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Licensed Producers

Health Canada to randomly test medical marijuana

Health Canada will begin randomly testing pot from licensed medical marijuana producers to ensure that unauthorized pesticides are not used in the growing process, after two growers were found to be using banned pesticides, the agency announced Wednesday.

The random inspections will check to ensure that licensed producers are sticking to the list of 13 approved pesticides for use on medical marijuana. The agency says producers caught using unauthorized pesticides will be required to recall their products, and corrective action will be taken.

The new measures come after products from two licensed growers were found to contain low levels of myclobutanil, bifenazate and pyrethrins, which are prohibited under the Pest Control Products Act and the Access to Cannabis for Medical Purposes Regulations. Corrective action was taken in both cases and Health Canada says it’s “satisfied” with the voluntary recalls carried out by the producers.

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The affected producers were based in Moncton, N.B., and Toronto.

Myclobutanil is prohibited from use on combustible plants like marijuana and tobacco, because it emits hydrogen cyanide when burned. Colorado, Oregon and Washington have issued similar bans. However, the fungicide is still allowed on certain crops that are not burned when consumed.

Bifenazate is approved in Canada for use on apples, grapes and greenhouse vegetables only.

Pyrethins are only permitted for use in pesticide mixes on organic food.

“The Department will be providing additional compliance education and information to licensed producers,” Health Canada said in a statement on Wednesday.

Health Canada already conducts random unannounced inspections at facilities belonging to the 38 licensed producers across the country.

The agency says it is committed to “continuously improving on safety practices even though existing programs demonstrate effectiveness in identifying issues of non-compliance.”

Licensed marijuana producers lobbying government to allow pot advertising in hazy new legislation

A new era of “big marijuana” could create a multi-billion dollar Canadian market, but with details of legalization legislation still hazy, pot producers are stepping up lobbying efforts to push for advertising they say will not only deliver pot profits to shareholders but take them out of criminal hands.

The federal government introduced legislation Thursday that will see Ottawa continue to regulate and licence producers of legal marijuana the way it does for medical cannabis companies. Public Safety Minister Ralph Goodale said the government will not tolerate a “free-for-all” approach as Canada becomes the second country in the world to legalize pot at the federal level.

That means Canada’s some 40 licensed medical marijuana producers stand to gain from first-mover advantage, said Vahan Ajamian, a research analyst at Beacon Securities. He believes the legislation could spark a wave of mergers and acquisitions among marijuana companies, as has happened in the mature tobacco and alcohol industries.

“In the way we don’t have 40 independent producers of beer or cigarettes eventually we won’t in this industry either.”

He was one of many industry watchers to draw comparisons to tobacco and alcohol in reaction to the government’s overhaul of nearly a century of marijuana laws, opening up a new legal recreational market to an extent that hasn’t been seen since the end of alcohol prohibition in the 1920s.

The main question for licensed producers is the extent to which they can advertise and market their products. The bill’s vague wording surrounding advertising leaves significant room for interpretation as to whether it becomes a tightly-controlled market like tobacco or more loosely regulated alcohol advertising.

Advertising requirements in the bill are not as strict as expected, said Eileen McMahon, chair of intellectual property and food and drug regulatory practices at Torys law firm.

“The regulations are not yet published so there’s an opportunity to push back or comment on them too, so there still will be an opportunity to shape how that looks,” she said.

The proposed Cannabis Act “prohibits any promotion, packaging and labelling of cannabis that could be appealing to young persons or encourages its consumption, while allowing consumers to have access to information with which they can make informed decisions about the consumption of cannabis.”

The legislation bans displays of marijuana products that can be seen by young people, which means products might either have to be hidden like cigarettes at corner stores or sold in a separate adults-only store, or section of a store. The ban on advertising that can be seen by youth also prohibits companies from conventional and social media outreach.

The act also prohibits association with certain glamorous or relaxed lifestyles, nor can marketing depict a person, character or animal. That means, for instance, that Canopy Growth Corp. will not be able to put pictures of Snoop Dogg on the rapper’s branded strains.

However, details of packaging and advertising rules will be determined in regulations yet to be written, giving the licensed producers time to lobby the government to consider more overt advertising.

The industry will continue to push government to allow advertising, said Sébastien St. Louis, CEO of Quebec-based licensed producer Hydropothecary Corp.

