Proposed Changes to Purchase Limits on Beverages

MJ Biz Daily reported on the proposed changes by Canada’s federal government to the equivalency ratio for beverages.

The Breakdown

• The current possession limit in Canada is 2.1 liters (71 ounces) for cannabis-infused beverages which equates to approximately five standard-sized cans.
• The proposed regulatory amendment would increase the dried cannabis equivalency for cannabis beverages so that 1 gram of dried cannabis is equal to 570 grams of cannabis beverages.
• This would increase the public passion limit for beverages to 17.1 liters which is more than 8x’s the current volume or 48 standard-sized cans.
• The new rule does not change the 10 milligram THC limit per container.

Our Perspective

The proposed changes will be welcomed by the industry, particularly cannabis-infused beverage producers, retailers, and consumers but is unlikely to have a major impact on the overall market or lead to changes in consumer preferences. Although not the sweeping changes to cannabis edibles regulations people are hoping for, it is a step in the right direction and a positive development overall for the industry.

Hurdles in Cannabis Education

The Michigan Marijuana Regulatory Agency (MRA) along with other industry insiders and university expressed frustration in the federal government hampering their ability to provide cannabis education to the state.

The Breakdown

• Despite the MRA creating a new licence type that allows universities to purchase cannabis or product their own for education purposes, they would still be operating in a “grey zone” due to the legality of cannabis on a federal level.
• The license allows schools to procure, grow, process, study and eventually destroy marijuana products, however, proof of registration with the DEA is required for the licence to be issued.

Our Perspective

This is a positive development for cannabis retailers in Ontario that invested significantly in facilitating delivery and curb-side pickup and will welcome the added certainty from this announcement. Giving retailers more options to reach customers can have a significant impact on brining cannabis users into the legal market and providing access to municipalities that have opted out and do not allow cannabis retail stores.