LETTER TO THE EDITOR
Growing Pains By David Halpert
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s we head into summer 2022, I often debate, in the face of rampant consolidation between LPs and retailers alike, whether the same talking points keep resurfacing, or whether these are merely “growing pains” for the cannabis industry, unavoidable beyond reproach. It seems to be a latent consequence of summer, normally the chance to relax and kick back, but also, with inflation and added costs to the global supply chain, a time to refresh, perhaps to reboot as well. So for the sake of this letter to the editor, I wish to reiterate some talking points that require deeper introspection for the industry:
3. Cannabis Health Products and Medical Research - The forward regulatory plan for 2022-2024 is that the regulation of health products containing cannabis would not require practitioner oversight. With respect to research going forward, regulatory text should be amended to provide (1) greater clarity on the ability of licence holders to provide information to consumers and (2) guildelines on the grounds for refusing to issue, renew or amend a non-therapeutic research licence, according to the Cannabis Council of Canada. 4. Continued Advocacy for Non-Violent Cannabis Convictions - Almost four years after legalization, we’re still battling stigmas and preconceptions regarding cannabis and still have 50,000 Canadians with non-violent cannabis convictions. This affects many parts of their lives - from impeding travelling to renting a home and getting a job. Groups like Cannabis Amnesty and Pardons Canada are non-profit organizations continuing the fight for getting convictions overturned for cannabis convictions postlegalization as well as getting current criminal records expunged in a world where cannabis now legal domestically.
1. 10 mg Limit on Edibles and Beverages One of the bigger sticking points, edibles and beverages have been stifled in many ways due to harsh THC limits and packaging. Both product categories have been slow to grow against dried flower, especially when compared with more mature markets in the US. Domestically both categories represent roughly 5% of market share when compared with 13% in certain markets south of the border, leaving millions on the table in potential revenue. 2. Revised Excise Tax Framework - Increased excise taxes represent a constant thorn across the cannabis value chain, espeically when you take into account that in large respect, the cost per gram of dried flower is increasingly on a downward slope. For every $100 collected in excise taxes roughly 41% goes to government taxes and fees when compared with the retailer share (22%), the provincial distributor mark-up (18%), and the LP net share (19%), perhaps even more so. Shifting the conversation from stamp to rate seems to be the optimal argument going forward.
I’d like to take this opportunity to personally thank all the advocacy work the Cannabis Council of Canada and other organizations are tirelessly fighting for every day. Without you guys, none of this would be possible.
President / CEO, Straight Dope Media Inc. @cannabispromag
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Cannabis Prospect Magazine | June 2022