“If they don’t allow any kind of advertising, the problem is the black market will continue to advertise and continue to put Canadians at risk,” he said.

“We need to be able to make Canadians aware that licensed producers exist and that there is a legal high-quality, low-cost supply available.”

And licensed producers are encouraged that the legislation did not call for the strictest “plain white packaging” they feared.

Several licensed producers sent a letter last month to Trudeau and cabinet asking them to rethink the task force’s position on advertising and packaging, arguing that a lack of brand awareness and advertising will undercut their efforts to differentiate themselves from the black market.

The legislation seemed to leave the door open to alcohol rather than tobacco-level advertising restrictions, said Brendan Kennedy, president of Tilray, one of the licensed producers behind that letter.

“It seems like a positive step and it seems like it’s not going the way of plain packaging, which I think would be a huge disservice to consumers.”

“Brand prohibition would create a race to the bottom where essentially companies would compete on price and potency which is the exact opposite of what the government wants.”

While “big marijuana” focused on whether they’ll be able to advertise their product, dispensary owners worried whether they’ll have a place in the system at all.

Jodie Emery, who was arrested when her Cannabis Culture chain was raided last month, said the current licensed producers don’t have enough product to provide for patients let alone the millions of users expected in the recreational market.

“Technically it only legalizes the ability for some government-approved companies to make money selling pot while everybody else continues to be criminalized with prohibitive regulations.”

“It’s worrisome that these licensed producers who are in many respects friends of government, former law enforcement, former premieres, lobbied the liberals to receive an oligopoly and that’s what they’ve got.”

The new government legislation could leave some room for dispensaries, provided they obtain a federal licence to sell, said Eileen McMahon at Torys.

The government has set an ambitious goal of implementing the new laws by July 2018, but exact regulations, Senate approval and provincial regulations still need to be worked out.

The new legislation left the retail sales question up to the provinces, much like how they oversee the sale of alcohol. A federal task force on legalization last year recommended disallowing governments from selling marijuana in the same location as alcohol, but the bill leaves that decision up to provinces.

sfreeman@postmedia.com

The Best Cannabis Products To Celebrate 420

If you want to celebrate 420 like a true cannasseur, you need the right gear. Using only the best cannabis products will help you get the most out of your weed experiences. The cannabis products on this list will elevate your 420 celebrations to entirely new highs.

Best Grinder: Lift Innovations

What it is: A fully redesigned grinder for super smooth action.
How much it costs: $78-$120
Why we like it: With a few simple changes, Lift Innovations has completely revolutionized the entire concept of a weed grinder.

Traditional grinders use aluminum teeth to grind up your herb. But there are a couple of problems with this. For one, they end up mulching your weed rather than finely chopping it.

And second, all that smashing damages your bud, disturbing the trichomes and getting your grinder gunked up with resin.

But Lift Innovations avoids all that. The company’s grinder uses an elegant new cutting system. Its spinning stainless steel blade slices bud cleanly and uniformly.

The result is finely chopped weed and a grinder that doesn’t get clogged. To make things even better, you can swap out interchangeable sifting screens to control the size of your chopped herb.

And finally, the rounded out pollen catcher makes it easier than ever before to scoop out that leftover kief.

All in all, this grinder is well worth the money. You won’t realize how annoying your old school grinder is until you try this one. Lift Innovations is showing the world how far the cannabis products industry has come.

Best Portable Vaporizer: PAX 3

Best 420 ProductsWhat it is: A sleek portable vaporizer for concentrates and flower.

How much it costs: $275

Why we like it: The PAX 3 is setting the standard when it comes to portable vaporizers. For starters, it’s dual-use so that you can vape both concentrates and flower.

But the PAX 3 shines when it comes to design and ease of use. By avoiding buttons, protruding mouthpieces, or any other bulky features, the geniuses at PAX have created a super sleek vaporizer. In fact, this is one of the most stylish cannabis products you will find anywhere.

It’s easy to slide into your pocket for discreet, on-the-go puffing. And it looks cool as hell. When you puff on this vape, you feel like you’ve been transported to the future.

Ultimately, the PAX 3 is designed to give you the best possible cannabis experience. It’s easy to use temperature control lets you select from four different settings.

