Cannabis Retail Licensing
Looking to launch a cannabis retail operation in Alberta? Here’s everything you need to know about the licensing process
What kind of retail locations are authorized?
Albertans are able to purchase non-medical cannabis at privately operated physical retail stores as well as through publicly operated online stores.
What is the process for cannabis retail permitting in Alberta?
The Due Diligence Unit of the AGLC is in charge of processing retail cannabis applications in Alberta. To apply, the corporate entity applying for a retail license must complete theApplicant Disclosure Form and have an ownership interest of 10% or more of the applying retail cannabis store. Any investors with 10% or more ownership are required to complete the Associated Applicant Disclosure Form.
Key applicants must undergo thorough and extensive personal and financial background checks, conducted by the AGLC. Those who exercise influence or control over day-to-day operations of the business, have decision-making power, can hire and/or fire employees all must undergo background checks.
You can view the full official AGLC Applicant Requirement Cannabis Retail Store License online.
Does an applicant need municipal approval before receiving a retail license?
Yes, municipal approval is required before the AGLC will issue a retail cannabis license. Applicants should get in touch with their intended municipality to find out requirements regarding municipal retail cannabis laws, zoning requirements, land-use restrictions, and location requirements regarding how close a retail store can be to a provincial health care facility, school, or parcel of land designated as a school reserve.
Are there any business requirements when applying for a cannabis license in Alberta?
All retail cannabis businesses must be incorporated or extra-provincially registered in Alberta. The business must be separate from any other business, solely operate for the purpose of retail cannabis, and have a signed lease or certificate of title.
Are there fees associated with the Alberta application process?
A $400 non-refundable application fee is due for each store location at the time of submission; a $700 annual license fee; and $3,000 initial deposit to cover the cost of background checks and additional costs of due diligence (the AGLC will refund any part of the $3,000 that is unused).
How long will the application and permitting process take?
According to the AGLC, the licensing process will take approximately two to four months.
Where can I find more information about Alberta's retail cannabis licensing process?
You can find extensive information, forms, and fees regarding Alberta’s cannabis licensing here.
Cannabis Retail Sales
Remaining compliant with federal and provincial regulations will be critical. Learn the details of Alberta’s cannabis retail law here.
Where can retail cannabis stores buy wholesale cannabis inventory?
All retailers must purchase wholesale inventory directly from the AGLC.
What are the purchase limits for retail customers?
Alberta allows adults to publicly possess up to 30 grams of dried cannabis or its equivalent, a limit that is in line with the federal government’s possession limit. However, individual provinces may restrict daily purchase limits.
Will online cannabis sales be authorized?
Online sales and home delivery is only available through a single website operated by the AGLC at albertacannabis.org.
Private cannabis stores can have online menus and offer Click-and-Collect (order online, pick up in-store) services.
What is the minimum age of purchase for retail cannabis?
Alberta has set the minimum age at 18, which is consistent with the purchase and consumption age for alcohol and tobacco.
What hours will cannabis retailers be authorized to operate?
Just like liquor stores, cannabis retailers may be open from 10 a.m. to 2 a.m.
Can cannabis retailers sell anything other than cannabis?
All cannabis accessories must be approved for sale by the AGLC first.
Cannabis Tracking and Reporting
Cannabis tracking and reporting helps the government prevent diversion into the black market. Get the facts here.
What is required of cannabis retailers with regard to tracking and reporting?
The proposed Cannabis Act authorizes the Minister to establish a national cannabis tracking system and to require licensed operators to report all cannabis activity.
The AGLC recently released a comprehensive list of requirements for retail cannabis, including requirements for tracking. Retailers must track both the AGLC number and lot number, method of payment, and date and time for every transaction. This must be reported to the AGLC in the accepted format by midnight on the seventh day of every calendar month. Inventory audits are required on a monthly basis and discrepancies must be reported to the AGLC. All of this data must be backed up, stored, and made available to law enforcement if requested.
Does Cova POS meet all the AGLC's requirements?
Yes; our team at Cova has carefully reviewed Alberta’s tracking and reporting requirements and our cannabis-specific retail point of sale software meets every one. Not only will it make it easier for dispensary owners and managers to remain compliant, it will go above and beyond with features that can help optimize and grow the business.
Cannabis Marketing Laws in Alberta
What federal cannabis marketing laws affect cannabis companies and dispensaries in AB?
The Cannabis Act includes strict marketing and advertising laws. Specifically, it outlines five main restrictions when it comes to marketing cannabis products, accessories, and services. They include:
- No testimonials or personal endorsements (from clients, customers, employees, or celebrities);
- Cannot appeal to children or minors or advertise anywhere with a young audience;
- Cannot include any pricing information except for at the point of sale;
- Cannot use the depiction of a person, character, or animal (whether real or fiction) to promote cannabis;
- No cannabis advertising or marketing can make cannabis look cool, glamorous, or exciting.
Can cannabis companies in Alberta use paid ads such as Google Adwords?
The law makes it clear that no cannabis, cannabis accessory, or cannabis service can be advertised in any publication or broadcast that originates outside of Canada. This is likely to limit a dispensary from many paid advertising opportunities on sites that reach an audience outside of the country. And since no testimonials are allowed, review-based sites like Yelp are a gray area.
When it comes to paid ads on Google Adwords, a cannabis brand could limit the age range of their ads to 19 years and older and only target users in Canada to work around federal marketing laws. But this doesn’t change the fact that Google has a strict no-cannabis policy, even in legal countries. A cannabis brand can try to get ads through this filter, but multiple disapproved ads can get your site URL banned for good.A better option is to focus on organic search optimizations.
Can I give away free product at my cannabis dispensary in AB?
No, the Cannabis Act is very clear that no free product can be given out.
Are there any province-specific cannabis marketing laws in AB?
Yes. Alberta established additional advertising laws in concert with federal guidelines. One major difference is that the AGLC allows a cannabis licensee and manufacturer of non-cannabis products and accessories to jointly advertise, so long as the advertisement complies with all other cannabis advertising laws.
The province also goes into more detail than the federal law when it comes to business-to-business advertising. Specifically, a cannabis supplier cannot direct advertising to a particular licensee or chain of licensees. But the AGLC does permit “co-operative advertising” in which an advertisement includes the specific mention of a cannabis supplier/representative, so long as the licensee covers all costs pertaining to the advertising.
The AGLC also requires every licensee to keep records of advertising for a period of two years, which the AGLC can request at any time.
