Alberta cannabis retail rule changes to save money but concerns remain about industry inequality

“We allocate an hour and a half in the morning and an hour and a half in the evening every single day to do that,” Bartsoff told CHAT News from inside his store’s new, larger location Wednesday.

That ends up costing his business some $20,000 a year in labour to move the products in and out of the back room.

Bartsoff, who already has other security systems in place for his store, is relieved the province is finally removing a rule that other provinces like Ontario never had to begin with.

“It’s still perfectly safe because there’s many glass sensors and monitors and motion detectors everywhere anyways, so the realism is that nobody can come and steal our product anyways,” he said.

“It’s nice to see them streamline things that didn’t make sense.”

That was not the only rule change coming for the pot industry.

Licensed cannabis retailers will be able to operate temporary sales locations — such as booths or pop-up shops — at adult-only events such as trade shows and festivals.

The government is also removing restrictions on sales and transfers between cannabis retailers and allowing the Alberta Gaming, Liquor and Cannabis agency to establish resale markup limits.

The new transfer regulations will allow chain retailers to easily hold all its inventory in one location and distribute it to nearby storefronts as needed, Bartsoff explained.

While that leaves local outlets like Giving and Receiving Ltd. at a disadvantage, Bartsoff said he was most frustrated by the lack of a level playing field when it comes to knowing the government’s plans.

“I’m the epitome of small business and small business doesn’t often have a seat at the table,” Bartsoff, who opened his shop in early 2019, said.

Though he acknowledged there can be a lot of the positive changes, the regulation changes are often pushed for by the big name retailers without looping in the small businesses.

“Those big giant competitors of mine have lobbyists, so they’re in the know and they’re familiar with it. We’re getting the [news] release and the release already has them commenting on it,” Bartsoff said.

“They’re fully aware of it when we’re not.”

High Tide Inc. is the largest revenue-generating cannabis company in Canada. Its founder and CEO Raj Grover said the United Conservative government’s moves will save jobs.

“The removal of unnecessary red tape for the cannabis industry will safeguard the tens of thousands of jobs that have been created since legalization,” Grover said.

Marcie Kiziak, an executive at the second-largest revenue-generating Canadian cannabis company SNDL, hailed the changes as a big step forward.

“The regulatory updates are a significant stride towards enhancing stability and reducing red tape for cannabis retailers while maintaining a commitment to public safety,” Kiziak, SNDL’s president for cannabis retail, said.

“The improvements enable more effective inventory management, increased promotional opportunities, and continued migration from the illicit market to better support the entire retail network.”

The new regulations, announced by the province Dec. 18, will come into effect on Jan. 31.

It follows other regulation changes this year by the liquor and cannabis agency to remove cannabis retail store sign restrictions, simplifying the online age verification process, reducing listing fees and allowing retailers to open for business at 9 a.m.

by Eli J. Ridder | @EliRidder

Alberta cannabis retail rule changes to save money but concerns remain about industry inequality

Our Community