Harper government would be better for the culture since it pitted us against Ottawa with the public on our side.
Trudeau’s legalization co-opted the narrative. It painted peaceful BC Bud farmers as organized crime trying to get your children hooked on “marihuana” so they could push harder drugs.
It was a story made from whole cloth. And the nation’s presstitutes didn’t bother challenging it until four years later. And now they’re sitting around scratching their heads, wondering why the “illicit market” is still a thing.
2ND REASON – EXCISE TAXES & REGULATIONS
The enemy of my enemy is my friend.
You can be a small-time BC Bud farmer unable to afford the costs of legal production. Or you can be a large licensed producer producing so much cannabis you have to destroy a lot of it.
You can be a licensed micro-producer struggling to stay afloat. Or a large corporation that’s never reported any profits, continues to be cash-flow negative, and taps into equity markets.
Both sides agree – cannabis taxes and regulations are killing the industry.
Excise taxes, for example, take $1 per gram off the wholesale flower. This is regardless of production costs or retail price. The result is more efficient producers pay higher taxes. (You can see why many BC Bud farmers want nothing to do with this.)
And, of course, large licensed producers can absorb excise taxes and navigate the regulatory bureaucracy more effectively than smaller producers.
All the big L.P.s have to do is sell cannabis at a loss and wait for their smaller competitors to go bankrupt. And with the Cannabis Act Review expected to take at least 18 months, the probability of this occurring is massively high.
1ST REASON WHY CANADIAN LEGALIZATION SUCKS – PUBLIC HEALTH VS. YOUR RIGHT TO CONSUME
Canadian Legalization Sucks
While excise taxes and regulations may be an ample reason why Canadian legalization sucks, ultimately, these are all symptoms of a fundamental problem: public health.
After a couple of years of lockdowns and vaccine passports, it’s apparent we have a public health problem.
It’s one thing for a health bureaucrat to suggest public policy to the government. It’s quite another thing to act as if your suggestion is scientific and any criticism or disagreement is “misinformation.”
Many people woke up to this scam when “two weeks to flatten the curve” became two and a half years of authoritarian bullshit.
But this problem has been in the cannabis industry since Justin Trudeau ran on the legalization ticket in 2015. After all, what can’t be justified by public health?
Excise taxes and regulations are justified by “public health.” Eliminating the peaceful BC Bud market is justified by “public health.” Prison for pot is justified by “public health.” THC limits on edibles are justified by “public health.”
Taking a “public health” approach to cannabis is the number one reason why Canadian legalization sucks.
It is not the business of public health lobbyists what adults do with their bodies on their own time. All the harms associated with cannabis are based on pseudoscience.
Cannabis is habit-forming but not addictive. Nor does cannabis cause schizophrenia, psychosis, or other mental health problems.
There is no lethal overdose of cannabis.
Cannabis is not a scourge that must be carefully regulated and restricted. The only risks to people regarding cannabis are the destructive narratives that public health propagates.
FOUR YEARS LATER: WILL ANYTHING CHANGE?
As Germany moves to legalize cannabis, they’re looking at American legal states like California. When German Chancellor Olaf Scholz visited Canada, they didn’t discuss cannabis legalization.
They didn’t even discuss hemp, which would solve many of Germany’s energy issues.
Simply put, Canadian legalization is not the model for the world to follow. And the world knows it.
Unfortunately, unless future prime minister Pierre Poilievre has a change of heart about drugs (or is concealing his libertarian view until he’s sitting in the PMO), Canada’s cannabis legalization will continue to suck.
That is, unless you like spending $300+ an ounce on irradiated, corporate cannabis.
Doomed!
A growing number of Canadian cannabis businesses are failing to pay their federal excise taxes on time, a sign that companies are struggling and deferring their tax bill to meet more pressing needs - such as paying employees.
Industry officials told MJBizDaily International Editor Matt Lamers that the unpaid taxes – nearly 100 million Canadian dollars ($72.4 million) for the first half of the federal fiscal year – are "a canary in the coal mine" signaling a financial crisis for licensed cannabis producers, and they're urging the federal government to reconsider how the excise tax is calculated.
The figure is already significantly higher than last year's total of CA$52.4 million.
Roughly 172 cannabis businesses had an excise tax deficit owed to the Canada Revenue Agency (CRA) as of September – the halfway point for the federal government’s fiscal year ending March 31, 2023.
In September, 259 cannabis licensees were required to remit excise duty under the Excise Act.
That means about two-thirds of Canadian cannabis businesses regulated by the federal government are struggling to make ends meet.
The Big Lie.
