TORONTO-The last sprint of this week's launch of legal recreational marijuana sales in Canada can be summarized with a small…
TORONTO-The last sprint of this week’s launch of legal recreational marijuana sales in Canada can be summarized with a small stamp.
To sell any marijuana product in Canada, the government requires a tax mark on the package, but the stamps are only available from a single licensed supplier, the Canadian Bank Note Company Ltd. or CBNC. When the pot producers treated CBNC to receive their stamps, they were probably upset to find stamps on them – and it was only a company in Canada that could attach glue to the stamps.
“If you did not do it, do not book your time six months ago with the only company in Canada that glue them, then you’re in trouble,” Tilray Inc.
Executive Director Brendan Kennedy told MarketWatch. “I do not even know what you’re doing.”
MarketWatch was unable to determine the extent to which this potential bottleneck affected widely reported retail clothing around the country, but it is symbolic of the difficulties in converting a black market into a nationwide industry which is now raising capital through initial public offerings. Although there were no massive and unexpected problems in the opening days of legal marijuana sales in the first G-7 nation to legalize the drug, it was difficult to determine whether the still fragile distribution network has managed to keep up with demand.
For the largest pot companies, the first week of legal sales did not involve frenetic activities from managers who handled inventory, decided on distribution or attempted optimization of sales. Due to the structure of the rules, executives from Tilray and Cronos Group Inc.
told MarketWatch that it was more or less business as usual – too early for feedback on products sold online or in stores.
To view the full MarketWatch coverage of Canada legalization, click here.
“It’s six months (from) when you plant a seed when you send it to [Ontario Cannabis Store] if everything is perfect, if everything is in place,” says Kennedy’s Tilray. “So that’s not much I can do today, it just would not make a big difference. Were we awesome six months ago? Yes. And certainly there were spots along the way where we had to do things to be prepared. “
In Ontario, Canada’s most populated province, three sources of knowledge of MarketWatch announced that the province’s online store – the only way to lawfully buy a plant there, as it does not allow retail next year – had ended on Wednesday the first day of sale But Ontario Cannabis Store spokesman Daffyd Roderick told the phone on Thursday morning that there was plenty of access left. Roderick declined to allow MarketWatch to interview OCS executives, nor provide sales data for the first several days of the sale.
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“OCS will not release statistics right now” he wrote an email statement. “We will say that the answer to cannabis legalization has resulted in a high volume of orders.”
Geoff TSX Parkin
Cannabis representatives called the opening bell on the Toronto Stock Exchange on Wednesday the first day of Legal Recreation Marijuana sales in Canada. For more about it, go here.
Complicated questions for Ontario and other provinces dealing with online retailing are the threat of a strike of Canada Post post office, the country’s post office, currently delivering and delivering the vast majority of legal weeds. And the stone and mortar retail will not be opened until April, according to previous statements by the Ontario government.
“Ontario should have allowed retail to be open the same day,” said Corey Herscu, Executive Director of RNMKR PR, who specializes in cannabis communication. “They lost a really good chance of doing it right to set a benchmark. I think it could have been very good way to show other countries how Canada can lead.”
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Some provinces, such as Nova Scotia, released sales figures on October 17, prior to the usual quarterly release for the state’s state drinks, which now also sells cannabis. Spokeswoman Beverley Ware said that, on the phone, Nova Scotia had sold more than 600,000 Canadian dollars ($ 457,000) worth the first day, and stores in major subways continued to see lines out through the door through the third day of legal sales.
“The first online customers have received their orders,” she said Friday, and many customers added it to the next day.
But Nova Scotia had trouble getting the pot. Of the 3.75 million grams ordered by provincial buyers, Nova Scotia actually received less than 40% from the licensed manufacturers. The stores are made of gel capsules and oils altogether – because they started with small amounts, says Ware – and saw lack of small pots with stew and rolled leather.
Alberts retail trade, run by private entities, is also suffering from shortcomings in supply. Achieved by phone late Friday, Alcanna Inc.