Direct Delivery Postponed Indefinitely in BC

The BC government is telling cannabis producers that they will be halting their direct delivery program, which just launched last week, due to the ongoing job action by the BCGEU, per StratCann.

The Breakdown

• The BC LDB notified producers that already received initial approval to participate in the direct delivery program that they are no longer authorized to sell any new products or products until aspects of the labour dispute have been resolved.
• The BC government and the BCGEU have reopened negotiations and have both agreed to a media and member communications blackout.
• Producers have been notified by the BC government that they will be issuing fines to companies that have shipped out product without the proper approval and authorizations in place.

Our Perspective

The job action in BC has caused a serious uproar, with retailers and producers becoming increasingly frustrated by it. It has also lead to some division between the responsibility of the government to resolve the job action, and the negative effect it is having on businesses. With reports that cannabis stores are now needing to shut down due to the union strike, retailers are worried that it could last several more weeks, which would be debilitation for many companies. With the prospect of direct delivery being a potential stop-gap that would have eased some of the supply-chain issues, this recent development will only increase calls to reform the centralized distribution system in BC.

New York Begins Accepting Retail Applications

Justice-involved individuals are now able to submit applications for the first round of retailer licenses in the state, per Marijuana Moment.

The Breakdown

• The Office of Cannabis Management provided a geographical breakdown of the maximum number of conditional adult-use retail dispensaries (CAURD).
• Up to 150 licenses will be awarded across 14 regions of the state, with most concentrated in New York City boroughs like Manhattan, Brooklyn and Long Island.
• The application will be open until September 26, and to qualify for the special retail license, applicants must have faced a conviction for a cannabis-related offense prior to the enactment of legalization in the state or have a direct relative with such a conviction.
• People who receive Conditional Adult-Use Retail Dispensaries (CAURD) licenses will be able to access a $200 million Social Equity Cannabis Fund and be eligible for turnkey storefronts that are now being secured and built out by the Dormitory Authority of the State of New York.
• The mayor of New York also announced the launch of a new program called Cannabis NYC, an initiative aimed at helping cannabis industry equity applicants with the licensing application process and providing additional business support services.

Our Perspective

New York appears to be on track to have the pieces in place for its adult-use recreational market by the end of the year. A lot of attention will be paid to how successful the social equity initiatives embedded in New York’s recreational legalization will be and could serve as a blueprint for other states wanting to right the wrongs of the war on drugs.

Cannabis Store Opening in Toronto’s Union Station

In what’s believed to be the world’s first cannabis store in a major transportation hub, Fika will be opening on the Bay Street promenade in Union Station come September, per Daily Hive.

The Breakdown

• As an extremely busy transportation hub, FIKA’s cannabis store will be available to over 75,000 residents and more than 300,000 daily commuters.
• This will be Fika’s flagship location, marking the brand’s seventh Toronto location and 18th store in Ontario.
• Earlier this year, Fika also opened two new locations at Cadillac Fairview Malls in Kitchener and Toronto.

Our Perspective

This is big news and congratulations are in order for Fika who managed to land this lucrative real estate. Being inside Union station will provide high foot traffic as well as an opportunity to help normalize the use of cannabis, particularly for tourist who are experiencing a legal cannabis market for the firs time.