Lower settings produce a vapor that is cool, gentle, and full of terpy flavor, while higher settings give you thick, rich clouds of vapor. Either way, puffing a PAX 3 is a thoroughly enjoyable experience.

Best Desktop Vaporizer: The Herbalizer

Celebrate 420What it is: A futuristic vape that will get you high AF.

How much it costs: $500

Why we like it: The Herbalizer seems to have one mission in life: to help you feel good. And it will do whatever it takes to make it happen.

Load up some bud and use the controls to dial in the precise temperature you want. Then sit back and marvel as the egg-shaped unit quietly and quickly heats up.

When you’ve got the right temp, you can use either a balloon or a hose to vape. The Herbalizer’s evenly-heated oven produces clouds of vapor that are smooth, clean, cool, full of terps, and loaded with cannabinoids.

You choose the experience you have, and the Herbalizer delivers. If you want a low-key sesh focused on scent and flavor, go with a lower temperature. But if you’re looking to get completely silly, crank up the temp and go crazy.

The Herbalizer can also vaporize other, non-weed essential oils. You can use this feature when you want some aromatherapy, but you don’t want to get high.

Best Cultivation Product: MightyGrow Organic Nutrients Starter Kit

The Best Cannabis Products What it is: Plant food that will change how you grow cannabis from the soil up.

How much it costs: $99

Why we like it: Cannabis products are not limited only to smoking or vaping. There are also products out there designed to help you grow better weed.

The makers of MightyGrow Organic Nutrients know what makes plants happy. They understand that it’s not just about feeding your cannabis plants; it’s also about feeding the soil.

In fact, farmers and gardeners around the world are beginning to focus more than ever before on cultivating rich, dynamic, healthy soil.

It all stems from the fact that soil is not inert. It’s full of life: bugs, worms, and millions of microorganisms. When all of these organisms are happy and healthy, they work together to create a fertile place for you plants to grow.

The growing gurus at MightyGrow Organic Nutrients know this, and they have created a line of products that feeds both your cannabis plants and your soil.

The result is happy, healthy, strong cannabis plants that will produce tons of potent buds.

Best Edible: Punch Bar

420 ProductsWhat it is: Hard-hitting line of cannabis-infused chocolate bars.
How much it costs: $20
Why we like it: Our list of cannabis products would be incomplete if it did not take edibles into consideration. Punch Bar edibles are no joke, and just as the name suggests, these things will hit you hard.

The line of edibles comes in a variety of potency levels and flavors. You can get bars that have 225 mg of THC or 150 mg of THC.

Or, if you are looking for medicine without the high, you can go with their “C-90” bar, which has 90 mg of pure CBD.

On top of selecting your potency level, you can choose from tons of flavors including milk chocolate, dark chocolate, peanut butter dark chocolate, and more.

Each bar is divided into nine small squares for easier dosing. There is no way to go wrong. Whichever bar you choose will taste great and will give you a hard-hitting dose of cannabinoids.

For 420, go with one of their THC bars, and you will be sky high. In fact, there’s a decent chance you will wake up the next day still high.

Best Bong: Mobius Micro Matrix II

The Best Cannabis Products To Celebrate 420What it is: A sleek-looking water pipe with incredible water filtration.
How much it costs: $300-$350
Why we like it: The glassmakers at Mobius have come up with a big-time winner with the Mobius Micro Matrix II.

This bong uses a matrix perc — sometimes also called a stereo perc — to enhance its water filtration. This type of perc features a grid of holes through which air passes to form bubbles.

Bongs that use matrix percs have a couple of key benefits. The most practical one is that all those bubbles produce smoke that is cooler, cleaner, and smoother-hitting than smoke from standard bongs.

But this piece isn’t only functional. The best cannabis products also take style into consideration, and the Micro Matrix II comes through when it comes to style points. When you hit this bong’s matrix perc, it creates a huge stack of bubbles that looks dope as sh*t.

The Mobius Micro Matrix II packs this filtration technology into a sleek, beautiful piece of glass. It’s just the right size: big enough to get the job done but not too big or clunky.

This piece looks great and works even better. Bust this out at your 420 party and earn some instant cannabis cred.

Best THC Cartridge: Brass Knuckles

The Best Cannabis Products To Celebrate 420What it is: Pure, tasty, potent THC.
How much it costs: $60
Why we like it: Brass Knuckles produces THC cartridges for the serious smoker.