FOUR YEARS LATER: FOUR REASONS WHY CANADIAN LEGALIZATION SUCKS
Avatar photoCALEB MCMILLAN·OCTOBER 17, 2022
It’s been four years since the Canadian government passed the Cannabis Act, and here are four reasons why Canadian cannabis legalization sucks.
Now, you may think I’m just nitpicking here. But people are still receiving criminal records for cannabis. There still exists a peaceful “black market” of cannabis farmers. Even the large, licensed producers don’t like the current setup.
And thanks to the “public health” approach, Canadian cannabis consumers can’t even get their hands on affordable, potent edibles.
It’s been four years, and these are four reasons why legalization sucks.
4TH REASON WHY CANADIAN LEGALIZATION SUCKS – PRISON FOR POT IS STILL A THING
Canadian Legalization Sucks
Police are still busting grow operations falling outside Health Canada‘s realm. This was expected, as Justin Trudeau said the police would have more funding and powers to combat the “illicit market.”
But when was the last time you heard about a moonshine bust in someone’s basement? You could argue that, in time, illicit markets will diminish as more consumers move over to the legal regime.
But why would they do that? Legacy cannabis markets provide cheaper cannabis, and despite claims of mould or other toxins, a lot of homegrown bud is high-quality. Especially if you’re buying in B.C.
This leads us to the third reason why Canadian legalization sucks.
3RD REASON – BC BUD INTEGRATION
Canadian Legalization Sucks
The “illicit market” only exists because of how bureaucratic and centralized Canada’s legalization scheme is.
For example, before getting approval to grow, you must invest around $100,000 into your operation. And then there’s no guarantee you’ll actually get licensed.
$100,000 down the drain just so some bureaucrat in Ottawa can potentially deny your application. It’s true that the nine most terrifying words in the English language are: “I’m from the government and I’m here to help.”
BC Bud integration would never be part of Justin Trudeau’s legalization scam. I predicted this back in 2015. I even suggested a Harper government would be better for the culture since it pitted us against Ottawa with the public on our side.
Trudeau’s legalization co-opted the narrative. It painted peaceful BC Bud farmers as organized crime trying to get your children hooked on “marihuana” so they could push harder drugs.
It was a story made from whole cloth. And the nation’s presstitutes didn’t bother challenging it until four years later. And now they’re sitting around scratching their heads, wondering why the “illicit market” is still a thing.
2ND REASON – EXCISE TAXES & REGULATIONS
The enemy of my enemy is my friend.
You can be a small-time BC Bud farmer unable to afford the costs of legal production. Or you can be a large licensed producer producing so much cannabis you have to destroy a lot of it.
You can be a licensed micro-producer struggling to stay afloat. Or a large corporation that’s never reported any profits, continues to be cash-flow negative, and taps into equity markets.
Both sides agree – cannabis taxes and regulations are killing the industry.
Excise taxes, for example, take $1 per gram off the wholesale flower. This is regardless of production costs or retail price. The result is more efficient producers pay higher taxes. (You can see why many BC Bud farmers want nothing to do with this.)
And, of course, large licensed producers can absorb excise taxes and navigate the regulatory bureaucracy more effectively than smaller producers.
All the big L.P.s have to do is sell cannabis at a loss and wait for their smaller competitors to go bankrupt. And with the Cannabis Act Review expected to take at least 18 months, the probability of this occurring is massively high.
1ST REASON WHY CANADIAN LEGALIZATION SUCKS – PUBLIC HEALTH VS. YOUR RIGHT TO CONSUME
Canadian Legalization Sucks
While excise taxes and regulations may be an ample reason why Canadian legalization sucks, ultimately, these are all symptoms of a fundamental problem: public health.
After a couple of years of lockdowns and vaccine passports, it’s apparent we have a public health problem.
It’s one thing for a health bureaucrat to suggest public policy to the government. It’s quite another thing to act as if your suggestion is scientific and any criticism or disagreement is “misinformation.”
Many people woke up to this scam when “two weeks to flatten the curve” became two and a half years of authoritarian bullshit.
But this problem has been in the cannabis industry since Justin Trudeau ran on the legalization ticket in 2015. After all, what can’t be justified by public health?
Excise taxes and regulations are justified by “public health.” Eliminating the peaceful BC Bud market is justified by “public health.” Prison for pot is justified by “public health.” THC limits on edibles are justified by “public health.”
Taking a “public health” approach to cannabis is the number one reason why Canadian legalization sucks.
It is not the business of public health lobbyists what adults do with their bodies on their own time. All the harms associated with cannabis are based on pseudoscience.
