Canadians will soon be able to legally purchase edible and drinkable cannabis, concentrates, and topical products. Retailers can expect cannabis edibles and new product options to be available in Canada as soon as mid-December, following legal approval on October 17. After that day, cannabis producers must notify Health Canada 60 days prior to selling the products to get approval. After that time, retailers can source products from those approved producers.
What Retailers Need to Know About Marijuana Edibles in Canada
1. The positive financial impact of the cannabis edible market in Canada cannot be understated.
Projections from a recent Deloitte study values the Canadian cannabis edibles and topicals market at $2.7 billion. The research company points out these profits have the potential to benefit retailers more “than cannabis products that are already legal.” Deloitte goes on to break down each product type and how much they could be worth in the Canadian market in terms of consumer spending:
- Edibles ($1.6 billion)
- Cannabis-infused beverages ($529 million)
- Topicals ($174 million)
- Concentrates ($140 million)
- Tinctures ($116 million)
- Capsules ($114 million)
2. The rules for marijuana edibles in Canada remain unclear.
There are many legal grey areas that need clarity within these new product types, like what kinds will be allowed, exactly what they’ll look like, and how retailers will be able to source and sell them. For now, the federal government says you should only expect a limited selection of new products to appear gradually, in physical or online stores, beginning no earlier than mid-December 2019.
The federal government has also given some guidelines on the kinds of products retailers will be allowed to sell, the packaging requirements, and how strong they can be. For instance, edibles are allowed a maximum of 10 milligrams of THC per “single-serving”, while concentrate products (shatter, wax, dabs, etc.) will have a limit of 1,000 milligrams of THC per package. Cannabis topicals like lotions, balms, and oils that are absorbed through the skin will also be limited to 1,000 milligrams of THC per package. Retailers should understand these limits to stay compliant as they decide which products to sell.
Additionally, the government has said packaging and products cannot be “appealing to a young person.” It’s not entirely clear what this means, but it could mean lengthy approval processes for manufacturers and cultivators. Packaging must also be child-resistant, plain, and include health warnings.
3. Retailers must be accredited to make cannabis edibles in Canada.
The Canadian government has been clear that all businesses with the proper retail license to sell must also have separate licensing if they want to cultivate and process cannabis. This means if a business plans to make their own edible products to sell, they must be accredited to do so.
The second wave of legalization in Canada is rapidly approaching. Becoming compliant with these federal regulations means using a seed-to-sale system to meet your cannabis retail needs all in one convenient solution.
Request a free demo with Cova to see how our cannabis compliant POS can solve your biggest challenges.