The company is owned by rapper-turned-cannabis-mogul Xzibit, and it prides itself on turning out seriously top-shelf product.

From start to finish, Brass Knuckles THC cartridges deliver. Each cartridge is loaded with enough THC to send you and all your friends to the stratosphere this 420.

Along the way, you’ll also enjoy the pure taste of each different strain. If you are into fruit-tasting strains, they’ve got strains like Banana OG and Blueberry. If you want something less fruity, try Blue Dream or Skywalker OG.

To top it all off, the tasty, THC-heavy doses each cartridge produces are delivered through a perfectly designed mouthpiece. It is wide enough to provide great airflow, which means that each and every hit will give you a thick lungful of vapor.

Best Pipe: Fumo Pipe

The Best Cannabis Products To Celebrate 420What it is: A compact pipe that uses a cooling chamber and push-button carb to deliver tons of smooth smoke.
How much it costs: $90-$110
Why we like it: Any list of top cannabis products would be incomplete if it did not include some sort of hand held pipe. The Fumo Pipe has breathed new life into this category.

The main component of this piece is a metal cooling chamber that feeds into a polycarbonate tube and mouthpiece. To use the Fumo, pack your herb into the bowl, spark up, and draw in through the mouthpiece. As you inhale, the smoke is pulled down into the metal cooling chamber before passing into the tube.

As soon as there is enough smoke in the tube, simply press the carb button, and the smoke will rush into your lungs. The Fumo consistently delivers smooth smoke, thanks to its innovative cooling chamber.

The pipe can also be customized to give you the precise smoking experience you’re after. If you want to cool the smoke, even more, toss the cooling chamber in the freezer before using it. This will give you some of the smoothest smoke you’ve ever tasted.

You can also swap out the standard three-inch smoke tube for six-, nine-, twelve-, and even eighteen-inch tubes. This lets you turn your Fumo Pipe into a massive steamroller.

Finally, when you are done using your Fumo, you can quickly take it apart for easy cleaning. From start to finish, this pipe is easy and fun to use, and it makes smoking weed from a pipe extra enjoyable.

Best Multi-Tool: RYOT Multi Utility Tool

The Best Cannabis Products To Celebrate 420What it is: A multi-tool designed to meet all your weed smoking needs.
How much it costs: $49
Why we like it: Think about the RYOT Multi Utility Tool like the Swiss Army Knife of the cannabis products world. It has everything you would ever need, and it’s all packaged in a compact unit that’s easy to take with you wherever you go.

Here’s a run-down of all the tools the RYOT includes:

  • Scooper
  • Concentrate fork
  • Curved spoon
  • Grinder
  • Bottle opener
  • Flathead screwdriver
  • Detail hook
  • Poker
  • Flat scoop
  • Tamper

No matter how you are consuming cannabis, the RYOT multi-tool has you covered. Whether you are cutting up nugs to pack a bowl, scraping out concentrates for a dab, or finishing off a J, the RYOT has the perfect tool.

Once you start using this multi-tool, you will find yourself bringing it with you wherever you go. The RYOT could very well become your next best friend.

Best Topical: Foria Pleasure

The Best Cannabis Products To Celebrate 420What it is: Cannabis lube designed to spice up your sex life.
How much it costs: $76
Why we like it: Here’s all the explanation you need. Sex expert Dr. Jennifer Berman described cannabis lubes as a way to “get your clitoris high.”

When it comes to cannabis lubricants, nothing is better than Foria Pleasure. The folks at Foria made the lube with women in mind.

The company also makes Foria Relief vaginal suppositories to ease menstrual pains. And most recently, the company began selling Foria Explore suppositories. These are designed to enhance anal sex.

It’s no secret that getting high makes sex better. Foria Pleasure gives you a new, more direct way to tap into the aphrodisiac powers of weed.

Best Dab Rig: MiniNail

The Best Cannabis Products To Celebrate 420What it is: An easy-to-use enail that lets you dial in the perfect temperature.
How much it costs: $300
Why we like it: Dabbing is becoming increasingly popular. If you have never tried it, put it at the top of your 420 to-do list.

The only challenge is that dabbing requires some additional equipment. But that’s where MiniNail comes in. The company specializes in making easy-to-use, precision dabbing gear.

