Association Québécoise de l'Industrie du Cannabis

Economy

Small businesses in the cannabis industry are struggling

As Delta 9's John Arbuthnot explains, "red tape, high taxes and low margins are hurting profitability. As a result, more and more of the industry's smaller companies are being bought out by the bigger players. He says, "Canadian cannabis and the retail segment are now reaching a saturation point. Consolidation is going to be a key theme going forward. But beyond that, he appeals to the government to cut red tape and taxes, one of the things that undermines the Canadian cannabis market the most: "We really need the government's support to come in and look at this overall structure that we've created for the industry in terms of regulation and taxation, say what's working and what's not and make some changes quickly."

Daily news

This review is almost a year overdue.

In October 2018, the Liberals lifted a century-long ban on the use and sale of recreational cannabis, providing that they would review the law three years after it went into effect.

That review is nearly a year overdue.

The law stipulates that the federal government must investigate the impact of legalization on public health, youth use and Aboriginal people and their communities.

The review will also look at home-grown cannabis.

Health Minister Jean-Yves Duclos and Mental Health and Addictions Minister Carolyn Bennett must report back to the House of Commons and Senate within 18 months of the launch of the review.

Daily news

SQDC returns $54 million to the Quebec government during the first quarter

The $54 million paid includes its net profits of $20.5 million as well as $33.5 million in consumption and excise taxes. The $20.5 million will be invested in prevention, research and substance abuse prevention. In other good news, sales have increased from $136.5 million to $139 million compared to the same period last year. As a result, a total of 25,050 kg were sold, mainly in branches.

 

Daily news

Mini-homes Construction Buildings Real Estate Innovation Hemp

The mini-home trend took off a few years ago. These homes have become popular for two reasons: because they are economical, but also because they are more environmentally friendly. Two Irish companies, Common Knowledge and Tigin Tiny Homes, have decided to collaborate to take the concept even further by creating mini-homes with hemp panel structures by combining a sugar-based resin from plant waste and cannabis plant fibers. This therefore reduces the carbon emissions of these constructions but also contributes to the circular economy. 

International

Germany increases medical cannabis imports but Canada's market share appears to be shrinking

Germany imported a record amount of cannabis for medical and scientific use in the first half of this year, putting imports from the European Union's largest market on track to equal or exceed the 2021 total. However, while Canada still remains the largest supplier to the German market, it appears that its market share is shrinking as this highly prized but still small market intensifies. As a result, competitors such as Denmark, the Netherlands and Portugal are beginning to gain ground.

Daily news

Aurora Cannabis founder Terry Booth joins Akanda advisory board

Akanda Corp. has announced that Terry Booth will join its advisory board. According to a company release, "Terry is an iconic figure in the regulated cannabis industry. After founding and leading Aurora, he brings his extensive expertise to a wide range of fast-growing organizations around the world," said Akanda CEO Tej Virk. "Having Terry on board as an advisor is a powerful validation of our strategy and potential to lead the emerging cannabis market in Europe. I look forward to his guidance as we continue to develop our European seed-to-patient distribution channel."

Economy

Cannabis industry faces inflationary pressures and threat of recession

While the industry has managed to weather the COVID-19 crisis, rising inflation and the increasing threat of a recession in North America are beginning to put pressure on companies. As a result, many North American companies have been forced to cut hundreds of jobs, close outlets and facilities, and even shut down operations entirely. According to experts, the economic downturn in the cannabis industry is a consequence of several factors, including falling wholesale cannabis prices, declining consumer purchasing power, but also structural changes affecting the industry. The shortage of labor is a factor that affects the industry as it is the case for many industries. Added to this is the fact that there are also many companies that have begun restructuring procedures. As Daniel Summer, Professor of Agricultural and Resource Economics at the University of California, explains, "The declining costs of cannabis at the operating level is the reality of this sector. That's due to better management, but also technology. However, taking inflation into account, we now spend 10 percent of our income on food - not 4 percent as we did two generations ago - and there's no reason to think that cannabis won't follow that trajectory. 

