If you live in BC, you may have noticed something different as you stepped up to your local cannabis store. At the end of May, BC cannabis retailers were finally allowed to remove window coverings after the province repealed the visibility ban. This window change is just the beginning of a broader set of regulatory reforms for cannabis retail in BC.
Over the last few weeks, BC’s regulators have made a series of announcements — and in some cases, early signals — about the direction of cannabis policy. In the near future, BC could see a cannabis tourism sector, licensed consumption lounges, and revised market controls. BC’s cannabis industry is eagerly anticipating these changes against a difficult economic backdrop.
Here is a summary of what changes to expect for cannabis retail in BC over the coming months.
BC Cannabis Window Visibility Rules Have Changed
The Liquor and Cannabis Regulation Branch (LCRB) has repealed the visibility requirements from the Provincial Cannabis Licensing Regulation. BC dispensary owners can also explore how cannabis POS software built for Canadian dispensaries help stores adapt to a shifting retail environment.
This is excellent news for retailers who have had to cover their front windows. Or, more likely, an expensive, opaque front-window sticker. With these changes in place, cannabis stores operating across Canada no longer need to have window coverings, which is expected to reduce the number of burglaries. Other benefits include increasing street traffic and making the retail environment feel more welcoming.
Confusion Remains Over What Products Can Be Displayed
However, many retailers note confusion about what can be visible. Provincial and federal regulations still prohibit the display of cannabis products where they may be visible to minors. So, what happens if a minor walks by a cannabis window display? Does that count as exposure?
LCRB Sets Conditions on Window Displays
In an interview with Cannabis Retailer, Jeff Guignard, Executive Director of BC’s Alliance of Beverage Licensees, stated, “ΩLCRB will introduce a term and condition prohibiting window displays of cannabis and cannabis accessories to people outside the stores. This change provides licensee and authorization holders more flexibility while ensuring that cannabis and cannabis accessories will not be displayed to people outside the store, in keeping with the federal Cannabis Act.” It’s unclear how this will affect retailers’ possible window options.
BC Explores Licensed Cannabis Consumption Lounges
In another significant development for cannabis retail in BC, the provincial government is working to gradually enable licensed consumption lounges as well as cannabis-related hospitality and tourism opportunities. Currently, provincial and federal laws restrict these activities.
First, regulators are exploring the feasibility of licensed cannabis consumption spaces. This exploration would also trigger a review of promotion rules, including how those rules apply in settings where licensed cannabis retail activities take place.
It’s likely that any changes that do roll out for cannabis tourism and consumption history in Canada will come from points made in the What We Heard Report: Cannabis Consumption Spaces Public Engagement.
Public Opinion Is Split on Consumption Lounges
In summary, this report finds a clear difference of opinion between those who already consume cannabis and those who don’t. Cannabis consumers tend to favour changing the legislation to allow for cannabis consumption lounges and cannabis at events, while those who do not consume feel strongly opposed.
Regulators Balance Consumer Access and Public Exposure
The Minister of Public Safety and Solicitor General, the authors behind this report, have to do a fine balancing act between these two sides. In essence, open up spaces for cannabis consumers to buy and use cannabis products while ensuring the general public isn’t unnecessarily exposed.
BC Bud Tourism Has Operated Outside the Legal Market
Secondly, the province is already world-renowned for its BC Bud. It has long been a tourist destination for cannabis connoisseurs, even before legalisation. It would make economic sense to create legal avenues for cannabis tourism to move these activities out of the legacy market and into a safer, regulated one.
To date, there has been little official news on the cannabis tourism front. But, officials have made several public statements about the intention.
BC Reviews Cannabis Licence Caps and Vertical Integration
Finally, the government is reviewing BC’s cannabis market controls. In particular, they will be looking at the restrictions on vertical integration and the retail licence cap. Today, the province does not have a cap on the number of licences granted. But, individual licensees can only hold eight.
Revising BC’s current market controls aims to ensure that existing licensed cannabis businesses can benefit from expanded economic opportunities. The Province will continue to engage with various stakeholders as this work proceeds.
Vertical Integration Rules May Open New Retail Opportunities
The other market control that Cannabis Retailer suggests is also under review regarding vertical integration. In other markets, specifically in the US, vertical integration has allowed companies to own the supply chain from seed to sale. In BC, cannabis regulators shaping Canadian banking rules have specifically prohibited this.
Details on vertical integration proposals remain limited, but regulatory changes would likely help both cannabis retailers and cultivators reduce their operating costs.
Cannabis Retail in BC Is Evolving — Slowly but Positively
The landscape in BC is changing. The window covering repeal is just the beginning. With pressure from the industry and input from the general public, the province is exploring the potential for cannabis tourism, consumption lounges, and expansion of overly-restrictive market controls.
As these changes unfold, there should be a significant positive impact on the cannabis retail sector earnings for dispensary owners. But if the past few years are anything to go by, it will likely be a continued slow and bumpy evolution of the provincial cannabis sector. Time will tell how it plays out at the till.