Their big seller is a basic electronic nail that lets you select the perfect temperature so you can have the ideal dabbing experience. Low temp dabbing to maximize flavor, high temps for thick and heady vapor.

But MiniNail offers more than just the nail. You can get your entire dabbing rig all set up and shipped to you straight from the company’s website.

If you have any interest in adding dabs to your cannabis repertoire, check out MiniNail first.

Best Travel Gear: Skunk

The Best Cannabis Products To Celebrate 420What it is: A line of bags, carrying cases, and backpacks that will mask the smell of your weed.
How much it costs: $15-$199
Why we like it: Traveling with weed is a constant struggle. Hardcore smokers are always looking for new cannabis products that will help them sneak their herb onto buses, trains, and airplanes.

But now, the folks at Skunk have come up with the ultimate solution. Their line of bags features the company’s patented “Skunk Air-Flow” system.

The fabric of these bags utilizes a combination of silver nylon fiber and what Skunk describes as “high potency activated carbon technology.”

The carbon textiles used in these cases and bags traps, filters, and neutralizes odors and chemicals so that nothing passes into or out of the bag. Now you can pack your herb with you wherever you go without attracting any unwanted attention.

On top of being functional, these bags also look great. Most of Skunk’s cannabis products have square-shaped, somewhat boxy profiles, and while that might not be everyone’s favorite design, it does create tons of room for packing your stuff.

Skunk makes everything from small carrying cases to backpacks and even full-sized duffle bags. Whatever your travel needs, Skunk has you covered. You and your weed.

Licensed marijuana producers keen for details in Canada’s marijuana legislation

Licensed marijuana producers are eagerly anticipating legislation from the federal government to legalize cannabis.

READ MORE: Canada to legalize pot by July 1, 2018: report

More than 50 vendors from across Canada and the United States took part in the first annual Cannabis and Hemp Expo at the Edmonton Expo Centre on Saturday; the first event of its kind in Alberta.

“We decided to go ahead with it once the Liberals came into power because they obviously are going to be recreationally legalizing cannabis and that was a huge, huge boost to the industry,” said show director Kevin Blackburn.

Blackburn describes the expo as a place for retail vendors and licensed producers to reach out to customers.

“The point of all of this is to educate the public and create a forum for cannabis and hemp users to come down, purchase new products, get an understanding of the industry and where it is going,” he said.

READ MORE: Canadian marijuana legalization timeline: Dispensary raids and major announcements

The Liberals are expected to introduce legislation to legalize and regulate marijuana this month; it is expected to become law by July 1, 2018.

It will be up to provinces to set a price for marijuana, the legal age and how it will be sold and distributed. The federal government will regulate supply. Municipal governments will be responsible for zoning, licensing, distance separations as well as local law enforcement.

Philippe Lucas, vice president of research and access for Tilray, said the company is planning to enter the recreational market as result of the expected legislation. The company is a medical cannabis production and research facility right now.

Lucas said he wants to see a taxation rate that would take control away from the black market.

RELATED: How marijuana will be taxed remains unclear

“We just want to make sure the end product ends up about $10 a gram. If it’s higher than that, you’re going to have a niche for the black market to be selling,” he said.

David Frampton, client care director for Aurora Cannabis, doesn’t shy away from a tax of marijuana.

“Like any product, it should have a general sales tax potential because it is a good and service being provided,” he said.

As for the legal age for marijuana, Lucas said it should be tied to the age of alcohol.

“I think we would be sending a very strange message to young adults who are 18 or 19 years old for saying: alcohol is legal, you can go ahead and use alcohol… but that you’re not old enough to use cannabis until you’re 21 or 25,” he said.

READ MORE: Canadian police look for guidance on marijuana legislation

Frampton said Aurora Cannabis is taking a wait-and-see approach to how marijuana will be sold. The company has built a hybrid greenhouse facility larger than 16 football fields in Leduc County, Alta.

READ MORE: Medical pot grower Aurora Cannabis expands to Edmonton airport

“When a recreational model occurs, there’s going to be a larger amount of pot available to the general public. I believe it should be federally regulated, at least in regards to the sourcing of the supply so you can get as high quality a product as possible,” Frampton said.

Lucas does not think marijuana should be sold alongside alcohol and said zoning will be critical.