Cannabis Research

Beyond the clichés: cannabis users are no less motivated than non-users

A study from the University of Cambridge puts an end to one of the most widespread clichés about cannabis users: that consumption makes them lazy and demotivated. According to the results of the research, it would be the opposite: cannabis users have a level of anhedonia, which is a loss of interest in receiving rewards, which would show that they would be more capable of having fun than others. As for their levels of apathy, users and non-users scored equally. Thus, the researchers said, "(they were) surprised to find that there was really very little difference between cannabis users and non-users in terms of lack of motivation or lack of enjoyment, even among those who used cannabis every day. This is contrary to what we see on television and in movies. Interestingly, teens tended to have higher levels of anhedonia and apathy than adults, which would demonstrate that teens are no more vulnerable than adults when it comes to motivation. To corroborate their findings, the research team also examined the participants' fMRI images and noted no significant changes in brain activity in the ventral striatum, the region that regulates the brain's reward system.

Economy

Missed opportunity: Canadian cannabis industry not promoted during German Chancellor Olaf Scholz's visit

While Germany has announced its intention to legalize cannabis and will become Europe's largest market (estimated to be worth over $100 million), it seems that the Canadian government has missed an opportunity to promote the industry and thus encourage exports to Germany. Especially when there is a surplus of Canadian supply. As the Canadian Chamber of Commerce explains in a statement to MJBizDaily: "As the first G-7 economy to legalize recreational cannabis, Canada has a distinct advantage and should promote the legal sector internationally. While cannabis was not on the agenda during German Chancellor Scholz's brief visit to Canada earlier this month, the Canadian Chamber's National Cannabis Working Group believes Canada should actively work to secure future meetings with countries like Germany to share industry best practices and facilitate trade opportunities, including the export of medicinal cannabis." Especially when the cannabis industry has contributed nearly $43.5 billion to the national economy.

International

The International Council on Alcohol, Drugs and Traffic Safety (ICADTS) has released new tools summarizing the latest research on cannabis and driving

Researchers from 11 countries have joined forces to create tools that will inform policy makers in the various countries where cannabis is legal to create a legal framework around cannabis and driving. The published fact sheets are the result of research findings and are intended as a means to enable the development of science-based legislation. As Thomas Arketll, one of the researchers involved in the project, explains, "With respect to cannabis, there is very little consistency in the way jurisdictions deal with the issue of impaired driving. A priority for the future is to establish greater consistency in the types of tools used to assess impairment and how the results are recorded."

Economy

Canopy Growth expands its cannabis beverage offerings

The cannabis beverage market is a growing market with an expected annual growth rate of 15-25% in the next 5-7 years. Canopy Growth is looking to capitalize on this growth and has expanded its offerings to carve out a niche in the market. This summer, they even started promotional campaigns directly in 1400 cannabis stores across Canada where they offered consumers a sample of some of their wood products (including Tweed, one of their best sellers, Deep Space, Quatreau, Ace Valley as well as their new products Green Solstice and Eclipe). According to Mark Lee, director of consumer and branded products, their experience in the market has shown them two things: first, the vast majority of consumers who buy cannabis-based beverages are not new consumers, but rather existing consumers. Second, the beverages are complementary to their purchases and are purchased along with other cannabis products. So, "By focusing on existing cannabis consumers, we've doubled our in-store marketing efforts, shifting spending to outside the store. One example of this is our increased investment in our refrigerator program, a decision driven by analytics that told us that displaying beverages near the register is critical to increasing the shopping cart and that serving refrigerated beverages helps meet consumer expectations."

Daily news

Interview with Beena Goldenberg, CEO of Organigram

Organigram CEO Beena Goldenberg gave an interview to the Toronto Star in which she talks about the company's new strategic partnership with tobacco company British American Tobacco and paints a picture of the cannabis industry in Canada and the challenges faced by producers. Speaking of British American Tobacco, which owns just under 20% of the company, she explained that the company has created a 'Beyond Nicotine' research group, demonstrating the fact that the company wants to innovate and recognizes that cigarettes are going to be phased out, so they are looking at other products such as cannabis. In addition, this type of business brings in more funds and therefore increases the funds available for research. Mr. Goldenberg also spoke of the pressing need for reform of the Cannabis Act, both in terms of the excise tax, which prevents businesses in the sector from being profitable, and the tax on medical cannabis, which is not taxed. Many points that Organigram and the entire industry are eager to discuss with the government very soon.