BC Government announces new sales programs for the cannabis industry in 2021 and 2022

On September 20, 2020, the Government of British Columbia announced three new sales programs to benefit the B.C. cannabis industry. The programs are aimed at providing small-scale producers, rural communities, and Indigenous businesses with greater access to non-medical cannabis retailers and consumers.

Indigenous Shelf Space Program

The Indigenous Shelf Space Program will highlight cannabis products from B.C. Indigenous producers in BC Cannabis Stores by providing designated “shelf space” for these products. The goal of the program is to increase inclusivity within the growing legal cannabis industry. By identifying Indigenous produced cannabis products the government aims to make it easier for consumers to both learn more about the product itself and support Indigenous producers.

The highlighted products will be available at BC Cannabis Stores, in store and online, and through private B.C. cannabis retail locations. Further details on how the products will be procured and whether all non-medical cannabis retail stores will be participating was not provided.

The Indigenous Shelf Space Program is expected to launch some time in 2021.

Direct delivery sales program

The direct delivery sales program will provide Health Canada-licensed small-scale producers with the ability to deliver cannabis directly to licensed retailers. Currently, the B.C. model requires non-medical cannabis retailers to purchase their supply solely through the BC Liquor Distribution Branch (branded as BC Cannabis Wholesale), a model smaller producers have struggled with as it has been designed around larger scale production and distribution models. The goal of the program is to provide small cannabis producers with a way to enter a market currently dominated by larger producers, as well as to support the growth of B.C. businesses of all sizes. A definition of who qualifies as a small-scale producer has not yet been provided, so whether this tracks directly with the current micro cultivator license issued by Health Canada is not clear. However it was noted that the program will include nurseries.

The direct delivery sales program is expected to launch in 2022.

Farm-gate sales program

The farm-gate sales program will allow B.C. cannabis growers to sell their products from stores located at their production site, a “farm-gate” store. By allowing cannabis growers to sell on site, the program is intended to create a more inclusive market for rural communities and small-scale producers, though it is not yet clear whether larger producers will also have the ability to partake in “farm-gate” sales. The introduction of farm-gate stores furthers what the BC Government states as its goals of supporting B.C. businesses of all sizes and encouraging consumers to buy local.

The farm-gate sales program is expected to launch in 2022.

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The announcement of these three programs is being welcomed by cannabis producers in B.C., particularly those with micro cultivation and nursery licenses, and of course Indigenous producers. However many are already questioning the distant 2022 launch projections for the direct delivery and farm gate programs.

B.C. has previously seen the positive economic impact and industry benefit of opening tasting rooms, on-site sales, and direct-to-retail sales within the wine, craft brewing and craft distilling industries. Opening these programs to small-scale cannabis producers in B.C. is a logical and welcome step, and much like the previously mentioned industries, will hopefully have a positive impact on sustainability for local producers.

We will continue to provide updates about the three programs as they become available. Please feel free to contact the authors if you have any questions about the programs.

This article provides only general information about legal issues and developments, and is not intended to provide specific legal advice. Please see our disclaimer for more details.