“You’re going to want to look for similar regulations as alcohol in terms of distance regulations away from schools or otherwise. I think anything that would be looking at anything beyond that would be unfortunately making it more difficult for people to access,” he said.

Edmonton Mayor Don Iveson said the city has already made some pre-emptive changes to bylaws in anticipation of legalization but there is still lots to do.

READ MORE: City of Edmonton works to put pot plan in place with legalization looming

“At this point we know it is coming.

“The questions is, are we going to make sure that we don’t have an over-concentration of marijuana dispensaries, the same way we do with liquor stores, for example? I think we’ll go in that direction but we have to actually make changes to our zoning bylaw in order to do that,” he said.

“Most of the complex, regulatory work still rests with the provincial and federal government. Local governments need the support of senior orders of government and a clear timeline helps give everyone a deadline to get the work done.”

-with files from Shallima Maharaj

Marketing, branding needed for cannabis products, licensed producers say

Garfield Mahood has spent 30 years fighting for the Canadian government to require plain packaging for cigarettes.

So, the long-time non-smokers’ rights activist says he doesn’t have much faith in the government’s ability to regulate and restrict the marketing of marijuana.

“They identified tobacco products as a cause of disease back in the 1950s,” said Mahood, president of the Campaign for Justice on Tobacco Fraud. “They’ve never been able to bring this epidemic
close to a conclusion.

“What would give you faith that health departments are going to effectively regulate any health problems related to these other drugs?”

As the Liberal government prepares to introduce legislation to “legalize, regulate and restrict access to marijuana” before this summer, one area that the cannabis industry and public health advocates are closely watching is whether it will allow companies to brand and promote their products.

A task force appointed by the federal government recommended it require plain packaging and a limit to advertising similar to the restrictions on tobacco.

australian cigarette packages

On the right, Australian cigarette packages after plain packaging was introduced in that country in 2012. On the left, are what the packages used to look like before the new law. (David Hammond/University of Waterloo)

But licensed producers of medical marijuana argue that cannabis isn’t as dangerous as tobacco and that branding and marketing are necessary to attract consumers from the black market to the legal industry.

‘There are health risks’

Mahood began advocating for plain packaging on tobacco in the mid-1980s. Governments over the years declined to implement it until 2016, when Health Minister Jane Philpott vowed to ban branding on cigarette boxes and a bill was introduced in the Senate.

The aim is to strip the industry’s ability to attach “sophistication and allure” to its products, said Mahood, and to prevent it from detracting from public health warnings.

While there is a lot that researchers still don’t know about marijuana, it’s not a benign substance and there are health risks, said Rebecca Jesseman, a senior policy adviser at the Canadian Centre on Substance Abuse, which supports plain packaging.

The inhalation of any hot vapour into the lungs is harmful, while edible products have been linked to over-consumption and increased emergency room visits in Colorado and Washington, where marijuana is legal, she said.

“It’s much easier to be more restrictive from the outset and then loosen the restrictions as you learn, than it is to start out with looser regulations and try to make them more stringent,” she said.

Producers want to ‘establish’ brands

Cam Battley, executive vice-president at Aurora Cannabis, said he would never call a psychoactive substance completely benign. But he said marijuana is more benign than alcohol or tobacco.

Cannabis Packaging 20170214

Cam Battley, Executive Vice President of Aurora Cannabis, says cannabis should be treated similarly to liquor in terms of advertising. (Jonathan Hayward/Canadian Press)

“There are millions of Canadians who purchase cannabis. What the federal government is trying to do is get people to switch over from the illegal and unregulated market to the regulated market,” he said.

“If they want to do that, it makes sense to allow us to state who we are, to establish our brands, to justify why it makes sense for consumers to go through the legal system instead of going to somebody they know in the neighbourhood.”

In terms of advertising, Battley said he believes that cannabis should be treated essentially the same as liquor, a sector where companies cannot show people using the product in commercials or target underage individuals.

The federal task force recommended that plain marijuana packaging be allowed to include the company name, strain name, price, amounts of psychoactive ingredients and warnings.

Different to liquor marketing?

But that information isn’t enough to ensure people can buy the product they want, said Mark Zekulin, president of Tweed, a subsidiary of Canopy Growth, the largest of Canada’s publicly traded marijuana companies.