Cannabis is habit-forming but not addictive. Nor does cannabis cause schizophrenia, psychosis, or other mental health problems.
There is no lethal overdose of cannabis.
Cannabis is not a scourge that must be carefully regulated and restricted. The only risks to people regarding cannabis are the destructive narratives that public health propagates.
FOUR YEARS LATER: WILL ANYTHING CHANGE?
As Germany moves to legalize cannabis, they’re looking at American legal states like California. When German Chancellor Olaf Scholz visited Canada, they didn’t discuss cannabis legalization.
They didn’t even discuss hemp, which would solve many of Germany’s energy issues.
Simply put, Canadian legalization is not the model for the world to follow. And the world knows it.
Unfortunately, unless future prime minister Pierre Poilievre has a change of heart about drugs (or is concealing his libertarian view until he’s sitting in the PMO), Canada’s cannabis legalization will continue to suck.
That is, unless you like spending $300+ an ounce on irradiated, corporate cannabis.
Voue a l,echec(Doomed in french)
https://www.lapresse.ca/affaires/2022-10-17/legalisation-du-cannabis/quand-les-profits-partent-en-fumee.php
Légalisation du cannabis
Quand les profits partent en fumée
Quatre années après la légalisation du cannabis au Canada, la bulle a de toute évidence éclaté pour bon nombre d’investisseurs.
Les grands producteurs de cannabis voient rouge quatre ans après la légalisation de la substance à des fins récréatives. Déficitaires, ils en arrachent plus que jamais et leurs actions sont en déroute à la Bourse de Toronto. Si l’euphorie n’a pas été au rendez-vous pour les investisseurs, le portrait est différent pour les provinces ainsi que les consommateurs.
Publié à 5h00Partager
Julien Arsenault
LA PRESSE
« On a surestimé la demande, explique le chef des placements chez Triasima, André Chabot. La légalisation était pour le Canada, mais certains prévoyaient déjà que les entreprises allaient signer des contrats de vente aux États-Unis et un peu partout. Rien de cela ne s’est produit. »
Licenciements massifs, fermetures de sites de production et remaniements d’équipes de direction : les nouvelles ont rarement été réjouissantes pour les principaux producteurs de cannabis. L’avenir de Hexo, établie à Gatineau, a même été remis en question par son propre auditeur il y a un an en raison de la précarité de sa situation financière.
Pour les investisseurs qui ont conservé leurs actions, le portrait n’est guère réjouissant. Un investissement de 100 $ réalisé dans Canopy Growth le 17 octobre 2018 — jour de la légalisation du cannabis — ne vaut plus que 5,16 $. Il ne reste que des miettes avec Hexo (77 cents) et Aurora Cannabis (93 cents) pour le même investissement dans chacune de ces entreprises.
Parallèlement aux attentes erronées, la fragmentation du marché, le nombre élevé d’acteurs et les pressions à la baisse sur le prix du gramme de cannabis expliquent en grande partie les difficultés de l’industrie, selon M. Chabot.
« C’est une course à la réduction des coûts, dit-il. Les gagnants seront ceux qui vont réussir. Il y a des économies d’échelle à faire et la consolidation n’est pas terminée. On est plus près du creux que du sommet, mais on n’a pas encore touché le creux. »
Trop d’acteurs
Au Canada, environ 915 cultivateurs, transformateurs et vendeurs détiennent une licence en vertu de la Loi sur le cannabis, alors que ces dernières étaient autrefois accordées au compte-gouttes par Santé Canada. On en dénombre 92 en territoire québécois.
Cela a contribué à une forte augmentation de la production de cannabis séché au pays. De 2019 à 2021, elle a progressé d’environ 40 % pour s’établir à 1616 tonnes, d’après les données de Statistique Canada. Pourtant, l’industrie est incapable d’écouler ses stocks. L’an dernier, 425 tonnes de cannabis séché non vendues ont été détruites, selon le média américain MJBizDaily, spécialisé sur l’industrie du cannabis.
Les risques de rupture de stock dans les boutiques sont faibles en cas de disparition soudaine d’un producteur.
« Il y a encore de la surcapacité même si les producteurs ont tempéré leurs ardeurs, affirme Rishi Malkani, responsable du secteur du cannabis chez Deloitte. Il y a trop de producteurs et la tarte n’est pas suffisamment grande. »
Ce dernier anticipe un régime minceur dans l’industrie. À l’Association québécoise de l’industrie du cannabis (AQIC), qui regroupe 75 membres, on s’attend encore à quelques « années difficiles ».
