provinIf you live in BC, you may have noticed something different as you stepped up to your friendly neighbourhood cannabis store. At the end of May, retailers were finally allowed to peel back the window coverings after the province repealed the visibility ban. But this is just the start of changes for cannabis retail in BC.
Over the last few weeks, BC’s regulators have made a lot of announcements (or at least suggestions). In the not-too-distant future, BC could have a vibrant cannabis tourism sector, consumption lounges, and expanded market controls. BC’s cannabis industry are eagerly anticipating these changes, given the current economically challenging landscape.
Here is a summary of what changes to expect for cannabis retail in BC over the coming months.
Product Visibility Changes
As highlighted above, the Liquor and Cannabis Regulation Branch (LCRB) is repealing the visibility requirements from the Provincial Cannabis Licensing Regulation.
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 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.
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?
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.
In the coming weeks, it will be interesting to see how cannabis retailers in BC adapt their window displays. All without actually exhibiting anything cannabis-related.
Cannabis Consumption Spaces
In another exciting move for cannabis retail in BC, the government is working to gradually enable consumption lounges as well as cannabis-related hospitality and tourism opportunities. Currently, provincial and federal laws limit it.
First, regulators are exploring the feasibility of licensed cannabis consumption spaces. This would also entail a review of promotion rules, including how they apply in settings where licensed cannabis retail activities occur.
It’s likely that any changes that do roll out for cannabis tourism and consumption will come from points made in the What We Heard Report: Cannabis Consumption Spaces Public Engagement.
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.
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.
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.
Cannabis Market Controls
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.
Evolving the current market controls will hopefully ensure that existing licensed cannabis businesses in BC can benefit from the expanded opportunities. The Province will continue to engage with various stakeholders as this work proceeds.
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, regulators have specifically prohibited this.
While less information is available about this proposal, changes would likely help both retailers and cultivators reduce the cost of doing business.
Slow, But Positive Change to Cannabis Retail in BC
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. 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.