Cannabis Packaging 20170214

Products and types of marijuana are shown at The Dispensary, a medical marijuana dispensary, in Vancouver, Wednesday, Feb. 5, 2015. A task force appointed by the federal government recommended it require plain packaging and a limit to advertising similar to the restrictions on tobacco. (Jonathan Hayward/The Canadian Press)

“If you try to compare five different whiskies, they’re all going to be 35 per cent alcohol or 40 per cent alcohol, but at the end of the day they’re all very different,” he said.

“Cannabis is probably more diverse.”

A ban on branding and advertising could create a more level playing field between large licensed producers and smaller “craft” growers, said Lindsay Meredith, a marketing professor at Simon Fraser University’s Beedie School of Business.

But Meredith said it would be a problem for the federal government if it allows marketing of liquor but not cannabis.

The argument that producers need branded packaging and advertising in order to lure users from the illegal market has some merit, he added.

“You’re not going to buy my product if you don’t know it exists,” he said.

“The whole idea of branding, developed hundreds of years ago, was because 10 of us made a product. Nine of us did a lousy job making it. One guy did a good job making it. People who were using the product wanted to know which guy was doing it.”

Corrections

  • A previous version said the inhalation of hot vapour into the lungs can lead to cancer. In fact, a link has not been proven.
    Feb 14, 2017 11:53 AM PT
© The Canadian Press, 2017
The Canadian Press

Vancouver Island cannabis growers high on legal pot prospects

Licensed medical marijuana producers on Vancouver Island are already angling for expansion into a legalized recreational market as proposed new rules take shape.

The Task Force on Cannabis Legalization and Regulation recommended this week keeping a separate framework for supplying recreational pot to Canadians.

Meanwhile, two of the three dozen companies licensed to supply medical marijuana to Canadians are already laying the groundwork for diversification into the multi-billion dollar recreational market.

  • Pot task force recommends legal cannabis sales be limited to users 18 and over
  • Medical cannabis producers jockey for top spot as legalization for recreational use looms
  • ​Tilray, medical marijuana producer, brings in big bucks for Nanaimo

​Executives for Tilray, based in Nanaimo, B.C., and United Greeneries Ltd., in nearby Duncan, endorse the task force’s main recommendations, including a minimum age of 18 for purchase of pot, a ban on advertising and sales through stand-alone outlets or mail-order.

Brendan Kennedy, president of Tilray, said the company will expand into recreational marijuana, but it won’t be a simple matter of ramping up production.

Different branding for recreational pot

The company, which distributes its medical marijuana by mail, exports to Australia, New Zealand and Europe.

“We would enter the recreational market but we would enter it using a different brand than Tilray,” Kennedy said.

“Similar product, similar production staff,” he said, but “a completely different brand targeting adult consumers.”

In contrast with Tilray’s established business, United Greeneries Ltd. received customs clearance this week for its first one-kilogram shipment of cannabis seeds imported from Europe.

United Greeneries expects to start selling rooted cuttings of 30 different cannabis varieties by next April to retailers and individual consumers.

A ‘first mover’ into new market

United Greeneries just received its license in June to cultivate medical marijuana, but the company already has ambitious plans to become a “first mover in the Canadian recreational market,” according to a release from its Australian parent company,  MMJ PhytoTech Limited.

“Commercially for Canadian companies, this means a tremendous opportunity,” United Greeneries CEO Andreas Gedeon told On the Island host Gregor Craigie.

He called the task force recommendation to allow every adult Canadian to cultivate four plants of their own “a huge step.”

Medical Marijuana 20140330

Tilray’s president says the biggest challenge will be transitioning the supply of recreational marijuana from the illegal market to a regulated legal market. (Darryl Dyck/Canadian Press)

Gedeon said it will be a huge challenge for Canadian companies but also a challenge to meet the demand for legal pot.

“The entire infrastructure for this recreational market needs to be built from scratch,” Gedeon said.

For its part, United Greeneries aims to scale up production from 7,500 kilograms of cannabis by 2018 to 60,000 kilograms by 2022.

Black-market transition biggest challenge

Tilray’s president says demand for recreational pot is already being met by the black market, and that’s the biggest challenge.

“That market is roughly 70 times the medical market,” Kennedy said. “So we’re not worried about the medical market eroding.

“The real challenge is how that black market will transition into a fully regulated, restricted, taxed recreational market.”

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