Pierre Leclerc, directeur général de l’Association québécoise de l’industrie du cannabis
« L’industrie a une responsabilité et il y a eu des erreurs, admet son directeur général Pierre Leclerc. Il y avait une compréhension du milieu d’affaires qui n’était pas totalement juste. Certaines entreprises se sont heurtées à la capacité de commercialiser des produits. »
Cet ex-stratège du Parti libéral du Québec jette également une partie du blâme sur la rigidité du cadre réglementaire en place. En entrevue, il s’explique mal comment on peut légaliser une industrie tout en mettant ses membres « à l’index ».
« Personne n’a communiqué publiquement que les producteurs n’auraient accès à aucun programme du gouvernement et que la grande majorité des entreprises à capital fermé auraient de la difficulté à s’ouvrir un compte de banque, affirme M. Leclerc. L’État a aussi sa responsabilité. »
Les vendeurs dans le vert
Le portrait est beaucoup moins sombre du côté des sociétés d’État responsables de la vente du cannabis et de ses produits dérivés. Selon une étude réalisée en mai dernier par le cabinet EY, environ 70 % de l’argent dépensé par les consommateurs se retrouve dans les coffres des provinces.
Après un premier exercice financier où les coûts de démarrage ont été responsables d’une perte nette de 4,9 millions, la Société québécoise du cannabis a dégagé un excédent l’année suivante (2019-2020). La société d’État a généré des profits de 76 millions l’an dernier, en hausse de 14 %. Cette somme est destinée à la recherche sur le cannabis et la prévention.
« Pendant que l’industrie n’arrive pas à générer des profits, les provinces engrangent, et de loin, le gros de tous les revenus de la chaîne d’approvisionnement du cannabis, souligne M. Leclerc. Ce sont elles, les gagnantes. »
M. Chabot est du même avis.
Et le consommateur ? Depuis 2018, à la SQDC, il a vu le prix moyen du gramme fléchir chaque année depuis la légalisation du cannabis à des fins récréatives.
« Si je prends la transition d’un consommateur du marché illicite vers le licite, il est gagnant, affirme le président de l’AQIC. Il est assuré d’avoir un produit extrêmement contrôlé et qui ne contient pas de substances nocives. »
Cependant, le cadre québécois ne permet pas la vente de produits comestibles comme les friandises et les desserts, ce qui limite l’offre. M. Leclerc croit aussi que la marge de manœuvre des conseillers de la SQDC ne permet pas d’accompagner le consommateur adéquatement.
En rétrospective, le bilan des quatre dernières années est mitigé, selon M. Malkani, qui chiffre à 5 milliards le marché de la vente au détail à l’échelle nationale.
« Connaissez-vous des industries qui peuvent faire cela ? demande l’expert de Deloitte. Il y a beaucoup d’éléments positifs quand même. »
Selon M. Malkani, il existe un marché illicite oscillant entre 2 et 3 milliards qui peut être converti. Pour le marché légal, il y a donc encore place à la croissance, croit-il.
544 MILLIONS
C’est la somme que la SQDC estime avoir retournée en taxes à la consommation et droits d’accise dans les coffres de l’État québécois depuis sa création.
Sources : rapports annuels de la SQDC
La légalisation du cannabis récréatif n’a pas été une manne pour l’industrie. À la Bourse de Toronto, les grands producteurs en arrachent et sont toujours dans le rouge.
Le « statu quo n’est pas une option »
La Société québécoise du cannabis (SQDC) est désormais bien implantée dans le paysage québécois. Les ratés entourant son démarrage après le 17 octobre 2018 ne sont plus qu’un mauvais souvenir, mais le travail est loin d’être terminé. En poste depuis un an, le président-directeur général Jacques Farcy a néanmoins quelques chantiers devant lui. Le gestionnaire fait le point avec La Presse sur ce qui attend la société d’État.
Penser à la « phase deux »
Avec son réseau de 90 succursales, la SQDC s’approche de son objectif de 98 points de vente. Selon M. Farcy, cette empreinte sera suffisante pour continuer à ravir des consommateurs au marché noir. Le patron de la société d’État doit cependant penser aux « trois à quatre prochaines années ». « Cela va se traduire dans un plan stratégique qui sera rendu public en février ou en mars, dit M. Farcy. Nous sommes fiers de ce qui a été accompli dans les quatre dernières années, mais une chose est claire : le statu quo n’est pas une option.
Jacques Farcy est président-directeur général de la SQDC depuis un an.
Sans ouvrir son jeu, ce dernier a souligné que la SQDC se penchait, par exemple, sur certains projets en matière d’accessibilité. On teste la livraison en 90 minutes dans les grands centres, ce qui pourrait être déployé à plus grande échelle si les essais sont concluants.
Convaincre les consommateurs de revenir
Il y a environ 1 million de clients qui ont migré vers la SQDC depuis la légalisation du cannabis à des fins récréatives. S’il s’en réjouit, M. Farcy souligne que ces consommateurs ne sont pas « forcément exclusifs et qu’ils peuvent à l’occasion retourner vers le marché noir ». « On doit s’assurer que les clients nous choisissent. Ça se fera avec l’accompagnement, le choix des produits, la simplicité et le rapport qualité-prix. »
Comment y arriver ? Avec un prix moyen du gramme comparable à ce que l’on retrouve sur le marché noir ainsi qu’avec un effort d’information auprès de la clientèle. Le président de la SQDC estime que les consommateurs ignorent que certaines catégories, comme les produits comestibles et le haschich, sont offertes dans les succursales. « Dans nos succursales, vous avez beaucoup de produits affichés au mur, mais vous n’avez pas forcément une information qui vous explique exactement quelles sont les catégories que nous vendons. »
Les relations de travail
Les relations ont été houleuses entre l’employeur et les syndicats qui représentent les employés de la SQDC. La grève des membres de la Fédération des employés des services publics, affiliée à la CSN, a été réglée. Un autre débrayage qui touche 22 boutiques se poursuit depuis environ cinq mois. Ces travailleurs sont représentés par le Syndicat canadien de la fonction publique, affilié à la FTQ. Prudent, M. Farcy s’est limité à dire qu’il faisait confiance « à la table des négociations » pour dénouer l’impasse.
Des employés en grève de la SQDC font du piquetage devant le siège social de la société d’État.
Mais ces conflits de travail suggèrent-ils que le climat de travail est mauvais à la SQDC ? « On a promu, l’an dernier, plus de 100 personnes, répond M. Farcy. C’est une belle organisation dans laquelle travailler, je veux être certain que le message se rende. Lorsque l’on ouvre une succursale, on reçoit énormément de candidatures. »
Les relations avec les fournisseurs
Malgré les problèmes financiers de plusieurs producteurs, la SQDC ne s’inquiète pas d’éventuels problèmes d’approvisionnement en raison d’une capacité excédentaire sur le marché. La société d’État fait affaire avec 32 fournisseurs. Ses façons de faire ont changé dans la dernière année.
En démarrage, la SQDC souhaitait sécuriser des volumes auprès de certains producteurs privilégiés. Ce n’est plus le cas. « Nous sommes passés d’une logique de gestion de fournisseurs à une gestion par catégories de produits, explique M. Farcy. Aujourd’hui, on exprime nos besoins sur des catégories. On communique l’information à l’ensemble de l’industrie et c’est elle qui répond à nos besoins, peu importe le fournisseur. Nous sommes à un stade de notre croissance où c’était le bon moment pour évoluer. »
Les changements se sont déployés progressivement puisque l’industrie a besoin de temps pour se préparer, affirme le dirigeant de la SQDC.
58,5 %
Proportion du marché noir que la SQDC estime avoir capté depuis sa création.
Source : rapport annuel de la SQDC
Claiming 58.5% of all canna sales is a strech...
Can,t make a profit on 58.5%?
I,d doubt that
Data shows otherwise but
Licenced to kill
But missed the boat
Force feeding cannabis users with bunk weed
& jailing the competition is what H.C. bureaucrat came up to
with new Cannabis act.
Inovation in disguise...
Lets see how that "new" politic works for them. Lol.
Refer madness is running high.
Interesting to see how will they arrest their way out.
Good luck with that one.
These clowns will spend millions in tax payers money for nada.
Loosers.
Hey ivman, you could start reading actual customers posts.
Get a better understanding as to why LPS bunk weed is bottom shelf with NO TRACTION.
Janeen Davis
@ms_janeen_davis
This is the most accurate thread done on WHY capital markets are ruining the legal Canadian cannabis industry.
(Excluding Avant Brands)
Quote Tweet
JonahJameson
@TheStoutTrouts
·
20h
Replying to
@ms_janeen_davis
All that labour cost to just dumpster fire it. Which is probably bad for the environment with all the heavy metals lol
Planet Restorer420
@Planetsaver66
·
20h
Replying to
@ms_janeen_davis
Whats ruining it is high prices for the consumer. And products that suck . Most the weed i bought from retail is unflushed of nutrients. Ash turns black . Whats sold as hash isnt even close to real hash . Infact i dont even know what it is lol
Sleezy
David Milstead
@davidmilstead
Opinion: Tilray pays millions for a celebrity CEO. It shouldn’t hide that /via
@globeandmail